MIRA INFORM REPORT

 

 

Report No. :

353774

Report Date :

11.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MONGOL GLOBAL LLC

 

 

Registered Office :

Saruul Center, Teeverchdiin Street, Narnii Zam 53, Sukhbataar District, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

08.03.1996

 

 

Com. Reg. No.:

9011097105

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject operates through the following divisions :

 

·         Operation in construction;

·         Real estate brokerage;

·         Import and marketing of construction materials;

·         Office rental activities.

 

 

No. of Employee :

50

 

 

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

 

Maximum Credit Limit :

TUGRIK 30,000,000

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Mongolia

B2

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 (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

 

Company name

 

Mongol Global LLC (Correct)

 

MONGOL GLOBAL (WERSJA ANG MONGOLIAN GLOBAL CO LTD) (Requested)

 

 

ADDRESS

 

Building            : Saruul Center

 

Street               : Teeverchdiin Street, Narnii Zam 53

 

Area                 : Sukhbataar District

 

Town                : Ulaanbaatar

Country             : Mongolia

 

Telephone         : (976 11) 316 226 / 326 226 / Mobile (976 99) 006 637

                          (B. Batbayar)

Fax                   : (976 11) 322 986

E-Mail               : info@mongolglobal.mn / b.batbayar@mongolglobal.mn /

                          finance@mongolglobal.mn

Website            : www.mongolglobal.mn

 

Also Known As : Mongol Global Co. Ltd / Mongol Global XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                            Position

 

1. B. Ganbayar                                Managing Director

 

2. D. Jargalsaikhan                         Financial Manager

 

3. B. Batbayar                                 Foreign Relations Manager

 

Total Employees : 50

 

 

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, 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.

 

Opinion on maximum credit : TUGRIK 30,000,000 (higher amounts may be considered with full fiscal disclosure)

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKER

 

NAME               : KHAN BANK OF MONGOLIA

 

Branch              : Peace Avenue

P.O. Box          : 185

Town                : Ulaanbaatar

 

Telephone         : (976 11) 457 880

Fax                   : (976 11) 457 880

 

 

FINANCIAL INFORMATION

 

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.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :   8 March 1996

 

History :            Subject was established in Ulaanbaatar on 8 March 1996.

 

C.R. No. :         9011097105

 

Tax No. :           2088401 (issue date : 28 February 2005)

 

Capital :            not given

 

Limited Liability Company with the following sole shareholder :

 

B. Ganbayar

(Mongolian national)

Affiliated companies of the Mongol Global LLC :

 

Subsidiaries

 

1. Euro Stand LLC

   Ulaanbaatar

 

2. Bus-od Trade LLC

   Ulaanbaatar

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Subject operates through the following divisions :

 

- Operation in construction;

- Real estate brokerage;

- Import and marketing of construction materials;

- Office rental activities.

 

NACE Codes: 6820 / 6831 / 4613

 

Imports from Poland, France, Turkey, Czech Republic, Germany, Russia, China and South Korea.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

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

 

 

GENERAL INFORMATION

 

In 2005 :

 

"Construction 2005" exhibition trophy and cash awards by Ministry of Construction and Urban Development

"Best Debut Enterprise" award and trophy of "Partnership 2005" exhibition, organized by Municipality Governor's Office and Mongolian Chamber of Commerce and Industry

 

In 2006 :

 

"Advanced technology, high quality materials and products" award and trophy of "Construction 2006" exhibition, organized by Ministry of Construction and Urban Development "Best Customer" award by the Transportation Development Bank

 

In 2007 :

 

"Best Plumbing Material Importer" award of "Construction & Housing-2007" exhibition, organized by Ministry of Construction and Urban Development "Honorary Director" and "Outstanding Social Promoter Enterprise" award by Business Development Association

 

In 2008 :

 

"New Technology Promoter - Best Enterprise" award of "Construction & Housing-2008" exhibition, organized by Ministry of Construction and Urban Development

 

In 2009 :

 

"Construction Materials Importer - Best Enterprise" award during "Golden Tower" annual ceremony Automobile exhibition hall was selected as the best and unique interior and exterior structure in Mongolia and awarded with "Best Construction" title by the Mongolian Association of Urban Development and Mongolian Engineers' Association

 

In 2010 :

 

"Organization with Best Decoration" trophy and award on occasion of Sukhbaatar district's 45 years anniversary "Best Importer - Employer" award and title by "Employer 2010" event, organized by the Mongolian Chamber of Commerce and Industry "Construction Material Importer - Best Enterprise" distinction and award during "Golden Tower" annual ceremony

 

In 2011 :

 

"Golden Tower 2011" trophy and award as the best construction industry company

 

In 2012 :

 

"The Best Municipality Enterprise - Khangarid Award" by Ulaanbaatar City Mayor and City Council "Best Importer" title of "Construction and Housing-2012" exhibition, organized by Ministry of Construction and Urban Development in Michelle Expo Center

 

In 2013 :

 

"Entrepreneur 2013" distinction and Bronze Mercury Cup by the Mongolian Chamber of Commerce and Industry.

 

 

SPECIAL NOTES

 

The commercial registration number given by you : “25/5144” is incorrect. Please note that subject’s correct commercial registration number is 9011097105.

 

You enquired on : “MONGOL GLOBAL (WERSJA ANG MONGOLIAN GLOBAL CO LTD)”. Please note that subject's correct registered name is as per heading.

 

Interviewed : B. Batbayar (Foreign Relations Manager).

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.79

UK Pound

1

Rs.101.37

Euro

1

Rs.73.46

MNT

1

Rs.0.033

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

TRU

 


 

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.