MIRA INFORM REPORT

 

 

Report Date :

28.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MCS HOLDING LLC

 

 

Formerly Known As :

M SI ES HOLDING XXK / MONGOLIAN CONSULTING HOLDING CO LTD

 

 

Registered Office :

Central Tower, 15th Floor Seoul Street 4 2 Sukhbaatar Square, Sukhbataar District, SBD-8  Ulaanbaatar 210620a

 

 

Country :

Mongolia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1993

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject involves only in key decision making for each subsidiary such as major capital expenditure or partnership selection and provides various group-level services including finance, human resource, legal, insurance, global marketing & media communications to its subsidiaries, while each subsidiary’s day-to-day operation is managed by a management team experienced in its own business independently from the MCS Holding’s management.

 

 

No. of Employees

150 (subject)

 

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 :

Slow but Correct

 

 

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 31st, 2014

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

MCS HOLDING LLC (CORRECT)

MCS GROUP (REQUESTED)

 

 

ADDRESS

 

Building             : Central Tower, 15th Floor

Street               : Seoul Street 4

Area                 : 2 Sukhbaatar Square, Sukhbataar District, SBD-8

Town                 : Ulaanbaatar 210620a

Country             : Mongolia

 

Telephone         : (976 11) 312 625 ext. 1546 (Ms. Tuksjargal) / 311 079 /  (976 77) 212 625 / Mobile (976 99) 118 123 / (976 88) 800 666 (N. Arunbol)

Fax                    : (976 11) 312 175

E-Mail               : azzaya.s@mcs.mn / n.zolo@mcs.mn / gankhuyag@mcs.mn / gantumur.l@mcs.net

website             : www.mcs.mn

 

Trading Styles :             MCS Group

 

Also Known As :            M SI ES HOLDING XXK / MONGOLIAN CONSULTING HOLDING CO LTD

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                    Position

 

1. Od Jambaljamtsiin                  President

 

2. Odjargal Jambaljamtsiin         Chairman of the Board Director

 

3. A. Gankhuyag                        Chief Executive Officer

 

4. L. Eldev-Ochir                        Vice President

 

5. D. Enkhtsetseg (Ms)              Vice President

 

6. L. Myagmarjav                       Vice president for Human

                                                            Resources

 

7. D. Bolormaa (Ms)                 Vice President

 

8. G. Enkhtuvshin                      Vice President

 

9. S. Esentsengel                       Deputy Director

 

10.S. Tsengel                            Deputy Director

 

11.N. Enkhbold                          Deputy Director

 

12.Ms. Munkhtzul                      Financial Manager

 

13.Ms. Aruinbol                         Accountant

 

Total Employees :          150 (subject)

                                    8,000 plus (group)

 

 

PAYMENTS

 

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

 

Subject is a flagship of the MCS Group of Companies - one of the

largest private sector entities in terms of number of employees in

Mongolia 8,103 full-time direct staff through its contractors and subcontractors. The Group has more than 32 subsidiaries covering diversified business activities including: energy & infrastructure, general manufacturing & services, information & communications, property development, and - food, beverage & alcohol. The Group had annual sales turnover of $US 250 million in 2008.

 

We consider it is acceptable to deal with subject for LARGE amounts, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution. Although it is normal accepted practice for international suppliers

to deal on secured terms with Mongolian importers.

 

Trade risk assessment : Normal

 

 

SIGNIFICANT CHANGES

 

In 2013 (mcs.mn) : MCS Group started out as a consultant in the business sector during Mongolia’s transition to a market economy when private companies, manufacturers and financing were scarce. The company raised working capital and was up and running in a considerably short period of time thanks to its founders’ hard work and dedication. As the country’s economy recovered and the private sector improved, we ventured into the retail, service and manufacturing industries.

 

During the transition period – characterized by economic recession and scarcity – even the government faced a high budget deficit and lack of finance to invest in infrastructure projects. Investment in the infrastructure and energy sectors became vital to overcome the shortages of electricity, food and retail products. The financing for these projects came mostly from international organizations, foreign aid and low-interest foreign loans. MCS bid for the tenders announced by international organizations and we put together teams of Mongolian engineers and technical experts who both competed against, and collaborated with, experienced international companies on energy and engineering projects. We worked on every stage of these projects from planning to handing over the keys to the client. Through this, we gained valuable experience, knowledge and skills in project management.

 

By the early 2000s, MCS had entered the next phase of its growth with more than a thousand young engineers, technical staff and human resources, and numerous large national projects on our resume. We became recognized as one of the top private sector companies and a trusted partner to international and domestic companies.

 

As the group became known to international organizations and built a good reputation locally and internationally, our corporate credit rating improved and we were able to get larger loans from international organizations at lower rates for increased periods of time. This enabled us to invest in key development projects across the country.

 

When deciding which projects to implement, MCS Group focuses on environmentally-friendly and socially-beneficial projects that will contribute the most to the country’s development. It is our policy to include as many local businesses and companies in our projects, so as to create more sustainable local jobs, develop professional skills and expertise and improve the living standards of people through job creation. Profit is not our sole priority and we are willing to take risks and extend our loan repayment periods for the social good. We will continue this approach in our business.

 

The main emphasis of MCS Group’s business policy focuses on combining both business and social interests. Our latest project, Ukhaa Khudag mining complex, consisting of a power plant, coal washing plant, water supply system, airport, industrial road, and heavy equipment maintenance and repair centre, includes social infrastructure with a 650-unit apartment district, a kindergarten and school which meet international standards, a dormitory and a workers’ camp. This project is set to contribute significantly to regional economic growth and social development.

 

MCS Group prides itself on introducing innovative solutions in the sectors in which it invests. Each of these investments and development projects is built on the hard work, skills, expertise and knowledge of Mongolians.

 

MONGOLIAN MCS HOLDING TO ACQUIRE MINING OPERATIONS.

 

According to press release dated of 21 July 2008 Kerry Holdings Ltd and MCS Holding LLC plan to acquire QGX Ltd, a miner operations in

Mongolia, in an offer valued at $259 million.

 

Shareholders of QGX representing approximately 42 per cent of the firm have agreed to tender to the $5-per-share cash offer. The board of directors of QGX has also unanimously recommended the deal, which

includes a $9.1 million break fee and is expected to close in September.

 

QGX's two most advanced properties are the Baruun Naran and the Golden Hills projects in Mongolia. Barrick Gold Corp. (TSX:ABX) holds a nine per cent stake in the company, which is based in Waterdown, Ont.

 

Shares in QGX, which had been halted pending news, rose 38 cents or more than eight per cent on the TSX to $4.88, with 2.5 million changing hands.

 

 

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

 

Group members have accounts with the following banks :

 

1. Golomt Bank of Mongolia

   Main Branch

   Bodi Tower, Sukhbaatar Square

   Ulaanbaatar

   Telephone: (976 11) 311 530

   Fax      : (976 11) 312 307

 

2. Khan Bank of Mongolia

   Peace Avenue

   P.O Box-185

   Ulaanbaatar

   Telephone: (976 11) 457 880

   Fax      : (976 11) 457 880

 

3. Khas Bank

   Sukhbaatar district

   Ulaanbaatar 14200

   Telephone: (976 11) 318 185

   Fax      : (976 11) 328 701

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or disclose balance sheets. Balance sheets are not available from other

sources, and the subject interviewed declined to give any financial information, which the company regards as strictly confidential.

 

The following financial information is the latest available on the subject :

 

Sales Turnover               : US DLRS  40,000,000 - 2002 - exact

                                     : US DLRS  50,000,000 - 2003 - exact

                                     : US DLRS  80,000,000 - 2004 - exact

                                     : US DLRS 100,000,000 - 2005 - exact

                                     : US DLRS 150,000,000 - 2006 - exact

                                     : US DLRS 200,000,000 - 2007 - exact

                                    : US DLRS 250,000,000 - 2008 - exact

 

Net Profit          : not given but stated to be 10% of the sales

 

Financial year ends 31 December.

 

The following financial information applies to MCS Electronics Co Ltd:

 

Sales Turnover               : US DLRS  8,000,000 - 2005 - exact

                                    : US DLRS 12,000,000 - 2006 - exact

                                    : US DLRS 17,000,000 - 2007 - exact

                                     : US DLRS 32,000,000 - 2008 – exact

                                    : US DLRS 28,500,000 - 2009 - exact

                                    : US DLRS 31,300,000 - 2010 - exact

                                     : US DLRS 40,000,000 - 2011 - exact

                                     : US DLRS 40,500,000 - 2012 - exact

                                     : US DLRS 35,000,000 - 2013 – projected *

 

Net Profit          : but stated to be 6% of the sales turnover

 

* Projected decrease in sales turnover in 2013 is due to diversified policy of the company, planning to decrease distribution of computers and to increase IT solution services.

 

Financial year ends 31 December.

 

Consolidated Balance Sheets applies to Mongolian Mining Corporation LLC as at 31 December 2013 are as follows :

 

                              31/12/2013    31/12/2012   31/12/2011

                                         (in thousands HKD)

ASSETS

 

Current Assets

Cash And Cash Equivalents         77,000       284,000      228,000 

Net Receivables                  145,000       131,000       92,000  

Inventory                        106,000        90,000       58,000 

Other Current Assets              58,000        12,000            - 

Total Current Assets             449,000       583,000      395,000 

Long Term Investments              2,000         4,000        4,000 

Deferred Long Term Asset Charges  22,000        19,000       10,000 

Total Assets                   1,899,000     2,177,000    1,628,000

 

LIABILITES & EQUITY

 

Liabilities

Current Liabilities

Accounts Payable                  93,000        46,000       19,000 

Short/Current Long Term Debt     991,000     1,114,000      562,000 

Other Current Liabilities         72,000        81,000       94,000 

Total Current Liabilities        433,000       418,000      554,000 

Long Term Debt                   744,000       842,000      145,000 

Total Liabilities              1,338,000     1,425,000      859,000 

Common Stock                     646,000       646,000      646,000 

Retained Earnings                120,000       177,000      180,000

Treasury Stock                 (205,000)      (71,000)     (57,000)

 

INCOME STATEMENT

 

Total Revenue                    437,000       474,000      543,000 

Cost of Revenue                  335,000       386,000      288,000 

Gross Profit                     102,000        89,000      254,000  

Total Operating Expenses         414,000       463,000      397,000 

Operating Income or Loss          23,000        11,000      146,000

Earnings Before Interest & Taxes  23,000        11,000      146,000

Interest Expense                 (61,000)      (49,000)     (13,000)

Income Tax Expense                 3,000         3,000       36,000 

Net Income From Continuing Ops   (58,000)       (3,000)     119,000 

Net Income                       (58,000)       (3,000)     119,000

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :                1993

 

History :                        The Company was established in Mongolia in 1993.

 

Tax No.:                        2628236

 

Authorised Capital :        US DLRS 30,000,000

 

Paid up Capital :            US DLRS 30,000,000

 

Limited Liability Company with the following sole shareholder :

 

MCS (Mongolia) Limited                                                 100.00%

British Virgin Islands

 

MCS (Mongolia) Limited has the following shareholders :

 

1. Odjargal Jambaljamtsiin                                              49.84%

   (Mongolian national / owns 49.84% through Novel

    Holdings Limited, which is wholly owned by him)

 

2. Od Jambaljamtsiin                                                      28.69%

  (brother of the above)

 

3. Enkh-Amgalan Luvsantseren                                       3.19%

 

4. Undisclosed 7 individuals                                            18.28%

 

MCS Holding LLC, founded in 1993 as the first Mongolian private consulting company in the energy sector, the MCS Group has successfully expanded its business operations in such diversified fields, as energy and infrastructure, information and communication technology, beverage manufacturing and distribution, wholesale and retail, property development, construction and printing. The MCS Group has 8,103 employees and has been ranked as one of the top five taxpayers for the last consecutive years.

 

Personal Profile on Odjargal Jambaljamtsiin :

 

Odjargal Jambaljamtsiin graduated from the Polytechnic Institute, Kiev, in 1989, Mr. Odjargal worked as an engineer at the Energy Bureau in Mongolia for a few years before setting up his own engineering company in 1993. He has a MBA from Maastricht School of Management.

 

Personal Profile on Od Jambaljamtsiin :

 

Mr. Od, the older brother of Mr. Odjargal, graduated from Moscow University of Foreign Relations with a bachelor’s degree and from Oxford School of Foreign Service with a master’s degree and had served as a diplomat for many years before joining the company.

 

Affiliated companies of MCS Holding LLC :

 

Subsidiaries & Associates

 

1. Mongolian Mining Corporation LLC

   Central Tower, 15th Floor

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 210620a  

   Telephone: (976 70) 122 279

   Fax      : (976 70) 132 279

   Est.: 18 May 2010     

   Registered address: Cricket Square, Hutchins Drive,

   Grand Cayman, KY1-1111, Cayman Islands P.O. Box 2681

 

2. MCS Property LLC

   Central Tower, 14th Floor

   2 Sukhbaatar Square, Sukhbataar District, SBD-8

   P.O. Box No.: 210620A

   Ulaanbaatar 14200

   Telephone: (976 11) 328 942 / 315 244 / (976 88) 113 301 / (976

                88) 046 001 / (976 88) 046 003

   Fax      : (976 11) 321 656

   E-Mail   : javkhlan.bo@mcs.mn

   Employees : 500

   Est.: 2006

   C.R. No. : 9011012015

   Tax No.: 5040159

 

3. MCS Group Limited

   Offshore Incorporations Centre, P.O. Box 957

   Road Town

   Tortola

   British Virgin Islands

   Sole shareholder: MCS Holding LLC

   Liquidated in 2012)

 

4. MCS Mining Group Ltd

   Central Tower, 15th & 16th Floors

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 210620A  

   Telephone: (976 11) 312 625

   Fax      : (976 11) 312 625

   C.R. No.: 26456309

   Sole shareholder: MCS (Mongolia) Limited

   Registered address: Offshore Incorporations Centre,

   Road Town, Tortola P.O. Box 957, British Virgin Islands

 

5. Erchim Suljee LLC

   MCS Anun Center

   Chinggis Avenue

   Khan-Uul District, 3rd Khoroo

   Ulaanbaatar 210136

   Telephone: (976 11) 346 464

   Fax      : (976 11) 346 262  

 

6. Uniservice Solution LLC

   Central Tower, 9th Floor, Office 907

   2 Sukhbaatar Square, Sukhbataar District, SBD-8

   Ulaanbaatar 210620a

   Telephone: (976 70) 113 360 / 113 360 / Mobile (976 88) 111 940

              (Oyunbileg Sharav) / (976 88) 100 309

   Fax      : (976 70) 113 359

   E-Mail   : info@uss.mn / oyunbileg.sh@mcs.mn

   Managing Director : Ts. Altantsetseg 

   Est.: 1 April 2005

   Tax No.: 2878593

 

7. Spirt Bal Buram JSC

   Mandal Sum

   Selenge Aimag

   Telephone: (976 11) 311 079

   Fax      : (976 11) 312 175

   E-mail   : eldevoch@mcs.mn

 

8. Interpress Co Ltd

   MCS Plaza, 1st Floor

   Seoul Street 4

   Ulaanbaatar 210644

   Telephone: (976 11) 326 898 / Mobile (976 99) 118 668

   Fax      : (976 11) 329 474

   E-mail   : interpress@magicnet.mn

 

9. MCS Properties Holding LLC

   Central Tower, 14th Floor

   2 Sukhbaatar Square, Sukhbataar District, SBD-8

   Ulaanbaatar 210620A

   Telephone: (976 11) 328 942 / 315 244

   Fax      : (976 11) 321 656

   President: Od Jambaljamtsiin

   Employees: 50

 

10.Anungoo Co Ltd (Procter & Gamble)

   MCS Plaza, 2nd Floor

   Seoul Street 4

   Ulaanbaatar 210644

   Telephone: (976 11) 961 619

   Fax      : (976 11) 312 175

   E-mail   : anungoo@mcs.mn

 

11.MCS International LLC

   MCS Anun Center

   Chinggis Avenue

   Khan-Uul District, 3rd Khoroo

   Ulaanbaatar 210136

   Telephone: (976 77) 226 363 / 226 6264

   Fax      : (976 77) 226 030

   Est.: 1 April 1996

   C.R. No. : 9011035035

   Tax No.: 2090007

   Capital : TUGRIK 700,000,000

   Sole shareholder : MCS Holding LLC

 

12.MCS Gyals Medical Centre

   1st Floor

   Russian Hospital

   Jukov Ave.131

   Bayanzurkh district

   Ulaanbaatar

   Telephone: (976 99) 112 603 / (11) 457 781

   Fax      : (976 11) 451 807

   E-mail   : mcsInter@mcs.mn

 

13.Unitel LLC 

   Central Tower, 8th Floor

   Sukhbatar Square 2

   Sukhbatar District 8

   Ulaanbaatar 210620A

   Mongolia

   Telephone:  (976 11) 331 730 

   Fax      :  (976 11) 330 708

   E-Mail   :  bayarbakhdal@unitel.mn

   Est.: 5 October 2005

   C.R. No.: 482106

 

14.MCS Coca Cola LLC

   MCSCC Plant

   Peace Avenue, Gachuurt Road 104

   Amgalan 13260, Bayanzurkh District, 10th Khoroo

   Ulaanbaatar

   Telephone: (976 70) 165 555 / Mobile (976 88) 111 399 (Myagmarjav

               Luvsandash) / (976 88) 117 501 (Khandaa Tsedendamba)

   Fax      : (976 70) 165 500

   E-Mail   : khandaa.ts@mcscocacola.mn /

   myagmarjav.l@mcscocacola.mn

   Website  : www.mcscocacola.mn

   Est.: 26 July 2001

   C.R. No. : 9011080120

   Tax No.: 2663503

   Capital : TUGRIK 5,000,000,000

   Sole shareholder : MCS Holding LLC

 

15.Mon Sat Co Ltd

   MCS Plaza, 3rd Floor

   Seoul Street 4

   Ulaanbaatar 210644

   Telephone: (976 11) 312 625

   Fax      : (976 11) 312 175

 

16.Orbitnet Co LLC

   Central Tower 14/F

   Sukhbaatar Square No. 2

   Sukhbaatar District, SBD-8 

   Ulaanbaatar-210620A

   Telephone: (976 11) 323 705

   Fax      : (976 11) 312 699

 

17.Officenet LLC

   MCS Plaza, 3rd Floor

   Seoul Street 4

   Ulaanbaatar 210644

   Telephone: (976 11) 344 931

   Fax      : (976 11) 312 175

 

18.Goyo Co Ltd

   MCS Plaza, 3rd Floor

   Seoul Street 4

   Ulaanbaatar 210644

   Telephone: (976 11) 342 531

   Fax      : (976 11) 344 015

 

19.Shangrila Hotel

   Ulaanbaatar

   Telephone: (976 11) 326 602

   Fax      : (976 11) 326 643

 

20.Orchlon School

   Ulaanbaatar

   Telephone: (976 11) 353 519

   Fax      : (976 11) 354 115

 

21.Orchlon Club

   Ulaanbaatar

   Telephone: (976 11) 354 327

   Fax      : (976 11) 354 326

 

22.MCS Distribution LLC

   Ulaanbaatar

   Telephone: (976 11) 345 234

   Fax      : (976 11) 345 460

 

23.Energy Resources LLC

   Central Tower

   2 Sukhbaatar square, SBD-8

   15th floor

   Ulaanbaatar 210620A

   Telephone: (976 70) 122 279 / 132 279

   Fax      : (976 11) 322 279

   Tax No.: 2887746

   Capital : US DLRS 26,200,370

 

24.Global Energy

   Ulaanbaatar

   Telephone: (976 11) 311 079

   Fax      : (976 11) 312 175

 

25.Medimpex

   Ulaanbaatar

   Telephone: (976 11) 310 429

   Fax      : (976 11) 318 254

 

26.Irish Pub Grand Khaan

   Ulaanbaatar

   Telephone: (976 11) 336 666

   Fax      : (976 11) 330 995

 

27.MCS - APB LCL

   Ulaanbaatar

   Telephone: (976 11) 464 304

   Fax      : (976 11) 464 306

 

28.Sky Resort

   Ulaanbaatar

   Telephone: (976 11) 311 079

   Fax      : (976 11) 311 079

 

29.MCS Estates LLC

   Ulaanbaatar

   Telephone: (976 11) 311 079

   Fax      : (976 11) 312 175

   Est.: 11 November 2011

 

30.Green Catering LLC 

   14th Floor, Central Tower

   Ulaanbaatar

   Mongolia

   Telephone: (976 11) 314 411

   Fax      : (976 11) 314 411

   Est.: 2008

 

31.MCSCom LLC

   Central Tower, 14th Floor

   Sukhbaatar Square No. 2

   Sukhbaatar District, SBD-8 

   Ulaanbaatar 210620A

   Telephone: (976 11) 323 705

   Fax      : (976 11) 312 699

 

32.MCS Anun LLC

   1st floor, Building M-100

   Chingeltei District

   Ulaanbaatar

   Telephone: (976 11) 312 908 / 312 938

   Fax      : (976 11) 312 907

 

33.Chinggiz Eco Tour Co Ltd

   MCS Plaza, 5th Floor

   Seoul Street 4

   Ulaanbaatar 210644

   Telephone: (976 99) 115 153

   Fax      : (976 11) 312175

 

34.Devshil-Trade Co Ltd

   Sonsgolon

   Bayangol District

   Ulaanbaatar

   Telephone: (976 11) 632 964 / 631 539

   Fax      : (976 11) 631 709

   E-mail   : deb_enkh@mcs.mn

 

35.Zuunkharaa Trade Co Ltd

   MCS Coca-Cola Plaza

   Chingis Avenue

   Khan Uul district

   Ulaanbaatar-19

   Telephone: (976 11) 345 234

   Fax      : (976 11) 345 228

 

36.Glamour LLC

   Ulaanbaatar

 

37.MCS Health LLC

 

38.SBB Trade LC

 

39.MCS Armor LLC

 

40.MCS Metals LLC

 

41.Enerko LLC

   MCS Anun Center

   Chinggis Avenue

   Khan-Uul District, 3rd Khoroo

   Ulaanbaatar 210136

   Telephone: (976 11) 346 464

   Fax      : (976 11) 346 262

 

42.MCS Tour Co Ltd

   MCS Plaza, 5th Floor

   Seoul St 4

   Ulaanbaatar 210644

   Telephone: (976 99) 115 153

   Fax      : (976 11) 312175

   E-mail   : MCSTour@mcs.mn

  (dormant)

 

43.Mongolian Coal Corporation Limited

   Three Pacific Place, Level 28

   1 Queen’s Road East

   Hong Kong

   Capital : HK DLRS 1

  

44.Mongolian Coal Corporation S.a.r.l.

   Luxemburg

   Capital : EURO 31,000

 

45.Baruun Naran Limited

   Gibraltar

 

46.Energy Resources Corporation LLC

   Mongolia

   Capital : US DLRS 100,000

 

47.Energy Resources Rail LLC

   Central Tower, 16th Floor

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 14200  

   Telephone: (976 70) 122 279 / 132 279

   Fax      : (976 70) 111 399 / 132 279

   Chief Executive Officer : Oyunbat Lkhagvatsend

   Employees: 100

   Est.: 8 July 2008

   Tax No.: 5241111

   Capital : TUGRIK 10,700,000,000

   Sole shareholder : Energy Resources LLC

  (Engages in management of railway project and responsible for the

   implementation of the construction of the railway base

   infrastructure)

 

48.Enrestechnology LLC

   Central Tower, 16th Floor, West Wing

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 210620a  

   Telephone: (976 70) 122 279

   Fax      : (976 70) 132 279   

   Chief Executive Officer : Davaakhuu Chultem

   Est.: 25 June 2009

   Tax No.: 3614107

   Capital : 3,466,163,000

 

49.Energy Resources Mining LLC

   Central Tower, 15th Floor

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 210620a  

   Telephone: (976 70) 122 279

   Fax      : (976 70) 132 279

   Est.: 23 December 2008

   Capital : US DLRS 1,000

  (Responsible for the mining and technical operations of the UHG

   deposit)

 

50.Transgobi LLC

   Mongolia

   Capital : TUGRIK 9,122,641,836

 

51.Tavan Tolgoi Airport LLC

   Mongolia

   Capital : TUGRIK 3,475,379,000

 

52.Energy Resources Road LLC

   Mongolia

   Capital : TUGRIK 1,000,000

 

53.International Medical Center LLC

   Mongolia

 

54.International Technical College LLC

   Mongolia

 

55.Ukhaa Khudag Water Supply LLC (frmly United Water LLC)

   Mongolia

   Est.: 24 June 2009

   Capital : TUGRIK 1,000,000

 

56.United Power LLC

   Mongolia

   Capital : TUGRIK 3,025,219,000

 

57.Gobi Road LLC

   Mongolia

   Capital : TUGRIK 1,000,000

 

58.Public Service LLC

   Mongolia

   Capital : TUGRIK 20,000,000

 

59.Khangad Exploration LLC

   Central Tower, 16th Floor

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 14200  

   Telephone: (976 70) 122 279 / 132 279

   Fax      : (976 70) 111 399 / 132 279

   E-Mail   : ankhbayar.nergui@bncoal.mn

   Est.: 23 February 2006

   Tax No.: 2887134

   License No. : MV-14493 (for the BN Coking coal deposit)

   Capital : TUGRIK 42,491,100,000

   Sole shareholder: Baruun Naran S.a.r.l. (Luxembourg)

 

60.MCS Electronics Co Ltd

   Central Tower, 14th Floor

   2 Sukhbaatar Square, Sukhbataar District, SBD-8

   Ulaanbaatar 210620A

   Telephone: (976 11) 323 705 est. 55 / 312 424 / (976 88) 113 263

              / (976 88) 114 485 / (976 88) 115 657

   Fax      : (976 11) 312 699

   E-Mail   : battulga@mcs.mn / electronics@mcs.mn

   Website  : www.electronics.mcs.mn

   Employees : 250

   Est.: 2 October 1997

   C.R. No. : 2113155

   Capital : US DLRS 400,000

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Holding and management company for a group of companies.

 

Subject involves only in key decision making for each subsidiary such as major capital expenditure or partnership selection and provides various group-level services including finance, human resource, legal, insurance, global marketing & media communications to its subsidiaries, while each subsidiary’s day-to-day operation is managed

by a management team experienced in its own business independently from the MCS Holding’s management.

 

Subject's subsidiaries operating in 6 different business sectors includes : 

 

- Mining and mineral exploration;

- Property development and management;

- Engineering and infrastructure development;

- Information and communication technology;

- Consumer goods production and distribution;

- Services.

 

Subject’s main completed projects are as follows :

 

- Buddha Vista Apartment and Shopping Complex;

- Intermed Hospital;

- Viva City Apartment District;

- Shangri-La Ulaanbaatar Hotel;

- Mandalgovi-TavanTolgoi-Oyutolgoi 220kV Transmission Line

- Roads :

  Date of Completion October 2011 Project specs 245km industrial 

  paved road suitable for transportation trucks weighing up to 100

  tons Investment amount MNT 160 billion;

- Coal Handling & Processing Plant :

  Date of Completion 1st module - June 2011

                     2nd module - February 2012

                     3rd module - June 2013

 Project specs A capacity to wash and process 15 million tons of coal per annum Investment amount MNT 450 billion.

 

NACE Code : 6420

 

Subject's subsidiaries import & export worldwide.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned administrative offices located at the heading address as well as a representative office located in Beijing, China (see ‘Branch Office’ below).

 

Subject formerly used the following contact details:

 

Mobile : (976 99) 118 123 (Gahtumur Lingov)

E-Mail : gantumur.l@mcs.net

 

Until 2009 subject was located at :

 

MCS Plaza

Seoul Street 4

Sukhbataar District

Ulaanbaatar 210644

 

 

BRANCH OFFICE

 

Representative Office

Beijing Sun Joe Mansion

6 Ritan Rd, Jiang Gou Avenue

Beijing

China

Telephone: (86 10) 6595 8009

Fax      : (86 10) 6506 6311

 

 

SPECIAL NOTES

 

You enquired on : MCS GROUP. Please note that this name applies to subject's trading style. Subject's correct registered name is as per heading.

 

Interviewed : Subject’s employees.


 

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 :

RAS

 

 

Report Prepared by :

SDA

               

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.