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Report No. : |
335306 |
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Report Date : |
17.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ACHIT BULAG LLC |
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Registered Office : |
Songino Khairkhan District |
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Country : |
Mongolia |
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Date of Incorporation : |
2010 |
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Com. Reg. No.: |
2068915 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
·
Manufacturer of foodstuff mainly candies. ·
Trading as importers, wholesalers and
distributors of foodstuff mainly chocolate & candies, personal care and
household products as well as tobacco products. |
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No. of Employees : |
51 (subject) 427 (Tsakhiur Co. Ltd, subject's affiliate) |
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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Maximum Credit Limit : |
TUGRIK 1,390,000,000 |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Mongolia |
B2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 (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 emerged from the crisis with a stronger banking sector
and needed reforms to the government’s fiscal management. In October 2009,
Mongolia passed long-awaited legislation on an investment agreement to develop
the Oyu Tolgoi (OT) mine, considered to be among the world's largest untapped
copper-gold deposits. However, Mongolia's ongoing dispute with foreign
investors developing Oyu Tolgoi has called into question the attractiveness of
Mongolia as a destination for foreign investment. This caused a loss of
investor confidence, a severe drop in FDI, and a slowing economy, leading to
the dismissal of Prime Minister ALTANKHUYAG in November. The new government has
made restoring investor trust and reviving the economy its top priority, but it
will be challenged to unwind the monetary and fiscal stimulus programs in use
since 2013 to counteract the fall in foreign investment. In December 2014 the
government awarded a deal to develop the massive Tavan Tolgoi (TT) coal field
to a consortium comprising Energy Resources/MCS (Mongolia), Shenhua (China),
and Sumitomo (Japan); talks continue to hammer out the financing and the
operating details. The economy grew more than 10% per year since 2010, largely
on the strength of commodity exports to nearby countries and high government
spending domestically, before slowing to 7.8% in 2014. Mongolia's economy 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 nearly 62% of
Mongolia's total external trade - China receives some 90% of Mongolia's exports
and supplies Mongolia with more than one-third of its imports. Mongolia has
relied on Russia for energy supplies, leaving it vulnerable to price increases;
in 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.
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Source
: CIA |
CO. NAME : ACHIT BULAG LLC (CORRECT)
ACHIT
BULAG CO LTD (REQUESTED)
Street : Shonn Street
Area : Songino Khairkhan
District, Khoroo 4, Ikh Naran
Town : Ulaanbaatar
Country : Mongolia
Telephone : (976 70) 182 821 /
Mobile (976 99) 115 276 (Bat Erdene Bat Ulzii)
Fax : (976 70) 182 824
E-Mail :
b.batulzii@tsakhiur.com
Also Known As : Achit Bulag Co Ltd / Achit Bulag XXK
Name
Position
1. Bat Erdene Bat Ulzii Chief Executive Officer
2. Bat Erdene Batnasan
Director
3. Mrs Khaliunaa
Marketing Manager
Total Employees : 51 (subject)
427 (Tsakhiur Co. Ltd, subject's affiliate)
No complaints have been heard regarding payments from local suppliers or
banks.
We consider it is acceptable to deal with subject for LARGE amounts. Although
it is normal accepted practice for international suppliers to deal on secured
terms with Mongolian importers.
Opinion on maximum credit : TUGRIK 1,390,000,000
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
Subject also has an account with the following bank :
Golomt Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976 11) 312 307
Private companies in Mongolia are not required to publish or disclose
balance sheets. However, the subject interviewed offered the following information
:
Sales Turnover : US
DLRS 35,000,000 - 2013 – approx
: US DLRS 35,000,000 - 2014 - approx
Net Profit : not given but stated to be profitable
Financial year ends 31 December.
The following financial information applies to the Tsakhiur Co. Ltd,
subject’s affiliate (latest available) :
Revenue : US DLRS
55,000,000 – 2013 – approx
Net Profit : not given
Financial year ends 31 December.
Date Started : 2010
History : Subject was established in Ulaanbaatar in 2010.
C.R. No. : 2068915 (issue date : 19 December 2011)
Capital : not given
Limited Liability Company with the following director and shareholders :
Director
Bat Erdene Bat Ulzii
(Mongolian national)
Shareholders Percentage
1. Bat Erdene Bat Ulzii 20%
(Mongolian national)
2. Bat Erdene Batnasan }
(brother of the above) }
}
3. Ms. Bat Erdene }
(sister of the above) }
}
3. Mr. Bat Erdene }
(father of the above) } 80%
}
4. Mrs. Bat Erdene }
(wife of the above) }
Affiliated companies of the Achit Bulag LLC :
Associates
1. Tsakhiur Co. Ltd
Khoroo 4, Songino khairhan
district
Ulaanbaatar
Telephone: (976 70) 182 821
Fax : (976 70) 182 824
2. Sweet Road LLC
Khoroo 4, Songino khairhan
district
Ulaanbaatar
Telephone: (976 70) 182 821 /
Mobiles (976 99) 115 276 (Bat Erdene Bat Ulzii) / (976 99) 100 097 (Tur Seren)
/
(976 99) 112 500
Fax : (976 70) 182 824
E-Mail : sweetroad976@gmail.com
C.R. No. : 5156858
3. Darkhan Khuns JSC
Mongolia
The Company is
involved in the following activities:
Manufacturer of foodstuff mainly candies.
Trading as importers, wholesalers and distributors of foodstuff mainly
chocolate & candies, personal care and household products as well as
tobacco products.
NACE Codes : 4617 / 4615 / 4618 / 4619
Imports from Poland, Turkey, Spain, UK, Germany, Russia and Malaysia.
Subject does not export, all sales are domestic.
The Company has the following facilities :
Owned premises comprising administrative offices and storage facilities
located at the heading address.
Songino Khairkhan District
You enquired on : “ACHIT BULAG CO LTD”. Please note that subject is also
known by this name. Subject's correct registered name is as per heading.
The address given by you : “Ikh Naran, 4-R Khoroo, Songinokhairkhan” is
misspelt. Please note that the correct spelling is as per heading.
Interviewed : Bat Erdene Bat Ulzii (Chief Executive Officer).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.12 |
|
|
1 |
Rs.101.62 |
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Euro |
1 |
Rs.72.55 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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|
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Report Prepared
by : |
TPT |
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.