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MIRA INFORM REPORT
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Report No. : |
501363 |
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Report Date : |
05.04.2018 |
IDENTIFICATION DETAILS
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Name : |
LUXWOOD
GROUP LLC |
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Formerly Known As : |
LUXWOOD HOUSE LLC |
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Registered Office : |
JS Building, 2nd Floor, Office No. 201, Narnii Zam Street (aka Sunway
Street), Sukhbaatar District, 5th Khoroo, 5th Khoroolol, Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
15.06.2012 |
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Com. Reg. No.: |
9011248082 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers and retailers of
building materials specialized in WPC technology materials. |
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No. of Employees : |
20 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Maximum Credit Limits : |
TUGRIK 100,000,000 |
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Status : |
Moderate |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
MONGOLIA - ECONOMIC OVERVIEW
Foreign direct investment in Mongolia's
extractive industries – which are based on extensive deposits of copper, gold,
coal, molybdenum, fluorspar, uranium, tin, and tungsten - has transformed
Mongolia's landlocked economy from its traditional dependence on herding and
agriculture. Exports now account for more than 40% of GDP. Mongolia depends on
China for more than 60% of its external trade - China receives some 90% of
Mongolia's exports and supplies Mongolia with more than one-third of its
imports. Mongolia also relies on Russia for 90% of its energy supplies, leaving
it vulnerable to price increases. Remittances from Mongolians working abroad,
particularly in South Korea, are significant.
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 WTO 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 by the global financial crisis and Mongolia's
real economy contracted 1.3% in 2009. In early 2009, the IMF reached a $236
million Stand-by Arrangement with Mongolia and it emerged from the crisis with
a stronger banking sector and better fiscal management. In October 2009,
Mongolia passed long-awaited legislation on an investment agreement to develop
the Oyu Tolgoi (OT) mine, among the world's largest untapped copper-gold deposits.
However, a dispute with foreign investors developing OT called into question
the attractiveness of Mongolia as a destination for foreign investment. This
caused a severe drop in FDI, and a slowing economy, leading to the dismissal of
Prime Minister ALTANKHUYAG in November 2014. The economy had grown more than
10% per year between 2011 and 2013 - largely on the strength of commodity
exports and high government spending - before slowing to 7.8% in 2014, and
falling to the 2% level in 2015. Growth rebounded from a brief 1.6% contraction
in the third quarter of 2016 to 5.8% during the first three quarters of 2017,
largely due to rising commodity prices.
The May 2015 agreement with Rio Tinto
to restart the OT mine and the subsequent $4.4 billion finance package signing
in December 2015 stemmed the loss of investor confidence. The current
government has made restoring investor trust and reviving the economy its top
priority, but has failed to invigorate the economy in the face of the large
drop-off in foreign direct investment, mounting external debt, and a sizeable
budget deficit. Mongolia secured a $5.5 billion financial assistance package
from the IMF and a host of international creditors in May 2017, which is
expected to improve Mongolia’s long-term fiscal and economic stability as long
as Ulaanbaatar can advance the agreement’s difficult contingent reforms, such
as consolidating the government’s off-balance sheet liabilities and
rehabilitating the Mongolian banking sector.
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Source
: CIA |
COMPANY
NAME
LUXWOOD
GROUP LLC
ADDRESS
Building :
JS Building, 2nd Floor, Office No. 201
Street :
Narnii Zam Street (aka Sunway Street)
Area :
Sukhbaatar District, 5th Khoroo, 5th Khoroolol
Town :
Ulaanbaatar
Country : Mongolia
Telephone :
(976 70) 177 007/ Mobiles (976 99) 080 890 (Undral Uyanga)/ (976 88) 112 233/
(976 94) 307 017 / (976 94) 317 017
Fax :
(976 70) 177 007
E-Mail :
undral@luxwood.mn / office@luxwood.mn / anar@luxwood.mn
Website :
www.luxwood.mn
Also Known
As : Luxwood Group Co. Ltd /
Luxwood Group XXK
Formerly
Known As : Luxwood House LLC
SENIOR
COMPANY PERSONNEL
Name
Position
1. Sambu
Tsogtsaikan Chief Executive Officer
2. Undral
Uyanga (Mrs) Foreign Relations Manager
Total
Employees: 20
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
We
consider it is acceptable to deal with subject for SMALL amounts, although it
is normal accepted practice for international suppliers to deal on secured
terms with Mongolian importers.
Opinion on
maximum credit: TUGRIK 100,000,000
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. Khas
Bank
Xac Bank Building, Ulaanbaatar-14200
Post Branch 20 A
PO Box 72
Ulaanbaatar 14200
Telephone: (976 11) 318 185
Fax
: (976 11) 328 701
2. Golomt
Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone: (976 11) 311 530
Fax
: (976 11) 312 307
3. Khan
Bank of Mongolia
Peace Avenue
P.O Box-185
Ulaanbaatar
Telephone: (976 11) 457 880
Fax
: (976 11) 457 880
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 2,000,000 - 2014 - exact
: US DLRS 1,500,000 – 2015 – exact
: US DLRS 2,000,000 – 2016 – exact
: US DLRS 1,383,000 – 2017 –
exact
: US DLRS 1,800,000 – 2018 – projected
Net
Profit : US DLRS 462,000 – 2017 - exact
Value of
current contracts: TUGRIK 1,600,000,000 (as of 2015)
Financial
year ends 31 December.
LEGAL
STATUS AND HISTORY
Date
Started: 15 June 2012
History :
Subject was established in Ulaanbaatar on 15 June 2012 as a limited liability
company under the name ‘Luxwood House LLC’.
In
September 2016, subject changed its name to the present style.
C.R. No. :
9011248082
Tax No. :
5610478 (issue date : 1 November 2012)
Paid-Up
Capital : TUGRIK 1,000,000
Limited
Liability Company with the following director and shareholders :
DIRECTOR
Sambu
Tsogtsaikan
(Mongolian
national)
SHAREHOLDERS PERCENTAGE
1. Sambu
Tsogtsaikan 75%
(Mongolian national)
2.
Inkhjargaal Dandin 25%
(Mongolian national)
Affiliated
companies of the Luxwood Group LLC :
ASSOCIATES
1.
Luxdesign LLC
Building No. 1, Flat No. 185
Sukhbaatar District, 8th Khoroo, 11th Micro
District
Ulaanbaatar
Mobiles: (976 99) 116 776 / (976 99) 759 999
C.R. No. : 9011376062
2. KHV LLC
Ulaanbaatar
ACTIVITIES
The
Company is involved in the following activities:
Trading as
importers, wholesalers and retailers of building materials specialized in WPC
technology materials.
Subject’s
main supplier is Hengtong Luxwood.
NACE
Codes: 4613 – Agents involved in the
sale of timber and building materials
4673
- Wholesale of wood, construction materials and sanitary equipment
Imports
from China and Poland.
Subject
does not export, all sales are domestic.
FACILITIES
The
Company has the following facilities:
Owned
premises comprising administrative offices located at the heading address as
well as 5 showrooms located in Ulaanbaatar and Darkhan.
SPECIAL
NOTES
The
address given by you: “JS BUILDING, 2ND FL, OF. NO. 201” is misspelt. Please
note that the correct spelling is as per heading.
Interviewed:
Undral Uyanga (Foreign Relations Manager).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.02 |
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1 |
INR 91.49 |
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Euro |
1 |
INR 79.79 |
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MNT |
1 |
INR 36.77 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.