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MIRA INFORM REPORT
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Report No. : |
508882 |
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Report Date : |
24.05.2018 |
IDENTIFICATION DETAILS
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Name : |
BAYASAKH ATLAS LLC |
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Registered Office : |
Bayasakh Group Building No. 308, Office No. 307, Namyanju Street,
Bayanzurkh District, 14 Khoroo, Ulaanbaatar 13335-0018 |
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Country : |
Mongolia |
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Date of Incorporation : |
May, 2007 |
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Com. Reg. No.: |
9011110126 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading as importers,
wholesalers and retailers of all kinds of building materials including
interior and exterior decoration materials, insulation materials, sanitary ware,
ceramic tiles. |
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No. of Employees : |
11 (Subject) 400 Plus (Group) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limits : |
TUGRIK 50,000,000 |
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Status : |
Satisfactory |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Mongolia |
B2 |
B2 |
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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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
MONGOLIA - ECONOMIC OVERVIEW
Foreign direct investment in Mongolia's extractive industries – which are based on extensive deposits of copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten - has transformed Mongolia's landlocked economy from its traditional dependence on herding and agriculture. Exports now account for more than 40% of GDP. Mongolia depends on China for more than 60% of its external trade - China receives some 90% of Mongolia's exports and supplies Mongolia with more than one-third of its imports. Mongolia also relies on Russia for 90% of its energy supplies, leaving it vulnerable to price increases. Remittances from Mongolians working abroad, particularly in South Korea, are significant.
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 WTO 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 by the global financial crisis and Mongolia's real economy contracted 1.3% in 2009. In early 2009, the IMF reached a $236 million Stand-by Arrangement with Mongolia and it emerged from the crisis with a stronger banking sector and better fiscal management. In October 2009, Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi (OT) mine, among the world's largest untapped copper-gold deposits. However, a dispute with foreign investors developing OT called into question the attractiveness of Mongolia as a destination for foreign investment. This caused a severe drop in FDI, and a slowing economy, leading to the dismissal of Prime Minister Norovyn ALTANKHUYAG in November 2014. The economy had grown more than 10% per year between 2011 and 2013 - largely on the strength of commodity exports and high government spending - before slowing to 7.8% in 2014, and falling to the 2% level in 2015. Growth rebounded from a brief 1.6% contraction in the third quarter of 2016 to 5.8% during the first three quarters of 2017, largely due to rising commodity prices.
The May 2015 agreement with Rio Tinto to restart the OT mine and the subsequent $4.4 billion finance package signing in December 2015 stemmed the loss of investor confidence. The current government has made restoring investor trust and reviving the economy its top priority, but has failed to invigorate the economy in the face of the large drop-off in foreign direct investment, mounting external debt, and a sizeable budget deficit. Mongolia secured a $5.5 billion financial assistance package from the IMF and a host of international creditors in May 2017, which is expected to improve Mongolia’s long-term fiscal and economic stability as long as Ulaanbaatar can advance the agreement’s difficult contingent reforms, such as consolidating the government’s off-balance sheet liabilities and rehabilitating the Mongolian banking sector.
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Source
: CIA |
COMPANY
NAME
BAYASAKH ATLAS LLC
ADDRESS
Building : Bayasakh Group Building No. 308, Office
No. 307
Street : Namyanju Street
Area :
Bayanzurkh District, 14 Khoroo
Town : Ulaanbaatar 13335-0018
Country : Mongolia
Telephone : (976 70) 152 226 / Mobile (976 88) 114 857
(Bat-Erdene Ganjorjo)
Fax : (976 11) 462 227
E-Mail : construction@bayasakh.mn
Website : www.bayasakh.mn
Also Known As : Bayasakh
Atlas Co. Ltd / Bayasakh Atlas XXK
SENIOR
COMPANY PERSONNEL
Name Position
1. Bat-Erdene
Ganjorjo Managing Director
2. O. Mandakhzul Administrator
Total Employees : 11
(Subject)
400 Plus
(Group)
PAYMENTS
No complaints have been
heard regarding payments from local suppliers or banks.
Subject is a member of Bayasakh Trade Co LTD which is the flagship
company of Bayasakh Group which is one of the top economic entities in Mongolia,
Bayasakh Group is a wholly owned local company doing business in foreign and
domestic trade, food manufacturing, crop farming, construction materials sales,
production, and construction. The group employs more than 400 people.
Associations inspire confidence and we consider it is acceptable to
deal with subject for SMALL amounts, although it is normal accepted practice
for international suppliers to deal on secured terms with Mongolian importers.
Opinion on maximum credit : TUGRIK 50,000,000
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
Account No. : 499 125 432
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
Account No. : 1205110033
2. Khan Bank of Mongolia
Peace
Avenue
P.O Box-185
Ulaanbaatar
Telephone: (976 11) 457 880
Fax
: (976 11) 457 880
Account No. : 5037233368
3. State Bank
Ulaanbaatar
Account No. : 106200080815
4. Ghinggis Khan Bank
Ulaanbaatar
Account No. : 3920010518
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
2,855,773,611 – 2013 - exact
: TUGRIK 3,769,765,856 –
2014 - exact
: TUGRIK
4,765,243,500 – 2015 - approx
: TUGRIK
2,061,220,818 – 2016 – exact
: TUGRIK
1,672,052,166 – 2017 – exact
: TIGRIK 3,000,000,000 – 2018 –
projected
Net Profit : TUGRIK
1,247,401,187 – 2013 - exact
: TUGRIK
1,221,774,123 – 2014 - exact
: TUGRIK
1,244,450,900 - 2015 - approx
: TUGRIK 612,312,095 – 2016 – exact
:
TUGRIK 366,003,284 – 2017 – exact
Financial year ends 31 December.
The following financial information applies to Bayasakh Trade Co LTD,
subject’s affiliated company
(latest available):
Sales Turnover :
TUGRIK 3,000,000,000 – 2014 - exact
Net Profit :
Not given but stated to be profitable
Financial year ends 31
December.
The following financial
information applies to Bayasakh International LLC, subject’s affiliated company
:
Sales Turnover :
TUGRIK 10,000,000,000 – 2015 - exact
: TUGRIK 19,000,000,000 – 2016 – exact
: TUGRIK 26,000,000,000 – 2017 – approx
Net Profit Not given but stated to be profitable
Total Capital Investment :
TUGRIK 4,115,658,017.41 – 2018
Financial year ends 31
December.
The following financial
information applies to Bayasakh Food LLC, subject’s affiliated company (latest
available):
Sales Turnover : TUGRIK 2,000,000,000 - 2014 - exact
Net Profit :
Not given but stated to be profitable
Financial year ends 31
December.
LEGAL
STATUS AND HISTORY
Date Started : May 2007
History : Subject was
established in Ulaanbaatar in May 2007 as a limited liability company with the
following sole shareholder :
Bayasakh Trade Co LTD (100%)
Bayasakh Group Building
Namyanju Street
Bayanzurkh District, 14
Khoroo
P.O. Box 44
Ulaanbaatar 13370
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
Tax Card No.: 2570394
In 2015, subject’s shareholding
structure changed to the present.
C.R. No. : 9011110126
(issue date : 23 July 2007)
Tax No. : 5152925
Authorised Capital :
TUGRIK 1,000,000
Paid up Capital : TUGRIK
1,000,000
Limited Liability Company
with the following director and sole shareholder :
Director
Bat-Erdene Ganjorjo
(Mongolian national)
Shareholder
Densmaa Batbold 100%
(Mongolian national)
Affiliated companies of
Bayasakh Atlas LLC :
Associates
Subject is a member of the Bayasakh Group of companies, Mongolia, which
also includes the following companies :
1. Bayasakh Food LLC
Bayasakh Group Building
Namyanju Street
Bayanzurkh District, 14 Khoroo
Ulaanbaatar
Tax No. : 5279186
2. Bayasakh Urguu Co., Ltd
Ulaanbaatar
Retail Sales through Supermarkets
3. Bayasakh Building
Ulaanbaatar
Investment, construction
4. Naran Zug Co., Ltd
Ulaanbaatar
Agriculture
5. Bayasakh Standard Co.,
Ltd
Ulaanbaatar
Food Manufacturing
6. Bayasakh International
LLC
Bayasakh Group Building 304
Namyanju Street
Bayanzurkh District, 14 Khoroo
P.O. Box No.: 44 / Ulaanbaatar-431
Ulaanbaatar 13370
Telephone
: (976 70) 001 010
C.R. No. : 9011387124
Tax Card No. : 5677564
ACTIVITIES
The Company is involved in
the following activities :
Trading as importers,
wholesalers and retailers of all kinds of building materials including interior
and exterior decoration materials, insulation materials, sanitary ware, ceramic
tiles.
Subject’s main products
include :
- ATLAS Insulation system
products :
- Dry adhesive products;
- Paints;
- Adhesives for tiles;
- Turkish PVC roofs;
- Mineral and acrylic type thin-coat render.
- Hand tools KUBALA.
- Ondumit, Turkish.
NACE Code : 4613
Imports from Poland and
Turkey.
Subject does not
export, all sales are domestic.
FACILITIES
The Company has the
following facilities :
293 sq. m. rented premises
comprising administrative offices, a showroom and storage facilities located at
the heading address as well as one branch office located in Ulaanbaatar (see
‘Branch Office’ below).
Subject previously used
the following postal code : Ulaanbaatar 210644
BRANCH
OFFICE
100 Ail Market, Atlas
Building A1
Tsagdaa Street
Ulaanbaatar
Mobile: (976 88) 066 469
SPECIAL
NOTES
The address given by you :
OF, 31, NAMYANJUU STR. is misspelt. Please note that the correct spelling is as
per heading.
The postal code number
which you provided: 210644 is no longer in use. Please note that subject's
current postal code number is as per heading.
Interviewed : Bat-Erdene
Ganjorjo (Managing Director).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 68.21 |
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1 |
INR 91.43 |
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Euro |
1 |
INR 80.24 |
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MNT |
1 |
INR 0.028 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.