MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	PROLIANCE LLC
Registered Office :	Shine Dul Building, Suite 302, Narnii Zam 99-A, Bayanzurkh District, 25th Khoroo, Ulaanbaatar 13374
Country :	Mongolia
Date of Incorporation :	September 2006
Com. Reg. No.:	9011078095
Legal Form :	Limited Liability Company
Line of Business :	Trading as importers, retailers and wholesalers of medical equipment and pharmaceutical products.
No. of Employees :	25

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 :	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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Mongolia	C1	B2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	D

MONGOLIA - ECONOMIC OVERVIEW

Mongolia's extensive mineral deposits and attendant growth in mining-sector activities have transformed Mongolia's economy, which traditionally has been dependent on herding and agriculture. Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among others, have attracted foreign direct investment. Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990 and 1991 at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession, because of political inaction and natural disasters, as well as economic growth, because of reform-embracing, free-market economics and extensive privatization of the formerly state-run economy. The country opened a fledgling stock exchange in 1991. Mongolia joined the World Trade Organization in 1997 and seeks to expand its participation in regional economic and trade regimes. Growth averaged nearly 9% per year in 2004-08 largely because of high copper prices globally and new gold production. By late 2008, Mongolia was hit hard by the global financial crisis. Slower global economic growth hurt the country's exports, notably copper, and slashed government revenues. As a result, Mongolia's real economy contracted 1.3% in 2009. In early 2009, the International Monetary Fund reached a $236 million Stand-by Arrangement with Mongolia and the country has largely emerged from the crisis with better regulations and closer supervision. The banking sector strengthened but weaknesses remain. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi mine, considered to be among the world's largest untapped copper-gold deposits. Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as a destination for foreign direct investment. Negotiations to develop the massive Tavan Tolgoi coal field also have stalled. The economy has grown more than 10% per year since 2010, largely on the strength of commodity exports to nearby countries and high government spending domestically. Mongolia's economy, however, faces near-term economic risks from the government's loose fiscal and monetary policies, which are contributing to high inflation, and from uncertainties in foreign demand for Mongolian exports. Trade with China represents more than half of Mongolia's total external trade - China receives more than 90% of Mongolia's exports and is Mongolia's largest supplier. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in the first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel and a substantial amount of electric power from Russia. A drop in foreign direct investment and a decrease in Chinese demand for Mongolia's mineral exports are putting pressure on Mongolia's balance of payments. Remittances from Mongolians working abroad, particularly in South Korea, are significant

Source : CIA

Company name

Proliance LLC

Company ADDRESS

Building : Shine Dul Building, Suite 302

Street : Narnii Zam 99-A

Area : Bayanzurkh District, 25th Khoroo

Town : Ulaanbaatar 13374

Country : Mongolia

Telephone : (976 11) 330 276

Fax : (976 11) 330 564 / (976 70) 100 003

E-Mail : uyanga@proliance.mn / bulgan@proliance.mn /

info@proliance.mn / baatarbat@proliance.mn

Website : www.proliance.mn

Trading Style : Iguushin

Also Known As : Proliance Co. Ltd / Proliance XXK / Promoting

Professional Health Service LLC

SENIOR COMPANY PERSONNEL

Name Position

1. Baatarzaya Boldbaatar President

2. Uyanga Batzogs Chief Executive Officer

3. Tumentsogt Budsuren Chief Operating Officer

4. Baatarbat Boldbaatar Business Support Department

Head

5. Armiya Khyzyr Chief Engineer

Total Employees : 25

PAYMENTS

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

We consider it is acceptable to deal with subject for SMALL amounts.

Trade risk assessment : Normal

SIGNIFICANT CHANGES

GE HEALTHCARE EXHIBITS ITS PRODUCTS AT MONGOLIAN MEDI-CARE EXHIBITION & FAIR

On 26 August 2014 (proliance.mn): The first-ever international expo of medical equipment so called “Mongolian Medi-care Exhibition & Fair” will be held for 3 days between August 27 and August 29, 2014 at Misheel Expo Center jointly organized by Ministry of Health of Mongolia SCIS LLC from Shanghai, China in association with Misheel Group LLC, the Medical Engineering Association of Mongolia.

During the exhibition, our partner, the world-known reputable manufacturer in the global medical equipment industry GE Healthcare will present their leading edge technologies first time in Mongolia.

GE’s partnership with Proliance LCC is startedin 2011 and we are working together to help clinicians to see the inside the human body more clearly than ever before with X-ray, digital mammography, Computed Tomography (CT), Magnetic Resonance (MR) and Molecular Imaging technologies.

MOH AND SYSMEX CORPORATIONEXTENDS AGREEMENT FOR MONGOLIAN EXTERNAL QUALITY ASSESSMENT SCHEME

On 31 July 2014 (proliance.mn): The Ministry of Health of Mongolia and Sysmex Corporation of Japan have signed the Cooperation Agreement on extension of their cooperation to support sustainability and improvement of Mongolian External Quality Assessment Scheme (MEQAS).

The Cooperation Agreement was signed by Ms.N. Udval, the Minister of MoH, and Mr. M. Hayashi, the Senior Managing Director of Sysmex Corporationwith presence of Mr.T. Shimizu, the Japanese Ambassador to Mongolia, Ms.Ya.Amarjargal, the Head of Medical Service Department of MOH, Mr.K.Fujimoto, Executive Officer of Sysmex, Mr.K.Funakoshi, Executive Vice President of Scientific Affairs Div., Sysmexand other representatives from both sides.

Back to the start, in July 2008 MoH and Sysmex Corporation had signed the agreement on cooperation for establishment and development of the reference laboratory and hematology external quality assessment system in Mongolia. This time the cooperation is extended for 3 more years till 2017.

Within the agreement period Sysmex had successfully organized External Quality Assessment for hematological examinations 12 times and 6 times for biochemical examinations. The MEQAS plays very important role in improvement of the quality of hospital service in Mongolia helping to standardize the laboratory testing results of 180 medical facilities throughout the country.

PRINCIPAL BANKERS

NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA

Street : Khudaldaany Gudamj 7

P.O. Box : 11

Town : Ulaanbaatar

Telephone : (976 11) 311 537 / 321 051 / 326 729 / 325 449

Fax : (976 11) 325 449 / 312 418

The company also has an account with the following bank :

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 : US DLRS 2,000,000 - 2013 - exact

: US DLRS 2,000,000 - 2014 - projected

Net Profit : not given but stated to be profitable

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : September 2006

History : The Subject was established in Ulaanbaatar in September 2006.

Registration No.: 9011078095

Tax No. : 5087228 (issue date : 02/11/2007)

Capital : not given

Limited Liability Company with the following director and

shareholders :

Director

Baatarzaya Boldbaatar

(Mongolian national)

Shareholders

1. Baatarzaya Boldbaatar

(Mongolian national)

2. Uyanga Batzogs

(Mongolian national)

3. Tumentsogt Budsuren

(Mongolian national)

4. Tuya Norontserem

(Mongolian national)

The exact shareholding percentage was not disclosed.

ACTIVITIES

The Company is involved in the following activities :

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

Subject also provides maintenance and after sale services.

Subject's main suppliers are as follows :

- Sakura;

- Yuskin;

- Sysmax;

- GE Healthcare;

- OptiMedical;

- Tokuhon;

- Storz.

Subject's main awards with the following :

- 2013: Certified ISO 9001:2010;

- 2011: Awarded by Ministry of Health for “Best Import Company for

Medical Equipment”;

- 2010: Awarded by Ministry of Health for “Advanced Technology Import

Company”;

- 2009: Awarded by Ministry of Health for “2007-2008, company of the

year for supplying the best of best technology”;

- 2008: Awarded “Golden Award” at the 5th “Innovation 2008” conference

in the field of innovative offer in the laboratory diagnosis.

NACE Codes : 4646 / 4774

Imports from Europe, Far East, Japan, China and Germany.

Subject does not export, all sales are domestic.

FACILITIES

The Company has the following facilities :

Rented premises comprising administrative offices and storage facilities located at the heading address as well as two pharmacies styled “Iguushin” located in building of Ministry of Health of Mongolia and in Sky Supermarket.

Until 2012, subject was located at :

Boobsh Building 402

Peace Avenue 15A

Sukhbaatar District, 1^st Khoroo

Ulaanbaatar 14210

Until 2009, subject was located at :

8 Zovkhis Building, 5th Floor

Seoul Street 6/3

Ulaanbaatar

Previously subject was located at Seoul Street 3/8, Ulaanbaatar.

SPECIAL NOTE

Interviewed : Baatarbat Boldbaatar (Business Support Department Head).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.98.65
Euro	1	Rs.78.63

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	PDT

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.