MIRA INFORM REPORT

 

 

Report No. :

318592

Report Date :

29.04.2015

           

IDENTIFICATION DETAILS

 

Name :

BAYASAKH TRADE CO LTD

 

 

Registered Office :

Bayasakh Group Building, Namyanju Street, Bayanzurkh District, 14 Khoroo, P.O. Box No.: 44 / Ulaanbaatar-431, Ulaanbaatar 13370

 

 

Country :

Mongolia

 

 

Date of Incorporation :

25.03.1999

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Trading as Importers, Wholesalers and Distributors of Foodstuff and Building Materials.

·         Operators of Agricultural Farms.

 

 

No. of Employees :

140

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limits :

TUGRIK 600,000,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Mongolia

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 (FDI). 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 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. 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 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 2014, Mongolia purchased nearly 90% of its gasoline and diesel fuel from Russia. A drop in FDI has put pressure on Mongolia's external finances. Remittances from Mongolians working abroad, particularly in South Korea, are significant.

 

Source : CIA

 

 

ComPANY Name

 

CO. NAME                    : BAYASAKH TRADE CO LTD (Correct)

BAYASAKH TRADE CO LTD (BAYASAKH KHULIY CO LTD) (Requested)

 

 

ADDRESS

 

Building                        : Bayasakh Group Building

 

Street                           : Namyanju Street

 

Area                             : Bayanzurkh District, 14 Khoroo

 

P.O. Box No.                : 44 / Ulaanbaatar-431

Town                            : Ulaanbaatar 13370

Country                         : Mongolia

 

Telephone                     : (976 70) 001 010 / (976 11) 462 226 / Mobiles (976 99)

                                     114 857 / 143 367

Fax                               : (976 11) 462 227

E-Mail                           : bayasakh@bayasakh.mn / nomindari@bayasakh.mn /

                                      Info@bayasakh.mn / battsetseg@bayasakh.mn

Website                        : www.bayasakh.mn

 

Also Known As             : Bayasakh Trade Co Ltd (Bayasakh Khuliy Co Ltd) /

                                      Bayasakh Trade LLC / Bayasakh Trade XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Densmaa Batbold                              Managing Director

 

2. Uyengee Nomindari (Mrs)                   Foreign Relations Manager             

 

Total Employees: 140

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

We consider it is acceptable to deal with subject for MEDIUM amounts, although it is normal accepted practice for international suppliers to deal on secured terms with Mongolian importers.

 

Opinion on maximum credit : TUGRIK 600,000,000

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA

 

Branch              : Khudaldaany gudamj-7

Town                : Ulaanbaatar-11

 

Telephone         : (976 11) 321 171

Fax                    : (976 11) 325 449

 

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

 

 

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 3,000,000,000 – 2014 - exact

 

Net Profit                                  : Not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 25 March 1999

 

History : Subject was established in Ulaanbaatar on 25 March 1999, however origins of subject's business activities can be traced back to 1993.

                

Tax Card No.: 2570394 (issue date : 5 January 2001)

 

Capital : not given

 

Limited Liability Company with the following sole shareholder :

 

Densmaa Batbold                           100%

(Mongolian national)

 

Affiliated companies of the Bayasakh Trade Co LTD:

Subject is a member of the Bayasakh Group of Companies, Mongolia, which also includes the following companies :

 

1. Bayasakh Urguu Co., Ltd

   Ulaanbaatar

   Retail Sales through Supermarkets

 

2. Bayasakh Atlas Co., Ltd

   Ulaanbaatar

   Construction Materials Sales

 

3. Bayasakh Foods Co., Ltd

   Ulaanbaatar

   Food Manufacturing

 

4. Bayasakh Building

   Ulaanbaatar

   Investment, construction

 

5. Naran Zug Co., Ltd

   Ulaanbaatar

   Agriculture

 

6. Bayasakh Standard Co., Ltd

   Ulaanbaatar

   Food Manufacturing

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and distributors of foodstuff and building materials.

 

Operators of agricultural farms.

                   

Subject's main suppliers are as follows :

 

- Kowar ZPS;

- Jutrzenka colian Sp. z o.o.;

- Agros Nova Sp. z o.o.;

- Jamar ZPS from Poland;

- Borjomi from Georgia;

- Sweets of Oman and Nabils Biscuits from Oman.

    

NACE Code: 4617

 

Imports from Poland, Germany, Georgia, Russia, Oman and Argentina.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices and storage facilities located at the heading as well as agricultural farms located elsewhere in Mongolia.

 

 

REGISTERED OFFICE

 

Chingelte District

 

 

SPECIAL NOTES

 

You enquired on : “BAYASAKH TRADE CO LTD (BAYASAKH KHULIY CO LTD)”. Please note that subject is also known by this name. Subject's correct registered name is as per heading.

 

Interviewed: Uengee Nomindari (Foreign Relations Manager).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

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

 

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

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

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

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.