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Report No. : |
352980 |
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Report Date : |
10.12.2015 |
IDENTIFICATION DETAILS
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Name : |
BEST URVALJ LLC |
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Registered Office : |
Erdenetolgoi 29, Bayanzurkh District, Ulaanbaatar 13051 |
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Country : |
Mongolia |
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Year of Establishment : |
2009 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as Importers and Distributors of
Foodstuff Mainly Juices. |
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No. of Employees : |
24 |
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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Maximum Credit Limits : |
TUGRIK 12,000,000 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Mongolia |
B2 |
B2 |
|
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.
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Source
: CIA |
CO. NAME : BEST URVALJ LLC
Street
: Erdenetolgoi 29
Area
: Bayanzurkh District
Town
: Ulaanbaatar 13051
Country
: Mongolia
Mobile
: (976 99) 809 674 (Mrs Togosoo)
E-Mail
: besturvalj@gmail.com
Website
: www.best-urvalj.com
Name
Position
1. Munqsult Tsogtbayar Managing Director
2. Mrs Togosoo Imports Manager
Total Employees : 24
No complaints have been heard regarding
payments from local suppliers or banks.
We consider it is acceptable to deal with
subject for SMALL amounts.
Although it is normal accepted practice for
international suppliers to deal on secured terms with Mongolian importers.
Opinion on maximum credit : TUGRIK 12,000,000
Trade risk assessment : Normal
NAME
: GOLOMT BANK OF MONGOLIA
Branch
: Main Branch, Bodi Tower, Sukhbaatar Square
Town
: Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976 11) 312 307
Private companies in Mongolia are not required
to publish or disclose balance sheets. However, the subject interviewed offered
the following information :
Sales Turnover : TUGRIK 570,000,000 - 2014 - exact
: TUGRIK
401,000,000 - 2015 – exact *
Net Profit
: not given but
stated to be profitable
* 9 months results (January – September).
Financial year ends 31 December.
Date Started
: 2009
History
: Subject was established in Ulaanbaatar in 2009.
Tax No.
: 5332176
Capital :
not given
Limited Liability Company with the following
sole shareholder :
Munqsult Tsogtbayar 100%
(Mongolian national)
The Company is involved in the following
activities :
Trading as importers and distributors of
foodstuff mainly juices.
NACE Code : 4617
Imports from Vietnam.
Subject does not export, all sales are
domestic.
The Company has the following facilities :
Rented premises comprising administrative offices
and storage facilities located at the heading address.
Interviewed : Mrs Togosoo (Imports Manager).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.75 |
|
|
1 |
Rs.100.29 |
|
Euro |
1 |
Rs.72.89 |
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MNT |
1 |
Rs.0.033 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.