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MIRA
INFORM REPORT
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Report No. : |
494975 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
ECHOMN LLC |
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Registered Office : |
Building 6/2-1,Bayanzurkh District, 15th Khoroo, 13th Khoroolol |
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Country : |
Mongolia |
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Date of Incorporation : |
14.02.2011 |
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Com. Reg. No.: |
9011267142 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers, wholesalers and distributors of electrical
products, smart home supplies and electronic protection system. |
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No. of Employees : |
9 |
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 Limit : |
Tugrik 20,000,000 |
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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 |
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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
Company address
ADDRESS
Building : Chimer Tsokhtsobor Building 4/7, Office
26
Area : Chingeltei District, 3rd Khoroo
Town : Ulaanbaatar
Country : Mongolia
Telephone : (976 11) 312 797 / Mobile (976 98) 117 062
Fax : (976 11) 325 558
E-Mail : info@echo.mn
Website : www.echo.mn
Also
Known As : ECHOMN Co. Ltd. / ECHOMN XXK
SENIOR COMPANY PERSONNEL
Name Position
Chimbat
Badamkhand Managing
Director
Total
Employees : 9
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 20,000,000
Trade
risk assessment : Normal
PRINCIPAL BANKER
NAME : KHAN BANK OF MONGOLIA
Branch : Peace Avenue
P.O.
Box : 185
Town : 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 : TUGRIK 1,000,000,000 -
2017 - exact
: TUGRIK
1,700,000,000 - 2018 - projected
Net
Profit : TUGRIK
150,000,000 - 2017 - exact
Financial
year ends 31 December.
LEGAL STATUS AND HISTORY
Date
Started : 14 February 2011
History
: Subject was established in Ulaanbaatar on 14 February 2011.
C.R.
No. : 9011267142
VAT
No. : 5447755
Authorized
Capital : TUGRIK 1,000,000
Paid
Up Capital : TUGRIK 1,000,000
Limited
Liability Company with the following sole shareholder :
Chimbat
Badamkhand (100%)
(Mongolian
national)
Affiliated
company of the ECHOMN LLC :
Associate
Anu
Express LLC
Ulaanbaatar
ACTIVITIES
The
Company is involved in the following activities :
Trading
as importers, wholesalers and distributors of electrical products, smart home
supplies and electronic protection system.
Subject’s
main products include :
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Small Family System;
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Insurance System;
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Bank System;
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Customs System;
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Confidential Systems;
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Electrical Protection System;
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Industry Risk;
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Rooms monitoring system;
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Other Products.
NACE
Code : 4618 - Agents specialised in the sale of other particular products
Imports
from USA, Russia, Poland, Honk Kong and China.
Subject
does not export, all sales are domestic.
FACILITIES
The
Company has the following facilities :
Owned
premises comprising administrative offices, a retail outlet and storage
facilities located at the heading address.
REGISTERED OFFICE
Building
6/2-1
Bayanzurkh
District, 15th Khoroo, 13th Khoroolol
Ulaanbaatar
SPECIAL NOTES
The
address that you provided was: 15TH KHOROO, 13TH KHOROOLOL 6/2-1, ULAANBAATAR
BAYANZURKH DISTRICT. This applies to the subject's registered office address.
Please note that the subject's administrative office address is as per heading.
Interviewed
: Chimbat Badamkhand (Managing Director).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.10 |
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1 |
INR 94.44 |
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Euro |
1 |
INR 79.59 |
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MNT |
1 |
INR 0.03 |
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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VAR |
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Report Prepared
by : |
KET |
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
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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.