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Report No. : |
324813 |
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Report Date : |
09.06.2015 |
IDENTIFICATION DETAILS
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Name : |
ESTO LLC |
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Registered Office : |
International Commercial Center, 11th Floor, Jamiyan Gun Street-9, 1st Khoroo, Sukhbaatar District, Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
12.05.2004 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
General contractors provides the following services :
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No. of Employees : |
160 (Subject) 300 (Subject including contractors) |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Magnolia |
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 |
MAGNOLIA - 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 has largely emerged from the crisis. The banking sector strengthened but weaknesses remain. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi mine, considered to be among the world's largest untapped copper-gold deposits. Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as a destination for foreign investment. Negotiations to develop the massive Tavan Tolgoi coal field also have stalled. The economy has grown more than 10% per year since 2010, largely on the strength of commodity exports to nearby countries and high government spending domestically. Mongolia's economy, however, 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 more than half of Mongolia's total external trade - China receives more than 90% of Mongolia's exports and is Mongolia's largest supplier. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in the first 11 months of 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 |
ESTO
LLC
Building : International Commercial Center, 11th Floor
Street : Jamiyan Gun Street-9
Area : 1st Khoroo, Sukhbaatar District
Town : Ulaanbaatar
Country : Mongolia
Telephone : (976 11) 311 848 (unobtainable) / 330 176
(unobtainable) / 460 337 (unobtainable)
Fax : (976 11) 311 815
E-Mail : hr@esto.mn / info@esto.mn
Website : www.esto.mn
Also Known As : Esto Co. Ltd / Esto XXK
Name Position
1. Delgermaa Ulziidelger President
2. Eng. D. Batjargaal Chief Executive Officer
Total Employees : 160 (subject)
300 (subject including contractors)
Current trade experience of payments has not been traced.
Our sources could not contact the company and obtain a direct
interview. The telephone and fax number which you provided : (976 11) 311 848 is unobtainable (not receiving international calls). Our show the following telephone and fax numbers listed for the subject respectively: (976 11) 460 337 & 460 337 which are unobtainable, and several messages have been sent to the fax number (976 11) 311 815 & emails to “hr@esto.mn / info@esto.mn” requesting a contact, however no reply have been received. No other telephone or fax numbers are listed for the subject at the local telephone directory.
Information in this report was obtained from the third party sources
only.
Opinion on maximum credit : In the circumstances we recommend
international suppliers deal on a
strictly cash or prepaid basis.
Trade risk assessment : No classification (see above comments).
Details of subject's bankers have not been learnt.
Balance sheets are not available. Financial information could not be obtained from other sources.
Date Started : 12 May 2004
History : Subject was established in Ulaanbaatar on 12 May 2004.
C.R. No.: 9011012059
Tax No.: 2861224
Capital : not given
Limited Liability Company with the following shareholders :
1. Delgermaa Ulziidelger
(Mongolian national)
2. Undisclosed members.
*The exact shareholding percentage was not disclosed.
The Company is involved in the following activities :
General contractors provides the following services :
- Road and railway construction;
- Power facilities construction;
- and other contacting services.
Subjects completed projects are as follows :
Road Projects :
- Yarmag Bayanzurkh bridge to build 17.1 kilometres of paved roads
project;
- Mandalgobi-Dalanzadgad route 25 km of paved road project.
Bridge project:
- Tolgoit UB-2 station in the 3.4 km road between the 2 main roads,
399 km zuutad 1 at 27m long concrete bridge construction work;
- Tuul railway crossings in the 416-kilometer length of 24,7km
concrete bridge construction;
- Town in the 19m long bridge construction;
- Bayanzurkh Yarmag 17,1 km under a bridge along the road route 70
Round, 12 square pipes and other drainage facilities to navigate;
NACE Codes : 4211 / 4212 / 4213
Details of subject’s imports and exports
could not be learnt.
The Company has the following facilities :
Premises comprising office located at the heading address.
Interviewed : Third Party Sources.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.11 |
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1 |
Rs.97.84 |
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Euro |
1 |
Rs.71.12 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
VNT |
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.