MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MOBICOM CORPORATION LLC

 

 

Registered Office :

Sambuu Street 47, 38 Chingeltei District P.O. Box 15171, Ulaanbaatar

 

 

Country :

Mongolia

 

 

Date of Incorporation :

October 1995

 

 

Com. Reg. No.:

90190051111

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject Operators of a mobile telecommunication network based on GSM 900/1800 and CDMA 800

 

 

No of Employees :

1,300 plus

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Mongolia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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

 

Mobicom Corporation LLC

 

 

ADDRESS

 

Street   :           Sambuu Street 47

 

Area     :           38 Chingeltei District

 

P.O. Box :         15171

Town     :           Ulaanbaatar

Country  :          Mongolia

 

Telephone:        (976 95) 070 202 ext. 481 (Khash Erdene Tsogdorj) / (976

                        11) 318 115 / Mobiles (976 99) 111 059 (Ms. Battsetseg

                        Galindev) / (976 99) 111 003 (Tseren Baljir) / (976 99)

                        099 459 (Khash Erdene Tsogdorj) / (976 99) 111 010

                        (Baterdene) / (976 99) 115 196 (Ms. Sergelen Tsedeneamba)

                        / (976 99) 008 371 (Ms. Dulguu)

Fax      :            (976 11) 310 411 / 450 848

E-Mail   :           battsetseg@mobicom.mn / tserenbaljir@mobicom.mn

Website  :         www.mobicom.mn

 

Also Known As : Mobicom Corporation Co Ltd / Mobicom Corporation XXK

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                 Position

 

1. David Holliday                                    Chief Executive Officer

 

2. Ms. Sergelen Tsedeneamba                Chief Financial Officer

 

3. Mukhbold Udval                                  Director of Research & Development Center of Mobicom

 

4. Ms. Battsetseg Galindev                     Director of Reporting & Accounting Department

 

5. Ms. Dulguu                                        Assistant to CEO

 

6. Bob Johnson                                      VP Consumer Product and Marketing Sector

 

7. Ms Baterdene                                    Procurement Manager

 

8. Tseren Baljir                                      Technical Officer

 

Total Employees :                                  1,300 plus

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a joint venture between KDDI Overseas Holding BV, The Netherlands (30%), Summit Telecom Global Management BV, The Netherlands (34%) and a local company Newcom LLC (36%). Subject is the largest mobile telecommunication services

provider in Mongolia.

 

We consider it is acceptable to deal with subject for LARGE 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 4,100,000,000 (higher amounts may be considered with full fiscal disclosure)

 

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. Khan Bank of Mongolia

   Peace Avenue

   P.O Box-185

   Ulaanbaatar

   Telephone      : (976 11) 457 880

   Fax                : (976 11) 457 880

 

3. Khas Bank

   Xac Bank Building, Ulaanbaatar-14200

   Post Branch 20 A

   PO Box 72

   Ulaanbaatar 14200

   Telephone      : (976 11) 318 185

   Fax                : (976 11) 328 701

 

4. Capitron Bank

   Usny 4 Street

   Sukhbaatar district

   Ulaanbaatar 14253

   Telephone      : (976 11) 328 373

   Fax                : (976 11) 328 372

 

5. National Investment Bank

   National Investment Bank Building

   Khoroo 3, Usnii Street 1, Sukhbaatar district

   Telephone      : (976 11) 321 995 / (976 75)757 070

   Fax                : (976 11) 323 999

 

 

FINANCIAL INFORMATION

 

Private companies in Saudi Arabia are not required to publish or disclose balance sheets. Balance sheets are not available from other sources, and the subject interviewed declined to give any financial information, which the company regards as strictly confidential.

 

The following financial information is the latest available on the Subject :

 

Sales Turnover               : TUGRIK  99,529,200,000 - 2006 - exact

                                    : TUGRIK 145,390,000,000 - 2007 - exact

                                    : TUGRIK 184,500,000,000 - 2008 - exact

                                    : not given                2009 / 2010

                                    : TUGRIK 205,596,240,000 - 2011 - exact

 

Net Profit                       : TUGRIK  41,000,000,000 - 2006 - exact

                                    : TUGRIK  62,500,000,000 - 2007 - exact

                                    : TUGRIK  87,200,000,000 - 2008 - exact

                                    : not given                2009 / 2010

                                    : TUGRIK  74,570,600,000 - 2011 - exact

 

Total Invested Capital     : US DLRS 9,000,000

 

Financial year ends 31 December.

 

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

 

Sales Turnover               : US DLRS 200,000,000 - 2011 - exact

 

Net Profit                       : not given 

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                  : October 1995

 

History                          : The company was incorporated in Mongolia in October 1995 and commenced operations on 18 March 1996. Subject's shareholders were KDDI Corporation (44.4%), Sumitomo Corporation (44.4%) and Newcom Co Ltd (11.2%).

 

In August 2006, subject's shareholding structure changed to the present.

 

C.R. No.                        : 90190051111

 

Tax No.                         : 2072572

 

Authorized Capital          : TUGRIK 6,134,200,000

 

Paid up Capital              : TUGRIK 6,134,200,000

 

Limited Liability Company with the following shareholders :

 

   Shareholders                                                            Percentage

 

1. Newcom LLC                                                                         36%

   Naiman Zovkhis Building, 8th Floor 

   Seoul Street 21

   Sukhbaatar District

   Ulaanbaatar 14251

   Chairman : Tserenpuntsag Boldbaatar

   Est.: 23 April 1993

   Tax No.: 2095963

   Capital : US DLRS 100,00

 

2. Summit Telecom Global Management BV                                34%

   Strawinskylaan 917

   The Netherlands

   C.R. No.: 34295787

   (subsidiary of Sumitomo Croporation, Japan)

                 

3. KDDI Overseas Holding BV                                                                 30%

   The Netherlands

   C.R. No.: 34383065

 

Affiliated companies of Mobicom Corporation LLC :

 

Associates

 

1. Newtel LLC

   Tedy Center

   Sambu Street 18

   Chingelteli District

   Ulaanbaatar 38

   Telephone      : (976 11) 315 252

   Fax                : (976 11) 315 434

 

2. Mongol Content LLC

   Exe Plaza, 4th Floor

   Tumurchin Street 7/1

   Chingelteli District

   Ulaanbaatar

   Telephone      : (976 11) 316 486 / 326 590

   Fax                : (976 11) 326 591

 

3. Ulusnet LLC

   8 Zovkhis Building, 10th Floor

   Seoul Street 21, 1st Khoroo

   Sukhbaatar District

   Ulaanbaatar

   Telephone      : (976 11) 316 486 

   Fax                : (976 11) 322 686

   E-Mail            : lkhagvadorj@ulusnet.mn

   Employs        : 50

   Est.               : 18 March 2005

   C.R. No.         : 9011048104

   Tax No.          : 2878941

 

4. Eznis Airways

   4F, 8 Zovkhis Building

   Seoul street 21

   Ulaanbaatar 14251

   Telephone      : (976 11) 313 183 / 311 967 

   Fax                : (976 11) 318 521 / 311 969

 

Eznis Airways was founded in January 2006 to provide domestic and regional airline scheduled passenger, charter and freight services. The initial focus is on the establishment of safe, reliable, convenient, innovative and value for money domestic air transport services with later expansion into broader aviation services both domestically and regionally.

 

4. Newcom Property LLC

   4F, 8 Zovkhis Building

   Seoul street 21

   Ulaanbaatar 14251

   Telephone      : (976 11) 313 183 / 311 967 

   Fax                : (976 11) 318 521 / 311 969

   The Newcom Property LLC was established in March 2005 to provide comprehensive real estate management services to private, commercial or industrial property owners, investors and occupiers.

 

5. Tsegts LLC (frmly Newsec LLC)

   4F, 8 Zovkhis Building

   Seoul street 21

   Ulaanbaatar 14251

   Telephone      : (976 11) 313 183 / 311 967 

   Fax                : (976 11) 318 521 / 311 969

   Newsec LLC was established in May 2004 to provide comprehensive private and property security services. The company is operated by carefully selected and thoroughly trained people with experience in security many of who have military or police backgrounds.

 

6. Newfund Non-bank Financial Institution LLC

   4F, 8 Zovkhis Building

   Seoul street 21

   Ulaanbaatar 14251

   Telephone      : (976 11) 313 183 / 311 967 

   Fax                : (976 11) 318 521 / 311 969

   Newcom and Mobicom jointly established Newfund Non-bank Financial Institution LLC in January 2005. Newfund is now providing a range of financial services to Group employees. Newfund provides long term, low interest loans housing and other loans to Newcom Group staff as part of a comprehensive welfare program to assist motivation and staff retention.

 

7. The Clean Energy Company

   4F, 8 Zovkhis Building

   Seoul street 21

   Ulaanbaatar 14251

   Telephone      : (976 11) 313 183 / 311 967 

   Fax                 : (976 11) 318 521 / 311 969

   The Clean Energy Company was established in December 2004 to initially assist in the collection of data from wind measurement stations established on Salkhit Mountain some 70 kilometers southeast of Ulaanbaatar to assess the site's suitability for the construction of a Wind Power generation park.

 

8. GrapeCity LLC

   Sambuu Street 47, Tedy Center,

   Chingeltei District,

   Ulaanbaatar 97611

   Telephone      : (976 11) 328 720 / 328 760

   Fax                : (976 11) 328 707

   GrapeCity Mongolia is Mongolia s leading banking and payment solution provider which embraces the most advanced technologies and the best global banking and financial practices in the development of its wide variety of solutions. With more than 10 years of practical experience, GrapeCity Mongolia is the leader in Mongolia s Banking IT solution market. 10 of 14 Mongolian banks are using our products, 8 of which have selected our core banking solution.

 

9. Mongol Content LLC

   Exe Plaza, 4th Floor

   Tumurchin Street 7/1

   Chingelteli District

   Ulaanbaatar

   Telephone      : (976 11) 316 486 / 326 590

   Fax                : (976 11) 326 591

 

10.MOST PSP LLC

   Ulaanbaatar

 

11.Mobifinance LLC

   Ulaanbaatar

 

12.MobiNet Company

   Sambuu Street 46

   Tedy Center, 2nd Floor

   Chingeltei District

   Ulaanbaatar

   Telephone      : (976 11) 326 401

   Fax                : (976 11) 326 827

   C.R. No.         : 9011214001

   Tax No.          : 5334977  

   MobiNet company has been providing broadband internet services based on VPN, VSDL, Dial-Up and IP Wireless systems. There are over 11 types of services currently been offered by Mobinet Company to consumers and corporate customers all over Mongolia. The services range from Leased Line, VPN, Home Internet, MobinetPhone, IP-PBX, Web and Mail server hosting and International Calling Service under the brand name, GLOBUS CARD.

 

13.Newcom Mining Services LLC

   301, Park View Residence,

   Chinggis Avenue

   Sukhbaatar District

   Ulaanbaatar 14240

   Tel                 : (976 70) 077 009

   Fax                : (976 70) 077 368

   E-Mail            : john_karlsen@newcom.mn

   Est.               : 2011   

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Operators of a mobile telecommunication network based on GSM 900/1800 and CDMA 800 in Mongolia.

 

Subject also provides internet services including dial-up and broadband.

 

Subject currently has 1,300,000 subscribers.

 

NACE Codes                 : 6120 / 6190

 

Subject is distributor for : Samsung C&T Corporation (South Korea).

 

MobiCom provides cellular phone service to 3 cities, 21 provincial capitals, and settlements with up to 389 network points that cover 90 percent of the Mongolian territory. We have 1,200,000 prepaid and postpaid subscribers receiving our services through our 51 branch offices, local service branches, and our over 10,000 sales points in Ulaanbaatar and rural areas.

 

Imports equipment from China, South Korea, Germany, Belgium, Sweden and France.

 

Subject does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative offices located at the heading address as well as 51 branches throughout Mongolia (see ‘Branch Offices’ below).

 

Until 2009 subject was located at :

 

Mobicom Building

Peace Avenue 3/1

Chingeltei District, 1st Khoroo

P.O. Box : 20A

Ulaanbaatar 210620

Telephone         : (976 11) 318 118

Fax                   : (976 11) 324 017

 

 

BRANCH OFFICES

 

1. Tedy 1          

   Sambuu Street

   Chingeltei District

   Telephone      : (976 11) 312 222

   E-Mail            : feedback@ntc.mn

 

2. Tedy 2          

   Tsambagarav, 1st Khoroolol, Songino Khairkhan district

   Telephone      : (976 11) 687 978 / (976 75) 753 333

   E-mail            : feedback@ntc.mn

 

 

3. Tedy3           

   Onon Center by its former name, Bayangol district

   Telephone      : (976 75) 753 333

   Fax                : (976 11) 367 413

   E-mail            : feedback@ntc.mn

 

4. VIP Ulaanbaatar        

   West end of the Ulaanbaatar hotel, Sukhbaatar District

   Telephone      : (976 75) 753 333

   Fax                : (976 11) 320 840

   E-mail            : feedback@ntc.mn

 

5. Khan Uul      

   22nd Settlement Center Of Golomt Bank,2nd Floor

   next to Jetro  supermarket,  KHAN-UUL DISTRICT

   Telephone      : (976 11) 341 439

   E-mail            : feedback@ntc.mn

 

6. Technical Office

   Mobicom Building

   Peace Avenue 3/1

   Chingeltei District, 1st Khoroo

   P.O. Box 20A

   Ulaanbaatar 210620

   Telephone      : (976 11) 318 118

   Fax                : (976 11) 324 017

 

7. Naiman Zovkhis         

   Across the road from the 1st School

   Telephone      : (976 75) 753 333

   E-mail            : feedback@ntc.mn

 

8. Anduud        

   Left of TBD Anduud, Bayangol District

   Telephone      : (976 75) 753 333

   E-mail            : feedback@ntc.mn

 

9. Nisekh         

   At the Mongol Post LLC

   on the left end of the Domestic Passenger Hall of the “Chinggis

   Khaan” airport

   Telephone      : (976 70) 049 752 / (976 75) 753 333

   E-mail            : feedback@ntc.mn

 

10.And 

   Khadgalamj bank, 1st Floor

   11th Khoroolol, Sukhbaatar District

   Telephone      : (976 75) 753 333

   E-mail            : feedback@ntc.mn

 

11.Royal Castle

   Seoul Business Center, 3rd Floor

   In The North Of The Chinggis Hotel, BAYANZURKHI DISTRICT

   Telephone      : (976 11) 318 115

   Fax                : (976 11) 450 848

   E-mail            : feedback@ntc.mn

 

 

SPECIAL NOTES

 

The contact person which you provided : Dorjnamjil Bolorrn applies to subject's former employee.  

 

Interviewed                                            : Ms. Dulguu (Assistant to CEO).

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 58.57

UK Pound

1

Rs. 98.87

Euro

1

Rs. 80.05

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.