MIRA INFORM REPORT

 

 

Report Date :

24.11.2012

 

IDENTIFICATION DETAILS

 

Name :

UNITEL LLC

 

 

Registered Office :

Central Tower, 8th Floor, Sukhbatar Square 2, Sukhbatar District 8, Ulaanbaatar 210620A

 

 

Country :

Mongolia

 

 

Date of Incorporation :

05.10.2005

 

 

Com. Reg. No.:

Not Available

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is an operator of GSM cellular communications network in Mongolia.

 

 

No. of Employees :

1,000 (subject)

8,000 (group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MONGOLIA - ECONOMIC OVERVIEW

 

Economic activity in Mongolia was traditionally based on herding and agriculture - Mongolia's extensive mineral deposits, however, have attracted foreign investors, and the country is undergoing an economic transformation through its mining boom. Mongolia holds copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten deposits, among others, which account for a large part of foreign direct investment and government revenues. 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 and new gold production. By late 2008, the country was faced with external shocks from the global financial crisis, and a sharp drop in commodity prices slashed government revenues. GDP dropped 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 is recovering and the government has started to enact greater supervision regulations. 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 deposits. Another similarly lengthy process is underway for an investment agreement for the massive coal mine at Tavan Tolgoi; it is under review by the National Security Council and a final decision is expected in 2012. The economy grew 6.4% in 2010 and 17.3% in 2011, largely on the strength of commodity exports to nearby countries. Trade with China represents more than half of Mongolia's total external trade - China receives more than 90% of Mongolia's exports. Mongolia purchases 95% of its petroleum products and a substantial amount of electric power from Russia, leaving it vulnerable to price increases. In the face of anticipated growth in mining revenues, the country is grappling with the challenge of avoiding an overheated economy. Due to severe winter weather in 2009-10, Mongolia lost 22% of its total livestock, and meat prices doubled. Renewed concerns are surfacing over controlling inflation, which was more than 10% for much of 2010-11, due in part to soaring food prices. Government spending - on line to increase as much as 75% over 2011 - has added to concerns over inflation. Remittances from Mongolians working abroad, particularly in South Korea, are significant. Money-laundering is a growing concern.

 

Source : CIA

 

COMPANY NAME

 

Unitel LLC

 

 

COMPANY ADDRESS

 

Building             : Central Tower, 8th Floor

 

Street                           : Sukhbatar Square 2

 

Area                             : Sukhbatar District 8

 

Town     : Ulaanbaatar 210620A

 

Country             : Mongolia

 

Telephone         : (976 11) 331 730 / 330 708 / Mobile (976 88) 115 196 / (976 88) 881 020 (Janyansharav Dorjdagva) / (976 88) 111 194 (Mrs Munguntsetseg) / (976 88) 881 090 (Michel Baatarchulwan) 

Fax                   : (976 11) 330 708

E-Mail               : bayarbakhdal@unitel.mn / jania@unitel.mn / munguntsetseg@unitel.mn

 

Also known as   : Unitel Corporation / Unitel Group  

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                    Position

 

1. Ganbold Ravjan                      Chief Executive Officer

 

2. Janyansharav Dorjdagva         Chief Financial Officer

 

3. Michel Baatarchulwan              HR Manager

  (currently on maternity leave)   

 

4. Mrs Munguntsetseg                 Secretary to CEO  

 

Total Employees            : 1,000 (subject)

                                    8,000 (group)

 

 

PAYMENTS

 

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

 

Subject is the third largest mobile communication company in Mongolia.

 

Subject is a member of the MCS Group of Companies - one of the largest private sector entities in terms of number of employees in Mongolia with about 8,000 staff. The Group has more than 32 subsidiaries covering diversified business activities including: energy & infrastructure, general manufacturing & services, information & communications, property development, and - food, beverage & alcohol. The Group had annual sales turnover of $US 250 million in 2008.

 

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.

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

NAME               : TRADE AND DEVELOPMENT BANK OF MONGOLIA LTD

 

Branch              : Khudaldaany Gudamj 7

Town                 : Ulaanbaatar 11

 

Telephone         : (976 11) 321 171

Fax                   : (976 11) 325 449

 

The company also has an account with the following banks:

 

1. Golomt Bank

   Bodi Tower

   Sukhbaatar square 

   Ulaanbaatar 210620A

   Mongolia

   Tel: (976 11) 311 530 / 311 971

   Fax: (976 11) 312 307 / 311 958

 

2. Mongol PostBank

   Bayangol district

   Kyukshyuzan Apartment 107

   Ulaanbaatar

   Tel: (976 11) 360 910

   Fax: (976 11) 360 911

 

3. Khan Bank of Mongolia

   Peace Avenue

   P.O Box-185

   Ulaanbaatar

   Telephone: (976 11) 457 880

   Fax: (976 11) 457 880

 

 

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               : US DLRS 50,000,000 - 2011 - approx

                                                : US DLRS 70,000,000 - 2012 - projected       

                       

Net Profit                       : not given

 

Financial year ends 31 December.

 

The following financial information applies to the MCS Group (latest available) :

 

Sales Turnover               : US DLRS  40,000,000 - 2002 - exact

                                    : US DLRS  50,000,000 - 2003 - exact

                                    : US DLRS  80,000,000 - 2004 - exact

                                    : US DLRS 100,000,000 - 2005 - exact

                                    : US DLRS 150,000,000 - 2006 - exact

                                    : US DLRS 200,000,000 - 2007 - exact

                                    : US DLRS 250,000,000 - 2008 - exact

 

Net Profit                       : not given but stated to be 10%.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started      : 5 October 2005

 

History              : The company was incorporated in Mongolia on 5 October 2005 and launched its services on 26 June 2006. In September 2010 Taihan Electric Wire Co.  of South Korea sold all its 22.82% stake in the subject company to MCS Holding Ltd for WON 15 billion. 

 

Tax No.             : 5036895

 

Capital              : not given

 

Limited Liability Company with the following shareholder :

 

MCS Holding Ltd                                       100%            

Seoul Street 4       

Sukhbataar District

Ulaanbaatar 210644

Tel        : (976 11) 311 079 / 312 625 / Mobile (976 99) 118 123

Fax       : (976 11) 312 175

E-Mail   : ganhuyat@mcs.net / gantumur.l@mcs.net

Employs: 60 (subject), 5,500 (group)

Est.      : 1993                

 

MCS Holding Co Ltd has the following shareholders :

 

                                                                        Percentage

 

1. Odjargal Jambaljamtsiin                      )     

  (Mongolian national)                             )

                                                                        )          73.9%

2. Od Jambaljamtsiin                              )

  (brother of the above)                            )

 

3. Senior management staff                                26.1%

 

MCS Holding Co Ltd, founded in 1993 as the first Mongolian private consulting company in the energy sector, the MCS Group has successfully expanded its business operations in such diversified fields, as energy and infrastructure, information and communication technology, beverage manufacturing and distribution, wholesale and retail, property development, construction and printing. The MCS Group has 4,000 employees and has been ranked as one of the top five taxpayers for the last consecutive years.

 

Personal Profile on Odjargal Jambaljamtsiin :

 

Odjargal Jambaljamtsiin graduated from the Polytechnic Institute, Kiev, in 1989, Mr. Odjargal worked as an engineer at the Energy Bureau in Mongolia for a few years before setting up his own engineering company in 1993. He has a MBA from Maastricht School of Management.

 

Od Jambaljamtsiin :

 

Mr. Od, the older brother of Mr. Odjargal, graduated from Moscow University of Foreign Relations with a bachelor s degree and from Oxford School of Foreign Service with a master s degree and had served as a diplomat for many years before joining the company.

 

Affiliated companies of MCS Electronics Co Ltd :

 

Subsidiary

 

1. Univision LLC                                   100%

   Central Tower, 8th Floor

   Sukhbatar Square 2

   Sukhbatar District 8

   Ulaanbaatar 210620A

   Telephone : (976 77) 118 811

 

2. Skynetworks LLC

   Ulaanbaatar

 

3. Skynetcom LLC

   Ulaanbaatar 

 

Associates

 

1.  MCSCom LLC

    Central Tower, 8th Floor

    Sukhbaatar Square No. 2

    Sukhbaatar District, SBD-8 

    Ulaanbaatar-210620A

    Mongolia

    Telephone:  (976 70) 110 587 / Mobile (976 88) 101 018 (Naranbat 

    Nasanbat) / (976 91) 115 058 / (976 88) 114 200 (Otkhon Tsetseg)

    Fax      :  (976 77) 201 820

    E-Mail   :  naranbat.n@mcs.mn

 

2.  MCS Coca-Cola LLC

    MCS Coca-Cola Complex

    Chinggis Avenue

    Khan-Uul District, I Subdistrict

    Ulaanbaatar

    Mongolia

    Telephone: (976 11) 345 555 / Mobile (976 88) 111 399

    Fax      : (976 11) 345 500

    E-Mail   : myagmarjav.l@mcscocacola.mn

 

3.  MCS Asia Pacific Brewery LLC

    MCS APB Building

    Peace Avenue

    Bayanzurkh District, 10th Khoroo

    Ulaanbaatar

    Mongolia

    Telephone:  (976 11) 464 304

    Fax      :  (976 11) 464 312

    E-Mail   :  mcs.apb@apb.mcs.mn

    Shortform Name :  MCS APB LLC

 

4.  MCS Property Co Ltd

    MCS Palaza

    Seoul Street 4

    Ulaabaatar 210644

    Tel: (976 11) 311 079 / 312 625

    Fax: (976 11) 312 175

 

5.  MCS International Co.,Ltd

    Khan Uul District

    Chingghis Avenue

    Ulaanbaatar

    Tel: (976 11) 311 079 / 312 625

    Fax: (976 11) 320 241

 

6.  Sprit Bal Buram JSC

    Mandal sum

    Selenge aimag

    Tel: (976 11) 311 079

    Fax: (976 11) 312 175

    E-mail: Eldevoch@mcs.mn

 

7.  Interpress Co Ltd

    MCS Plaza, 1st Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 11) 326 898 / Mobile (976 99) 118 668

    Fax: (976 11) 329 474

    E-mail: Interpress@magicnet.mn

 

8.  Anungoo Co Ltd (Procter & Gamble)

    MCS Plaza, 2nd Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 11) 961 619

    Fax: (976 11) 312 175

    E-mail: anungoo@mcs.mn

 

9.  MCS Tour Co Ltd

    MCS Plaza, 5th Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 99) 115 153

    Fax: (976 11) 312175

    E-mail: MCSTour@mcs.mn

    (dormant)

 

10. Chinggiz Eco Tour Co Ltd

    MCS Plaza, 5th Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 99) 115 153

    Fax: (976 11) 312175

 

11. Devshil-Trade Co Ltd

    Sonsgolon

    Bayangol district

    Ulaanbaatar

    Tel: (976 11) 632 964 / 631 539

    Fax: (976 11) 631 709

    E-mail: Deb_enkh@mcs.mn

 

12. MCS Gyals Medical Centre

    1st Floor

    Russian Hospital

    Jukov Ave.131

    Bayanzurkh district

    Ulaanbaatar

    Tel: (976 99) 112 603 / (11) 457 781

    Fax: (976 11) 451 807

    E-mail: MCSInter@mcs.mn

 

13. Zuunkharaa Trade Co Ltd

    MCS Coca-Cola Plaza

    Chingis Avenue

    Khan Uul district

    Ulaanbaatar-19

    Tel: (976 11) 345 234

    Fax: (976 11) 345 228

 

14. MCS Anun Co. Ltd

    1st floor, Building M-100

    Chingeltei District

    Ulaanbaatar

    Tel: (976 11) 312 908 / 312 938

    Fax: (976 11) 312 907

 

15. Mon Sat Co Ltd

    MCS Plaza, 3rd Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 11) 312 625

    Fax: (976 11) 312 175

 

16. Orbic Net Co LLC

    MCS Plaza, 3rd Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 11) 312 625

    Fax: (976 11) 312 175

 

17. Officenet

    MCS Plaza, 3rd Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 11) 344 931

    Fax: (976 11) 312 175

 

18. Goyo

    MCS Plaza, 3rd Floor

    Seoul St 4

    Ulaanbaatar 210644

    Tel: (976 11) 342 531

    Fax: (976 11) 344 015

 

19. Shangrila

    Ulaanbaatar

    Tel: (976 11) 326 602

    Fax: (976 11) 326 643

 

20. Orchlon School

    Ulaanbaatar

    Tel: (976 11) 353 519

    Fax: (976 11) 354 115

 

21. Orchlon Club

    Ulaanbaatar

    Tel: (976 11) 354 327

    Fax: (976 11) 354 326

 

22. MCS Distribution

    Ulaanbaatar

    Tel: (976 11) 345 234

    Fax: (976 11) 345 460

 

23. Energy Resources LLC

    Seoul Street 4

    Sukhbatar District

    Ulaanbaatar

    Tel: (976 11) 322 279

    Fax: (976 11) 322 279

 

24. Global Energy

    Ulaanbaatar

    Tel: (976 11) 311 079

    Fax: (976 11) 312 175

 

25. Medimpex

    Ulaanbaatar

    Tel: (976 11) 310 429

    Fax: (976 11) 318 254

 

26. Irish Pub

    Ulaanbaatar

    Tel: (976 11) 336 666

    Fax: (976 11) 330 995

 

27. Sky Resort

    Ulaanbaatar

    Tel: (976 11) 311 079

    Fax: (976 11) 311 079

 

28. MCS Estates

    Ulaanbaatar

    Tel: (976 11) 311 079

    Fax: (976 11) 312 175

 

29. Glamour LLC

    Ulaanbaatar

 

30. MCS Health LLC

 

31. SBB Trade LC

32. MCS Armor LLC

 

33. Uniservice Solution LLC

 

34. MCS Metals LLC

 

35. Enerko LLC

    MCS Anun Center

    Chinggis Avenue

    Khan-Uul District, 3rd Khoroo

    Ulaanbaatar 210136

    Telephone: (976 11) 346 464

    Fax      : (976 11) 346 262

 

36. Erchim Suljee LLC

    MCS Anun Center

    Chinggis Avenue

    Khan-Uul District, 3rd Khoroo

    Ulaanbaatar 210136

    Telephone: (976 11) 346 464

    Fax      : (976 11) 346 262  

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Subject is an operator of GSM cellular communications network in Mongolia.

 

Subject also provides IPTV, 3G, Wi-Fi and international roaming services.

 

No. of mobile subscribers :   800,000 - 2011

                            1,000,000 - 2012 (as of November 2012)   

 

NACE Code : 6120  

 

Imports from South Korea, China, Singapore, Taiwan, France and Germany.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices located at the heading address as well as 50 branch offices located throughout Mongolia.

 

Until August 2009 subject was located at :

 

Rokmon building, Office 506-507

Construction Street 24

Bayanbol Duureg

Ulaanbaatar 210628

Mongolia

 

 

Until March 2006 subject was located at the following address:

 

Mongol Daatgal Building, Office No. 201-302

Seoul Street

5th-Khoroo, Sukhbaataar District

Ulaanbaatar

Telephone:  (976 11) 330708

Fax      :  (976 11) 330708

 

 

SPECIAL NOTE

 

Interviewed : Janyansharav Dorjdagva (Chief Financial Officer).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.34

UK Pound

1

Rs.88.30

Euro

1

Rs.71.37

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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