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Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
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Name : |
H&H COMPANY LIMITED |
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Formerly Known As : |
H&H LLC |
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Registered Office : |
JS Tower, Building No. 81, 3rd Floor, Sun Way Road (Aka Narny Zam), 5th Khoroo, 5th Khoroolo, Sukhbaatar District Ulaanbaatar 14253 |
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Country : |
Mongolia |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
22.09.2005 |
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Com. Reg. No.: |
9011066044 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers, and retailers of
medical equipment, supplies and accessories. |
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No. of Employees : |
18 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Mongolia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
H&H Company Limited
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
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
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
NAME : KHAS BANK
Branch : 109 Branch
Town : Ulaanbaatar 210646
Telephone :
(976 11) 318 185
Fax : (976 11) 328 701
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.
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
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.
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
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.06 |
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1 |
Rs.99.61 |
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Euro |
1 |
Rs.80.60 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.