MIRA INFORM REPORT

 

 

Report Date :

24.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MONOS PHARMA TRADE LLC

 

 

Registered Office :

Chingunjav Street 71/3, Ulaanbaatar 210526

 

 

Country :

Mongolia

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

13.03.2002

 

 

Com. Reg. No.:

9011022059

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers and retailers of medicines, medical devices, medical equipment, vaccines, bio preparations, cosmetics, diagnostic materials, patient care products, child and maternity care items and biologically active additional nutrition.

 

 

No of Employees :

280 (subject)

1,300 plus (group)

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 


 

MONGOLIA - ECONOMIC OVERVIEW

 

Mongolia's extensive mineral deposits and attendant growth in mining-sector activities have transformed Mongolia's economy, which traditionally has been dependent on herding and agriculture. Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among others, have attracted foreign direct investment. Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990 and 1991 at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession, because of political inaction and natural disasters, as well as economic growth, because of reform-embracing, free-market economics and extensive privatization of the formerly state-run economy. The country opened a fledgling stock exchange in 1991. Mongolia joined the World Trade Organization in 1997 and seeks to expand its participation in regional economic and trade regimes. Growth averaged nearly 9% per year in 2004-08 largely because of high copper prices globally and new gold production. By late 2008, Mongolia was hit hard by the global financial crisis. Slower global economic growth hurt the country's exports, notably copper, and slashed government revenues. As a result, Mongolia's real economy contracted 1.3% in 2009. In early 2009, the International Monetary Fund reached a $236 million Stand-by Arrangement with Mongolia and the country has largely emerged from the crisis with better regulations and closer supervision. The banking sector strengthened but weaknesses remain. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi mine, considered to be among the world's largest untapped copper-gold deposits. Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as a destination for foreign direct investment. Negotiations to develop the massive Tavan Tolgoi coal field also have stalled. The economy has grown more than 10% per year since 2010, largely on the strength of commodity exports to nearby countries and high government spending domestically. Mongolia's economy, however, faces near-term economic risks from the government's loose fiscal and monetary policies, which are contributing to high inflation, and from uncertainties in foreign demand for Mongolian exports. Trade with China represents more than half of Mongolia's total external trade - China receives more than 90% of Mongolia's exports and is Mongolia's largest supplier. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in the first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel and a substantial amount of electric power from Russia. A drop in foreign direct investment and a decrease in Chinese demand for Mongolia's mineral exports are putting pressure on Mongolia's balance of payments. Remittances from Mongolians working abroad, particularly in South Korea, are significant.

 

Source : CIA

 

 


COMPANY NAME

 

Monos Pharma Trade LLC

 

 

ADDRESS

 

Building             : Monos Pharma Building

 

Street              : Namyanju Street

 

Area                             : 18th Khroo, Bayanzurkh District

 

Town                 : Ulaanbaatar 210348

Country             : Mongolia

 

Telephone         : (976 11) 450 054 ext. 111 (Legal Advisor) / 450 127 / 453

                           954 / Mobiles (976 99) 090 832 (Ariunzaya Choij) / (976

                           88) 106 431 (Tamir Bayasgalan) / (976 96) 657 181 / (976

                           99) 116 431 / (976 88) 090 088 / (976 99) 175 223

Fax                   : (976 11) 463 158

E-Mail               : monostrade@mongol.net / ariunzaya.choij@monos.mn /

                          monostrade@monos.mn / tamir@monos.mn

Website            : www.monos.mn

 

Also Known As : Monos Pharm Trade LLC / MonosFarm Treyd OOO / Monosfarm Treyd XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Khurelbaatar Lupsan                           Chairman

 

2. Ariunzaya Choij                                  Senior Manager of Pharmaceutical Product Division

 

3. Tamir Bayasgalan                              Foreign Affairs Business Trade & Development

 

4. Bayanmunkh Ganpurev                       Vice Director

 

5. Uyanga Bandii                                   Group Administrative Manager

 

6. Tuya Baasanjav                                  Chief Accountant

 

7. Mrs Enkhtuya                                    Legal Advisor

 

8. Ms M. Baterdene                               Senior Manager

 

9. Ms Lkhagvajav Batzorig                      Procurement Officer

 

Total Employees                                    :   280 (subject)

                                                                1,300 plus (group)

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

Subject is a member of the Monos Group of companies was established in 1990. Monos Group has 16 years history and 10 affiliated companies, cooperates with 50 companies from 30 countries in the worldwide. Monos Group have more than 1,300 workers.

 

We consider it is acceptable to deal with subject for MEDIUM amounts, although it is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

Trade risk assessment : Normal

 

 

TRADE REFERENCES

 

NAME               : ACTAVIS INTERNATIONAL LIMITED

Street               : Industrial Estate B, 16

Town                 : Zejtun

Country             : Malta

Email                : gtenchov@actavis.bg

Contact             : GeorgyTenchov, Regional Manager

 

NAME               : KRKA

Street               : Smarjeska c.6

Town                 : Novo mesto

Country             : Slovenija

Telephone         :(386 1) 475 1261

Email                : gorazd.strajnar@krka.biz

Contact             : Mr.Gorazd Strajnar, Deputy Director

 

NAME               : DENK PHARMA GmbH & Co. KG

Street               : Prinzregentenstr.79

Town                 : Muenchen 81675

Country             : Slovenija

Telephone         : (49 894) 574 7260

Email                : Alexander.Lenk@denkpharma.de

Contact             : Mr. Alexander Lenk, Export Manager

 

NAME               : Bayer Schering Pharma AG

Town                 : Berlin 13342

Country             : Germany

Telephone         : (7 727) 258 8040 (int. 139)

Email                : maya.dumanova@bayerhealthcare.com

Contact             : Ms.Maya Dumanova. Logistics specialist for Central Asia

 

NAME               : SANOFI WINTHROP INDUSTRIE

Street               : Avenue Raspail 82

Town                 : Gentilly 94250

Region              : Cedex

Country             : France

Email                : varvara.berseneva@sanofi-aventis.com

Contact             : Ms. VarvaraBerseneva, Customer Service Manager

 

 

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch              : Juulnchny Gudamj 7

Town                 : Ulaanbaatar 210646

 

Telephone         : (976 11) 312 362 / 331 133

Fax                   : (976 11) 325 449

 

Acc. No.           : 453000729 (EUR)

Acc. No.           : 453008016 (USD)

SWIFT              : TDBM MN UB

 

The company also has an account with the following banks :

 

1. Golomt Bank of Mongolia

   Sukhbaatar Square 3

   PO Box 22

   Ulaanbaatar 210620A

   Telephone      : (976 11) 311 530

   Fax                : (976 11) 326 535

 

2. Khan Bank

   Seoul Street 25

   Sukhbaatar District

   Ulaanbaatar

   Telephone      : (976 11) 332 333 

   Fax                : (976 70) 117 023

 

3. Khas Bank

   Sukhbaatar district

   Ulaanbaatar 14200

   Telephone      : (976 11) 318 185

   Fax                : (976 11) 328 701

 

4. Zoos Bank

   Baga Toiruu Street 7/1

   Chingeltei District

   Ulaanbaatar 210644

   Telephone      : (976 11) 322 244 

   Fax                : (976 11) 329 537 

 

 

AUDITORS

 

Ernst & Young Mongolia Audit LLC

Suite 401

4th Floor Bodi Tower

Sukhbaatar Square

Ulanbaatar, Mongolia

Telephone         : (976 11) 314 032 / 312 005

Fax                   : (976 11) 312 042

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or disclose balance sheets. However, the subject interviewed offered

the following information :

 

Sales Turnover  : US DLRS 16,835,025 - 2009 - exact

                        : US DLRS 16,431,383 - 2010 - exact

                        : US DLRS 19,430,000 - 2011 - exact

                        : US DLRS 35,000,000 - 2012 – exact *

                        : US DLRS 40,000,000 - 2013 – exact *

                        : US DLRS 45,000,000 - 2014 – projected ***

 

Net Profit          : US DLRS  3,125,960 - 2009 - exact

                        : US DLRS  2,387,019 - 2010 - exact

                        : not given          - 2011

                        : US DLRS  3,500,000 - 2012 - exact

                        : US DLRS  2,000,000 - 2013 - exact **

                        : US DLRS  2,225,000 - 2014 - projected

 

* Sharp increase in sales turnover in 2012 & 2013 was attributed to favourable market conditions.

 

** Decrease in net profit in 2013 was due to unfavourable market  conditions.

 

*** Projected increase in sales turnover in 2014 is due to favorable market conditions.

 

Financial year ends 31 December.                                         

 

Balance Sheets as at 31.12.2009 (latest available) showed :

 

                               31.12.2007    31.12.2008    31.12.2009

                                    (in thousands of TUGRIK)

 

ASSETS

 

NON CURRENT ASSETS

Property.plant and equipment  2,864,079.0   4,830,912.1   4,939,073.3

Intangible assets                19,675.0      12,812.7         600.0

Investment in subsidiary                -            -  

Subtotal non-current assets   2,883,754.0   4,843,724.8   4,939,673.3

 

CURRENT ASSETS

Inventories                   4,272,326.0   6,398,286.1   6,335,707.8

Trade receivables             1,955,447.0   3,125,960.9   2,211,005.6

Other receivables, prepayments1,928,742.0   1,423,009.4   1,158,985.6

Amounts due from related      1,556,927.0     814,082.5   1,540,253.8

companies

Cash and bank balances          995,687.0     229,963.4     245,757.6

Subtotal current assets      10,709,129.0  11,991,302.3  11,491,710.5

 

TOTAL ASSETS                 13,592,883.0  16,835,027.1  16,431,383.8

 

LIABILITIES & EQUITY

 

EQUITY

Share capital                   587,930.0     587,930.4     587,930.4

Revaluation reserve                    -    1,938,216.6   1,967,450.4

Retained earnings             5,312,479.0   5,407,985.5   5,769,287.0

Subtotal equity               5,900,409.0   7,934,132.5   8,324,667.8

 

LONG-TERM DEBT                                        -             -  

 

CURRENT LIABILITIES

Interest bearing loans        3,164,892.0   6,147,679.1   5,212,500.0

and borrowings  

Trade payables                 1,441,077.0  1,692,263.2   2,387,019.7

Other payables                 2,438,821.0    240,398.4     471,651.8

Amounts due to related           647,418.0    754,453.2      23,642.5

companies

Tax payable                          266.0     66,100.7      11,902.0

Subtotal current liabilities   7,692,474.0  8,900,894.6   8,106,716.0

 

TOTАL LIABILITIES & EQUITY    13,592,883.0 16,835,027.1  16,431,383.8

 

Financial year ends 31 December.

 

Profit and loss account as at 31 December 2008 * :

 

                                                   2008          2007

                                             (In thousands Of Tugrik)

 

Revenue                                      24,097,459    18,887,148     

Cost of sales                                18,394,291    14,176,981     

Gross profit                                  5,703,168     4,710,167     

Administrative expenses                       3,456,511     2,001,031     

Other expenses                                  854,252       480,837

Other income                                  1,288,860       142,842     

Finance cost                                    699,658       314,271

Profit before taxation                        1,981,608     2,056,870

Taxation                                        290,459       235,114

Net profit for the year                       1,691,608     1,821,756     

 

Financial year ends 31 December.

 

* Full 2009, 2010, 2011 and 2012 financial results have not been made available to our sources.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                  : 13 March 2002

 

History                          : The Company was established in Mongolia on 13 March 2002, however origins of its

   business activities can be traced back to 1990.

 

C.R. No.                        : 9011022059

 

Tax No.                         : 2670712

 

Authorised Capital          : TUGRIK 587,930,000

 

Paid-Up Capital : TUGRIK 587,930,000  

 

Limited Liability Company with the following shareholders :

 

                                                                                    Percentage

 

1. Khurelbaatar Lupsan                                                    47%

  (Mongolian national)

 

2. Ms Erdenechimeg Lupsan                                           33%

  (Mongolian national)

 

3. Solongo Khurelbator                                                   20%

  (Mongolian national)

 

Affiliated companies of Monos Pharma Trade LLC :

 

Subject is a subsidiary of Monos Group, Mongolia :

 

Monos Group LLC

Monos Group LLC Building

Choimbol Street

Chingeltei District

Telephone         : (976 11) 315 908

Fax                   : (976 11) 320 967

e-Mail               : info@monos.mn

Website            : www.monos.mn

 

Which also includes the following companies :

 

1. Monos Household Co. Ltd

   Chingunjav Street 71/3

   Bayangol District

   Ulaanbaatar

   Telephone      : (976 11) 326 089

   Fax                : (976 11) 326 089  

 

2. Monos Cosmetics Co., Ltd

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Ulaanbaatar 211137

   Telephone      : (976 11) 633 257

   Fax                : (976 11) 633 257

   E-mail            : info@monoscosmetics.mn / cosmetics@monos.mn

   Website         : www.monoscosmetics.mn

 

3. Monos-ABC Co., Ltd

   Kharaa Hotel

   Chingeltei District 2

   Ulaanbaatar

   Telephone      : (976 11) 311 336

   Fax                : (976 11) 311 336

   E-mail            : Monosabc@mongol.net

 

4. Monos Research Center

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Telephone      : (976 11) 633 107

   Fax                : (976 11) 633 117

   E-mail            : monospharma@mongol.net

 

5. Computer Tomography

   Bayangol District

   P.O.B 26

   Ulaanbaatar

   Telephone      : (976) 9979 8990

   E-mail            : monospharma@mongol.net

 

6. Monos pharma Co., Ltd

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Telephone      : (976 11) 633 107

   Fax                : (976 11) 633 117

   E-mail            : monospharma@mongol.net / pharma@monos.mn

   Tax No.          : 99771185

 

7. Monos Ulaanbaatar Co., Ltd

   Chingeltei District 2

   Ulaanbaatar 210526

   Telephone      : (976 11) 315 908

   Fax                : (976 11) 315 908

   E-mail            : monostrade@mongol.net

 

8. Monos San Co., Ltd

   Chingunjav Street 9

   2th Khoroo

   Bayangol District

   Ulaanbaatar 210526

   Telephone      : (976 11) 361 419 / 305 390

   Fax                : (976 11) 361 419

   E-mail            : monostrade@mongol.net

 

9. Monos University

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Ulaanbaatar 211137

   Telephone      : (976 11) 633 235

   Fax                : (976 11) 633 235  

 

10.Magic of Health Magazine

   Chingeltei District 2

   Ulaanbaatar 210526

   Telephone      : (976 11) 322 996

   Fax                : (976 11) 325 639

   E-mail            : monostrade@mongol.net / uvdis@yahoo.com

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of medicines, medical devices, medical equipment, vaccines, bio preparations, cosmetics, diagnostic materials, patient care products, child and maternity care items and biologically active additional nutrition.

 

Subject distributes through the 5 wholesale centres in Ulaanbaatar and 21 local branches in countryside and supplies 40% of Mongolian pharmaceutical market.

 

NACE Codes : 4646 / 4645

 

The company acts as an official distributor of following domestic and foreign companies :

 

- Schering;

- Denkpharma;

- Berlin-Chemie;

- RotexMedica;

- Falkpharma (Germany);

- Sanofi-aventis;

- Bio-Rad (France);

- Sopharma;

- Kendy (Bulgaria);

- Gedeon Richter (Hungary);

- KRKA (Slovenia);

- Terapia (Romania);

- Bayer Schering Pharma AG;

- DENK PHARMA GmbH & Co. KG;

- Ferein-Brinsalov;

- Otechestvennie Lekarstva;

- Irbitskii HFK;

- Endopharma;

- Altaivitaminy (Russia);

- Jelfa (Poland);

- Medochemie (Cyprus);

- Chiron-Vaccines (Italy);

- Himedia (India);

- Brystol Myers Squibb (USA);

- ICN (Switzerland);

- Hospital & Home Care;

- Meheco Jiangsu Medicines;

- Health Products (China).

 

Imports from Russia, USA, Germany, Netherlands, Switzerland, Poland, Slovenia, Bulgaria, Hungary, France, India, South Korea, China, Japan, Vietnam, Austria, Thailand and Malaysia.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned administrative offices, a retail outlet and storage facilities located at the heading address as well as 3 warehouse facilities including logistic centre located at in Mongolia as well as 21 local branches in countryside (see ‘Branch Office’ below).

 

REGISTERED OFFICE

 

Chingunjav Street 71/3

Ulaanbaatar 210526

 

 

BRANCH OFFICE

 

Warehouse Unit

37 Sonsgolon Toituu 20th Khoroo

Songinokhairkhan District 62

Ulaanbaatar 211137

 

 

SPECIAL NOTE

 

Interviewed : Tamir Bayasgalan (Foreign Affairs Business Trade & Development).

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 58.48

UK Pound

1

Rs. 98.67

Euro

1

Rs. 79.80

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.