MIRA INFORM REPORT

 

 

Report Date :

28.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

H&H COMPANY LIMITED

 

 

Formerly Known As :

H&H LLC

 

 

Registered Office :

JS Tower, Building No. 81, 3rd Floor, Sun Way Road (Aka Narny Zam), 5th Khoroo, 5th Khoroolo, Sukhbaatar District Ulaanbaatar 14253

 

 

Country :

Mongolia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

22.09.2005

 

 

Com. Reg. No.:

9011066044

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, and retailers of medical equipment, supplies and accessories.

 

 

No. of Employees :

18

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

H&H Company Limited

 

 

ADDRESS

 

Building   : JS Tower, Building No. 81, 3rd Floor

 

Street     : Sun Way road (aka Narny Zam)

 

Area       : 5th Khoroo, 5th Khoroolo, Sukhbaatar District

 

Town       : Ulaanbaatar 14253

Country    : Mongolia

 

Telephone  :      (976 70) 185 000 / Mobiles (976 99) 117 315 (Tsolmon

                        Adiya) / (976 99) 504 052 (Toswig Munkhzorig)

Fax                   : (976 70) 145 001

E-Mail               : tsolmon@handh.mn / info@handh.mn

Website            : www.handh.mn

 

Also Known As : H&H LLC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Tsolmon Adiya                                               President

 

2. Myagmar Erkhnembileg                      Vice President

 

3. Munkhbayar Bayanduuren                   Chief Executive Officer

 

4. Toswig Munkhzorig                             Medical Technology Engineer

 

5. Ch. Uranchimeg                                 Accountant

 

 

Total Employees :                                18

 


 

PAYMENTS

 

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

 

We consider it is acceptable to deal with subject for SMALL amounts,

it is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

Opinion on maximum credit : TUGRIK 122,000,000

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKER

 

NAME               : KHAS BANK

 

Branch              : 109 Branch

Town                 : Ulaanbaatar 210646

 

Telephone         : (976 11) 318 185

Fax                   : (976 11) 328 701

 

 

FINANCIAL INFORMATION

 

Balance Sheets as at 31 December 2013 Showed :

 

                                                31/12/2012          31/12/2013

                                                            (in TUGRIK)

ASSETS

 

Current Assets

Cash and equal income              1,121,907,686.41    2,219,230,571.31

Account receivable                      71,328,768.12      540,834,995.40

Tax, social insurance charge

Receivable                                  343,384.50             2,78.00

Goods and materials                  1,116,081,642.00    1,244,391,285.37

Total grand assets                     2,309,661,481.03    4,065,691,018.85

Noncurrent assets

Fixed assets                             82,673,113.59       66,584,415.32

Total noncurrent assets              82,673,113.59       66,584,415.32

Total assets                              2,392,334,594.62    4,133,275,434.17

Payables through account          888,692,269.91    1,942,583,790.99

Payables through tax                 20,535,785.78       18,677,818.33

Short term bank credit                99,372,122.00      699,372,282.00

Resource / payment                   980,040,707.52    1,043,128,000.00

Total short term payables           1,988,640,885.21    3,703,761,891.33

 

LIABILITIES & STOCKHOLDERS EQUITY

 

Total Liabilities                           1,988,640,885.21    3,703,761,891.33

Stockholders equity

Private                                      12,200,000.00       12,200,000.00

Accumulated profit                     391,493,709.41      417,313,542.84

Total stockholders’ equity            403,693,709.41      429,513,542.84

Total liabilities &

stockholders equity                     2,392,334,594.62    4,133,275,434.17

 

INCOME STATEMENT

 

Net sales income                       4,070,658,253.23    6,064,626,713.56

Cost of goods sold                     3,584,476,426.22    5,713,273,660.65

Gross profit / loss                      486,181,827.01      351,353,052.91

Sales, marketing expenses                     0          13,594,287.22

General and management

Expenses                                              0       86,371,996.71

Financial expenses                    36,699,971.87       79,897,135.39

Other expenses                                     0           13,272,264.50

Exchange difference benefits       (12,669,181.73)       5,020,518,66

Profit before tax                         436,812,673.41      163,237,887.69

Income tax expense                    45,318,964.02       17,418,054,26

Income tax expense in reporting

Term                                         45,318,964.02       17,418,054,26

Profit after tax                            391,493,709.69      145,918,833.43

Net profit in reporting term           391,493,709.69      145,918,833.43

Total income sum                      391,493,709.69      145,918,833.43

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 22 September 2005

 

History : The company was established in Ulaanbaatar on 22 September 2005 as a Limited Liability Company with following shareholders :

 

- Tsolmon Atiya                                     65%

 (Mongolian national)

- Seochan Suk                                       30%

 (Korean national)

- Myagmar Erkhnembileg                        5%

 (Mongolian national)

 

In 2012, subject’s shareholding structure changed to the present.

 

C.R. No.: 9011066044

 

Tax No.: 5121529

 

Capital : not given

  

Limited Liability Company with the following shareholders :

                                                                                    Percentage

 

1. Tsolmon Adiya                                                           51%

  (Mongolian national)

 

2. Myagmar Erkhnembileg                                              34%

  (Mongolian national)

          

3. Munkhbayar Bayanduuren                                           15%

  (Mongolian national)

 

Affiliated companies of the H&H Company Limited :

 

Associate

 

1. H&H Foods Co. Ltd

   Bayanzurkh District

 

2. H&H Construction Co. Ltd

   Ulaanbaatar

 

3. H&H Mining Co. Ltd

   Ulaanbaatar

 

4. Anand Bayan Tal Co. Ltd

   Ulaanbaatar

 

5. H&H Remicon Co. Ltd

   Ulaanbaatar

 

6. Treasure Island Co. Ltd

   Ulaanbaatar

 

7. Eslet Co. Ltd

   Ulaanbaatar

 


 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, and retailers of medical equipment, supplies and accessories.

 

NACE Code : 4774

 

Subject’s main suppliers are as follows :

 

- Agfa Healthcare (Belgium);

- B.Braun (Germany);

- Agfa (Kasakhstan);

- SAMSUNG MEDISON SAMPOONG JPI, MEDIEN INTL MHK, GENORAY (S. Korea);

- Cole Palmer Ampronix (USA);

- Dorian Drake (USA);

- Pentax Asahi X-ray (Japan);

- TCL, Aeonmed (China);

- Leison (China);

- Draeger Medical (Germany).

 

Imports from Russia, USA, Germany, Belgium, UK, Kazakhstan, Japan, South Korea, India and China.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

250 sq. m. owned administrative offices and storage facilities located at the heading address.

 

Until 2012 subject was located at :

 

Taliin Bolor Centre,3rd Floor

5th Khoroo

Bayangol District

 

 

SPECIAL NOTES

 

The address given by you : 5th Horoolol 5th Horoo is misspelt. Please note that the correct spelling is as per heading.

 

Interviewed : Tsolmon Adiya (President).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.06

UK Pound

1

Rs.99.61

Euro

1

Rs.80.60

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.