MIRA INFORM REPORT

 

 

Report Date :

15.10.2014

 

IDENTIFICATION DETAILS

 

Name :

I & R MONGOLIA CO. LTD

 

 

Registered Office :

Home Plaza, Building No. 26, Office 301, Home Plaza, Building No. 26, Office 301, Bayanzurh District, 2nd Khoroo, 15-Micro District P.O. Box No.: 453, Ulaanbaatar 51

 

 

Country :

Mongolia

 

 

Date of Incorporation :

27.11.2001

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, distributors and wholesalers of food products, general groceries, perfumes and building materials.

 

 

No. of Employees :

49

 

 

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 – 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

                

I & R Mongolia Co. Ltd (Correct)

 

I&R MONGOLIA (Requested)

 

 

ADDRESS

 

Building            : Home Plaza, Building No. 26, Office 301

 

Street                : 4 Peace Avenue (Dorj Avenue)

 

Area                 : Bayanzurh District, 2nd Khoroo, 15-Microdistrict

 

P.O. Box No.    : 453

Town                : Ulaanbaatar 51

Country             : Mongolia

 

Telephone         : (976 11) 458 858 / 450 681 / Mobiles (976 99) 996 464

                         (Batdorj Batsuren) / (976 99) 117 653

Fax                   : (976 11) 461 390

E-Mail               : amgalan@inr.mn / onio001@yahoo.com / byambaa@inr.mn /

                          batsuren@inr.mn / inr@mobinet.mn

 

Also Known As             : Ay End Ar Mongoliya XXK / I And R Mongolia Co., Ltd / 

                          Ay End Ar Mongoliya LLC / I&R MONGOLIA / I & R Mongolia LLC

 

Name In Mongolian: Ай энд Эр Монголия ХХK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                            Position

 

1. Mishig Enkh-Amgalan                        Managing Director

 

2. Batdorj Batsuren                                Deputy Managing Director

 

3. Batdorj Bayanbatsetseg (Ms)                         General Accountant

 

4. Erdin Enkh-Amgalan                          Manager

 

Total Employees : 49

 

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

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

 

 

TRADE REFERENCES

 

NAME               : TUPBUSS CORPORATION

Building            : Rm 204, Kunshin 28/B

Street                           : 250-4 Dohwa-Dong

Area                 : Mapo-Ku

Town                : Seoul

Country             : South Korea

 

NAME               : DONGWON F & B LTD

Street                           : 275 Yangjae-Dong

Area                             : Seocho-Gu

Town                : Seoul

Country             : South Korea

 

NAME               : HAITAI CONFECTIONERY CO LTD

Street                           : 131-1, Namyoung-Dong

Area                             : Yongsan-Ku

Town                : Seoul

Country             : South Korea

 

 

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch              : Khudaldaany Gudamj 7

Town                : Ulaanbaatar

 

Telephone         : (976 11) 321 171

Fax                   : (976 11) 325 449

 

Subject also has an account with the following banks :

 

1. Khan Bank of Mongolia

   Peace Avenue

   PO Box-185

   Ulaanbaatar

   Telephone      : (976 11) 457 880

   Fax                : (976 11) 457 880

 

2. Golomt Bank of Mongolia

   Main Branch

   Bodi Tower, Sukhbaatar Square

   Ulaanbaatar

   Telephone      : (976 11) 311 530

   Fax                : (976 11) 312 307

 

 

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  9,349,958,600 - 2012 - exact

                        : TUGRIK 11,640,563,300 - 2013 – exact *

                        : TUGRIK  4,846,600,000 - 2014 – exact **

 

Net Profit / (Loss)          : TUGRIK    345,501,345 - 2012 - exact

                                    : TUGRIK     55,183,500 - 2013 - exact

                                    : TUGRIK   (191,335,530)- 2014 – exact **

 

Total Value of Stock Held : TUGRIK 3,864,990,000

 

* Sharp increase in sales turnover in 2013 was attributed to favourable market conditions.

 

** 6 months results (January - June).

 

Financial year ends 31 December.

 

The following financial information applies to Houm Plaza LLC, subject’s affiliated company :

 

Sales Turnover              : US DLRS 1,000,000 - 2013 - approx

 

Net Profit                      : Not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 27 November 2001

 

History : The subject was established in Ulaanbaatar on 27 November 2001 as a limited liability company with the following shareholders : - Mishig Enkh-Amgalan (50%)

- Batdorj Batsuren (30%)

- Dorjbal Chuluunbat (20%).

 

However origins of subject's business activities can be traced back to 27 February 2001.

 

In 2006, the shareholding structure changed to the present.

 

Tax No.: 2691582 (issue date : 12 January 2001)

 

Authorised Capital : TUGRIK 301,840,000

 

Paid up Capital : TUGRIK 301,840,000

 

Limited liability company with the following director and sole shareholder :

 

Directors

 

1. Mishig Enkh-Amgalan                                           

  (Mongolian national)

 

2. Batdorj Batsuren                                               

  (Mongolian national)

 

Shareholder 

 

Mishig Enkh-Amgalan                            100%

(Mongolian national)

 

Affiliated companies of I & R Mongolia Co Ltd :

 

Associates

 

1. Houm Plaza LLC

   Home Plaza, Bldg 26, Office 307

   4 Peace Avenue (Dorj's avenue)

   Bayanzurh District, 15-Microdistrict, 2-Khoroo

   PO Box 453

   Ulaanbaatar 51

   Telephone: (976 70) 150 263 / 150 264 / 150 262 / Mobile (976 99)

               997 653 (Odnoo Erdin) / (976 99) 704 314 / (976 88)

               070 119

   Fax      : (976 11) 150 265

   Est.: 2008

  (Operators of supermarket)

 

2. Happy Mart

  (Building contractors)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, distributors and wholesalers of food products, general groceries, perfumes and building materials.

 

Subject's Agencies Held with the following :

 

- Nomin Trade;

- Minii Delguur;

- Bosa;

- Sky Shopping;

- Tushig;

- Apti;

- Bishrelt;

- TBD Anduud;

- Tenger;

- Nomin Zereglee;

- KCC, South Korea.

Subject’s main brands and products are as follows :

 

- Paldo / Korea Yakult : Ramion & beverage;

- Ottogi : Ramion & Mayonnaise;

- Dongush : Russian dosirack;

- Orion : Snack;

- Paldo vina / Vetnam : Ramion;

- Metro / Germany : Foods.

 

NACE Codes : 4617 / 4634

 

Imports from South Korea, Russia, Vietnam and Germany.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices and storage facilities located at the heading address.

 

Until September 2007, subject was located :

 

Bridge Plaza, Offices No. 403 & 403

Ulaanbaatar.

 

 

SPECIAL NOTES

 

You enquired on : “I&R MONGOLIA”. Please note that subject is also known by this name. Subject's correct registered name is as per heading.

 

Interviewed : Batdorj Batsuren (Deputy Managing Director).

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.11

UK Pound

1

Rs.98.15

Euro

1

Rs.77.60

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.