|
|
|
MIRA INFORM REPORT
|
Report No. : |
484605 |
|
Report Date : |
15.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered Office : |
State Department Store, 7th Floor Peace Avenue 42
Chingeltei District, 3rd Khoroo Ulaanbaatar |
|
|
|
|
Country : |
Mongolia |
|
|
|
|
Financials (as on) : |
30.06.2016 |
|
|
|
|
Date of Incorporation : |
1997 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
·
Trading
as importers and distributors of construction materials. ·
Subject
engaged in construction and real estate sector. |
|
|
|
|
No. of Employees : |
21
(subject) |
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 |
|
Maximum Credit Limit : |
TUGRIK
520,000,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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, 2.3% in 2015, and 1% in 2016.
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 and address
NCD Group
Co. Ltd
ADDRESS
Building : River Garden 2 Building No. 406
Street : Ikh Mongol Street (aka The Mongolian State
Street)
Area : Khan-Uul District, 11th Khoroo
P.O. Box
No. : 36 - 899
Town :
Ulaanbaatar 17032
Country :
Mongolia
Telephone :
(976 77) 002 020 / (976 75) 777 577 / Mobiles (976 99)
108
082 (D. Dolzodmaa) / (976 95) 953 893 / (976 99)
013
893 / (976 99) 112 205 / (976 99) 039 389 / (976
99)
211 134 (S. Purevdorj) / (976 99) 048 761 / (976
99)
108 653 (Altantuya Purevdorj)
Fax : (976 77) 001 919
E-Mail :
myanganbayar@ncd.mn / shinekhuu.ts@ncd.mn /
khurelkhuu.b@ncd.mn
/ narmandakh.ya@ncd.mn /
purevdorj.s@ncd.mn
/ altantuya.p@ncd.mn
Website :
www.ncd.mn
Also Known
As : NCD Group LLC / Nomin Construction and Development
Group
LLC / NCD Group
SENIOR
COMPANY PERSONNEL
Name Position
1. Byambaa
Khurelkhuu General Director
2. S.
Munkhsaikhan Construction Director
3. D.
Dolzodmaa Chief
Financial Officer
4. B.
Naranchanga Supply Chain Manager
5.
Altantuya Purevdorj Business Development Director
6. S.
Purevdorj Import Manager
7. Ya.
Narmandakh Head of Human Resources
8. Ts.
Chinbat Code Manager
Total
Employees : 21 (subject)
145 (subject and its
affiliated company ‘Nomin
Construction
LLC’)
5,100 (Nomin Group)
PAYMENTS
Have
registered to be slow but correct payments from local suppliers or banks.
Subject is
a member of the Nomin Group Companies - one of the
largest
private sector entities in terms of number of employees in
Mongolia
with about 5,100 employees. The Group has more than 15
subsidiaries
covering diversified business activities including:
general
manufacturing & services, information & communications,
property development,
and food and beverages. The Group had annual
sales
turnover US DLRS 200 million in 2011.
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 520,000,000
Trade risk
assessment : Normal
PRINCIPAL
BANKERS
NAME :
TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Khudaldaany Gudamj 7
Town :
Ulaanbaatar-11
Telephone : (976 11) 321 171
Fax :
(976 11) 325 449
Account
No. : 3406013049
Subject
also has an account with the following banks :
1. Golomt
Bank of Mongolia
Sukhbatar Square 3
Ulaanbaatar
Telephone: (976 11) 329 057
Fax
: (976 11) 312 307
2. Khan
Bank
Seoul Street 25
Sukhbaatar District
Ulaanbaatar
Telephone: (976 11) 332 333
Fax
: (976 70) 117 023
Account No. : 5070244370
3. State
Bank Mongolia
Sambuu Street 43, Chingeltei District
Ulaanbaatar
Telephone: (976 70) 001 912
Fax
: (976 11) 310 833
Account No. : 3465022431
FINANCIAL
INFORMATION
Balance
Sheets as at 30 June 2016 (quarterly results) showed :
31/12/2015 30/06/2016
(in
thousands of TUGRIK)
ASSETS
Current
assets
Money 2,491.3 84,445.6
Account
receivables
17,545,374.2
24,955,214.3
Inventory 16,705,052.1 15,219,909.4
Raw
material
8,070,288.5 6,284,790.5
Goods
and products
8,352,319.4
8,633,423.9
Supply
materials
282,444.2 301,695.0
Pre-paid
account
2,226,722.2 706,777.8
Current
assets total
36,479,639.8 40,966,347.1
Non-current
assets
Tangible
assets
3,369,960.5 3,299,355.1
Intangible
assets 4,353.3 8,572.6
Non-current
assets total 3,374,313.8 3,307,927.7
TOTAL
ASSETS
39,853,953.6 44,274,274.8
LIABILITIES
& SHAREHOLDERS QUITY
Liabilities
Current
liabilities 17,530,844.5 15,839,779.2
Unearned
revenues
- 20,799.1
Long-term
liabilities
- 5,599,000.0
Liabilities
total 17,530,844.5 21,459,578.3
Capital
Capital 18,978,731.5 18,978,731.5
Private
equity
18,978,731.5 18,978,731.5
Retained
earnings
3,344,377.6 3,835,965.1
Total
Capital 22,323,109.1 22,814,696.6
TOTAL
LIABILITIES AND SHAREHOLDERS
EQUITY 39,853,953.6 44,274,274.8
INCOME
STATEMENT
Sales 24,372,177.2 12,188,971.8
Cost of
goods sold 20,912,540.8 10,349,745.7
Gross
profit
3,459,636.5 1,839,226.1
Operating
expenses
2,522,090.3 1,237,887.4
Personnal
expense
482,301.2 216,865.4
Utilities 15,679.4 49,430.3
Marketing 471.7 -
Depreciation 27,625.1 253,029.1
Interest 1,116,940.4 555,949.8
Other
expenses
879,072.5 162,612.7
Operating
profit
937,546.2 601,338.7
Non-operating
profit 122,073.9 (41,331.0)
Net
income before taxes
1,059,620.1 560,007.7
Net
income
944,905.0 491,587.5
Financial
year ends 31 December.
The
subject interviewed offered the following information :
Sales
Turnover : TUGRIK 24,372,177,200 - 2015 - exact
: TUGRIK 26,000,000,000 - 2016 - exact
Net
Profit : TUGRIK
944,905,000 - 2015 - exact
* Full
2017 financial results are not yet available.
Financial
year ends 31 December.
The following
financial information applies to Nomin Holding LLC (latest available) :
Sales
Turnover : US DLRS
3,600,000 - 2013 – exact
: US DLRS
4,700,000 - 2014 - approx
: TUGRIK 200,000,000,000 – 2015 - approx
Net
Profit : not given but stated to
be profitable
Financial
year ends 31 December.
The
following information which applies to the group (latest available) :
Sales
Turnover : US DLRS 35,000,000 -
2003 – approx.
:
US DLRS 48,000,000 - 2004 - exact
: US DLRS
60,000,000 - 2005 - exact
: US
DLRS 65,000,000 - 2006 - exact
: US DLRS
80,000,000 - 2007 - exact
: US DLRS 150,000,000 - 2008 - exact
: US DLRS
153,000,000 - 2009 - exact
: US DLRS 170,000,000 - 2010 - exact
: US DLRS 200,000,000 - 2011 – exact
: US DLRS 250,000,000 - 2012 - exact
: US DLRS 295,000,000 - 2013 - exact
: US DLRS 413,000,000 - 2014 - approx
Net
Profit : not given but stated to
be 10-14% of the sales
Financial
year ends 31 December.
LEGAL
STATUS AND HISTORY
Date
Started : 1997
History :
Subject was established in Ulaanbaatar in 1997 as a division of ‘Nomin
Construction LLC’.
On 29
March 2013, subject became a separate legal entity and was registered as a
Limited Liability Company with the present name and shareholding structure.
State
Registration Certificate No. : 00054557
C.R. No. :
9011406020
Tax No. :
5696119
Paid-Up
Capital : TUGRIK 1,000,000
Limited
Liability Company with the following director and shareholders :
Director
Byambaa
Khurelkhuu
Shareholders
Percentage
1.
Enkhbayar Shagdarsuren 70%
(Mongolian national)
2.
Ulambayar Shagdarsuren
30%
(Mongolian national)
Affiliated
companies of the NCD Group Co. Ltd :
Associates
Subject is
a member of the Nomin group of companies, Mongolia, which also includes the
following companies :
1. Nomin
Trading (100%)
State Department Store
Peace Avenue 23
Ulaanbaatar 688
Telephone:
(976 11) 313 232
Fax
: (976 11) 314 242
(importers, wholesalers and
retailers; operators of supermarket)
2. Nomin
Union (100%)
Peace Avenue 23
Ulaanbaatar 688
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(Managing Director : B. Ariunjargal)
(finance company)
3. Nomin
Cards
(100%)
Peace Avenue 23
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
4. Nomin
Insurance
(100%)
Peace Avenue 23
P.O. Box 688
Ulaanbaatar
Telephone: (976 11) 313 232
Fax
: (976 11) 314 242
(Managing Director : S. Ganchimeg)
(finance company)
5.
Ulaanbaatar Impex Co Ltd
Songinokhairkhan District, Khoroo 20
Ulaanbaatar
Telephone : (976 11) 631 222
Fax
: (976 11) 631 645
E-mail
: contact@ubimpex.mn
6. Nomin
Motors
Songinokhairkhan District, Khoroo 20
Ulaanbaatar
Telephone : (976 11) 631 222 / (976 99) 095
415 / 102 309
Fax
: (976 70) 142 484
E-Mail
: zorigtbayar.p@nomin.net
(Managing Director : Ya. Uugansukh)
7. Monel Electronic
Factory (80%)
(manufacturers, exporters and
wholesalers of audio visual, household
appliances, office equipment)
8. Erdenet
Carpet LLC
(80%)
Erdenet City 61000
Orkhon province
Telephone : (976 70) 351 517 / Mobile (976
99) 080 620
Fax
: (976 70) 359 617
Email
: baigal@erdcarpet.com
Website : www.carpet.mn
Managing Director : U. Myanganbayar
9. Ulsyn
Ikh Delguur HK
(75%)
State Department Store, 7 Floor
Peace Avenue 23
(former state department store)
10.15
Nomin Singapore
(73%)
Singapore
11.Khupsugul
Water Road
(68%)
12.Nomin
Fashion Co Ltd
5th Floor, State Department Store, Peace
Avenue 23
Ulaanbaatar 210644
Managing Director : B. Bayarjargal
Est.: 1 August 2003
13.Nomin
Cosmetics LLC
State of Department store
Ulaanbaatar
Telephone : (976 99) 109 886
Managing Director : B. Nomin-Erdene
Est.: October 2009
14.Nomin
Foods Co Ltd
5th Floor, State Department Store, Peace
Avenue 23
Ulaanbaatar 210644
Managing Director : D. Bayasgalan
(Distributors of foodstuff.)
15.Nomin
Standard LLC
Police Street, khoroo 10
Sukhbaatar District
Ulaanbaatar
Telephone: (976 70) 116 077
Fax
: (976 70) 116 077
Managing Director : D. Tugs
16.Nomin
Home Style Co Ltd
5th Floor, State Department Store, Peace
Avenue 23
Ulaanbaatar 210644
Est.: 2005
Managing Director : O. Ganchimeg
(Trading as retailers of household goods,
accessories and
souvenirs)
17.Nomin
Realtor
18.Nomin
Holding LLC
Nomin United Building
Chinggis Avenue
Khan Uul District
P.O. Box No.: 2316
Ulaanbaatar 17042 / 210136
Telephone
: (976 75) 778 888
19.Nomin
Construction LLC
River Garden Building No. 308
Ikh Mongol Street (aka The Mongolian State
Street)
Khan-Uul District, 11 Khoroo
P.O. Box No.: 36 - 899
Ulaanbaatar 17032
Telephone: (976 77) 002 020
C.R. No. : 9011105005
Tax No. : 2708884
Shareholders :
- Enkhbayar Shagdarsuren 70%
- Ulambayar Shagdarsuren 30%
ACTIVITIES
The
Company is involved in the following activities :
Trading as
importers and distributors of construction materials.
Subject
engaged in construction and real estate sector.
Subject's
main projects include :
- Unur;
- Unur
Erdenet;
- River
Garden;
- Tsetsee
Gun;
- Time
Square.
Subject’s
main suppliers include :
- Aparici-Spain;
- Roca;
- Lauben;
- CRW;
- Ceresit.
Subject
works in close cooperation with affiliated company, Nomin Construction LLC.
NACE Code:
4613 - Agents involved in the sale of timber and building
materials
4299 - Construction of other civil
engineering projects
n.e.c.
Imports
from European countries mainly from Germany, Austria, Poland, Italy and Spain.
Subject
does not export, all sales are domestic.
FACILITIES
The Company
has the following facilities :
Owned
premises comprising administrative offices facilities located at the heading
address.
REGISTERED
OFFICE
State
Department Store, 7th Floor
Peace
Avenue 42
Chingeltei
District, 3rd Khoroo
Ulaanbaatar
SPECIAL
NOTES
The
address that you provided was: STATE DEPARTMENT STORE, 7TH FLOOR, PEACE AVENUE
42, CHINGELTEI DISTRICT, ULAANBAATAR, 3RD KHOROO. This applies to the subject's
registered office address. Please note that the subject's administrative office
address is as per the heading.
Interviewed
: Altantuya Purevdorj (Business Development Director).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.53 |
|
|
1 |
INR 86.05 |
|
Euro |
1 |
INR 76.53 |
|
MNT |
1 |
INR 0.026 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
POJ |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.