MIRA INFORM REPORT

 

 

Report No. :

321805

Report Date :

19.05.2015

 

IDENTIFICATION DETAILS

 

Name :

EURO ELECTRONICS CO LTD

 

 

Registered Office :

DB Building, 2nd Floor, Uildverchnii Evleliin Street, 43-1, Songinokhairhan District, 18th Khoroo, 21 Khoroolol, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

17.04.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers, wholesalers and retailers of electrical household appliances.

 

 

No. of Employees :

30

           

 

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 60,000,000

 

 

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 – 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

 

EURO ELECTRONICS CO LTD

 

 

ADDRESS

 

Building :          DB Building, 2nd Floor

 

Street   :           Uildverchnii Evleliin Street, 43-1

 

Area     :           Songinokhairhan District, 18th Khoroo, 21 Khoroolol

 

Town     :          Ulaanbaatar

Country  :          Mongolia

 

Telephone:        (976 77) 008 080 / Mobiles (976 88) 109 797 / (976 99) 015

                        216 / (976 88) 037 776 / (976 91) 111 040 (Bat Bold) /

                        (976 88) 078 877 / (976 99) 173 209

Fax      :            (976 70) 003 939

E-Mail   :           batbold@doloonbolog.mn

 

Also Known As : Euro Electronics LLC / Euro Electronics ХХК

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                 Position

 

1. Ganbaatar Sandan                             Chairman

 

2. Ganbat Sandan                                 Chief Executive Officer

  (brother of the above)

 

3. Bat Bold                                           General Manager

 

Total Employees :                                 30 (subject)

                                                            220 (subject and its affiliated company)

 

 

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 60,000,000

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

NAME     :         GOLOMT BANK OF MONGOLIA

 

Branch   :          Bodi Tower, Sukhbaatar Square

Town     :          Ulaanbaatar

 

Telephone:        (976 11) 311 530

Fax      :            (976 11) 312 307

 

Account No.:     1801228211

 

The company also has an account with the following banks :

 

1. Khan Bank

   Sukhbaatar District

   Ulaanbaatar 14200

   Telephone: (976 11) 318 185

   Fax      : (976 11) 328 701

   Account No.: 5040003745

 

2. Trade and Development Bank Mongolia Ltd

   Juulnchny Gudamj 7

   Ulaanbaatar 210646

   Telephone: (976 11) 312 362 / 331 133

   Fax      : (976 11) 325 449

   Account No.: 499184286



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 3,000,000,000 – 2014 - exact

 

Net Profit              :       not given but stated to be profitable

 

Financial year ends 31 December.

 

The following financial information applies to Doloon Boldog LLC (latest available) :

 

Sales Turnover          :   EURO 5,944,096 - 2011 - exact

 

Net Profit              :       EURO 1,921,030 - 2011 - exact

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :   17 April 2006

 

History :            Subject was established in Ulaanbaatar on 17 April 2006.

 

C.R. No. :         9011041093

 

Tax No.:            5056683 (issue date : 15 February 2007)

 

Capital :            not given

 

Limited Liability Company with the following directors and shareholders :

 

Directors

 

1. Ganbaatar Sandan                       

  (Mongolian national)

 

2. Ganbat Sandan                          

  (brother of the above)

 

Shareholders                                           Percentage

 

1. Ganbaatar Sandan                                        70%

  (Mongolian national)

 

2. Chavkhlan Bold                                          30%

  (Mongolian national)

 

Affiliated company of the Euro Electronics Co Ltd :

 

Associate

 

Doloon Boldog LLC

Uildverchnii Evleliin Street 43-1

Songinokhairkhan District, 18th Khoroo, 21 Khoroolol

Ulaanbaatar

Telephone: (976 11) 636 464

Fax      : (976 11) 636 464

Tax No.: 2819449

Capital : TUGRIK 51,000,000

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of electrical household appliances.

 

Subject's main brands are Hansa, Тека, Gorenje and Elon.

 

NACE Codes : 4643 / 4754

 

Imports from Spain, Slovenia, Poland and China.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices located at the heading address as well as 4 retail outlets located elsewhere in Ulaanbaatar (see 'Branch Offices' below).

 

 

REGISTERED OFFICE

 

Bayanzurkh District

Ulaanbaatar

 

 

BRANCH OFFICES

 

1. Germes Center, 2 Vavh, 15th Pavilion

   10th Khoroolol, 4th Khoroo

   Ulaanbaatar

   Mobile: (976 88) 067 790 / (976 88) 097 747

 

2. Amarsanaagiyn gud, 4th Khoroolol

   17th Khoroo

   Ulaanbaatar

   Mobile: (976 88) 079 077

 

3. Kitchen all delguur

   Chingis Avenue

   2nd Khoroo

   Ulaanbaatar

   Mobile: (976 88) 065 077

 

4. Misheel Ekspo

   Chingis Avenue

   2nd Khoroo

   Ulaanbaatar

   Mobile: (976 88) 064 077

 

 

SPECIAL NOTES

 

The address given by you : DB Building, 2nd Fl Uildverchini Evel Street No 43 Ulaanbaatar Songino Khairkah District 18th Khoroo is misspelt. Please note that the correct spelling is as per heading.

 

Interviewed : Bat Bold (General Manager).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.55

UK Pound

1

Rs.99.86

Euro

1

Rs.72.67

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

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.