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Report Date : |
20.05.2014 |
IDENTIFICATION DETAILS
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Name : |
BAGANAT URGUU GROUP |
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Registered Office : |
Baganat Urguu Group Building, Peace Avenue 77, 6th Khoroo, 13th Khoroolol, Bayanzurkh District (aka BZD) Ulaanbaatar 13373 |
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Country : |
Mongolia |
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Date of Incorporation : |
09.10.1998 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in Building Contractors |
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No of Employees : |
400 plus |
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 : |
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 – September 30, 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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
Baganat Urguu Group
Building : Baganat Urguu Group Building
Street : Peace Avenue 77
Area : 6th Khoroo, 13th Khoroolol,
Bayanzurkh District (aka BZD)
Town : Ulaanbaatar 13373
Country : Mongolia
Telephone : (976 77) 688 692 / Mobiles (976 99) 118
656 (Eng. Odser
Batsaikhan) / (976 99) 094 367 (A.
Erdenehuyag) / (976
91) 918 656 / (976 91) 914 100 / (976 99) 039
147
Fax : (976 77) 688 693
E-Mail : erdenehuyag@baganaturguu.mn / info@baganaturguu.mn
Website : www.baganaturguu.mn
Shortform Name : Baganat Urguu
Also Known As : Baganat Urguu Group Company / Baganat Urguu
Group LLC
Baganat Urguu Group XXK
Name
Position
1. Eng. Odser Batsaikhan General Director
2. Bat-Erdene Nanzaddorj Executive Director
3. Bat-Erdene Ulziitsetseg Director of the Organization's Management
4. A. Erdenehuyag Marketing Director
Total Employees : 400 plus
No complaints have been heard regarding payments from local suppliers or banks.
We consider it is acceptable to deal with subject for MEDIUM amounts. It is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.
Trade risk assessment : Normal
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
The company also has an account with the following banks :
1. Golomt Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone : (976 11) 311 530
Fax : (976 11) 312 307
2. Khan Bank of Mongolia
Seoul Street 25
PO Box 192
Ulaanbaatar 14250
Telephone : (976 11) 332 333
Fax : (976 70) 117 023
Private companies in Mongolia are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :
Total value of Contract : TUGRIK 10,000,000,000 - 2013 – exact
: TUGRIK 60,000,000,000 - 2014 – projected
Net Profit : not given but stated to be profitable
Financial year ends 31 December.
Date Started : 9 October 1998
History : The company was established in Ulaanbaatar on 9 October 1998, however origins of subject's business activities can be traced back to 1991.
Tax No.: 2562618
Capital : not given
Limited Liability Company with the following sole shareholder :
Eng. Odser Batsaikhan 100%
(Mongolian national)
Affiliated companies of the Baganat Urguu Group :
Associate
1. Baganat Urguu Construction LLC
Ulaanbaatar
Telephone: (976 77) 303 366
Fax : (976 77) 303 367
2. Baganat Urguu Trade LLC
Ulaanbaatar
Mobile: (976 99) 087 290
3. Baganat Urguu Property LLC
Ulaanbaatar
4. Baganat Urguu Consulting LLC
Ulaanbaatar
5. Baganat Urguu Logistics LLC
Ulaanbaatar
The Company is involved in the following activities :
Building contractors.
NACE Code : 4120
Subject started building as sub-contractor Baganat Khooro District Project in 2014 and expected to complete in 2022, total value of project US DLRS 360,000,000.
Imports from China, Russia, Germany and Turkey.
Subject does not export, all sales are domestic.
The Company has the following facilities :
1,250 sq. m. owned premises comprising administrative offices located at the heading address as well as warehouse unit storage located in Western Region (see ‘Branch Office’ below).
Warehouse Unit
20th Khoroo, Western region of Production Area 99
Bayangol District
Telephone: (976 70) 188 692
The telephone number which you provided : (976 11) 333 331 is incorrect. Please note that subject's correct administrative office telephone numbers are as per heading.
The person name given by you : Erdeneguyag. A is misspelt. Please note that the correct spelling is as per heading.
Interviewed : Eng. Odser Batsaikhan (General Director).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.58.42 |
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1 |
Rs. 98.28 |
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Euro |
1 |
Rs. 80.12 |
INFORMATION DETAILS
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Analysis Done by
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KRN |
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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.