MIRA INFORM REPORT

 

 

Report No. :

354422

Report Date :

16.12.2015

 

IDENTIFICATION DETAILS

 

Name :

JEIL BAYANBOGD LLC

 

 

Registered Office :

Building No. 49/2 Peace Avenue Bayangol District, 5th Khoroo, 10th Khorolol Ulaanbaatar 

 

 

Country :

Mongolia

 

 

Date of Incorporation :

15.10.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers and distributors of building materials and paints.

 

 

No. of Employee :

15

 

 

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

 

Status :

Satisfactory

 

 

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 and ADDRESS

 

Jeil Bayanbogd LLC (Correct)

JEIL BAYANBOGD CO.LTD. (Requested)

 

Building            : Building No. 49/2

 

Street                           : Peace Avenue

 

Area                             : Bayangol District, 5th Khoroo, 10th Khorolol

 

Town                : Ulaanbaatar

Country             : Mongolia

 

Mobiles            : (976 99) 020 165 (Erdenebaatar Sukhbaatar) / (976 99) 195

                          812 (Mrs. Uruntuya) / (976 98) 230 165 / (976 99) 190 165

                          (Mrs Oyunchimeg) / (976 99) 190 165

E-Mail               : erdenewall@yahoo.com

 

Also Known As             : Jeil Bayanbogd XXK / Jeil Bayanbogd Co. Ltd

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                 Position

 

1. Erdenebaatar Sukhbaatar                   Managing Director

 

2. Mrs Oyunchimeg                               Executive Manager

 

3. Mrs. Uruntuya                                    Manager

 

Total Employees : 15

 

 

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,

although it is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

Opinion on maximum credit : TUGRIK 20,000,000

Trade risk assessment : Normal

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch              : Khudaldaany Gudamj 7

Town                : Ulaanbaatar-11

 

Telephone         : (976 11) 321 171

Fax                   : (976 11) 325 449  

 

Subject also has an account with the following bank :

 

Khan Bank of Mongolia

Seoul Street 25

PO Box 192

Ulaanbaatar 14250

Telephone         : (976 11) 332 333

Fax                   : (976 70) 117 023

 

 

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 300,000 - 2013 - exact

                                    : US DLRS 500,000 – 2014 – exact

                                    : US DLRS 500,000 – 2015 – projected

 

Net Profit                      : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started     : 15 October 2006

 

History              : Subject was established in Ulaanbaatar on 15 October 2006.

 

C.R. No.           : 9011020021

 

Tax No.             : 2855615

 

Capital              : not given

 

Limited Liability Company with the following director and shareholders :

 

Director

 

Erdenebaatar Sukhbaatar

(Mongolian national)

Shareholders      

                                                                         Percentage

 

1. Erdenebaatar Sukhbaatar                                            90%                    

  (Mongolian national)

 

2. Mrs Oyunchimeg                                               10%

  (wife of the above)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and distributors of building materials and paints.

 

NACE Code : 4613

 

Imports mainly from South Korea and Russia.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices with storage facility located at the heading address.

 

Subject previously used the following telephone numbers :

 

Telephone: (976 11) 683 275 / 689 019

 

 

 

 

SPECIAL NOTES

 

You enquired on : “JEIL BAYANBOGD CO.LTD”. Please note that subject is also known by this name. Subject's correct registered name is as per heading.

 

The address given by you : “PEASE AVENUE” is misspelt. Please note that the correct spelling is as per heading.

 

Interviewed : Mrs. Uruntuya (Manager).

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.67.04

UK Pound

1

Rs.101.67

Euro

1

Rs.73.93

MNT

1

Rs.0.034

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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.