MIRA INFORM REPORT

 

 

Report No. :

342117

Report Date :

01.10.2015

 

IDENTIFICATION DETAILS

 

Name :

NANO INTERNATIONAL LLC

 

 

Formerly Known As :

MONOS HOUSEHOLD CO LTD

 

 

Registered Office :

WW Center, 10th Floor, Teeverchidiin 3/1 Street, Bayangol, District, 3rd Khoroo, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Financials (as on) :

31.12.2007

 

 

Year of Establishment :

2007

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is trading as importers, wholesalers and distributors of FMCG products.

 

 

No. of Employee :

210 (Subject)

1,300 Plus (Group)

 

 

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 160,000,000

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

 

Company name

 

NANO INTERNATIONAL LLC

 

MONOS HOUSEHOLD CO LTD (Requested)

 

 

ADDRESS

 

Building             : WW Center, 10th Floor

Street               : Teeverchidiin 3/1 Street

Area                 : Bayangol District, 3rd Khoroo

Town                : Ulaanbaatar

Country             : Mongolia

 

Telephone         : (976 77) 115 852 / 005 852 / Mobiles (976 99) 110 956

                          (N. Batbaatar) / (976 99) 086 063 / (976 99) 055 852

Fax                   : (976 77) 106 060

E-Mail               : household@monos.mn / batbaatar@monos.mn

 

Also Known

As                    : Nano International Co. Ltd / Nano International XXK

 

Formerly Known

As                    : Monos Household Co Ltd

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                 Position

 

1. Khurelbaatar Lupsan                          Chairman

 

2. Anand Khurelbaatar                           Group Chief Executive Officer

 

3. N. Batbaatar                                      Managing Director

 

4. Uyanga Bandii                                   Group Administrative Manager

 

5. Telmuun Nasanbayar                          Head of Sales

 

Total Employees :                                 210 (subject)

                                                            1,300 plus (group)

 

 

PAYMENTS

 

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

 

Subject is a subsidiary of the Monos Group of companies was established in 1990. Monos Group has 16 years history and 10 affiliated companies, cooperates with 50 companies from 30 countries in the worldwide. Monos Group has more than 1,300 workers.

 

Association inspires confidence and 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 160,000,000

 

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

 

Subject also has an account with the following banks :

 

1. Golomt Bank of Mongolia

   Sukhbaatar Square 3

   PO Box 22

   Ulaanbaatar 210620A

   Telephone      : (976 11) 311 530

   Fax                : (976 11) 326 535

 

2. Khan Bank

   Seoul Street 25

   Sukhbaatar District

   Ulaanbaatar

   Telephone      : (976 11) 332 333 

   Fax                : (976 70) 117 023

 

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 :

 

Sales Turnover              : US DLRS 2,500,000 - 2014 – approx

 

Net Profit                      : not given but stated to be profitable

 

Financial year ends 31 December.

 

The following financial information applies to Nano Fashion LLC, subject's affiliated company :

 

Sales Turnover              : EURO 1,000,000 - 2014 – approx

 

Net Profit                      : not given

 

Financial year ends 31 December.

 

The following financial information applies to Monos Pharma Trade LLC, subject's affiliated company :

 

Sales Turnover: US DLRS 16,835,025 - 2009 - exact

                        : US DLRS 16,431,383 - 2010 - exact

                        : US DLRS 19,430,000 - 2011 - exact

                        : US DLRS 35,000,000 - 2012 – exact *

                        : US DLRS 40,000,000 - 2013 – exact *

                        : US DLRS 45,000,000 - 2014 – approx ***

 

Net Profit          : US DLRS  3,125,960 - 2009 - exact

                        : US DLRS  2,387,019 - 2010 - exact

                        : not given          - 2011

                        : US DLRS  3,500,000 - 2012 - exact

                        : US DLRS  2,000,000 - 2013 - exact **

                        : US DLRS  2,225,000 - 2014 - approx

 

* Sharp increase in sales turnover in 2012 & 2013 was attributed to favourable market conditions.

 

** Decrease in net profit in 2013 was due to unfavourable market  conditions.

 

*** Projected increase in sales turnover in 2014 is due to favourable market conditions.

 

Financial year ends 31 December.                                         

 

Balance Sheets as at 31 December 2009 applies to parent company (latest available) :

 

                               31/12/2007    31/12/2008    31/12/2009

                                    (in thousands of TUGRIK)

ASSETS

 

NON CURRENT ASSETS

Property.plant and equipment  2,864,079.0   4,830,912.1   4,939,073.3

Intangible assets                19,675.0      12,812.7         600.0

Investment in subsidiary                -            -  

Subtotal non-current assets   2,883,754.0   4,843,724.8   4,939,673.3

CURRENT ASSETS

Inventories                   4,272,326.0   6,398,286.1   6,335,707.8

Trade receivables             1,955,447.0   3,125,960.9   2,211,005.6

Other receivables, prepayments1,928,742.0   1,423,009.4   1,158,985.6

Amounts due from related      1,556,927.0     814,082.5   1,540,253.8

companies

Cash and bank balances          995,687.0     229,963.4     245,757.6

Subtotal current assets      10,709,129.0  11,991,302.3  11,491,710.5

TOTAL ASSETS                 13,592,883.0  16,835,027.1  16,431,383.8

 

LIABILITIES & EQUITY

 

EQUITY

Share capital                   587,930.0     587,930.4     587,930.4

Revaluation reserve                    -    1,938,216.6   1,967,450.4

Retained earnings             5,312,479.0   5,407,985.5   5,769,287.0

Subtotal equity               5,900,409.0   7,934,132.5   8,324,667.8

CURRENT LIABILITIES

Interest bearing loans        3,164,892.0   6,147,679.1   5,212,500.0

and borrowings  

Trade payables                 1,441,077.0  1,692,263.2   2,387,019.7

Other payables                 2,438,821.0    240,398.4     471,651.8

Amounts due to related           647,418.0    754,453.2      23,642.5

companies

Tax payable                          266.0     66,100.7      11,902.0

Subtotal current liabilities   7,692,474.0  8,900,894.6   8,106,716.0

TOTАL LIABILITIES & EQUITY    13,592,883.0 16,835,027.1  16,431,383.8

 

INCOME STATEMENT (as at 31 December 2008) :

 

                                                   2008          2007

                                             (in thousands of TUGRIK)

 

Revenue                                      24,097,459    18,887,148     

Cost of sales                                18,394,291    14,176,981     

Gross profit                                  5,703,168     4,710,167     

Administrative expenses                       3,456,511     2,001,031     

Other expenses                                  854,252       480,837

Other income                                  1,288,860       142,842     

Finance cost                                    699,658       314,271

Profit before taxation                        1,981,608     2,056,870

Taxation                                        290,459       235,114

Net profit for the year                       1,691,608     1,821,756      

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 2007

 

History : Subject was established in Ulaanbaatar in 2007 as a Limited Liability Company under the name “Monos Household Co Ltd”.

                                     

In the beginning of 2015, subject changed its name to the present style.

 

Tax No.             : 5108233 (issue date : 1 August 2007)

 

Capital              : not given

 

Limited Liability Company with the following directors and sole shareholder :

 

Directors

 

1. Khurelbaatar Lupsan            

  (Mongolian national)

 

2. Anand Khurelbaatar             

  (Mongolian national)

 

3. N. Batbaatar

  (Mongolian national)

 

Shareholder

 

Monos Group LLC                                   100%

Monos Group LLC Building

Choimbol Street

Chingeltei District

Telephone                     : (976 11) 315 908

Fax                               : (976 11) 320 967

E-Mail                           : info@monos.mn

Website            : www.monos.mn

Tax No.             : 2811243

Shareholders :

- Khurelbaatar Lupsan                               

- Erdenechimeg Lupsan (Ms)                         

- Solongo Khurelbaatar

 

Affiliated companies of the Nano International LLC :

 

Subject is a subsidiary of Monos Group LLC, which also includes the following companies :

 

1. Nano Fashion LLC

   Net Capital Building

   Bayangol District, 2nd Khoroo

   Ulaanbaatar

   Telephone      : (976 77) 115 852 / Mobile (967 94) 085 3223

   E-Mail            : hh_hrmanager@monos.mn / khambaa@monos.mn

   Tax No.          : 5690056

 

2. Monos Cosmetics Co., Ltd

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Ulaanbaatar 211137

   Telephone      : (976 11) 633 257

   Fax                : (976 11) 633 257

   E-Mail            : info@monoscosmetics.mn / cosmetics@monos.mn

   Website         : www.monoscosmetics.mn

 

3. Monos-ABC Co., Ltd

   Kharaa Hotel

   Chingeltei District 2

   Ulaanbaatar

   Telephone      : (976 11) 311 336

   Fax                : (976 11) 311 336

   E-Mail            : Monosabc@mongol.net

 

4. Monos Research Center

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Telephone      : (976 11) 633 107

   Fax                : (976 11) 633 117

   E-Mail            : monospharma@mongol.net

 

5. Computer Tomography

   Bayangol District

   PO Box 26

   Ulaanbaatar

   Telephone      : (976 99) 798 990

   E-Mail            : monospharma@mongol.net

 

6. Monos pharma Co., Ltd

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Telephone      : (976 11) 633 107

   Fax                : (976 11) 633 117

   E-Mail            : monospharma@mongol.net / pharma@monos.mn

   Tax No.          : 99771185

 

7. Monos Ulaanbaatar Co., Ltd

   Chingeltei District 2

   Ulaanbaatar 210526

   Telephone      : (976 11) 315 908

   Fax                : (976 11) 315 908

   E-Mail            : monostrade@mongol.net

 

8. Monos San Co., Ltd

   Chingunjav Street 9

   2th Khoroo

   Bayangol District

   Ulaanbaatar 210526

   Telephone      : (976 11) 361 419 / 305 390

   Fax                : (976 11) 361 419

   E-Mail            : monostrade@mongol.net

 

9. Monos University

   Sonsgolon Toiruu 5

   Songinokhairkhan District 20

   Ulaanbaatar 211137

   Telephone      : (976 11) 633 235

   Fax                : (976 11) 633 235  

 

10.Magic of Health Magazine

   Chingeltei District 2

   Ulaanbaatar 210526

   Telephone      : (976 11) 322 996

   Fax                : (976 11) 325 639

   E-Mail            : monostrade@mongol.net / uvdis@yahoo.com

 

11.Monos Pharma Trade LLC

   Monos Pharma Building

   Namyanju Street

   18th Khoroo, Bayanzurkh District

   Ulaanbaatar 210348

   Telephone:     (976 11) 450 054 ext. 111 (Legal Advisor) / 450 127 /

                        453 954 / Mobiles (976 99) 090 832 (Ariunzaya Choij) /

                        (976 88) 106 431 (Tamir Bayasgalan) / (976 96) 657 181

                        / (976 99) 116 431 / (976 88) 090 088 / (976 99) 175

                         223

   Fax                : (976 11) 463 158

   E-Mail            : monostrade@mongol.net / ariunzaya.choij@monos.mn /

                        monostrade@monos.mn / tamir@monos.mn

   Website         : www.monos.mn

   Registration No. : 9011022059

   Tax No.          : 2670712

   Capital           : TUGRIK 587,930,000

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and distributors of FMCG products.

 

Subject's main suppliers include :

 

- GlaxoSmithKline;

- Reckitt Benkiser;

- Beiersdorf;

- Danone group;

- Loacker;

- KAO Corporation;

- Borjomi.

 

NACE Codes : 4619 / 4618

 

Imports worldwide mainly from UK and Japan.

 

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 storage facilities located elsewhere in Ulaanbaatar.

 

Until 2014, subject was located at :

 

Namyanju Street

Bayanzurkh District, 18th Khoroo, 13th Khoroolol

 

Until 2014, subject used the following postal code number :

 

Ulaanbaatar 210348

 

 

SPECIAL NOTES

 

You enquired on : “MONOS HOUSEHOLD CO LTD”. Please note that this name applies to subject's formerly known name. Subject's current registered name is as per heading.

 

The address given by you : “Namyanju Str, Bayanzurkh Distr, 18-Khoroo, 13 Rd Khoroolol, 210348 Ulaanbatar” is misspelt and applies to the subject’s previous address. Please note that the current address is as per heading.

 

The telephone number given by you : “97611455852” is incorrect and applies to subject's affiliated company “Monos Pharma Trade LLC”. Please note that subject’s correct administrative telephone numbers are as per heading.

 

Interviewed : N. Batbaatar (Managing Director).

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.74

UK Pound

1

Rs.99.53

Euro

1

Rs.73.80

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

ASH

 

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.