MIRA INFORM REPORT

 

 

Report No. :

489289

Report Date :

07.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

BOTMAX LLC

 

 

Registered Office :

Building 311-105, Ikh Mongol Street, Khan-Uul District, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Year of Establishment :

2015

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as Importers and Distributors of Household Appliances.

 

 

No. of Employees :

3

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

 

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

 

 

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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Mongolia

B2

B2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

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 through 2017, even though government spending remained high.

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 dropoff in foreign direct investment, mounting external debt, and a sizeable budget deficit. However, Mongolia reached staff-level agreement with the IMF in February 2017 on an Extended Fund Facility program, and once approved by the IMF Board, the program is expected to improve Mongolia’s long-term fiscal and economic stability.

 

Source : CIA

 

 

COMPANY NAME

 

BOTMAX LLC

 

 

ADDRESS

 

Building    : Building 311-105

 

Street      : Ikh Mongol Street

 

Area        : Khan-Uul District

 

Town        : Ulaanbaatar

Country     : Mongolia

 

Mobiles     : (976 99) 118 036 (Myanganbayar Ulzii) / (976 91) 991 550

E-Mail      : kurelmark@gmail.com

 

 

SENIOR COMPANY PERSONNEL

 

Name                                                   Position

 

Myanganbayar Ulzii                               Managing Director

 

Total Employees: 3

 

 

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, however in view of the lack of financial information we recommend international suppliers exercise a degree of caution. It is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

Subject declined to name its bankers.

 

 

FINANCIAL INFORMATION

 

Private companies in Mongolia are not required to publish or disclose balance sheets. Managing Director is currently away on a prolonged business trip out of Mongolia, in his absence staff is not authorized to divulge financial information.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 2015

 

History : Subject was established in Ulaanbaatar in 2015.

 

Capital : not applicable

 

Limited Liability Company with the following sole shareholder :

 

Myanganbayar Ulzii                    (100%)

(Mongolian national)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers and distributors of household appliances.

 

NACE Code : 4615 - Agents involved in the sale of furniture, household goods, hardware and ironmongery

 

Imports from Europe.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities:

 

Rented premises comprising administrative offices and storage facilities located at the heading address.

 

 

SPECIAL NOTES

 

The address given by you: Khanuul district, ikh mongol street is misspelt. Please note that the correct spelling is as per heading.

 

Interviewed: Tego Ulzii (daughter of Myanganbayar Ulzii). Subject's senior official (Managing Director) is currently away on a prolonged holiday in Europe, in his absence staff is not authorized to divulge any financial information.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.27

UK Pound

1

INR 89.72

Euro

1

INR 79.52

MNT

1

INR 0.026

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

NIT

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

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.