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Report Date : |
03.03.2014 |
IDENTIFICATION DETAILS
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Name : |
SCTECM LLC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
2012 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is a Building contractors engaged in construction
of railway and airport |
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No. of Employees : |
120 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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-gold deposits. Mongolia's ongoing dispute with a foreign investor over Oyu Tolgoi, however, has called into question the attractiveness of Mongolia as a destination for foreign direct investment. Negotiations to develop the massive Tavan Tolgoi coal field also have stalled. The economy has grown more than 10% per year since 2010, 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 and monetary policies, which are contributing to high inflation, and from 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 and is Mongolia's largest supplier. Mongolia has relied on Russia for energy supplies, leaving it vulnerable to price increases; in the first 11 months of 2013, Mongolia purchased 76% of its gasoline and diesel fuel and a substantial amount of electric power from Russia. A drop in foreign direct investment and a decrease in Chinese demand for Mongolia's mineral exports are putting pressure on Mongolia's balance of payments. Remittances from Mongolians working abroad, particularly in South Korea, are significant
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Source
: CIA |
SCTECM LLC
Building : Seoul Business Center, Office 403
Street : Zaluuchuud Street 26
Area : Bayanzurkh District
P.O.Box No.: 709
Town : Ulaanbaatar 13381
Country : Mongolia
Telephone : (976 77) 115 113 / 110 128 / Mobile (976 94) 241 571 (Lee Jeong Yeol)
Fax : (976 77) 115 113 / 110 128
E-Mail : tumursukh.d@samsung.com / huminapa@samsung.com / tw.yoon@samsung.com
Also known as: SCTECM XXK / Samsung C&T Eng.&Const. Mongolia / Es Si Ti I Si Em XXK
Name Position
1. Lee Jeong Yeol General Director
2. Tu Yoon Financial Manager
3. Tumursukh D. Contract Manager
4. Ms. Bayarmaa Accountant
5. Ms. Yuna Accountant
Total Employees : 120
No trade experience of payments is available.
Subject is a newly-established company incorporated in 2012 and commenced operations May 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.
SAMSUNG C&T WINS $483 MIL. PROJECT TO BUILD RAILWAY IN MONGOLIA
On 9 May 2013, (www.news.mn): Samsung C&T has signed an agreement to build a 217-kilometer railway in Mongolia commissioned by the Railway Authority of Mongolia on May 8th.
Samsung C&T is the sole contractor to implement the US$483-million project. The project calls for installing a railroad line connecting Tavan Tolgoi coal mine, 540 km south of the Mongolian capital Ulaanbaatar city, and the China-Mongolian borders, as well as building a rolling stock depot.
A Samsung C&T official said, "We were given high marks for our ample experience in railroad projects, excellence in technological prowess, and best construction time schedule. With the latest project, we are in an advantageous position to win additional projects in Mongolia related to resource development."
Samsung C&T entered the Mongolian construction market in May last year with a $273-million project to build Shangri-La Hotel in Ulaabaatar city. This is a third project for the company following a $56-million project to build the MCS Tower last June.
NAME : KHAN BANK OF MONGOLIA
Branch : Duchin Myangat Branch
Town : Ulaanbaatar
Telephone: (976 11) 457 880
Fax : (976 11) 457 880
The company also has an account with :
Golomt Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976 11) 312 307
As the Company has only recently commenced operations, relevant financial information is not available.
The following Consolidated Balance Sheets as at 31 December 2012 showed applies to Samsung C&T Corporation:
2012 2011
(in millions of
Korean Won)
ASSETS
Current Assets
Cash and cash equivalents 1,378,201 1,002,160
Short-term financial instruments 41,696 116,123
Short-term available-for-sale
financial assets - 6
Trade receivables 4,407,534 4,250,676
Other current assets 2,454,007 2,050,272
Inventories 1,419,908 727,048
Total current assets 9,701,346 8,146,285
Non-current assets
Available-for-sale financial assets 11,344,296 8,444,542
Investments in associates 1,056,787 1,163,724
Property, plant and equipment 1,249,702 1,009,467
Investment properties 107,101 173,624
Biological assets 91,782 98,782
Intangible assets 1,230,992 1,204,808
Deferred income tax assets 25,409 22,013
Other non-current assets 1,156,630 658,716
Total non-current assets 16,262,699 12,775,676
TOTAL ASSETS 25,964,045 20,921,961
LIABILITIES
Current liabilities
Trade payables 2,171,245 1,945,700
Short-term borrowings 1,613,645 1,990,509
Current portion of long-term debts 596,154 207,839
Income taxes payable 6,866 58,744
Other current liabilities 4,339,081 3,244,969
Total current liabilities 8,726,991 7,447,761
Non-current liabilities
Bonds payable and long-term borrowings 2,695,189 2,032,408
Retirement benefit obligation 88,038 68,451
Deferred income tax liabilities 2,506,558 1,666,187
Provisions 174,426 174,540
Other non-current liabilities 83,571 47,558
Total non-current liabilities 5,547,782 3,989,144
Total liabilities 14,274,773 11,436,905
EQUITY
Equity attributable to owners of the
Parent Company 11,588,046 9,384,957
Share capital 804,332 804,332
Additional paid-in capital 1,056,567 1,022,485
Other components of equity
Treasury stock (291,243) (296,142)
Share options 481 1,001
Other capital adjustments (2,160) (4,856)
Gain (loss) on valuation of available for-
sale financial assets, net 7,601,564 5,573,333
Gain on valuation of investment in
associates 122,709 269,726
Loss on valuation of investment in
associates (57,913) (96,431)
Cumulative effect of foreign currency
translation of overseas operations (16,468) 75,758
Gain (loss) on valuation of cash-flow
hedge derivative instruments, net 1,557 (3,805)
Actuarial gain(loss) on post
employment benefit obligations (98,959) (62,507)
7,259,568 5,456,077
Retained earnings 2,467,579 2,102,063
Non-controlling interests 101,226 100,099
TOTAL EQUITY 11,689,272 9,485,056
TOTAL LIABILITIES AND EQUITY 25,964,045 20,921,961
Net sales 25,325,925 21,545,515
Cost of sales (23,317,156) (19,843,256)
Gross profit 2,008,769 1,702,259
Selling and general
administrative expenses (1,518,438) (1,351,215)
Operating profit 490,331 351,044
Other operating income 886,610 869,643
Other operating expense (744,725) (623,801)
Finance income 129,154 95,343
Finance expense (236,129) (199,970)
Gain on valuation of equity
method investments 59,851 120,827
Loss on valuation of equity
method investments 29,431 3,046
Profit before income tax 555,661 610,040
Income tax expense (90,250) (200,960)
Profit for the year 465,411 409,080
Financial year ends
31 December.
Date Started : 2012
History : The subject company was established in Mongolia in 2012 and commenced operations in May 2013.
Tax No.: 5660823
Capital : not given
Limited Liability Company with the following sole shareholder:
Samsung C&T Corporation 100%
14, Seocho-daero 74-gil, Seocho-gu
Seoul 137-857
South Korea
Affiliated companies of the subject company :
Associates
1. Carecamp Inc.
South Korea
2. CVnet Corporation
South Korea
3. Samsung C&T America Inc.
USA
4. Samsung C&T France
France
5. Samsung C&T U.K. Ltd
United Kingdom
6. Samsung Trading Plc.
United Kingdom
7. Samsung C&T Deutschland GmbH
Germany
8. S.C. Otelinox S.A.
Romania
9. Samsung C&T Hong Kong Limited Trading
Hong Kong
10. Samsung C&T Japan Corporation Trading
Japan
11. Samsung Logistics (China) Limited Logistics
Hong Kong
12. Samsung C&T Hong Kong Limited
China
13. Samsung C&T (Thailand) Co., Ltd.
Thailand
14. Samsung E&C America, Inc. Construction
USA
15. Samsung E&C (Shanghai) Co.,Ltd.
China
16. POSS-SLPC S.R.O
Slovakia
17. Samsung C&T Taiwan Co., Ltd.
Taiwan
18. Myodo Metal Co., Ltd.
Japan
19. S&G Bio Fuel Pte. Ltd.
Singapore
20. Samsung Precision Stainless Steel Co., Ltd.
China
21. Samsung (Tianjin) International Trading Co., Ltd.
China
22. Samsung C&T Co., (Guanzhou) Ltd.
China
The Company is involved in the following activities :
Building contractors engaged in construction of railway and airport.
NACE Code : 4212
Imports from China and South Korea.
Subject does not export, all sales are domestic.
The Company has the following facilities :
Administrative offices located at the heading address as well as branch offices located elsewhere in Ulaanbaatar (see 'Branch Offices' below).
Subject formerly located at :
Central Tower, 9th Floor, Suite 905
2 Sukhbaatar Square, Sukhbataar District, 8th Khoroo
Ulaanbaatar
Chinggis Street 133, 1st Floor-41A
Khan-Uul District, 3rd Khoroo
Ulaanbaatar
Interviewed: Tumursukh D. (Contract Manager).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.07 |
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1 |
Rs.103.61 |
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Euro |
1 |
Rs.85.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.