MIRA INFORM REPORT

 

 

Report Date :

01.10.2014

 

IDENTIFICATION DETAILS

 

Name :

MINISTRY OF ROAD TRANSPORTATION & CONSTRUCTION OF MONGOLIA

 

 

Formerly Known As :

MINISTRY OF ROAD, CONSTRUCTION AND TOURISM OF MONGOLIA

 

 

Registered Office :

Government Building-12 Chinggis Avenue 11 Sukhbaatar District Ulaanbaatar 14251

 

 

Country :

Mongolia

 

 

Date of Incorporation :

01.12.2004

 

 

Legal Form :

Not Available

 

 

Line of Business :

Subject is responsible for the provision road, transport, urban development regulations and construction activities

 

 

No. of Employees :

72

 

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 and address

 

 

CO. NAME :      MINISTRY OF ROAD TRANSPORTATION & CONSTRUCTION OF MONGOLIA  (CORRECT)

MINISTRY OF ROAD TRANSPORTATION CONSTRUCTION AND URBAN DEVELOPMENT OF MONGOLIA (Requested)

 

 

ADDRESS

 

Building :           Government Building-12

 

Street   :           Chinggis Avenue 11

 

Area     :           Sukhbaatar District

 

Town     :           Ulaanbaatar 14251

Country  :          Mongolia

 

Telephone:        (976 11) 6226 3178 / 6226 3166 / Mobile (976 93) 096 035

                        (Buuvei Nyamdava)

Fax      :            (976 11) 312 315

E-Mail   :           bulganerdene@mrt.gov.mn / altanshagai@mrt.gov.mn / 

                        nyamdavaa@mrt.gov.mn / info@mrt.gov.mn

Website  :         www.mrt.gov.mn

 

Shortform Name : MRT

 

Formerly Known As :      Ministry of Road Transportation Construction and  Urban Development of Mongolia / Ministry of Road,  Construction and Tourism of  Mongolia

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                                          Position

 

1. Amarjargal Gansukh                                        Minister of Road and

                                                                        Transportation of

                                                                         Mongolia

 

2. Khabshine Erjaan                                           Deputy Minister of Road

                                                                        Transport

 

3. Buuvei Nyamdavaa                                          Director of Foreign

                                                                        Relations Department 

 

Total Employees : 70 plus

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a Ministry of Road, Transportation & Construction of Mongolia.

 

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

although it is normal accepted practice for international suppliers

to deal on secured terms with Mongolian importers.

 

 

Trade risk assessment : Fairly low

 

 

SIGNIFICANT CHANGES

 

MINISTRY OF ROADS, TRANSPORTATION, CONSTRUCTION AND URBAN DEVELOPMENT DIVIDED

 

In September 2014, As per the subject interviewed, Ministry Of Roads, Transportation, Construction And Urban Development divided after election 2012, to become two ministries : Ministry of Roads, Transportation headed by Mr. Amarjargal Gansukh and Ministry of Construction And Urban Development headed by Mr. Bayarsaikhan Tsevelmaa.

 

OVERVIEW OF PUTIN’S VISIT

 

In September 2014 (mad-intelligence.com):

 

After their one-on-one meeting, Mongolian President Ts.Elbegdorj and Russian President Vladimir Vladimirovich Putin attended a signing ceremony for documents on bilateral relations and cooperation.

 

The following documents were signed between the governments of the two countries:

 

1. Intergovernmental agreement on visa-free travel for the citizens of the two countries.

2. Intergovernmental agreement on deporting illegal immigrants.

3. Intergovernmental agreement on protection against forest fire.

4. Memorandum of understanding on cooperation in civic aviation between the Ministry of Roads and Transportation of Mongolia and Ministry of Transport of the Russian Federation

5. Agreement on renewing Ulaanbaatar Railway JSC and the development of a strategic partnership between the Ministry of Roads and Transportation of Mongolia and Russian Railway Community of Russia.

6. Agreement on developing partnership between the Ministry of Justice of Mongolia and Ministry of Justice of the Russian Federation.

7. Memorandum of understanding between the Ministry of Construction and Urban Development of Mongolia and Ministry of Construction Industry, Housing and Utilities Sector of the Russian Federation.

8. Memorandum of understanding on developing Mongolia-Russia economic partnership between the Ministry of Economic Development of Mongolia and Ministry of Economic Development of the Russian Federation.

9. Agreement between the Ministry of Education and Science of Mongolia and Russian oil company Rosneft OAO.

10. Protocol on extending the intergovernmental agreement on Russia’s military and technical assistance to Mongolia.

11. Memorandum of understanding on technical cooperation between the Ministry of Finance of Mongolia and Russian Federal Property Fund.

12. Memorandum of understanding between the Mongolian Immigration Agency and Federal Migration Service of the Russian Federation.

13. Memorandum of understanding between MNB National Public Radio and Television of Mongolia and the international new agency Russia Today.

14. Memorandum of understanding between MIAT Mongolian Airlines and Aeroflot Russian Airlines.

Nine of twenty-four Russian Ministers and Russian business leaders accompanied Vladimir Putin and signed these and other major documents: Minister of Foreign Affairs S.Lavrov; Deputy Minister Yu.Petrovich; Minister of Far East Development A.S.Galushka; Minister of Mineral and Ecology S.Ye.Donskoy; Minister of Justice Konovakov; Minister of Construction, Housing and Utilities Mikhail Men; Minister of Energy A.V.Novak; Minister of Regional Development Igor Slyunyayev; Minister of Transport Maksim Sokolov; Deputy Minister of Defense Arkady Bakhin; and representatives of Rosneft, Rostech, Russian Railway, Aeroflot and Russian Direct Investment Fund.

President Putin signed the honorary guestbook and took a photo with President Ts.Elbegdorj.

Towards the end of the day, Putin laid a wreath on the monument to the four-time Hero of the Soviet Union, Hero of Mongolia, Marshal Georgy Konstantinovich Zhukov and visited G.K.Zhukov’s museum. The Mongolian Military Song and Dance Academic Ensemble performed.

President of the Russian Federation Vladimir Putin left Mongolia on a chartered flight from Chinggis Khaan International Airport at 8:00 p.m. Prime Minister N.Altankhuyag, Minister of Foreign Affairs L.Bold and other officials were present to see off the honored guests at the airport.

President Elbegdorj emphasized that the one-day working visit of President Putin gave great impetus to the development of bilateral relations between the two countries.

The Russian President invited President Ts.Elbegdorj to a pay a visit to the Russian Federation. President Ts.Elbegdorj officially responded to the invitation, and said that he will visit Russia in May 2015, for the 70th anniversary of Russia’s Victory Day, celebrating the Russian victory over Nazi Germany and the end of WWII.

 

MONGOLIA AND JAPAN TO BOLSTER PARTNERSHIPS IN TRANSPORTATION AND CONSTRUCTION SECTORS

 

In 2014 (infomongolia.com): Following the meetings with Mongolian Minister of Roads and Transportation, and Minister of Construction and Urban Development, Japanese Minister of Land, Infrastructure, Transport and Tourism Mr. Akihiro Ota was received by the Prime

Minister of Mongolia Mr. Norov ALTANKHUYAG on April 28, 2014.

During the meeting, Prime Minister appreciated Japanese side for establishing Memorandums of Understanding and underlined one of the Mongolia’s priority foreign policies is to develop relations and partnerships with Japan. Premier N.Altankhuyag expressed his satisfaction with strengthening and forwarding collaboration between the two countries in terms of strategic partnership. The reciprocal visits at Prime Minister-level have strengthened the ties, where Mongolia-Japan strategic partnership mid-term program has also provided to boost mutual beneficial cooperation in political, cultural, educational and economical relations, said Premier.

In addition, Mongolia to participate in the ITB Berlin 2015 as a partner country to take place in Germany in March 2015 and we are working to develop Mongolia’s tourism by promoting its sector and aiming to increase the number of tourists to visit our country. In the frameworks, we are focusing on Mongolia’s infrastructure enhancement, underlined Premier N.Altankhuyag.

 

MINISTRY OF ROADS, TRANSPORTATION, CONSTRUCTION AND URBAN DEVELOPMENT RECEIVES NEW LAND TRACKING SYSTEMS

 

On 2 December 2010 (mongolia.usembassy.gov): The Ministry of Roads, Transportation, Construction and Urban Development received six sets of stationery and mobile GPS systems called Continually Operating Reference Systems, from the Millennium Challenge Account-Mongolia’s Property Rights Project. International Land System Ltd, a US based company, which is a contractor of the Property Rights Project, was responsible for purchasing and setting up the 6 stationery Continually Operating Reference Systems and 16 units of GPS equipments worth a total of 1 billion tugriks. Four systems were installed in Ulaanbaatar City, while Darkhan and Erdenet cities were supplied with one system each.

 

Minister Kh. Battulga thanked MCC’s commitment for economic growth in Mongolia and MCA-Mongolia’s hard work in implementing the projects. The Minister went on to mention how the installed systems would improve the efficiency of the land registry offices thus benefitting the citizens.

 

Continually Operating Reference Systems are able to send out accurate location signals to the recipient with accuracy within 1.5 centimeters. The usage of the above mentioned equipments will help map out more accurate land plots for registry offices, thus eliminating over-lapping of land plots, and will vastly improve the efficiency of registering land.

 

The Property Rights Project aims to improve the formal system for recognizing and transferring land rights, and issue fully marketable private land titles to ger area residents. These efforts include the upgrading of the State Registry’s building, information technology and business process; the supplying of GPS equipments and other technology to improve the geospatial infrastructure necessary for accurate land parcel mapping, the providing of land titles to 75,000 ger area households, and legal and regulatory reform in Ulaanbaatar and eight over regional centers.

 

 

PRINCIPAL BANKERS

 

NAME     : MONGOLBANK (CENTRAL BANK OF MONGOLIA)

 

Branch   : Baga Toiruu 9

Town     : Ulaanbaatar 46

 

Telephone: (976 11) 310 413                                        

Fax      : (976 11) 322 471

 

The subject also has an account with the following banks :

 

1. Trade and Development Bank of Mongolia

   Juulnchny Gudamj 7

   Ulaanbaatar 210646

   Telephone: (976 11) 312 362 / 331 133

   Fax      : (976 11) 325 449

 

2. Golomt Bank of Mongolia

   Main Branch

   Bodi Tower, Sukhbaatar Square

   Ulaanbaatar

   Telephone: (976 11) 311 530

   Fax      : (976 11) 312 307

 

 

FINANCIAL INFORMATION

 

Governmental agencies 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.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 1 December 2004

 

History : Subject was established in Mongolia on 1 Decemebr 2004 as a Ministry of Road, Transportation and Tourism of Mongolia.

 

In 2008, subject changed its name to “Ministry of Road Transportation Construction and Urban Development of Mongolia.

 

In July 2012, subject changed its name to the present style.

         

The road transport sector has started its history since 1920 s and played an important role in the transport sector of the country whereas other means of transport were not sufficiently providing countrywide service. In 1990 s there were 15 major entities with a fleet of 300-1000 vehicles for intercity transport and over 20 local entities carrying out cargo, passenger and postal deliveries. The total number of vehicles of these entities took up only 30 percent of the entire vehicle population of the country but carried over 70 percent of freight transport and 98.5 percent of passenger transport.

C.R. No. : 21/20170

 

Tax No : 9129308

 

Capital : not applicable

 

Subject is the Ministry within the Government of Mongolia with the

following officials :

 

1. Amarjargal Gansukh                      

 

2. Khabshine Erjaan                        

 

3. Buuvei Nyamdavaa                         

                   

Subject is a Ministry of Road, Transportation, Construction and Urban

Development operating within and allocated a budget by the Government

of the Mongolia.

 

Personal profile on Amarjargal Gansukh :

 

Education background:

- 2001, Master of Laws, School of Law Mongolian National University;

- 1993-1997, Bachelor of Administrative Laws, School of Law Mongolian

  National University.

 

Career:

- 2012 – Present,           Minister of Roads and Transportation of Mongolia;

- 2008 – 2012, Vice-Minister of Road, Transportation, Construction

  and Urban Development of Mongolia;

- 2006 – 2008, Attorney At Law “GTs Advocates” LLC, Mongolian-

  American Joint law firm;

- 2005 – 2006, Head of the Mongolian Side of the Committee of

 “Erdenet” and Mongolrostsvetmet Mongolian-Russian JVC;

- 2004 – 2006, Board member of various state-owned enterprises /MIAT-

  Mongolian Airlines;

- Baganuur coal mining company, “Savings Bank, Power Plant-4.

 

 

ACTIVITIES

 

The subject is involved in the following activities :

 

Subject is responsible for the provision road, transport, urban development regulations and construction activities.

 

The country is implementing the "Transit Mongolia" National Program

approved by the Government of Mongolia in May, 2008, for the purpose

of tying into the international trade, transport and logistics

network based on the country s advantageous location in the

increasingly globalized world. The National Program encompasses a

wide range of activities such as enhancing domestic legal framework

to facilitate international transportation and logistics operations,

providing more barrier-free services, expanding national transport

infrastructure network to link-up with international routes and serve

as an efficient transit node for transport and trade flow.

 

The objectives of "Transit Mongolia" International Forum are to

discuss and elaborate upon the ways of improving capacities of

existing road and railway transit routes passing through Mongolia,

talk over creating favorable legal climate for transit transportation

and draw the attention of potential investors and partners interested

in establishment of necessary transport infrastructure network for

proposed mineral deposit exploitations in Mongolia.

 

Mongolia is rich in mineral resources and the Government is planning

to commercialize the country s major mineral deposits such as Oyu

Tolgoi copper and Tavan Tolgoi coking coal deposits jointly with

potential foreign investors in 2009-2012 and puts priority to the

provision of road and rail network and their connectivity to the

international transport corridors in order to facilitate access of

mining products to the international markets.

 

Subject neither imports nor exports.

 

 

FACILITIES

 

The Subject has the following facilities :

 

Administrative offices located at the heading address.

 

Subject’s Training, Research, Investment, Construction & Procurement Department located at the following address: 

 

Ikh Toiruu-1

Chingeltei District

PO Box 44/227

Ulaanbaatar 15171

Telephone: (976 11) 320 734

Fax      : (976 11) 323 744

 

Until July 2012, subject was located at :

 

Government Building-12

Chingilteli District, Barilgachdiin Square-3

Ulaanbaatar 15170

 

Subject previously used the following telephone and fax numbers :

 

Telephone: (976 11) 327 716 / 320 584 / 310 597 / 320 528 / 322 533 /

            263 188 / 329 865

Fax      : (976 11) 310 612 / 310 597 / 322 904

 

 

REGISTERED OFFICE

 

Government Building-12

Chingilteli District, Barilgachdiin Square-3

Ulaanbaatar 15170

 

 

GENERAL INFORMATION

 

Transport in Mongolia

 

The transportation system in Mongolia consists of a network of railways, roads, waterways, and airports.

 

- Railways :

 

Traders in Zamyn-Üüd station, Dornogovi aimag The Trans-Mongolian Railway connects the Trans-Siberian Railway from Ulan Ude in Russia to Erenhot and Beijing in China through the capital Ulan Bator. The Mongolian section of this line runs for 1110 km. A spur line connects Darkhan to the copper mines of Erdenet; another spur line connects Ulaanbaatar with the coal mines of Baganuur. A separate railway line exists in the east of the country between Choibalsan and the Trans-Siberian at Borzya; however, that line is closed to passengers beyond the Mongolian town of Chuluunkhoroot. For domestic transport, daily trains run from Ulaanbaatar to Darkhan, Sukhbaatar, and Erdenet, as well as Zamyn-Üüd, Choir and Sainshand. Mongolia uses the 1,520 mm (4 ft 11 27⁄32 in) (Russian gauge) track system. The total length of the system 1,810 km. In 2007, rail transport carried 93% of Mongolian freight and 43% of passenger turnover (in tons*km and passenger*km, respectively).

 

- Roadways :

 

In 2007, only about 2600 km of Mongolia's road network were paved. Another 3900 km are graveled or otherwise improved. This network of paved roads was expanded to 4,800 km in 2013, with 1,800 km completed in the last year alone. This included the roads from Ulaanbaatar to the Russian and Chinese borders, paved road from Ulaanbaatar to Kharkhorin and Bayankhongor, another going south to Mandalgovi, and a partly parallel road from Lün to Dashinchilen, as well as the road from Darkhan to Bulgan via Erdenet. The vast majority of Mongolia's official road network, some 40,000 km, are simple cross-country tracks. Construction is underway on an east-west road (the so-called Millennium Road) that incorporates the already existing road from Ulaanbaatar to Arvaikheer, and on the extension of the Darkhan-Bulgan road beyond Bulgan. Private bus and minibus companies offer service from Ulaanbaatar to most aimag centers.

 

Bus

 

Buses are the main mode of public transportation in Ulan Bator. There is no set time table, but buses pass bus stops at approximately 15 minute intervals. Buses runs between 7:00am and 10:00pm. In July, 2013 Ulaanbaatar Urban Transport Service together with Chinggis Khaan International Airport launched airport express bus connecting the international airport and downtown area. However, the service had been stopped as of September 2013 for unknown period. There is bus communication between cities of Mongolia offering buses of all sizes from minivans to large coach buses (usually up to 45 seats).

 

Taxi

 

There are few licensed taxi companies such as Ulaanbaatar taxi (1991), Noyon taxi (1950), Telecom taxi (1109), 1616 taxi (1616) operating in Ulaanbaatar and few local taxi companies in smaller cities such as Darkhan, Erdenet, Baganuur and Zuunmod, but there are many drivers with private unlicensed cars who act as taxis. A typical fare is MNT 700-800 per kilometer, however, taxi drivers tend to ask for more especially if the client is a foreign national. Official taxis with proper markings are allowed to drive without plate number restrictions on the first lane of Ulaanbaatar's central road usually reserved for large public transports such as buses and trolleybuses from October, 2013.

 

- Waterways :

 

Mongolia has a total of 580 km of waterways, but only Lake Khövsgöl has ever been heavily used. The Selenge (270 km) and Orkhon (175 km) rivers are navigable but carry little traffic, although a customs boat patrols the Selenge to the Russian border. Lake Khovsgol has charter boats for tourists. The lakes and rivers freeze over in the winter and are usually open between May and September.

           

- Air transportation :

 

MIAT Mongolian Airlines Boeing 767-300ER JU-1011 SVO Jan 2012

 

Aircraft of two Mongolian domestic airlines in ULN As of 2012, most airports of 21 aimag centers of Mongolia have paved runways. However those closest to Ulaanbaatar lack scheduled air service.

 

Chinggis Khaan International Airport outside of Ulaanbaatar is the major airport in Mongolia that offers international flights. There are also other airports that have international status such as the ones in Choibalsan and Khovd towns that connect nearby Chinese cities of Ürümqi, Hailar, Erenhot and Manzhouli although they are more popular among local population.

 

As of 2013, numerous domestic air carriers such as MIAT Mongolian Airlines, Eznis Airways, Aero Mongolia, Hunnu Air as well as international air carriers such as Aeroflot, Korean Air, Air China and Turkish Airlines are offering their scheduled services. All domestic airlines except MIAT Mongolian Airlines provide regular air service between Ulaanbaatar and aimag centers. Domestic flights are operated using Fokker 50, Saab 340 (EZNis discontinued to use these aircraft as of late 2013 - early 2014), Airbus 319 and Bombardier Q400 aircraft.

 

Ulaanbaatar can be accessed by air with regular flights from such world major cities as Moscow, Berlin, Frankfurt, Beijing, Hong Kong, Singapore, Shanghai (discontinued in October, 2013 and to be resumed on June, 2014), Seoul, Tokyo, Osaka (served only in summer time), Bangkok, Istanbul and Bishkek. In June, 2014 Hunnu Air launched its previously announced flight to Paris.

 

In 2013 the first purely air cargo operator was registered at the Civil Aviation Authority of Mongolia and is planned to commence its operation in 2014.

 

 

SPECIAL NOTES

 

The telephone/fax numbers given by you : (976 11) 310597 is no longer in use. Please note that subject's current administrative office telephone and fax numbers are as per heading.

 

The address given by you : GOVERNMENT BUILDING 12 CHINGILTELI DISTRICT BARILGACHDIIN SQUARE 3 ULAANBAATAR applies to the subject’s previous address. Please note that the current address is as per heading.

 

The postal code number which you provided : 15170 applies to the subject’s previous postal code. Please note that the current postal code number is as per heading.

 

Interviewed : Buuvei Nyamdavaa (Director of Foreign Relations Department). 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.61

UK Pound

1

Rs.100.28

Euro

1

Rs.78.21

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.