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Report No. : |
320854 |
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Report Date : |
20.05.2015 |
IDENTIFICATION DETAILS
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Name : |
GOYO CO LTD |
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Formerly Known As : |
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Registered Office : |
Central Tower, 13th Floor, Flat 1301 Peace Avenue 2 Sukhbaatar Square, Sukhbataar District, SBD-8 Ulaanbaatar 17061 |
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Country : |
Mongolia |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
1993 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturers, distributors and exporters of readymade garments. |
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No. of Employee : |
420 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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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Mongolia |
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 |
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.
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Source
: CIA |
GOYO CO LTD
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
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)
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
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
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.
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
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.
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).
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
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 |
|
|
1 |
Rs.99.73 |
|
Euro |
1 |
Rs.71.90 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.