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Report No. : |
341923 |
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Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
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Name : |
KHANBOGD CASHMERE LLC |
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Registered Office : |
Royal Castle Seoul Business Building No. 406, Zaluuchuud Avenue – 26, Bayanzurkh District Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
01.07.1998 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Producers and Distributors of Raw Cashmere. |
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No. of Employees : |
300 |
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 – March 31, 2015
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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 |
CO. NAME: KHANBOGD
CASHMERE LLC (CORRECT)
KHANBOGD CASHMERE CO
LTD (REQUESTED)
Building : Royal Castle Seoul Business Building No.
406
Street : Zaluuchuud Avenue - 26
Area : Bayanzurkh District
Town : Ulaanbaatar
Country : Mongolia
Telephone : (976 11) 459 632 / Mobile (976 99) 056 551
(Erden Bat)
Fax : (976 11) 635 697
E-Mail : ganaakhanbogd@yahoo.com /
khanbogd@mobinet.mn / cashmere@khanbogd.mn
Website : www.khanbogd.mn
Also Known As : Khanbogd Cashmere Co Ltd / Khanbogd Cashmere XXK
Name Position
1. Ch. Gantsetseg (Mrs)
General Director
2. Erden Bat
Chief Executive
Officer
3. Dugaan Ganaa (Mrs)
Exports Manager
Total Employees : 300
No complaints have been heard regarding payments from local suppliers or
banks.
Subject is a well-established company operating since 1990s.
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 Mongolian importers.
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. 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
Private companies in Mongolia are not required to publish or disclose
balance sheets. However, the subject interviewed offered the
following information :
Sales Turnover : TUGRIK
33,091,507,843 – 2009 - exact
:
TUGRIK 46,299,191,793 – 2010 - exact
:
TUGRIK 74,936,870,612 – 2011 - exact
:
TUGRIK 48,639,073,921 – 2012 - exact
: TUGRIK 91,665,235,689 – 2013 - exact
: TUGRIK
103,069,181,162 – 2014 - exact
Net Profit : not given but stated to be profitable
Financial year ends 31 December.
Date Started : 1 July 1998
History : Subject was
established in Ulaanbaatar on 1 July 1998.
Tax No. : 2615916 (issue
date : 1 March 2004)
Capital : Not given
Limited Liability Company with the following director and sole
shareholder :
Director
Erden Bat
(Mongolian national)
Shareholder
Ch. Gantsetseg (Mrs)
100%
(Mongolian national)
Affiliated companies of the Khanbogd Cashmere LLC :
Associates
1. Khanbogd Corporation LLC
Mongolia
2. Khanbogd Capital NBFO LLC
Mongolia
The Company is
involved in the following activities:
Producers and distributors of raw cashmere.
Subject's main
products are as follows:
- Scoured cashmere;
- Dehaired cashmere;
- Washed wool.
Subject’s main clients include :
- CILEK;
- Yelkenci Group.
NACE Code : 1399
Subject purchases all its requirements locally.
Exports to Italy, UK, Japan, South Korea, India, China and Hong Kong.
The Company has the following facilities :
Owned premises comprising administrative offices located at the heading
address as well as 18,800 sq. m. owned manufacturing unit with storage
facilities located elsewhere in Songinokhairkhan District in Ulaanbaatar.
Subject has 2 scouring lines of LB023 equipment to wash, to shake and to
dry cashmere produced in China and which is modern and fully automatic
equipment’s and it has a capacity to wash 2400 tons of cashmere in per year.
You enquired on : “KHANBOGD CASHMERE CO LTD”. Please note that subject
is also known by this name. Subject's correct registered name is as per
heading.
The address given by you : “Seoul Business Center 406” is incomplete.
Please note that the complete administrative address is as per heading.
Interviewed : Dugaan Ganaa (Exports Manager).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.74 |
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|
1 |
Rs.99.53 |
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Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
TPT |
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 |
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NB |
New Business |
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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.