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MIRA INFORM REPORT
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Report No. : |
498308 |
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Report Date : |
22.03.2018 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Bayanzurkh District, 8th Khoroo, Zakhin Area,
Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
14.04.2006 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
The Company is involved in the following activities : Explore mine and process fluorite in Mongolia. |
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No. of Employees : |
30 |
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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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
NORTHWIND LLC
ADDRESS
Area : Bayanzurkh
District, 8th Khoroo, Zakhin Area
Town : Ulaanbaatar
Country : Mongolia
Mobiles : (976
80) 065 665 (Zeng Tchung) / (976 99) 129 872 (Nyamsuren Dalan) / (976 88) 112
282
(Mr. Jagaa) / (976 99) 101
207
Website : www.northwind.asia
Also
Known As : Northwind Co. Ltd
SENIOR
COMPANY PERSONNEL
Name Position
1.
Zeng Tchung Managing Director
2.
Mr. Jagaa Executive Manager
3.
Nyamsuren Dalan Accountant
Total
Employees : 30
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.
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 :
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 :
Revenue : TUGRIK 2,000,000,000 - 2015 - exact
: TUGRIK
500,000,000 - 2016 - exact
: TUGRIK
500,000,000 - 2017 - exact
: TUGRIK 2,000,000,000 - 2018 - projected
Net
Profit : not given
Financial
year ends 31 December.
LEGAL
STATUS AND HISTORY
Date
Started : 14
April 2006
History : Subject was established
in Ulaanbaatar on 14 April 2006 and commenced operations in 2008.
Tax
No. : 5003539
Capital
: not given
Limited
Liability Company with the following director and sole shareholder :
Director
Zeng
Tchung
(Chinese
national)
Shareholder
Northwind
Corporation (100%)
British
Virgin Islands
1412208
Affiliated
company of the Northwind LLC :
Associate
Northwind
Fluorite Corporation (Beijing Liaison)
Room
502, 36 North 3rd Ring East Road
Dongcheng
District
Beijing
100013
China
ACTIVITIES
The
Company is involved in the following activities :
Explore
mine and process fluorite in Mongolia.
Main
projects include the following:
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Khentii Aimag, Galshar Soum;
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Bayankhongor Aimag.
NACE
Code : 0899 - Other mining and quarrying n.e.c.
Imports
from China.
Exports
to China and Russia.
FACILITIES
The
Company has the following facilities :
Rented
premises comprising administrative offices located at the heading address.
Until
2017, subject was located at :
Building
55, 1st Floor, Office 109
Chingeltei
District, 6th Khoroo
Ulaanbaatar
Subject
previously used the following telephone and fax number :
Telephone:
(976 11) 321 600
Fax : (976 11) 321 600
SPECIAL
NOTES
The
address given by you: Cningeltei District 6 Khoroo 55-109, Ulaanbaatar applies to the subject’s previous address.
Please note that the current administrative address is as per heading.
The
telephone/fax number which you provided: +976-11-321 600 is no longer in use.
Please note that subject's current mobile numbers are as per heading.
Interviewed
: Nyamsuren Dalan (Accountant).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 91.33 |
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Euro |
1 |
INR 79.96 |
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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 : |
SYL |
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.