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Report No. : |
348594 |
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Report Date : |
17.11.2015 |
IDENTIFICATION DETAILS
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Name : |
EUROFOODS LLC |
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Registered Office : |
Delger International Office Building, Chinggis Avenue 13, Tsagaan
Khaalga, Khan Uul District, 3rd Khoroo, P.O. Box No.: 36/213, Ulaanbaatar
17110 |
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Country : |
Mongolia |
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Year of Establishment : |
2010 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Trading as importers, wholesalers,
retailers and distributors of foodstuffs including alcohol & wine, beverages,
canned food, confectionery, frozen foods, fruit, meat & poultry, milk
& dairy products, noodles & pasta. |
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No. of Employee : |
·
30 (Subject) ·
350 (Group) |
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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Maximum Credit Limit : |
TUGRIK 200,000,000 |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 emerged from the crisis with a stronger banking sector and needed reforms to the government’s fiscal management. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi (OT) mine, considered to be among the world's largest untapped copper-gold deposits. However, Mongolia's ongoing dispute with foreign investors developing Oyu Tolgoi has called into question the attractiveness of Mongolia as a destination for foreign investment. This caused a loss of investor confidence, a severe drop in FDI, and a slowing economy, leading to the dismissal of Prime Minister ALTANKHUYAG in November. The new government has made restoring investor trust and reviving the economy its top priority, but it will be challenged to unwind the monetary and fiscal stimulus programs in use since 2013 to counteract the fall in foreign investment. In December 2014 the government awarded a deal to develop the massive Tavan Tolgoi (TT) coal field to a consortium comprising Energy Resources/MCS (Mongolia), Shenhua (China), and Sumitomo (Japan); talks continue to hammer out the financing and the operating details. The economy grew more than 10% per year since 2010, largely on the strength of commodity exports to nearby countries and high government spending domestically, before slowing to 7.8% in 2014. Mongolia's economy 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 nearly 62% of Mongolia's total external trade - China receives some 90% of Mongolia's exports and supplies Mongolia with more than one-third of its imports. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in 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 |
EUROFOODS LLC (Correct)
OOO EWROFUUDS (WERSJA ANG EURO-FOODS COMPANY
LTD)(Requested)
Building
: Delger International
Office Building
Street
: Chinggis Avenue 13
Area
: Tsagaan Khaalga, Khan Uul
District, 3rd Khoroo
P.O. Box No. :
36/213
Province
: Ulaanbaatar 17110
Country
: Mongolia
Telephone
: (976 11) 342 634 / 345 150
/ Mobiles (976 99) 112 469
(Bold Uundai) / (976 99) 004 103 (Urangoo
Zorigt) / (976 96) 699 676
Fax
: (976 11) 341 834
E-Mail
: urangoo0520@gmail.com /
golden_oil@mail.mn /
del-int@mongol.net
Website
: www.euro-foods.mn /
Also Known As : Euro Foods LLC Eurofoods Co.
Ltd / Eurofoods XXK
Name Position
1. Bold Uundai Group Managing Director
2. Nimkhjargal Dorj Chief Financial Officer
3. Urangoo Zorigt (Mrs) Foreign Relation Manager
Total Employees : 30
(subject)
350 (group)
No
complaints have been heard regarding payments from local suppliers or banks.
Subject is a
member of Delger International Group of Companies, which comprises 20 companies
engaged in diversifying operations. Revenue for the Group is EURO 80 million.
The Group employs around 350 people and has activities in foreign and domestic
trade, manufacture, tourism, real estate agency and service.
We consider it is acceptable to deal with subject
for MEDIUM amounts.
Although it is normal accepted practice for
international suppliers to deal on secured terms with Mongolian importers.
Opinion on maximum credit : TUGRIK 200,000,000
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
Subject also has an account with the
following banks :
1. Khan Bank of Mongolia
Peace Avenue
P.O
Box-185
Ulaanbaatar
Telephone : (976 11) 457 880
Fax : (976 11) 457 880
2. Golomt Bank of Mongolia
Bodi
Tower, Sukhbaatar Square
Ulaanbaatar
Telephone : (976 11) 311 530
Fax :
(976 11) 312 307
Private companies in Mongolia are not
required to publish or disclose balance sheets. However, the subject
interviewed offered
the following information :
Sales Turnover :
US DLRS 5,000,000 - 2015 - exact
: US DLRS 7,000,000 - 2016 - projected
Net Profit :
US DLRS 280,000 - 2015 - exact
Financial year ends 28 February.
The following financial information applies
to Delger International Co Ltd, subject’s affiliated company (latest available)
:
Sales Turnover :
EURO 25,000,000 - 2012 - exact
: EURO 40,000,000 - 2013 - approx
Net Profit :
but stated to be 15-20% of the sales turnover
Financial year ends 28 February.
The financial information applies to the
Group (latest available) :
Sales Turnover :
EURO 80,000,000 - 2012 - exact
: EURO 100,000,000 - 2013 - approx
Net Profit :
not given but stated to be profitable
Financial year ends 28 February.
Date Started :
2010
History :
Subject was established in Ulaanbaatar in 2010.
Tax No. :
5429064
Capital :
not given
Limited Liability Company with the following
sole shareholder :
Bold Uundai 100%
(Mongolian national)
Affiliated companies of the Eurofoods LLC
:
Associates
Subject is a member of the Delger International
Group of Companies, Mongolia, which also includes the following companies :
1. Delger International Co Ltd
Delger Office Building
Chinggis Khan Avenue
Tsagaan Khaalga, Khan Uul District
Ulaanbaatar 97623
C.R.
No. : 9011023027
Tax
No. : 2083086
2. Delger Express Ltd
Ulaanbaatar
(Banking company)
3. Delger Interior Ltd
Ulaanbaatar
(Building constructors of residential projects)
4. Daach Ltd
Ulaanbaatar
(Operators of 3 restaurants)
5. UAZ Mongolia Ltd
Ulaanbaatar
6. Delta Food Ltd
Ulaanbaatar
(Wholesalers, retailers and distributors of building materials,
food
products)
7. Delta Auto Service Ltd
Ulaanbaatar
(Importers and retailers of vehicles as well as its spare parts)
8. Delger Consulting Ltd
Ulaanbaatar
9. Kamaz World Auto Center
Ulaanbaatar
(Engages in assembly of UAZ cars and maintenance)
10.Marko
Ulaanbaatar
(Operators of a supermarket and a chain of groceries)
11.Mongolian Golden Oil Co., ltd
Ulaanbaatar
(Manufacturers
of vegetable oil under the brand name “Mongol
Astan Toss)
12.Delger Exim Ltd
Ulaanbaatar
(Importers, wholesalers, retailers and distributors of building
Materials)
Annual sales: US DLRS 5,500,000
The Company is involved in the following
activities :
Trading as importers, wholesalers, retailers
and distributors of foodstuffs including alcohol & wine, beverages, canned
food, confectionery, frozen foods, fruit, meat & poultry, milk & dairy
products, noodles & pasta.
Subject’s corporate clients are as follows :
- Minii chain stores;
- Nomin chain stores;
- Sansar chain stores;
- Bosa chain stores;
- Max chain stores;
- Sky department store;
- Orgil wholesales center;
- Everyday chain store.
Subject’s main suppliers with following :
- Pamapol S.A;
- Kwydzin;
- TIR KON;
- Farmona;
- Biogened;
- Unicell Poland S.A;
- Linter;
- Maspex;
- Blux and Vitpol.
NACE Codes : 4617 / 4634 / 4725
Imports from Poland, Russia, Turkey and
China.
Subject does not export, all sales are
domestic.
The Company has the following facilities :
Owned premises comprising administrative
offices and 3,000 sq. m. two warehouse units located at the heading address as
well as 7 retail shops located elsewhere in Ulaanbaatar.
You enquired on : “OOO EWROFUUDS (WERSJA ANG
EURO-FOODS COMPANY LTD)”. Please note that subject's correct registered name is
as per heading.
The address given by you : “Delger International office
Buil, Tsagaan Khaalga, 13 Chinggis Ave, PO 36/213 Ulaanbaatar Khan UUl
District” is misspelt. Please note that the correct spelling is as per heading.
Interviewed : Bold Uundai (Group Managing
Director).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.17 |
|
|
1 |
Rs.100.66 |
|
Euro |
1 |
Rs.70.97 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ASH |
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 |
|
-- |
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.