MIRA INFORM REPORT

 

 

Report No. :

320854

Report Date :

20.05.2015

 

IDENTIFICATION DETAILS

 

Name :

GOYO CO LTD

 

 

Formerly Known As :

  • GOYO LLC
  • GOYO XXK

 

 

Registered Office :

Central Tower, 13th Floor, Flat 1301 Peace Avenue 2 Sukhbaatar Square, Sukhbataar District, SBD-8 Ulaanbaatar 17061

 

 

Country :

Mongolia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1993

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers, distributors and exporters of readymade garments.

 

 

No. of Employee :

420

 

 

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 – 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

 

GOYO CO LTD

 

 

ADDRESS

 

Building            : Central Tower, 13th Floor, Flat 1301

 

Street                           : Peace Avenue

 

Area                             : 2 Sukhbaatar Square, Sukhbataar District, SBD-8

 

Town                : Ulaanbaatar 17061

Country             : Mongolia

 

Telephone         : (976 77) 115 454 / 115 353

Fax                   : (976 77) 117 575

E-Mail               : marketing@goyo-cashmere.com / sales@goyo-cashmere.com / 

                          export@goyo-cashmere.com

website             : www.goyo-cashmere.mn

 

Trading Styles   : Goyo Cashmere

 

Also Known As             : Goyo LLC / Goyo XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Od Jambaljamtsiin                             President

 

2. Odjargal Jambaljamtsiin                     Chairman of the Board Director

 

3. A. Gankhuyag                                    Group Chief Executive Officer

 

4. D. Badamtsetseg                                          Chief Executive Officer

 

5. Sarangoo Ukhnaa                                          Deputy Director

 

6. Suvd Zunkhuu                                   Marketing Manager

 

Total Employees :                                 420 (subject)

                                                            8,000 plus (group)

 

PAYMENTS

 

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

 

Subject is a subsidiary of the MCS Group of Companies - one of the

largest private sector. The Group has more than 32 subsidiaries covering diversified business activities including : energy & infrastructure, general manufacturing & services, information & communications, property development, and - food, beverage & alcohol. The Group had annual sales turnover TUGRIK 628.6 Billion in 2013.

 

We consider it is acceptable to deal with subject for LARGE amounts.

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

 

Opinion on maximum credit : TUGRIK 3,000,000,000

 

Trade risk assessment : Normal

 

 

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

 

The company also has an account with the following banks:

 

1. Golomt Bank of Mongolia

   Main Branch

   Bodi Tower, Sukhbaatar Square

   Ulaanbaatar

   Telephone: (976 11) 311 530

   Fax      : (976 11) 312 307

 

2. Khan Bank of Mongolia

   Peace Avenue

   P.O Box-185

   Ulaanbaatar

   Telephone: (976 11) 457 880

   Fax      : (976 11) 457 880

 

3. Khas Bank

   Sukhbaatar district

   Ulaanbaatar 14200

   Telephone: (976 11) 318 185

   Fax      : (976 11) 328 701

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information applies to MCS Holding Group including our subject (latest available) :

 

Sales Turnover      : TUGRIK  514,600,000,000 - 2010 - exact                     

                            : TUGRIK  412,100,000,000 - 2011 - exact                     

                            : TUGRIK  519,300,000,000 - 2012 - exact                    

                            : TUGRIK  628,600,000,000 - 2013 - exact                    

                   

Net Profit             : not given but stated to be 10% of the sales

 

Financial year ends 31 December.

 

Balance sheets as at 31 December of 2013 showed applies to Mongolian Mining Corporation (MMC), subject's affiliate company :

 

                                                                        31/12/2013    31/12/2012   31/12/2011

                                                                                     (in thousands HKD)

ASSETS

 

Current Assets

Cash And Cash Equivalents                                77,000             284,000             228,000 

Net Receivables                                                145,000             131,000              92,000  

Inventory                                                           106,000             90,000               58,000 

Other Current Assets                                         58,000              12,000                    - 

Total Current Assets                                          449,000             583,000             395,000 

Long Term Investments                                      2,000                4,000                 4,000 

Deferred Long Term Asset Charges                    22,000              19,000               10,000 

Total Assets                                                      1,899,000          2,177,000          1,628,000

 

LIABILITES & EQUITY

 

Liabilities

Current Liabilities

Accounts Payable                                               93,000            46,000               19,000 

Short/Current Long Term Debt                            991,000             1,114,000          562,000 

Other Current Liabilities                                      72,000              81,000               94,000 

Total Current Liabilities                                       433,000             418,000             554,000

Long Term Debt                                                744,000             842,000             145,000 

Total Liabilities                                                  1,338,000          1,425,000          859,000 

Common Stock                                                 646,000             646,000             646,000 

Retained Earnings                                             120,000             177,000             180,000

Treasury Stock                                                  (205,000)           (71,000)           (57,000)

 

INCOME STATEMENT

 

Total Revenue                                                   437,000             474,000             543,000 

Cost of Revenue                                               335,000             386,000             288,000 

Gross Profit                                                      102,000              89,000             254,000  

Total Operating Expenses                                  414,000             463,000             397,000 

Operating Income or Loss                                  23,000              11,000              146,000

Earnings Before Interest & Taxes                       23,000              11,000              146,000

Interest Expense                                               (61,000)            (49,000)            (13,000)

Income Tax Expense                                         3,000                3,000                36,000 

Net Income From Continuing Ops                       (58,000)            (3,000)              119,000 

Net Income                                                      (58,000)            (3,000)              119,000

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                 : 1993

 

History                          : Subject was established in Ulaanbaatar in 1993

 

Tax No.                         : 2316161 (issue date : 7 December 2001)

 

Capital                          : not given

 

Limited Liability Company with the following director and sole shareholder :

 

Director

 

D. Badamtsetseg

(Mongolian national)

 

Shareholder

 

MCS Holding LLC                                  100%

(aka MCS Group)

Central Tower, 15th floor

2 Sukhbaatar square, Sukhbaatar district-8

Ulaanbaatar 210620a

Mongolia

Telephone         : (976 11) 312 625 ext. 1546 (Ms. Tuksjargal) / 311 079 /

                        (976 77) 212 625 / Mobile (976 99) 118 123 / (976 88) 800              

                         666 (N. Arunbol)

Fax                   : (976 11) 312 175

E-Mail               : azzaya.s@mcs.mn / n.zolo@mcs.mn / gankhuyag@mcs.mn /

                        gantumur.l@mcs.net

Website            : www.mcs.mn

Tax No.             : 2628236

Capital              : US DLRS 30,000,000

 

Shareholders :

 

1. Odjargal Jambaljamtsiin                                             49.84%

   (Mongolian national / owns 49.84% through Novel

    Holdings Limited, which is wholly owned by him)

 

2. Od Jambaljamtsiin                                                      28.69%

  (brother of the above)

 

3. Enkh-Amgalan Luvsantseren                                       3.19%

 

4. Enkhtsetseg Damdinsurengeen       }                      

                                     }

5. Elderochir Lhagvageen             }

                                     }

6. Badamtsetseg Dasholzigeen         }

                                     }                                              18.28%

7. Enkhtuvshin Dashtserengeen        }

                                     }

8. Ganhuyag Adilbisheen              }

                                     }

9. Otgonchimeg Bazarragchageen       }

                                     }

10.Chimgee Ochirvaneen               }

 

 

Profile on MCS Holding :

 

MCS Holding Co Ltd, founded in 1993 as the first Mongolian private

consulting company in the energy sector, the MCS Group has

successfully expanded its business operations in such diversified

fields, as energy and infrastructure, information and communication

technology, beverage manufacturing and distribution, wholesale and

retail, property development, construction and printing. The MCS

Group has 4,000 employees and has been ranked as one of the top five

taxpayers for the last consecutive years.

 

Personal Profile on Oyunbat Lkhagvatsend, MCS Holding director :

 

Oyunbat Lkhagvatsend, aged 35, is the Vice President and Chief Logistics Officer of the Mongolian Mining Corporation. On 8 February 2011, Mr. Lkhagvatsend was appointed as the Chief Executive Officer of Energy Resources Rail LLC, Transgobi LLC, Tavan Tolgoi Airport LLC, Energy Resources Road LLC and Gobi Road LLC. Mr. Lkhagvatsend has about 11 years of experience in the business sector of Mongolia, holding senior positions in various businesses in the country. From 2003 to 2005, Mr. Lkhagvatsend was the chief executive officer of Newcom Group and was responsible for strategy planning and business development. From May 2005 to December 2006, he was the president and chief executive officer of Eznis Airways and was in charge of strategy planning, project management and other corporate affairs. He joined the Group in 2008 as the chief executive officer of Energy Resources Rail LLC and was responsible for overall business strategy and planning. Mr. Lkhagvatsend was awarded a bachelor’s degree in law from the National University of Mongolia, Mongolia. He also underwent executive trainings held by the Michigan Business School, United States, in 2004.

 

Subject is a subsidiary of the MCS group of companies, Mongolia, which also includes the following companies :

 

1. Mongolian Mining Corporation                    

   Central Tower, 16th Floor

   Sukhbaatar District

   Ulaanbaatar 14200

   Telephone: (976 70) 122 279 / 132 279

   Fax      : (976 11) 322 279

   E-Mail   : contact@mmc.mn / investor@mmc.mn / gantulga.bu@mmc.mn

   Website  : www.mmc.mn

   Hong Kong Stock Exchange Code No.: 975

   UHG mining license No.: MV-11952

   

2. Khangad Exploration LLC

   Mongolia

  (Holder of the mining license MV-14493 for the BN coking coal    

   deposit)

 

3. Mongolian Coal Corporation S.A.

   Luxemburg

   Capital : EURO 31,000

 

4. Baruun Naran Limited

   Gibraltar

 

5. Energy Resources Corporation LLC

   Mongolia

   Capital : US DLRS 100,000

 

6. Baruun Naran S.A.

   Luxemburg

 

7. Energy Resources Rail LLC

   Central Tower, 16th Floor

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 14200  

   Telephone: (976 70) 122 279 / 132 279

   Fax      : (976 70) 111 399 / 132 279

   Chief Executive Officer : Oyunbat Lkhagvatsend

   Employees: 100

   Est.: 8 July 2008

   Tax No.: 5241111

   Capital : TUGRIK 10,700,000,000

   Sole shareholder : Energy Resources LLC

  (Engages in management of railway project and responsible for the

   implementation of the construction of the railway base

   infrastructure)

 

8. Enrestechnology LLC

   Central Tower, 16th Floor, West Wing

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 210620a  

   Telephone: (976 70) 122 279

   Fax      : (976 70) 132 279   

   Chief Executive Officer : Davaakhuu Chultem

   Est.: 25 June 2009

   Tax No.: 3614107

   Capital : 3,466,163,000

 

9. Energy Resources Mining LLC

   Central Tower, 15th Floor

   2 Sukhbaatar Square, 8 Khoroo, Sukhbaatar District

   Ulaanbaatar 210620a  

   Telephone: (976 70) 122 279

   Fax      : (976 70) 132 279

   Est.: 23 December 2008

   Capital : US DLRS 1,000

  (Responsible for the mining and technical operations of the UHG

   deposit)

 

10.Transgobi LLC

   Mongolia

   Capital : TUGRIK 9,122,641,836

  

11.Tavan Tolgoi Airport LLC

   Mongolia

   Capital : TUGRIK 3,475,379,000

 

12.Energy Resources Road LLC

   Mongolia

   Capital : TUGRIK 1,000,000

 

13.International Medical Center LLC

   Mongolia

 

14.International Technical College LLC

   Mongolia

 

15.Ukhaa Khudag Water Supply LLC (frmly United Water LLC)

   Mongolia

   Est.: 24 June 2009

   Capital : TUGRIK 1,000,000

 

16.United Power LLC

   Mongolia

   Capital : TUGRIK 3,025,219,000

 

17.Gobi Road LLC

   Mongolia

   Capital : TUGRIK 1,000,000

 

18.Public Service LLC

   Mongolia

   Capital : TUGRIK 20,000,000

 

19.Mongolian Coal Corporation Limited

   Three Pacific Place, Level 28

   1 Queen’s Road East

   Hong Kong

   Capital : HK DLRS 1

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers, distributors and exporters of readymade garments.

 

Subject produces cashmere, camel and yak yarns, dehaired cashmere and fine cashmere garments and its annual production capacity is over 300,000 pieces.

 

NACE Code : 1419

 

Subject purchases all its requirements locally.

 

Exports to Japan, Australia, Kazakhstan, Russia, Sweden, Czech Republic, Poland, Italy, Germany, Switzerland, the Netherlands, Luxembourg, UK and Canada.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative office located at the heading address as well as a manufacturing unit with storage facilities located elsewhere in Ulaanbaatar as well as several shops located throughout Mongolia (see ‘Branch Offices’ below).

 

 

BRANCH OFFICES

 

Manufacturing Unit :

 

GOYO Cashmere factory

Khan Uul District, Khoroo 3

Ulaanbaatar 210636

 

Shops :

 

1. Dornod City :

   9th bag, 17th building, KhasGurem shop

   Choibalsan

   Dornod aimag

   Telephone: (976 99) 063 556

 

2. Dornogobi City :

   New century khoroolol, new shopping center, 1st bag   

   Sainshandsoum, Dornogobi aimag

   Telephone: (976 88) 600 303

 

3. Selenge City :

   Uurkhaichin bag, Shopping mall 1st floor, Goyo Store

   Bayan-Undursoum

   Orkhon aimag

   Telephone: (976 99) 006 305

 

4. Khuvsgul City :

   Murun soum, 8th bag, 14th building, Brand shop

   Khuwsgul aimag

   Telephone: (976 99) 072 955

 

5. Gobi Altai City :

   Yusunbulagsoum, 21st building, Altai

   Gobi-Altai aimag

   Telephone: (976 99) 141 995

 

6. Uws City :

   Ulaangom soum, 3rd bag, “Od Mongol” shopping center

   Uws aimag

   Telephone: (976 95) 459 545

 

SPECIAL NOTES

 

The address given by you: Khan Uul Disrict 3th Khorro is incorrect and applies to subject's factory address. Please note that subject’s correct administrative office address is as per heading.

 

Interviewed : Subject's employees.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.69

UK Pound

1

Rs.99.73

Euro

1

Rs.71.90

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 


 

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.