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Report Date : |
20.02.2014 |
IDENTIFICATION DETAILS
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Name : |
BURENTUGS TRANS LLC |
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Registered Office : |
Bayangol District, 6th Khoroo, 10th Khoroolol, Begdu, Micro-District, 5623, Ulaanbaatar |
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Country : |
Mongolia |
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Date of Incorporation : |
February 2013 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is provides transportation and freight-forwarding
services and also Trading as importers, wholesalers and retailers of oak houses and
operates as contractors and assemblers of oak houses. |
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No of Employees : |
10 |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Business |
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Payment Behaviour : |
Unknown |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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Mongolia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
MONGOLIA - ECONOMIC OVERVIEW
Mongolia's extensive mineral deposits and attendant growth in
mining-sector activities have transformed Mongolia's economy, which
traditionally has been dependent on herding and agriculture. Mongolia's copper,
gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among
others, have attracted foreign direct investment. 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 economic growth, because of reform-embracing, free-market economics and
extensive privatization of the formerly state-run economy. The country opened a
fledgling stock exchange in 1991. Mongolia joined the World Trade Organization
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
hard by the global financial crisis. Slower global economic growth hurt the
country's exports, notably copper, and slashed government revenues. As a
result, Mongolia's real economy contracted 1.3% in 2009. In early 2009, the
International Monetary Fund reached a $236 million Stand-by Arrangement with
Mongolia and the country has largely emerged from the crisis with better
regulations and closer supervision. The banking sector strengthened but
weaknesses remain. In October 2009, Mongolia passed long-awaited legislation on
an investment agreement to develop the Oyu Tolgoi mine, considered to be among
the world's largest untapped copper deposits. Recent calls by nationalist
politicians to renegotiate the investment agreement, however, have called into
question the attractiveness of Mongolia as a destination for foreign direct
investment. Negotiations to develop the massive Tavan Tolgoi coal field face
similar obstacles. The economy grew by 6.4% in 2010, 17.5% in 2011, and by more
than 12.3% in 2012, largely on the strength of commodity exports to nearby
countries and high government spending domestically. Mongolia's economy,
however, faces near-term economic risks from the government's loose fiscal
policies, which are contributing to high inflation, and uncertainties in
foreign demand for Mongolian exports. Trade with China represents more than
half of Mongolia's total external trade - China receives more than 90% of
Mongolia's exports. Mongolia purchases 95% of its petroleum products and a
substantial amount of electric power from Russia, leaving it vulnerable to
price increases. Due to severe winter weather in 2009-10, Mongolia lost 22% of
its total livestock, and meat prices doubled. Inflation remained higher than
10% for much of 2010-12, due in part to higher food and fuel prices. The
economic slowdown in China during 2011-2012 resulted in fewer Mongolian
exports, a widened trade gap, and decreased government revenues, putting
pressure on Mongolian fiscal policy. Remittances from Mongolians working
abroad, particularly in South Korea, are significant.
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Source
: CIA |
Burentugs Trans LLC
Area : Bayangol District, 6th Khoroo, 10th Khoroolol, Begdu Micro-District, 5623
Town : Ulaanbaatar
Country : Mongolia
Telephone: (976 99) 083 764 (Mr. Erdeneoyut) / 976 88) 111 764 (Gansukh Namsrai)
E-Mail : erdenoyuut@bttrans.mn / ganaa@bttrans.mn / erka_bna@yahoo.com
Website : www.bttrans.mn
Also known as : Burentogs Trans XXK / Burentugs Trans Co., Ltd / BTTrans Co., Ltd
Name Position
1. Gansukh Namsrai General Director
2. Mr. Erdeneoyut International Relations Manager
Total Employees : 10
No trade experience of payments is available.
Subject is a newly-established company incorporated in February 2013.
Opinion on maximum credit : As the company has recently commenced operations and has no financial or
payment track record, we recommend dealing on fully secured terms.
Trade risk assessment : High
It is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.
NAME :
KHAS BANK
Branch :
Sukhbaatar District
Town :
Ulaanbaatar 14200
Telephone: (976 11) 318 185
Fax : (976 11) 328 701
The company also has an account with :
Chinggis Khaan Bank
New Century Plaza, Chinggis Khaan Avenue 15, Sukhbaatar District
Ulaanbaatar
Telephone: (976 11) 318 367
Fax : (976 11) 318 373
As the Company has only recently commenced operations, relevant financial information is not available.
Date Started : February 2013
History : The subject company was established in Mongolia in February 2013, however the origins can be traced back to 2008.
Capital : not given
Limited Liability Company with the following sole shareholder:
Gansukh Namsrai 100%
The Company is involved in the following activities :
Subject provides transportation and freight-forwarding services.
Trading as importers, wholesalers and retailers of oak houses.
Subject also operates as contractors and assemblers of oak houses.
NACE Code : 5121 / 4613
Imports from USA.
Subject does not export, all sales are domestic.
The Company has the following facilities :
Administrative offices located at the heading address.
Interviewed: Mr. Erdeneoyut (International Relations Manager).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 62.12 |
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1 |
Rs. 103.93 |
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Euro |
1 |
Rs. 85.16 |
INFORMATION DETAILS
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not recommended |
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-- |
NB |
New
Business |
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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 and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.