MIRA INFORM REPORT

 

 

Report Date :

01.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SOVICO CORPORATION

 

 

Formerly Known as:

Tae Young Trading Co., Ltd.

 

 

Registered Office :

1027-5, Bangbae 3-dong, Seocho-gu, Seoul, Korea, 3rd Fl., Sovico Bldg., Zip Code 137-851

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.02.1979

 

 

Com. Reg. No.:

114-81-33871

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesaler of Household Electric Appliances and Parts

 

 

No. of Employees :

86

 

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 :

Usually Correct 

 

 

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)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

South Korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

basic

 

Company Name

SOVICO CORPORATION

(Korean Company Name : “()소비코”)

Registered Address

1027-5, Bangbae 3-dong, Seocho-gu, Seoul, Korea

Building

3rd Fl., Sovico Bldg.

Zip Code

137-851

Tel

+82-2-2106-2800

Fax

+82-2-587-7337

E-mail

webmaster@sovico.co.kr  / thsong@sovico.co.kr  

Website

www.sovico.co.kr

Trading Address

3rd Fl., Sovico Bldg., 1027-5, Bangbae 3-dong, Seocho-gu, Seoul, Korea (P.O.BOX 398)

Tel

+82-2-2106-2800

Fax

+82-2-523-5504

Other Address-Branch

Rm.1305, 1210, Jaesong-dong, Haeundae-gu, Busan, Korea

Tel

+82-51-757-4112~4

Fax

 

Other Address-Branch

988-46, Maegok-ri, Hobeop-myeon, Icheon-si, Gyeonggi-do, Korea

Type

Import

Industry

Wholesale of Household Electric Appliances and Parts

  Main Business

Speaker, Amplifier, Deck

Established (mm/dd/yyyy)

02/07/1979

 

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Amplifiers(32101514)

Sell

Loudspeakers(52161512)

Sell

Audio and visual equipment(52161500)

 

 

CEO’s

 

Name

Kwon Kyung-Sub

Address

Suite 1-102, 1028-1, Bangbae-dong, Seocho-gu, Seoul, Korea

Date of Birth

08/01/1939

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

1,800,000,000

Employees

86

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Sadang Branch

Shinhan Bank

Hana Bank

Kookmin Bank

Busan Bank

Corporate Registered No.

110111-0246432

Business Registered No.

114-81-33871

Permit & Licenses

03/2002 ISO 9001

 

Int’l Trade No.: 960360

Shareholder Position

Name

Shares

%

KWON KYUNG-SUB & HIS FAMILY(6)

180,000

100.00

TOTAL

180,000

100.00

Company History

04/22/1973 Established

02/07/1979 Incorporated as Tae Young Trading Co., Ltd.

0/01/1998 M&A with Bando Sound Co., Ltd.(110111-0386189)

06/15/1998 Moved to the present HQ address from 1009-1, Bangbae-dong, Seocho-gu, Seoul, Korea

02/27/2004 Changed company name to the present name

12/20/2007 Increased the authorized shares to 300,000 shares from 100,000 shares

12/21/2007 Increased capital to 1,800,000,000 KRW from 1,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Kwon Kyung-Sub

Male

Korean

01/30/1994

President & CEO

Mr.

Kwon Dae-Hyun

Male

Korean

07/25/2012

Director

Mr.

Kim Hae-Young

Male

Korean

07/12/2004

Director

Mr.

Yoon Ho-Cheol

Male

Korean

06/12/2006

Auditor

Mr.

Kwon Jong-Seob

Male

Canadian

03/12/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

34,278,781,762

28,061,145,584

847,899,048

2010

38,036,998,161

26,901,247,286

1,715,725,929

2009

34,921,977,138

31,158,173,904

1,689,197,688

2008

      37,558,280,996

      28,213,756,764

          428,238,030

2007

36,546,889,178

26,660,668,252

2,872,469,527

2006

34,057,479,359

25,105,882,538

3,640,903,295

2005

32,276,648,084

22,733,076,619

3,162,366,155

 

 

Financial Description

 

Authorized Capital(KRW)

3,000,000,000

Paid-Up Capital(KRW)

1,800,000,000

Total Issued Shares

180,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

28,061,145,584

   26,901,247,286

      31,158,173,904

Current Assets

21,059,060,937

   19,713,907,646

      24,380,903,319

-Quick Assets

10,394,149,098

     9,864,715,586

      14,897,384,455

-Inventories

10,664,911,839

     9,849,192,060

      9,483,518,864

Fixed Assets

7,002,084,647

     7,187,339,640

      6,777,270,585

-Investment

389,820,540

       590,545,120

          536,015,040

-Tangibles

6,096,056,557

     6,072,667,670

       5,973,657,545

-Intangibles

516,207,550

       524,126,850

          267,598,000

Total Liabilities

12,179,609,977

   10,067,610,727

      14,240,263,274

Current Liabilities

11,148,591,225

8,298,005,122

      12,424,206,118

Fixed Liabilities

1,031,018,752

     1,769,605,605

       1,816,057,156

Capital Stock

1,800,000,000

     1,800,000,000

       1,800,000,000

Capital Surplus

22,056,350

        22,056,350

          22,056,350

Profit Surplus

14,059,479,257

   15,011,580,209

      15,095,854,280

Capital Adjustment

 

 

 

Total Equity

15,881,535,607

   16,833,636,559

     16,917,910,630  

Liab. & Shareholder’s Equity

28,061,145,584

   26,901,247,286

     31,158,173,904  

 

Current Liabilities

11,148,591,225

8,298,005,122

      12,424,206,118

Trade Payables

2,685,413,419

     2,651,689,664

          4,900,242,799

Short-Term Borrowings

6,288,996,640

     4,297,230,000

          4,984,920,000

Account Payables

722,809,353

       827,530,414

            618,284,023

Advance Receipts

14,339,560

       176,638,811

          1,207,104,597

Withholdings

46,553,262

        46,941,152

              55,013,765

VAT Withhold

297,576,200

        47,899,612

            226,946,316

Accrued Expenses

8,639,882

          8,155,927

               2,823,540

Accrued Income Tax

14,262,909

       181,919,542

            318,871,078

Guarantee Deposit Withhold

70,000,000

        60,000,000

            110,000,000

Current Portion of Long-Term Debts

1,000,000,000

- 

- 

Fixed Liabilities

1,031,018,752

     1,769,605,605

       1,816,057,156

Long-Term Borrowings

410,872,854

     1,234,784,488

          1,088,044,183

Leasehold Deposit Received

193,000,000

       198,000,000

            214,000,000

Provision for Severance & Retirement

1,625,618,870

     1,142,900,420

            518,888,973

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

34,278,781,762

   38,036,998,161

      34,921,977,138

Cost of Sold Goods

23,565,494,668

   27,056,618,459

      24,441,205,631

Gross Profit

10,713,287,094

   10,980,379,702

      10,480,771,507

Selling & Admin. Expenses

9,123,386,470

     8,582,301,921

        8,072,388,744

Operating Income

1,589,900,624

     2,398,077,781

        2,408,382,763

Non-Operating Income

375,976,740

       511,578,232

          885,532,314

Non-Operating Expenses

960,185,340

       769,970,192

        1,056,286,990

Income Before Taxes

1,005,692,024

     2,139,685,821

        2,237,628,087

Income Taxes Expenses

157,792,976

       423,959,892

          548,430,399

Net Income

847,899,048

     1,715,725,929

        1,689,197,688

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-664,945,725

2,989,227,882

     1,451,119,497

-Net Income

847,899,048

1,715,725,929

       1,689,197,688

-Exp. without Cash Outflow

1,271,716,019

1,250,526,111

        1,547,090,317

-Revenue without Cash Inflows

-3,681,526

-79,491,037

-263,983,020

-Changes in Asset/ & Liability

-2,780,879,266

102,466,879

-1,521,185,488

Cash Flows from Investing

-99,787,474

-863,412,650

-1,072,939,049

-Cash Inflow from Investing

736,263,415

1,996,073,819

1,454,509,042

-Cash Outflows for Investing

-836,050,889

-2,859,486,469

-2,527,448,091

Cash Flows from Financing

317,688,770

-2,386,859,695

-1,445,029,077

-Cash Inflows from Financing

3,248,018,770

2,935,254,569

     4,452,744,183

-Cash Outflows from Financing

-2,930,330,000

-5,322,114,264

-5,897,773,260

Increase/Decrease in Cash

-447,044,429

-261,044,463

-1,066,848,629

Cash at the Beginning of Year

2,737,292,959

2,998,337,422

   4,065,186,051

Cash at the End of Year

2,290,248,530

2,737,292,959

2,998,337,422

 

Products, Technologies, Services Description

 

Main Products & Services

Speaker, Amplifier, Deck

 

Brand Name : JBL, AKG Acoustics, Soundcraft

 

 

Trade Partners & Competitors

 

Suppliers

JBL INTERNATIONAL

JBL PROFESSIONAL

AKG ACOUSTICS

SOUNDCRAFT

 

(*)KDB CAPITAL CORPORATION(110111-0137558) provides the vehicle leasing services to the subject company.

Competitors

CRESYN CO., LTD.

8-22, JAMWON-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-2041-2700  FAX:+82-2-2041-2788

 

I-SOUND CO., LTD.

2-601, ACE HIGHTECH CITY, 55-20, MULLAEDONG 3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2663-7100  FAX:+82-2-2663-7116

 

SAMBON PRECISION & ELECTRONICS CO., LTD.

204, SAMJEONG-DONG, OJEONG-GU, BUCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-32-683-7300  FAX:+82-32-678-5868

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SOVICO AV CORPORATION(110111-0990774)

SOUNDUS CO., LTD.(110111-1014896)

(48.00% held by the subject company)

 

TRUE SONIC CO., LTD.(110111-1083065)

(20.00% held by the subject company)

 

AUDIO WORKS CO., LTD.(135711-0067308)

(30.00% held by the subject company)

 

SOVICO ENG CO., LTD.(205711-0011061)

(79.33% held by the subject company)

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

 

Sales by Region

(Activity & Markets)

 

The subject deals with the companies in Denmark, Germany, Japan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.