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Report No. : |
323013 |
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Report Date : |
30.05.2015 |
IDENTIFICATION DETAILS
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Name : |
OTGONSARAN CO LTD |
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Registered Office : |
Bayangol District, 19 Khoroo, 4 Micro-District,
Ulaanbaatar 5245 |
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Country : |
Mongolia |
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Date of Incorporation : |
2006 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as Importers and Distributors of
Pork Meat. |
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No. of Employees : |
15 |
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 45,000,000 |
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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 – 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 |
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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 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.
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Source
: CIA |
OTGONSARAN
CO LTD
Area
: Bayangol District, 19
Khoroo, 4 Micro-district
Town
: Ulaanbaatar 5245
Country
: Mongolia
Mobiles
: (976 99) 094 342
(Otgonbayar Engil) / (976 99) 093 520
(Otgonbayar Dumaa)
E-Mail
: d.otgonbayar@gmail.com
Also Known As : Otgonsaran LLC / Otgonsaran XXK
Name Position
Otgonbayar Engil Managing Director
Total Employees : 15
No complaints have been heard regarding
payments from local suppliers or banks.
We consider it is acceptable to deal with
subject for SMALL amounts, however in view of the lack of financial information
we recommend international suppliers exercise a degree of caution. Although it
is normal accepted practice for international suppliers to deal on secured
terms with Mongolian importers.
Opinion on maximum credit : TUGRIK 45,000,000
(higher amounts may be
considered with full
fiscal disclosure)
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 :
Khan Bank of Mongolia
Peace Avenue
P.O Box-185
Ulaanbaatar
Telephone: (976 11) 457 880
Fax
: (976 11) 457 880
Private companies in Mongolia are not
required to publish or disclose balance sheets. However, the subject
interviewed offered
the following information (latest available)
:
Sales Turnover : EURO 1,000,000 - 2013 - exact
Net Profit : not given
Financial year ends 31 December.
Date Started : 2006
History : Subject was established in
Ulaanbaatar in 2006.
C.R. No.: 2853957 (issue date : 25 April
2007)
Capital : not given
Limited Liability Company with the following
sole shareholder :
Otgonbayar Engil 100%
(Mongolian national)
The Company is involved in the following
activities :
Trading as Importers and Distributors of Pork
Meat.
NACE Code : 4632
Imports from China.*
Subject does not export, all sales are
domestic.
*Subject previously was importing from
Poland.
The Company has the following facilities :
Owned premises comprising administrative
offices and storage facilities located at the heading address.
Interviewed : Otgonbayar Dumaa (Former
Director).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.97.80 |
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Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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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.