MIRA INFORM REPORT

 

 

Report No. :

331873

Report Date :

27.07.2015

           

IDENTIFICATION DETAILS

 

Name :

MEKHLOPAT LLC

 

 

Registered Office :

15-13, Bayangol District, 1st Khoroo, 2nd Sub District, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

31.08.2003

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers, retailers and distributors of the following :

 

  • Equipment and spare parts for mining machineries;
  • Excavators;
  • Dump trucks;
  • GET tools;
  • Steel wire ropes, industrial and high voltage mining cables;
  • Hose reels;
  • Tire protection chains;
  • Underground mining cable tray systems;
  • Heavy duty vehicle washing systems;
  • Drilling tools;
  • OTR tires;
  • Underground mining ventilation systems.

 

 

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 – 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 

 

Mekhlopat LLC

 

 

ADDRESS

 

Building            : Grand Plaza Office Centre, Suite 801

 

Area                 : Bayangol District, 2nd Khoroo

 

Town                : Ulaanbaatar 14253

Country             : Mongolia

 

Telephone         : (976 70) 124 648 / 125 524 / 114 648 / Mobiles (976 99)

                          098 427 / 069 648 / (976 88) 605 272 (Munktuul

                          Amartaivan) / (976 96) 001 102

Fax                   : (976 70) 124 648 / 114 648 / 123 555

E-Mail               : info@mekhlopat.mn / munktuul@mekhlopat.mn / 

                          mekhlopat@yandex.ru / amgalan@mekhlopat.mn

Website            : www.mekhlopat.mn

 

Also Known As             : Mekhlopat XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                    Position

 

1. Baatarsuren J.                       Executive Director

 

2. Ganbat Dulamsuren              Chief Executive Officer

 

3. Munkhtuul Amartaivan            Foreign Trade Manager     

  (on maternity leave)

 

4. Mrs. Munkhamglan               Foreign Trade Manager

 

5. Mr. Battsonmon                     Sales Manager

 

6. Bilguun Checheg                   Financial Manager

 

7. Khashaa Ts                           Engineering

 

Total Employees : 25

PAYMENTS

 

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

 

Subject is a member of Namir Invest Group.

 

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.

 

Trade risk assessment : Normal

 

 

SIGNIFICANT CHANGES

 

MEKHLOPAT LLC AWARDEDOT’S BEST SUPPLIER FOR "SOCIAL RESPONSIBILITY PERFORMANCE"

 

On 2 May 2014 (www.mekhlopat.mn) : Mekhlopat LLC named as OyuTolgoi’s best supplier for social responsibility. OyuTolgoi LLC recognized and celebrated the success of its best Mongolian suppliers. The fifth Gobi Gem - Supplier Recognition Awards ceremony took place at the National Opera and Ballet Theatre in Ulaanbaatar with Mekhlopat LLC and other 8 companies named as OyuTolgoi’s best supplier.

 

Through its Corporate Social Responsibility strategy, Mekhlopat LLC implemented a number of programs in collaboration with the School of Mining Engineering, Municipal Authority for Children, National Garden Park, Edu-relief NGO and Lotus Children Centre NGO. We also provided student scholarships & internships in mining and mechanical engineering fields and donated library and computer equipment to Khyalganatsoum of Bulgan province of Mongolia. We also supported a program producing eco-bags run by disabled people. Mekhlopat LLC sent sales and technical employees to Holland, China and Australia to study.

 

 

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch              : Juulnchny Gudamj 7

Town                : Ulaanbaatar 210646

 

Telephone         : (976 11) 312 362 / 331 133

Fax                   : (976 11) 325 449

 

Subject also has an account with :

 

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                          : TUGRIK 3,500,000,000 - 2010 - exact

                                                : TUGRIK 4,500,000,000 - 2011 - exact

                                                : TUGRIK 5,500,000,000 - 2012 – exact

                                                : TUGRIK 5,400,000,000 - 2013 – exact

                                                : TUGRIK 4,500,000,000 - 2014 – approx *

 

Net Profit                      : TUGRIK   500,000,000 - 2010 - exact

                                                : TUGRIK   700,000,000 - 2011 – exact

                                                : not given                     - 2012/2014

 

* Decrease in sales turnover in 2014 was due to unfavorable market conditions.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 31 August 2003

 

History                          : Subject was established in Ulaanbaatar on 31 August 2003, however origins of subject's  business activities can be traced back to 2002.

 

C.R. No.                      : 9011074115 (issue date : 16 June 2006)

 

Tax No.                         : 2682354

 

Authorised Capital         : TUGRIK 4,500,000,000

 

Paid-Up Capital             : TUGRIK 4,500,000,000

  

Limited Liability Company with the following sole shareholder :

 

Baatarsuren J.                                   100%

(Mongolian national)

 

Affiliated companies of the Mekhlopat LLC :

 

Associates

 

Subject is a member of Namir Invest Group of companies, Mongolia, which also includes the following companies :

 

1. Namir Invest LLC

   Grand Plaza Office Centre, Office 807-809, 2nd Khoroo

   Bayangol District

   Ulaanbaatar 210628

   Telephone: (976 70) 125 524 / 125 524

   Fax      : (976 70) 123 555

   E-Mail   : naming@yandex.ru / enkhzul@namir.mn

   Website  : www.namir.mn

   Managing Director: Baatarsuren J.

   Est.: 12 August 2002

 

2. Amore international LLC

   Grand Plaza Office Centre, Office 1406, 2nd Khoroo

   Bayangol District

   Ulaanbaatar 210628

   Telephone: (976 70) 127 535

   Fax      : (976 70) 137 535

 

3. Namir LLC

  (Zippo Mongolia)

   Maxmall Supermarket, 1st Floor

   Baruun Road 4

   Ulaanbaatar

   Telephone: (976 50) 888 866

 

4. Montermo LLC

   Ulaanbaatar

 

5. Reduktor LLC

   1st Service Centre, 1st Horoolol, Songinokhairkhan District,  

   Ulaanbaatar

   Telephone: (976 70) 125 524

   Fax      : (976 70) 123 555

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers, retailers and distributors of the following :

 

- Equipment and spare parts for mining machineries;

- Excavators;

- Dump trucks;

- GET tools;

- Steel wire ropes, industrial and high voltage mining cables;

- Hose reels;

- Tire protection chains;

- Underground mining cable tray systems;

- Heavy duty vehicle washing systems;

- Drilling tools;

- OTR tires;

- Underground mining ventilation systems.

 

Subject provides procurement services to meet specific needs and requirements of clients also provides sourcing, assembling, installation and complete range of sales after services.

 

Subject’s main brands include :

 

- Eurotire;

- Hensley Industries;

- MMK Metiz;

- AmerCable;

- Pewag Chains;

- InterClean Equipment Inc.

 

Subject’s main services include :

 

- Supply, assembly and service of mining equipment’s;

- On-demand procurement and sourcing of mining equipment’s and spare 

  parts;

- Supply, installation  and service of spare parts and related

  Components;

- Full range of after-sales services and support;

- Training for assembly, installation and service of spare parts and 

  mining consumables;

- Product procurement, selection and purchasing planning services;

- Warehouse leasing and product storage services.

 

Subject is ISO 9001:2008 certified.

 

NACE Codes : 3312 / 3320 / 4663 / 4614 / 4662

 

Imports from Europe, Ukraine, Romania, Russia, Germany, China, South Korea, USA, India and Canada.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices located at the heading address as well as owned retail outlet and storage facilities located near Power Plant, Bayangol District, Ulaanbaatar.

 

Subject previously had storage facilities located at :

 

Near TETS-4

20th Khoroo

Bayangol District

Ulaabaatar

 

 

REGISTERED OFFICE

 

15-13, Bayangol District, 1st Khoroo, 2nd Sub district

Ulaanbaatar

Telephone: (976 11) 367 512 / Mobile (976 99) 097 959

Fax      : (976 11) 319 155

 

 

SPECIAL NOTES

 

The address given by you : “15-13, Bayangol District, 1st Khoroo, 2nd Sub district”  applies to subject’s registered office address. Please note that subject’s correct administrative office address is as per heading.

Interviewed : Mrs. Munkhamglan (Foreign Trade Manager).

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.89

UK Pound

1

Rs.99.10

Euro

1

Rs.70.12

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.