MIRA INFORM REPORT

 

 

Report Date :

07.12.2013

 

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) :

31.03.2013

 

 

Date of Incorporation :

01.11.2002

 

 

Com. Reg. No.:

401-81-22865

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Motor Vehicles such as Heavy Truck, Medium Truck, Truck Parts for the Transport of Goods and Special Purpose

 

 

No. of Employees :

1,090

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

TATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

Slow but Correct  

 

 

Litigation :

Exist

 

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 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 is currently the world's 12th largest economy. 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. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

(New Address System : 172, Dongjangsan-ro, 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

1,090

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

03/30/2004 Decreased capital to 15,080,300,000 from 87,768,665,000 KRW

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

05/06/2004 Completed Corporate Clearing procedure

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

Chairman

Mr.

Chandrasekaran Ramacrishinan

Male

India

07/23/2009

Director

Mr.

Rabintra Pisharodi

Male

India

07/27/2012

Director

Mr.

Satisibal Crishina Borwanka

Male

India

07/27/2012

Director

Mr.

Karl Zonadon Slim

Male

UK

05/15/2013

Auditor

Mr.

Nageshipinge

Male

India

11/12/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2013

823,915,559,432

591,372,133,664

-9,205,468,127

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

 

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 03/31/2013

As of 03/31/2012

As of 03/31/2011

Total Assets

591,372,133,664

560,157,443,988

532,243,862,909

Current Assets

334,565,419,246

306,817,745,173

254,400,079,995

-Quick Assets

176,017,892,078

127,271,628,208

104,008,631,357

-Inventories

158,547,527,168

179,546,116,965

150,391,448,638

Fixed Assets

256,806,714,418

253,339,698,815

277,843,782,914

-Investment

3,245,422,756

4,199,525,022

22,622,178,253

-Tangibles

215,072,678,483

210,798,276,569

212,230,552,872

-Intangibles

30,689,155,534

30,819,366,073

35,290,549,884

-Others

7,799,457,645

7,522,531,151

7,700,501,905

Total Liabilities

323,886,630,320

283,466,472,517

252,329,402,182

Current Liabilities

274,273,886,062

214,514,718,628

173,491,549,325

Fixed Liabilities

49,612,744,258

68,951,753,889

78,837,852,857

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

108,868,194,195

118,073,662,322

121,321,580,203

Capital Adjustment

133,236,948

133,236,948

108,808,323

Total Equity

267,485,503,344

276,690,971,471

279,914,460,727

Liab. & Shareholder’s Equity

591,372,133,664

560,157,443,988

532,243,862,909

 

Current Liabilities

274,273,886,062

214,514,718,628

173,491,549,325

Short-Term Borrowings

50,000,000,000

60,000,000,000

36,000,000,000

Trade Payables

160,467,678,685

101,340,318,672

106,314,965,722

Account Payables

22,188,610,104

21,491,692,029

15,534,090,613

Advance Receipts

6,387,493,369

5,735,447,494

4,351,163,156

Withholdings

1,140,084,551

1,797,300,001

2,995,656,949

Accrued Expenses

27,780,623,094

10,449,964,298

7,671,475,067

Accrued Income Tax

657,358,883

3,585,051,744

624,197,818

Current Portion of Long-Term Debts

5,000,000,000

10,000,000,000

-

Derivatives

652,037,376

114,944,390

-

Fixed Liabilities

49,612,744,258

68,951,753,889

78,837,852,857

Long-Term Borrowings

10,000,000,000

20,000,000,000

28,000,000,000

Long-Term Withholdings

36,000,000

36,000,000

36,000,000

Long-Term Account Payables

87,530,000

45,760,000

24,220,000

Provision for Severance & Retirement

26,532,756,150

36,564,646,990

32,616,156,410

Provision for Sales Guarantee

13,192,339,808

12,652,055,899

18,547,744,847

 

 

Income Statement

 

Unit : Korean Won

As of 03/31/2013

As of 03/31/2012

As of 03/31/2011

Sales

823,915,559,432

763,468,338,475

726,665,517,881

Cost of Sold Goods

730,677,864,315

670,803,077,426

626,522,279,090

Gross Profit

93,237,695,117

92,665,261,049

100,143,238,791

Selling & Admin. Expenses

97,002,532,444

87,615,314,521

82,038,957,448

Operating Income

-3,764,837,327

5,049,946,528

18,104,281,343

Non-Operating Income

6,842,575,469

9,911,082,985

12,938,986,229

Non-Operating Expenses

13,519,896,637

8,535,721,405

12,254,084,322

Income Before Taxes

-10,442,158,495

6,425,308,108

18,789,183,250

Income Taxes Expenses

-1,236,690,368

4,395,120,989

2,723,091,875

Net Income

-9,205,468,127

2,030,187,119

16,066,091,375

 

 

Cash Flows

 

Unit : Korean Won

As of 03/31/2013

As of 03/31/2012

As of 03/31/2011

Cash Flows from Operating

104,186,390,234

164,006,730

18,929,398,401

-Net Income

-9,205,468,127

2,030,187,119

16,066,091,375

-Exp. without Cash Outflow

51,464,518,720

42,976,718,784

44,006,796,426

-Sale without Cash Inflows

-1,787,957,028

-1,037,077,908

-3,971,894,762

-Changes in Asset/ & Liability

63,715,296,669

-43,805,821,265

-37,171,594,638

Cash Flows from Investing

-34,108,998,735

-1,496,630,458

-21,880,875,510

-Cash Inflow from Investing

4,033,900,909

19,302,519,728

1,883,905,934

-Cash Outflows for Investing

-38,142,899,644

-20,799,150,186

-23,764,781,444

Cash Flows from Financing

-25,000,000,000

20,721,895,000

-34,016,060,000

-Cash Inflows from Financing

67,000,000,000

70,000,000,000

35,000,000,000

-Cash Outflows from Financing

-92,000,000,000

-49,278,105,000

-69,016,060,000

Increase/Decrease in Cash

45,077,391,499

19,389,271,272

-36,967,537,109

Cash at the Beginning of Year

55,541,292,565

36,152,021,293

73,119,558,402

Cash at the End of Year

100,618,684,064

55,541,292,565

36,152,021,293

 

 

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

Cooperative Enterprise

- Domestic Sales Agent

DAEWOO MOTOR SALES CORPORATION(120111-0005414)

 

-Insured Company

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

KOREA LIFE INSURANCE CO., LTD.(110111-0003204)

 

 

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

 

Supreme Court of Korea

Kwon Joon-Hee

The Subject Company

Claim for Compensation from Damages

10,000,000

3rd round is proceeding

 

Supreme Court of Korea

Hyosung Capital Co., Ltd.(Korea)

The Subject Company

Refund of Loan

63,810,000

3rd round is proceeding

 

Chungju District Court, korea

Choi Sung-Soo

The Subject Company

Claim for Compensation from Damages

10,454,290

1st round is proceeding

 

Seoul High Court, Korea

Employee

The Subject Company

Salaries

17,243,044,051

2nd round is proceeding

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.67

UK Pound

1

Rs.100.65

Euro

1

Rs.84.25

 

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.