MIRA INFORM REPORT

 

 

Report No. :

326505

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

XANADU FINE WINES LLC

 

 

Registered Office :

Gangariin Gurav Building, 1st Floor, Office 1, Sukhbaatar District, 2nd Khoroo, 5th Sub district, P.O. Box No.    : 542, Ulaanbaatar 210638

 

 

Country :

Mongolia

 

 

Date of Incorporation :

30.10.2003

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is trading as distributors of alcoholic beverages mainly wine and vodka

 

 

No. of Employee :

2 (administrative staff)

 

 

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 :

Unknown

 

 

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)

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 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.

 

Source : CIA

 

Company name

 

XANADU FINE WINES LLC

                                                  

 

ADDRESS

 

Building             : Gangariin Gurav Building, 1st Floor, Office 1

Area                  : Sukhbaatar District, 2nd Khoroo, 5th Sub district

P.O. Box No.    : 542

Town                : Ulaanbaatar 210638

Country             : Mongolia

Telephone         : (976 11) 319 748 / Mobile (976 99) 116 729 (Graham

                        Taylor)

Fax                   : (976 11) 315 655

E-Mail                : graham@gomongolia.com / wine@gomongolia.com /

                        sales@zanadu.mn

Website            : www.zanadu.mn

 

Also Known As : Xanadu Fine Wines Co. Ltd / Xanadu Fine Wines XXK

 

 

SENIOR COMPANY PERSONNEL

 

Name                                          Position

 

Graham Taylor                             Managing Director

 

Total Employees : 2 (administrative staff)

 

 

PAYMENTS

 

Current trade experience of payments has not been traced.

 

Subject declined to give any financial, general background or antecedent information or to reveal the extent of the company’s operation.

 

Information in this report was obtained from third party sources.

 

Opinion on maximum credit : We have insufficient basis on which to

                            speak for unsecured credit and recommend

                            international suppliers deal cash or pre-                               

                            paid basis.

Trade risk assessment : High

 

 

PRINCIPAL BANKERS

 

Subject declined to name its bankers.

 

 

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 : 30 October 2003

 

History : Subject was established in Ulaanbaatar on 30 October 2003.

 

Tax No.: 2791803 (issue date : 18 November 2003)

 

Capital : not given

 

  with the following shareholders :

 

1. Graham Taylor

  (Australian national)

 

2. Undisclosed members.

 

*The exact shareholding percentage was not disclosed.

 

Affiliated company of the Xanadu Fine Wines LLC :

 

Associate

 

Go Mongolia LLC

Gangariinn Gurav Building, 1st Floor - SW side of State Circus

PO Box 542

Ulaanbaatar-46

Mongolia

Tel/Fax: (976 11) 315 655

Email  : info@GoMongolia.com

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as distributors of alcoholic beverages mainly wine and vodka.

 

NACE Code : 4617

 

Subject declined to provide its imports and exports details.

 

 

FACILITIES

 

The Company has the following facilities :

 

Registered offices located at the heading address.

 

 

SPECIAL NOTES

 

The address given by you: Gangariin Gurav Bldg 1 Fl Sukhbaatar District Uaanbaatar is misspelt. Please note that the correct spelling is as per heading.

 

Interviewed : Graham Taylor (Managing Director).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.