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Report No. : |
335107 |
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Report Date : |
17.07.2015 |
IDENTIFICATION DETAILS
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Name : |
MAX CENTER LLC |
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Registered Office : |
Max Tower, 6th Floor, Suite
600, Juulchin Street 4/4, Chingeltei District, 4th Khoroo, P.O. Box No. 33,
Ulaanbaatar 21123 |
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Country : |
Mongolia |
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Date of Incorporation : |
15.05.1992 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is an Operators
of Chain of Restaurants in Mongolia. |
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No. of Employees : |
100 (Subject) 3,200 (Max Group) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Mongolia |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 (FDI). 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 strong economic growth because of market reforms 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 emerged from the crisis with a stronger banking sector
and needed reforms to the government’s fiscal management. In October 2009,
Mongolia passed long-awaited legislation on an investment agreement to develop
the Oyu Tolgoi (OT) mine, considered to be among the world's largest untapped
copper-gold deposits. However, Mongolia's ongoing dispute with foreign
investors developing Oyu Tolgoi has called into question the attractiveness of
Mongolia as a destination for foreign investment. This caused a loss of
investor confidence, a severe drop in FDI, and a slowing economy, leading to
the dismissal of Prime Minister ALTANKHUYAG in November. The new government has
made restoring investor trust and reviving the economy its top priority, but it
will be challenged to unwind the monetary and fiscal stimulus programs in use
since 2013 to counteract the fall in foreign investment. In December 2014 the
government awarded a deal to develop the massive Tavan Tolgoi (TT) coal field
to a consortium comprising Energy Resources/MCS (Mongolia), Shenhua (China),
and Sumitomo (Japan); talks continue to hammer out the financing and the
operating details. The economy grew more than 10% per year since 2010, largely
on the strength of commodity exports to nearby countries and high government
spending domestically, before slowing to 7.8% in 2014. Mongolia's economy 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 nearly 62% of
Mongolia's total external trade - China receives some 90% of Mongolia's exports
and supplies Mongolia with more than one-third of its imports. Mongolia has
relied on Russia for energy supplies, leaving it vulnerable to price increases;
in 2014, Mongolia purchased nearly 90% of its gasoline and diesel fuel from
Russia. A drop in FDI has put pressure on Mongolia's external finances.
Remittances from Mongolians working abroad, particularly in South Korea, are
significant.
|
Source
: CIA |
Building : Max Tower, 6th Floor, Suite 600
Street :
Juulchin Street 4/4
Area : Chingeltei District, 4th Khoroo
P.O. Box No.: 433
Town : Ulaanbaatar 21123
Country : Mongolia
Telephone : (976 11) 322 323 / Mobiles (976 88) 117
103 (Soyol-
Erdene Tsegmid) / (976 88) 110
890
Fax : (976 11) 312 332
E-Mail : tungalag@maxgroup.mn /
hr_maxcenter@maxgroup.mn
Website : www.maxgroup.mn
Also Known As : Max
Center Co. Ltd / Max Center XXK
Name Position
1. Ganbaatar
Dagadorj Chairman
2. Erdenechimeg
Dorjgotov Chief Executive Officer
3. Soyol-Erdene
Tsegmid Chief Strategy Officer
4. Tungalag
Dashtseren Group Chief Financial Officer
(aka Mrs. Tunga)
5. Mrs. Yeruu Human Resources Director
6. Munkhnaran
Amarsaikhan Purchasing Manager
Total Employees
: 100 (subject)
3,200
(Max Group)
No complaints have
been heard regarding payments from local suppliers or banks.
Subject is a member
of the Max Group of Companies. The group members are engaged in a diversified
field of activities including retail trade, manufacturing and construction
industries. The group employs more than 3,200 people.
We consider it is
acceptable to deal with subject for MEDIUM 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
NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Khudaldaany Street 7
Town : Ulaanbaatar 11
Telephone: (976 11)
321 171
Fax : (976 11) 325 449
Account No.:
499189716 (USD)
The Company also has
an account with :
Golomt Bank of
Mongolia
Sukhbatar Square 3
Ulaanbaatar
Telephone: (976 11)
329 057
Fax :
(976 11) 312 307
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 applies to Max Impex Co Ltd, subject’s affiliated company
:
Sales Turnover : US DLRS
12,200,000 - 2008 - exact
:
US DLRS 14,800,000 - 2009 - exact
: US DLRS 18,800,000 - 2010 – exact
: US DLRS
20,000,000 - 2011 – approx.
Net Profit :
US DLRS 700,000 - 2008 - exact
:
US DLRS 900,000 - 2009 - exact
: US DLRS
1,300,000 - 2010 – exact
: US DLRS
1,600,000 - 2010 – approx.
Financial year ends
31 December.
Date Started : 15
May 1992
History : Subject
was established in Ulaanbaatar on 15 May 1992.
Capital : not given
Limited Liability
Company with the following directors and shareholders :
Directors
1. Ganbaatar
Dagadorj
(Mongolian national)
2. Erdenechimeg
Dorjgotov
(Mongolian national)
Shareholders
1. Ganbaatar
Dagadorj
(Mongolian national)
2. Tserenjigmed
Dagadorj
(brother of the above)
*The exact
shareholding percentage was not disclosed.
Affiliated companies
of the Max Center LLC :
Subject is a member
of the Max group of companies, Mongolia, headed by :
Max Group Co Ltd
Max Tower, 12th -
13th Floors
Barilgachdiin Talbai
4/4
Chingeltei District,
4th Khoroo
P.O. Box : 433
Ulaanbaatar 211238
Telephone: (976 11) 311 959 / 321 676 / 685 231 / 686
295
Fax :
(976 11) 312 332
E-Mail :
maximpex@magicnet.mn
Date Started : 5
April 1992
C.R. No. : 2702509
Other members of the
group include the following companies :
1. Max Urguu Co Ltd
Trade Union Building, Office 214
Sukhbaatar Square 5
P.O. Box 433
Ulaanbaatar 211238
Telephone:
(976 11) 311 959
Fax
: (976 11) 312 332
(building contractors specializing mainly in
construction of
residential apartment buildings)
2. Max Window Co Ltd
Trade Union Building, Office 214
Sukhbaatar Square 5
P.O. Box 433
Ulaanbaatar 211238
Telephone:
(976 11) 311 959
Fax
: (976 11) 312 332
(manufacturers of wooden and PVC doors and
windows)
3. Suu (Milk) JSC
Suu (Milk) Company building
Uildverchnii Street 37
18th Khoroo
Songinokhairkhan District,
Ulaanbaatar 211213
Tel: (976 11) 631 081
Fax: (976 11) 631 901
Website: www.mongolmilk.mn
(producers of dairy products including milk,
yogurt, cream, etc)
4. Max Impex Co Ltd
Max Tower, 12th Floor
Juulchin Street 4/4
Chingeltei District, 4th Khoroo
Ulaanbaatar 211238
Telephone: (976 11) 311 959 / 321 676 / 685
295 / 322 309
Fax
: (976 11) 312 332
E-Mail
: maximpex@magicnet.mn / bilig@maxgroup.mn
C.R. No. : 2057573
Authorised Capital : US DLRS 5,400,000
5. Max Food LLC
Ulaanbaatar
6. Max Lodging LLC
Ulaanbaatar
7. Max Agro LLC
Ulaanbaatar
8. Max Mining LLC
Ulaanbaatar
The Company is
involved in the following activities :
Operators of chain
of restaurants in Mongolia.
NACE Code : 5610
Imports from
Germany, France, Belgium, Czech Republic, Italy, Spain and Malaysia.
Subject does not
export, all sales are domestic.
The Company has the
following facilities :
Owned premises
comprising administrative offices located at the heading address as well as 17
restaurants located throughout Mongolia.
As per your request,
client name was revealed as “CONAGRA FOODS”.
Interviewed :
Tungalag Dashtseren (Group Chief Financial Officer).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.65.12 |
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|
1 |
Rs.101.62 |
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Euro |
1 |
Rs.72.55 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.