MIRA INFORM REPORT

 

 

Report Date :

01.11.2014

 

IDENTIFICATION DETAILS

 

Name :

MONGOL EMIMPEX CONCERN LLC

 

 

Formerly Known As :

MONGOLEMIMPEX CONCERN JSC

 

 

Registered Office :

MEIC Building, Teeverchdiin Street 39, Sukhbaatar District, 3rd Khoroo, Ulaanbaatar 14253

 

 

Country :

Mongolia

 

 

Date of Incorporation :

09.05.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading is importers, wholesalers and retailers of pharmaceutical products and medical equipment.

 

 

No. of Employees :

387 (Subject), 1,700 (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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Mongolia

C1

B2

 

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

 

Mongol Emimpex Concern LLC (Correct)

 

MONGOLEIMPEX (Requested)

 

 

ADDRESS

 

Building            : MEIC Building

 

Street                           : Teeverchdiin Street 39

 

Area                  : Sukhbaatar District, 3rd Khoroo

 

Town                 : Ulaanbaatar 14253

Country              : Mongolia

 

Telephone         : (976 11) 323 961 / 315 541 / 322 695 (International Relations Department) / Mobiles (976 99)  029 333 (Tserendash Orshikh) / (976 99) 096 978 (Tserendash Orshikh) / (976 99) 119 600 / (976 99) 084 810  (Munkherdene Battur)

Fax                   : (976 11) 323 877

E-Mail               : info@meic.mn / munkherdene.b@meic.mn / inkhtuya.ts@meic.mn

Website            : www.meic.mn

 

Shortform Name : MEIC

 

Trading Style     : MEIC LLC

 

Also Known As             : Mongol Em Impex Concern Co. Ltd / Mongolemimpeks

                         Kontsern / MEIC (Mongolemimpex Concern)

 

Formerly Known As : Mongolemimpex Concern JSC

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                             Position

 

1. Agvaanjamba Arunbold                     President

 

2. Badbayar Bolormaa (Mrs)                              Chief Executive Officer

 

3. Munkherdene Battur                           Manager of Foreign

                                                            Affairs & Supply

 

4. Tserendash Orshikh (Mrs)                   Chief Accountant

 

5. Inkhtuya Tserenpurev                  International Relations

                                                      Manager

 

Total Employees :                     387 (subject)

                                                1,700 (group)

 

 

PAYMENTS

 

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

 

Subject is a member of the Bishrelt Group which was established in 1993, comprising 14 companies and employing 1,700 people with annual revenues in the region of US DLRS 360 million in 2009.

 

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

 

 

SIGNIFICANT CHANGES

 

MEIC HAS SUPPLIED NECESSARY MEDICINE TO OPERATION PACIFIC ANGEL

 

ON 25 August 2014 (subject's website) : ”Operation Pacific Angel,” held in Ulaanbaatar city, Orkhon and Bulgan province between  August 4-18th. Operation Pacific Angel,” a humanitarian assistance exercises involving an estimated  70 military personnel from Air Force of the U.S. Pacific Command  kicks off in Mongolia.

 

This is the first time that such exercises, which include medical, dental, optometry, and engineering programs as well as various subject-matter expert exchanges are held in Mongolia. Local medical specialists and staffs of Defense Ministry of Mongolia, medical center for Law Enforcement University, and National Trauma Orthopedic Research Center will be involved in the humanitarian assistance exercises to provide civilians with medical care.  Medical professionals from around the Air Force set up engineering services to restore the II general education school and family clinic in Bayan-Undur sum in Orkhon province, and the IV kindergarten in Bulgan province in collaboration with 170 military servicemen from local military units and armed forces of Mongolia.

 

MEIC has provided necessary medicine to the humanitarian operation.

 

MEIC SIGNED AGREEMENT WITH DONG-A SOCIO HOLDING TO ESTABLISH THE PHARMACEUTICAL JOINT FACTORY

 

On 12 June 2014 (subject's website): MEIC signed agreement with Dong-A Socio holding to establish the pharmaceutical joint GMP standards factory. 

 

 

PRINCIPAL BANKERS

 

NAME               : CAPITAL BANK OF MONGOLIA

 

Branch              : Sambuugiin Street 48

Town                : Ulaanbaatar 211238

 

Telephone         : (976 11) 319 247 / 315 500

Fax                   : (976 11) 310 833

 

The company also has an account with :

 

Khan Bank LLC

Seoul Street 25

P.O. Box 192

Sukhbaatar District

Ulaanbaatar 210644

Telephone         : (976 11) 332 333

Fax                   : (976 70) 117 023

 

 

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  : TUGRIK  6,000,000,000 - 2008 - exact

                        : TUGRIK  7,000,000,000 - 2009 - exact

                        : TUGRIK 11,000,000,000 - 2010 – approx

                        : TUGRIK 13,091,868,000 - 2011 - exact

                        : TUGRIK 15,244,000,000 - 2012 – exact

                        : TUGRIK 20,826,000,000 - 2013 – exact

                        : TUGRIK 23,000,000,000 - 2014 – projected

                   

Net Profit          : TUGRIK    200,000,000 - 2010 - exact

                        : TUGRIK    224,000,000 - 2011 – exact

                        : TUGRIK     64,000,000 - 2012 - exact

                        : TUGRIK    515,000,000 - 2013 - exact

 

Financial year ends 31 December.

 

The following financial information applies to the Bishrelt Group (latest available) : 

 

Sales Turnover : US DLRS 400,000,000 - 2008 - exact

                        : US DLRS 360,000,000 - 2009 - exact

                   

Net Profit         : not given, but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 9 May 2006

 

History : The subject was established in Mongolia on 9 May 2006 on the basis of a state owned Pharmaceutics Preparation Facility which was in existence since 1923.

 

By the end of 2006, the subject has been privatized to “Bishrelt Holding” and was converted into a Joint Stock Company with the following shareholders structure :

- Agvaanjamba Arunbold                            }

- Undermaa Batbayar (wife of Agvaanjamba Arunbold)}    95%

- Son and daughter of Agvaanjamba Arunbold        } 

- Girmit Gotov                                          5%

 

In 2014, subject was converted into a Limited Liability Company with the present name and shareholders structure.

 

C.R. No.: 9012001020

 

Tax No. : 2116847

 

Capital : TUGRIK 4,000,000,000

 

Limited Liability Company with the following director and shareholders :

 

Director

 

Agvaanjamba Arunbold

 

Shareholders

 

1. Agvaanjamba Arunbold                                                                      }

                                                                                                                        }

2. Undermaa Batbayar (wife of Agvaanjamba Arunbold)} Majority

                                                                                                                        }

3. Son and daughter of Agvaanjamba Arunbold                                      }     

 

4. Badbayar Bolormaa (Mrs)

 

* The exact shareholding percentage was not disclosed.

 

Affiliated companies of Mongol Emimpex Concern`s LLC :

 

Associates

 

Subject is a member of the Bishrelt Group headed by :

 

Bishrelt Holding Co Ltd                 

Sambuugiin Street 48

Chingeltei District

POB-104

Ulaanbaatar 211238

Telephone: (976 11) 322 742 / 326 250

Fax      : (976 11) 326 250 / 313 798

Est.: 13 June 1993

Tax No. : 2554534

 

Other members of the group include the following companies :

 

1. Bishrelt Plaza LLC

   Bishrelt Plaza Hotel

   Liberty Sq. 3/1

   Chingeltei District

   POB-104

   Ulaanbaatar 211238,

   Telephone: (976 11) 313786

   Fax      : (976 11) 313792

 

2. Capital Bank of Mongolia

   Sambuugiin Street 48

   Chingeltei District

   Ulaanbaatar 211238

   Telephone: (976 11) 319247

   Fax      : (976 11) 310833

 

3. Mongol Meat Expo LLC

   Songinokhairkhan District

   Ulaanbaatar 211137

   Telephone: (976 11) 634875 / 633924

   Fax      : (976 11) 326250 / 634875

 

4. Mongol Buukhai Daatgal LLC

   Liberty Square 3/1

   Chingeltei District

   POB-104

   Ulaanbaatar 211238

   Telephone: (976 11) 324965

   Fax      : (976 11) 324965

 

5. Unico Construction LLC

   Tumurchii Street 1/1

   Chingeltei District

   POB-104

   Ulaanbaatar 211238

   Telephone: (976 11) 318227

   Fax      : (976 11) 318273

 

6. Gooddoor LLC

   Tumurchii Street 1/1

   Chingeltei District

   POB-104

   Ulaanbaatar 211238

   Telephone: (976 11) 318273

   Fax      : (976 11) 326250 / 318273

 

7. Bishrelt Cosmetics LLC

   Sambuugiin Street 48

   Chingeltei District

   POB-104

   Ulaanbaatar 211238

   Telephone: (976 11) 322742 / 324185

   Fax      : (976 11) 313798 / 32625

 

8. Bishrelt Industrial LLC

   Sambuugiin Street 48

   Chingeltei District

   POB-104

   Ulaanbaatar 211238

   Telephone: (976 11) 322742 / 324185

   Fax      : (976 11) 313798 / 32625

 

9. MonDiscovery Tours LLC

   Sambuugiin Street 48

   Chingeltei District

   POB-104

   Ulaanbaatar 211238

   Telephone: (976 11) 322742 / 324185

   Fax      : (976 11) 313798 / 326250

 

10.Bishrelt Trade LLC

   3/1 Liberty Square (aka Erkh Cholonii Talbai 3/1)

   Chingeltei Duureg

   P.O. Box 104

   Ulaanbaatar 211238

   Telephone: (976 11) 324 185 / 324 990 / (976 99) 119 600

   Fax      : (976 11) 313 792 / 326 250 / 313 798

   E-Mail: info@bishreltholding.mn

 

11.Unico LLC

   Teeverchdiin Street 39, 3rd Khoroo

   Sukhbaatar District

   Ulaanbaatar-28

   Telephone: (976 11) 318 273 / 363 392

   Fax      : (976 11) 318 273

   Managing Director : Baddurdj Taamdin

   Est.: 17 February 2011

   Tax No.: 5448735

 

12.Bishrelt Palace Hotel LLC

 

13.Chinggis Cashmere LLC

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading is importers, wholesalers and retailers of pharmaceutical products and medical equipment.

 

Subject is an official distributor of GlaxosmithKlein, Galenika, KRKA, Krasfarma, EGIS, IDA, Actavis, Neon Laboratories, Panacea biotech and Protex biosystems.

 

Subject's awards are as follows :

 

- Mongolian Chamber for Commerce and Industry  - “Business excellence

  award”;

- UNFPA  - “Collaborating partner appreciation award”;

- Mongolian Chamber for Commerce and Industry – “Top Importer”;

- Voted as one of TOP-100 business entities of Mongolia five years in

  a row;

- Certificate of “Trusted Enterprise” by the of Mongolian Customs

  Authority;

- Official title “The Reliable Tax Payer” by Mongolian National

  Taxation Authority;

- 61st place in the list of the Top-150 business entities of Mongolia 

  2011;

- International Women’s Entrepreneurial Challenge 2011;

- Mongolian Lady Entrepreneur – 2011;

- Voted as one of the Top – 150 business entities of Mongolia – 2012;

- Voted as one of the Top – 150 business entities of Mongolia -2013.

 

NACE Code : 4646

 

Imports from Germany, Austria, Switzerland, Bulgaria, Ukraine, Japan, Norway, the Netherlands, Russia, Italy, Slovenia, Hungary, India and South Korea.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned 2-storey building comprises administrative offices, a retail pharmacy and storage facilities located at the heading address as well as 80 additional retail pharmacies located throughout Mongolia (see ‘Branch Offices’ below).

 

 

REGISTERED OFFICE

 

Teeverchdiin Street 39

Sukhbaatar District, 3rd Khoroo

Ulaanbaatar-28

 

 

BRANCH OFFICES

 

1. Medicine supplier center 1

   Teeverchid street-39

   Ulaanbaatar-28

 

2. Medicine supplier center 2

   Bomdogor trade center

   Chingeltei district

 

3. Pharmacy 1

   Teeverchid street-39,MEIC

   Ulaanbaatar-2

 

4. Pharmacy 2

   Behind of the State Department Store

   Ulaanbaatar

 

5. Pharmmarket 1

   Left the Bishrelt center

   Chingeltei disrect

 

6. Pharmmarket 2

   Wellmart supermarket

   ofitseruudiin ordon

   Bayanzurkh district

 

7. Pharmmarket 3

   Left the Tumen plaza

   III khoroolol

   Bayangol district

 

8. Pharmmarket 4

   Piramid center

   15th khoroo, Songino Khairkhan district

 

9. Pharmmarket 6

   Right the Bus station

   18th khoroo, tavan shar

   Songino Khairkhan district

 

10.Pharmmarket 7

   Wellmart supermarket

   botanic bus station, Bayanzurkh disrict

 

 

SPECIAL NOTES

 

You enquired on : “MONGOLEIMPEX” Please note that subject's correct registered name is as per heading.

 

Interviewed : Munkherdene Battur (Manager of Foreign Affairs & Supply).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.77.19

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.