MIRA INFORM REPORT

 

 

Report Date :

01.04.2013

 

IDENTIFICATION DETAILS

 

Name :

TATA DAEWOO COMMERCIAL VEHICLE CO., LTD.

 

 

Formerly Known as:

Daewoo Commercial Vehicle Co., Ltd.

 

 

Registered Office :

1589-1, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea, Zip Code 573-715

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.11.2002

 

 

Com. Reg. No.:

Co., Ltd by shares

 

 

Legal Form :

401-81-22865

 

 

Line of Business :

Manufacturer of Motor Vehicles for the Transport of Goods and Special Purpose

 

 

No. of Employees :

867

 

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

TATA DAEWOO COMMERCIAL VEHICLE CO., LTD.

(Korean Company Name : “타타대우상용차”)

Registered Address

1589-1, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Zip Code

573-715

Tel

+82-63-469-3114

Fax

+82-63-469-3179

E-mail

cjkwak@tata-daewoo.com ; hkhim3@tata-daewoo.com

Website

www.tata-daewoo.com

Trading Address

1589-1, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-469-3114

Fax

+82-63-469-3029

Type

Export/Import

Industry

Manufacture of Motor Vehicles for the Transport of Goods and Special Purpose

  Main Business

Heavy Truck, Medium Truck, Truck Parts

Established (mm/dd/yyyy)

11/01/2002

 

The Subject Company owns the premises of registered HQ address/Factory(488,713.30).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Dump trucks(25101601)

Sell

Cargo trucks(25101611)

Sell

Product and material transport vehicles(25101600)

Sell

Truck tractors(25102100)

 

 

CEO’s

 

Name

Kim Kwan-Kyu

Address

Suite 20-211, 212, Samseong-ro, Gangnam-gu, Seoul, Korea

Date of Birth

10/19/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

15,080,300,000

Employees

867

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation by India

Bank Details

Korea Exchange Bank

S.C. First Bank of Korea

Citi Bank, Korea

Kookmin Bank

Corporate Registered No.

211111-0015819

Business Registered No.

401-81-22865

Permit & Licenses

10/1996 ISO 9001

10/1997 ISO 14001

 

Int’l Trade No.: 45056806

Shareholder Position

Name

Shares

%

TATA MOTORS LIMITED (INDIA)

3,016,060

100.00

TOTAL

3,016,060

100.00

Company History

11/01/2002 Incorporated as Daewoo Commercial Vehicle Co., Ltd., after spin-off from Daewoo Motor Company

03/29/2004 Acquired by Tata Motors Limited-India

05/29/2004 Changed company name to the present name from Daewoo Commercial Vehicle Co., Ltd.

05/29/2004 Changed financial closing date from 12/31 to 03/31.

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Kwan-Kyu

Male

Korean

10/22/2012

Director

Mr.

Chandrasekaran Lamakrishinan

Male

Indian

07/23/2009

Director

Mr.

Rabindra Pisharodi

Male

Indian

07/27/2012

Director

Mr.

Satishibalkrishina Borwanka

Male

Indian

07/27/2012

Auditor

Mr.

Nakeshipinge

Male

Indian

11/12/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2012

763,468,338,475

560,157,443,988

2,030,187,119

03/2011

726,665,517,881

532,243,862,909

16,066,091,375

03/2010

683,815,944,248

613,283,420,167

25,433,230,385

03/2009

673,073,057,784

459,896,454,686

34,221,314,904

03/2008

713,864,881,876

420,586,204,718

38,150,468,506

03/2007

493,658,369,272

347,115,823,967

21,394,016,626

03/2006

364,939,932,630

283,454,903,112

13,463,142,600

 


Financial Description

 

Authorized Capital(KRW)

350,000,000,000

Paid-Up Capital(KRW)

15,080,300,000

Total Issued Shares

3,016,060

 

 

Balance Sheet

 

Unit : Korean Won

As of 03/31/2012

As of 03/31/2012

As of 03/31/2012

Total Assets

560,157,443,988

532,243,862,909

613,283,420,167

Current Assets

306,817,745,173

254,400,079,995

348,237,852,654

-Quick Assets

127,271,628,208

104,008,631,357

183,297,595,375

-Inventories

179,546,116,965

150,391,448,638

164,940,257,279

Fixed Assets

253,339,698,815

277,843,782,914

265,045,567,513

-Investment

4,199,525,022

22,622,178,253

1,984,316,400

-Tangibles

210,798,276,569

212,230,552,872

216,094,407,799

-Intangibles

30,819,366,073

35,290,549,884

39,783,450,314

-Others

7,522,531,151

7,700,501,905

7,183,393,000

Total Liabilities

283,466,472,517

252,329,402,182

346,446,347,187

Current Liabilities

214,514,718,628

173,491,549,325

298,380,289,998

Fixed Liabilities

68,951,753,889

78,837,852,857

48,066,057,189

Capital Stock

15,080,300,000

15,080,300,000

15,080,300,000

Capital Surplus

143,403,772,201

143,403,772,201

143,403,772,201

Profit Surplus

118,073,662,322

121,321,580,203

108,271,548,828

Capital Adjustment

133,236,948

108,808,323

81,451,951

Total Equity

276,690,971,471

279,914,460,727

266,837,072,980

Liab. & Shareholder’s Equity

560,157,443,988

532,243,862,909

613,283,420,167

 

Current Liabilities

214,514,718,628

173,491,549,325

298,380,289,998

Short-Term Borrowings

60,000,000,000

36,000,000,000

80,000,000,000

Trade Payables

101,340,318,672

106,314,965,722

150,740,616,639

Account Payables

21,491,692,029

15,534,090,613

21,727,067,247

Advance Receipts

5,735,447,494

4,351,163,156

19,658,906,839

Withholdings

1,797,300,001

2,995,656,949

831,019,899

Accrued Expenses

10,449,964,298

7,671,475,067

9,516,332,397

Accrued Income Tax

3,585,051,744

624,197,818

906,346,977

Current Portion of Long-Term Debts

10,000,000,000

-

15,000,000,000

Derivatives

114,944,390

-

-

Fixed Liabilities

68,951,753,889

78,837,852,857

48,066,057,189

Long-Term Borrowings

20,000,000,000

28,000,000,000

-

Guarantee Deposit Withhold

36,000,000

36,000,000

10,000,000

Long-Term Account Payables

45,760,000

24,220,000

412,000,000

Provision for Severance & Retirement

36,564,646,990

32,616,156,410

29,531,965,040

Provision for Sales Guarantee

12,652,055,899

18,547,744,847

18,545,103,049

 

 

Income Statement

 

Unit : Million Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

763,468,338,475

726,665,517,881

683,815,944,248

Cost of Sold Goods

670,803,077,426

626,522,279,090

590,059,810,772

Gross Profit

92,665,261,049

100,143,238,791

93,756,133,476

Selling & Admin. Expenses

87,615,314,521

82,038,957,448

70,263,901,787

Operating Income

5,049,946,528

18,104,281,343

23,492,231,689

Non-Operating Income

9,911,082,985

12,938,986,229

18,763,943,644

Non-Operating Expenses

8,535,721,405

12,254,084,322

10,857,426,304

Income Before Taxes

6,425,308,108

18,789,183,250

31,398,749,029

Income Taxes Expenses

4,395,120,989

2,723,091,875

5,965,518,644

Net Income

2,030,187,119

16,066,091,375

25,433,230,385

 

 

Cash Flows

 

Unit : Million Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

164,006,730

18,929,398,401

51,712,661,092

-Net Income

2,030,187,119

16,066,091,375

25,433,230,385

-Exp. without Cash Outflow

42,976,718,784

44,006,796,426

38,592,068,663

-Revenue without Cash Inflows

-1,037,077,908

-3,971,894,762

-10,562,575,037

-Changes in Asset/ & Liability

-43,805,821,265

-37,171,594,638

-1,750,062,919

Cash Flows from Investing

-1,496,630,458

-21,880,875,510

-32,666,048,323

-Cash Inflow from Investing

22,546,777,728

1,883,905,934

9,453,197,999

-Cash Outflows for Investing

-24,043,408,186

-23,764,781,444

-42,119,246,322

Cash Flows from Financing

20,721,895,000

-34,016,060,000

28,158,152,821

-Cash Inflows from Financing

70,000,000,000

35,000,000,000

83,560,000,000

-Cash Outflows from Financing

-49,278,105,000

-69,016,060,000

-55,401,847,179

Increase/Decrease in Cash

19,389,271,272

-36,967,537,109

47,204,765,590

Cash at the Beginning of Year

36,152,021,293

73,119,558,402

25,914,792,812

Cash at the End of Year

55,541,292,565

36,152,021,293

73,119,558,402

 

 


Products, Technologies, Services Description

 

Main Products & Services

Medium Sized Truck

Cargo Truck

Tractor Truck

Dump & Mixer Truck

CNG Refuse Truck

Special Purpose Truck

 

 

Trade Partners & Competitors

 

Customers

TATA MOTORS LIMITED

HV AXLES LIMITED

Competitors

HYUNDAI MOTOR COMPANY(110111-0085450)

231, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3464-1114  FAX:+82-2-3464-3469

 

KIA MOTORS CORPORATION(110111-0037998)

231, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3464-1114  FAX:+82-2-3464-6800

 

RETECH CO., LTD.

I-2-1-1B, DAEDEOK TECHNO VALLEY, 699, TAMNIP-DONG, YUSEONG-GU, DAEJEON, KOREA

TEL:+82-42-933-9101  FAX:+82-42-933-9105

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TATA MOTORS LIMITED

TATA TECHNOLOGY LIMITED

HV AXLES LIMITED

TATA TECHNOLOGIES LTD.-THAILAND

TATA SONS LIMITED

TML DRIVELINES LTD.

TATA MOTORS THAILAND LTD.

Subsidiary

DAEWOO MOTOR SALES CORPORATION(120111-0005414)

(100.0% held by the subject company)

Cooperative Enterprise

- Domestic Sales Agent

DAEWOO MOTOR SALES CORPORATION(120111-0005414)

 

-Insured Company

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

 

Sales by Region

(Activity & Markets)

 

The subject exports to South Africa, and Middle East and India.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

Incheon District court

Taeyoung Logistics Co., Ltd.(Korea)

The Subject Company and DAEWOO MOTOR SALES CORPORATION(120111-0005414)

 

Claim for Compensation from Damages

46,400,000

Proceeding

 

Incheon District court

Choi Kyung-Sun

The Subject Company

Claim for Compensation from Damages

119,500,000

Proceeding

 

Seoul Central District Court

Kwon Joong-Hee

The Subject Company

Claim for Compensation from Damages

10,000,000

Proceeding

 

Seoul Central District Court

Kang Young-Cheol & Others(860)

The Subject Company

Salary

142,250,000

Proceeding

 

Seoul Central District Court

Hyosung capital Co., Ltd.(Korea)

The Subject Company

Refund

63,810,000

Proceeding

 

 

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.