Report Date :

11.08.2014

 

IDENTIFICATION DETAILS

 

Name :

G MOBILE CORPORATION                        

 

 

Registered Office :

G-Mobile Corporation Building, Baga-Toiruu Street 3/9, Chingeltei District, 1st Khoroo, Ulaanbaatar 211213

 

 

Country :

Mongolia

 

 

Date of Incorporation :

16.04.2006

 

 

Com. Reg. No.:

9011041082

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is a Mobile Phone Operator.

 

 

No. of Employees :

300

 

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

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Mongolia

C1

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. 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 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 with better regulations and closer supervision. 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 direct 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 2013, Mongolia purchased 76% of its gasoline and diesel fuel and a substantial amount of electric power from Russia. A drop in foreign direct investment and a decrease in Chinese demand for Mongolia's mineral exports are putting pressure on Mongolia's balance of payments. Remittances from Mongolians working abroad, particularly in South Korea, are significant.

 

Source : CIA

Company Name

 

G MOBILE CORPORATION                        

 

 

ADDRESS

 

Building :           G-Mobile Corporation Building

 

Street   :           Baga-Toiruu Street 3/9

 

Area     :           Chingeltei District, 1st Khoroo

 

Town     :           Ulaanbaatar 211213

 

Country  :          Mongolia

 

Telephone:        (976 11) 311 195 / Mobiles (976 98) 106 000 / (976 98) 101

                        172 / (976 98) 100 898 (Oni Batsilik) / (976 98) 103 636

                         / (976 98) 101 111

Fax      :            (976 11) 311 195

E-Mail   :           info@g-mobile.mn / khaliunaa@g-mobile.mn /

                         tsolman@g-mobile.mn / ulziidelger@g-mobile.mn /

                        munhgerel@gmobile.mn / namuun@g-mobile.com

Website  :         www.g-mobile.mn

 

Trading style :    G-Mobile 

 

Also Known As : Zhi-Mobayl XXK / G-Mobile XXK / G Mobile LLC

 

 

SENIOR COMPANY PERSONNEL

 

   NAME                                    POSITION

 

1. Ganzorig Regzendorj               Chairman

 

2. Damba Basbish                     Chief Executive Officer

 

3. G. Tulga                                Senior Engineer

 

4. Altan Bat-Ochir                      Chief Financial Officer

 

5. Munkh Gerel                          Head of Foreign Relations

 

6. Oni Batsilik                            Business Development Manager

 

7. Mrs J. Khaliunaa                  Business Development Manager  

 

Total Employees :                      300 plus

 

 

PAYMENTS

 

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

 

Subject is Mongolian's newest mobile phone operator operating since 2006.

 

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

 

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 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

 

2. Savings Bank LLC

   Chingeltei District, 1st Khoroo, Kholboochdyn Street 4

   Ulaanbaatar 15160

   Telephone: (976 11) 310 103

   Fax      : (976 11) 328 501

 

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               : TUGRIK 37,000,000,000 - 2013 - exact

                                    : TUGRIK 40,000,000,000 - 2014 - projected

 

Net Profit                       : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :    16 April 2006

 

History :            Subject was established in Ulaanbaatar on 16 April 2006 and commenced operations on 21 April 2007.

 

C.R. No.:           9011041082

 

Tax No.:            5055873

 

Capital :            not given

 

Limited Liability Company with the following director and shareholders:

 

 

Director

 

Ganzorig Regzendorj        

(Mongolian national)

 

Shareholders                                                     Percentage

 

1. Ganzorig Regzendorj                                            50%

  (Mongolian national)

 

2. Tserenpuntsag Tsedendamba                                50%

  (Mongolian national)

 

Affiliated companies of G-Mobile Corporation:

 

Associates

 

1. G-Mobile Broadcasting LLC 

   G-Mobile Building

   Bagatoiruu 3/9

   Chingeltei District, 1st Khoroo

   Ulaanbaatar 211213

   Mongolia

   Telephone: (976 98) 106 000

   Fax      : (976 98) 101 185

   Est.: 19 March 2010

   Tax No.: 5364701

 

2. G-Mobile Net LLC

   Ulaanbaatar

   Est.: 2009

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Mobile phone operator. It is focusing its operations in rural areas. It uses CDMA2000 at 450 MHz and provides internet services with cell phones as modem or proper modem.

 

Subject's business activities are defined as follows :

 

- Provide private and corporate customers with comprehensive

  communication products and services;

 

- Provide private and corporate customers with high-speed low-cost

  internet services;

 

- Provide companies and organizations with VPN services;

 

- Provide Go-Ta group communication services based on advanced

  Push-to-Talk technology.

 

NACE Code : 6190

 

Imports devices Japan, USA, South Korea, Russia and China.

 

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 address as well as 57 branch offices located in 30 aimag centres, Ulaanbaatar, Darkhan and Erdenet cities; authorized dealers in soums and settlements including Khan Bank, Savings Bank LLC distribution centres.

 

 

REGISTERED OFFICE

 

G-Mobile Corporation Building

Baga-Toiruu Street 3/9

Chingeltei District, 1st Khoroo

Ulaanbaatar 211213

 

 

GENERAL INFORMATION

 

In 2007 :

 

- On April, it has delivered its network to 21 aimags and more than  

  100 soums;

- On April 20th, G-Mobile LLC network opening took place in UB City;

- G-Mobile LLC  began its service from Dund govi aimag.

 

In 2008 :

 

- First operator to introduce 3G technology in Mongolia

- Launched  G-Internet phone service which is the widest mobile

  internet service based on 1X, EvDo technology;

- For the first time in cellular communication industry, it has 

  Introduced G-10 service  which  allows you to talk without a limit   

  within the network;

- For the first time in Mongolia, it has launched G-Internet phone 

  service which opened the opportunity to make calls from anywhere in 

  the world;

- “Best 100 Companies of Mongolia”;

- Sponsored and co-organized ICT EXPO;

- G-10 service was awarded “Most satisfying service” from ICT EXCPO.

 

In 2009 :

 

- Renewed pre-paid services.

- Established internet service subsidiary company, “G-Mobile Net”.

- Established satellite TV channel service subsidiary company, “D-

  Dish” .

 

In 2010 :

 

- Introduced “Switching Option” service that allows pre-paid service

  subscribers to switch their payment options without switching their

  number.

 

In 2011 :

 

- Began launching EvDo based high speed internet network in soums;

- Launched U-Tab devices with licensed Android operating system which

  can be used anywhere within G-Mobile network;

- Licensed branches opened in Ulaanbaatar and in other rural areas

 “Supportive Message” service launched.

 

In 2012 :

 

- “Do Re Mi” service launched;

- 3.99G technology service launched;

- G-Internet service renewed;

- 5th year anniversary;

- Initiated “Tugs Tuguldur” postpaid service;

- Official partner of Samsung Company.

 

In 2013 :

 

- Initiated “HD Voice” technology;

- Official partner of Nokia;

- Official partner of Samsung Company;

- Introduced “Call keeping” service;

- 3.99G service has reached to Zuun Mod city of Tuv Aimag.

 

 

SPECIAL NOTES

 

The telephone number given by you : +976-11-311198 is incorrect. Please note that the correct telephone numbers are as per heading.

 

Interviewed : Munkh Gerel (Head of Foreign Relations).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.55

UK Pound

1

Rs.103.50

Euro

1

Rs.82.41

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

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.