MIRA INFORM REPORT

 

 

Report Date :

22.03.2013

 

IDENTIFICATION DETAILS

 

Name :

TAEWOONG CO., LTD.

 

 

Registered Office :

1462-1, Songjeong-dong, Gangseo-gu, Busan, Korea 618-270

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

16.05.1981

 

 

Com. Reg. No.:

603-81-16009

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Forging of Metal

 

 

No. of Employees :

267

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba  

 

With Financial

 

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

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 Information

 

Company Name

TAEWOONG CO., LTD.

(Korean Company Name : “()태웅”)

Registered Address

1462-1, Songjeong-dong, Gangseo-gu, Busan, Korea

Zip Code

618-270

Tel

+82-51-329-5000

Fax

+82-51-329-5001

E-mail

oneisus@hanmail.net

Website

www.taewoong.com

Trading Address

1462-1, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-329-5000

Fax

+82-51-329-5001

Type

Export

Industry

Forging of Metal

  Main Business

Flange, Gear, Channel Cover, Sheet, Shell, Shaft, Coupling, Pitch Bearing, Yaw Bearing, Propeller Shaft, Rudder Stock, Intermediate Shaft, Pintle, Rudder Trunk, Connecting Rad, Main Journal, Cross Head Pin, Clinder Cover, Piston Crown Piston Rod, Channel Cover, Forged Shell, Girth Flange, Reducer, Tube Sheet, Blind Cover, Forged Neck, Forged Pipe, Head Skirt, Diaphagm, Drum Tube Sheet, Trunnion, Tube Sheet, Casting Mold, Crane Wheel, Forged Ring, Kiln Trie, Toller For Kiln, Round Bar, Aluminium Forged Rings, Titanium Forged Rings

Established (mm/dd/yyyy)

05/16/1981

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Shafting(30103000)

Sell

Pipe flanges(40142400)

Sell

Heating equipment and parts and accessories(40101800)

Sell

Wheels and wheel trims(25171900)

Sell

Gears(31171700)

Sell

Metal working machinery attachments(23172000)

Buy

Steel(11101704)

Buy

Ferrous alloy(11101712)

Buy

Base Metals(11101700)

Buy

Ferrous alloy(11101712)

Buy

Aluminum(11101705)

 

 

CEO’s

 

Name

Huh Yong-Do

Date of Birth

01/19/1948

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

8,305,210,000

Employees

267

Formation

Listed Company (KOSDAQ : 044490) as of 11/08/2001

Bank Details

Korea Exchange Bank-Shinpyung Dong Branch

Busan Bank

Corporate Registered No.

180111-0073922

Business Registered No.

603-81-16009

Permit & Licenses

Int’l Trade No.: 12004795

Shareholder Position

Name

Shares

%

HUH YONG-DO

7,159,980

43.11

PARK PAN-YEON

2,260,010

13.61

OTHERS

7,190,430

43.28

TOTAL

16,610,420

100.00

Company History

05/16/1981 Established as TAEWOONG CO.(Sole Proprietorship)

07/01/1987 Incorporated as the present name

11/2007 Awarded US$ 100 Million Export Top Prize

11/2008 Awarded US$ 200 Million Export Top Prize

11/2009 Awarded US$ 300 Million Export Top Prize

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

Chairman & CEO

Mr.

Huh Yong-Do

Male

Korean

1948.01.19

Director

Mr.

Park Pan-Yeon

Male

Korean

1951.01.29

Vice President

Mr.

Choi Seung-Sik

Male

Korean

1952.10.23

Outside Director

Mr.

Jung Soon-Keun

Male

Korean

1947.06.28

Outside Director

Mr.

Seo Dong-Ryool

Male

Korean

1947.08

Auditor

Mr.

Kim Tae-Soo

Male

Korean

1942.08.15

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2012

250,627,787,189

746,518,055,785

5,975,941,376

(*)2011

480,665,365,152

755,979,760,068

15,410,813,679

(*)2010

333,625,861,278

595,771,983,817

27,181,452,107

2009

73,382,976,385

498,154,616,469

1,413,902,519

2008

535,690,595,220

495,360,687,284

32,035,845,964

2007

615,289,025,834

732,119,883,601

74,328,522,298

2006

357,864,344,320

264,503,403,925

48,974,151,058

2005

275,984,387,599

155,670,561,687

27,324,606,268

2004

216,015,036,019

120,056,717,271

20,729,392,221

 

 

Financial Description

 

Authorized Capital(KRW)

44,000,000,000

Paid-Up Capital(KRW)

8,305,210,000

Total Issued Shares

16,610,420

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

746,518,055,785

755,979,760,068

595,771,983,817

Current Assets

483,214,210,718

488,486,365,900

334,883,450,496

Cash & Cash Equivalents

23,395,394,253

33,892,535,076

84,475,768,805

Current Financial Instruments

181,878,298,678

163,000,000,000

0

Trade Receivables & Other Receivables

133,944,229,843

104,834,223,154

96,492,183,060

Inventories

141,694,458,172

181,453,115,505

150,566,372,396

Other Current Assets

2,301,829,772

5,306,492,165

3,349,126,235

Non-Current Assets

263,303,845,067

267,493,394,168

260,888,533,321

Non-Current Financial Instruments

5,900,000

5,900,000

5,900,000

Long-Term Trade Receivables & Other Receivables

2,836,620,178

2,836,400,178

186,450,178

Marketable Financial Instruments

15,836,645,000

15,836,645,000

5,927,895,000

Tangibles

232,062,546,230

236,155,809,238

242,449,690,041

Investment_Related Companies

11,892,487,692

11,988,993,785

11,648,952,135

Intangibles

669,645,967

669,645,967

669,645,967

Total Liabilities

284,855,167,341

300,131,532,320

163,084,864,848

Current Liabilities

155,592,501,064

172,081,290,716

118,585,330,059

Trade Payables & Other Payables

91,284,309,889

97,477,548,394

61,846,471,288

Short-Term Borrowings

57,591,319,371

70,490,029,766

52,383,196,931

Deferred Income Tax Credit

3,095,829,058

1,351,610,828

2,920,789,679

Other Current Liabilities

3,621,042,746

2,762,101,728

1,434,872,161

Non-Current Liabilities

129,262,666,277

128,050,241,604

44,499,534,789

Long-Term Trade Payables & Other Payables

3,000,000

3,000,000

3,000,000

Long-Term Borrowings

98,555,797,465

97,750,199,300

16,192,904,374

Provision for Severance & Retirement

1,636,036,877

1,038,598,935

1,419,392,377

Deferred Income Tax Credit

29,067,831,935

29,258,443,369

26,884,238,038

Capital Stock

8,305,210,000

8,305,210,000

8,305,210,000

Others

81,440,132,445

81,537,687,433

73,928,398,365

Profit Surplus

371,917,545,999

366,005,330,315

350,453,510,604

Total Equity

461,662,888,444

455,848,227,748

432,687,118,969

Liab. & Shareholder’s Equity

746,518,055,785

755,979,760,068

595,771,983,817

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

250,627,787,189

480,665,365,152

333,625,861,278

Cost of Sold Goods

225,929,623,742

426,579,274,582

275,021,997,682

Gross Profit

24,698,163,447

54,086,090,570

58,603,863,596

Selling Expenses

809,984,223

1,716,152,107

1,808,851,430

Admin. Expenses

5,902,962,000

11,509,625,753

8,399,457,548

Logistics

9,841,009,602

22,558,867,926

13,546,589,297

R&D

348,026,637

1,936,961,693

3,566,964,812

Other Operating Income

4,600,377,297

11,120,399,698

11,194,834,059

Other Operating Expenses

3,447,375,488

8,067,122,744

8,278,160,447

Operating Income

8,949,182,794

19,417,760,045

34,198,674,121

Finance Income

3,694,019,375

3,001,283,816

2,806,760,166

Finance Expenses

3,520,098,737

2,649,032,422

1,806,647,728

Income Before Taxes

9,123,103,432

19,770,011,439

35,198,786,559

Income Taxes Expenses

3,147,162,056

4,359,197,760

8,017,334,452

Net Income

5,975,941,376

15,410,813,679

27,181,452,107

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

25,320,224,116

29,647,503,318

20,869,379,478

Cash Flows from Operating

25,556,446,653

34,902,332,497

16,762,562,686

Net Income

5,975,941,376

15,410,813,679

27,181,452,107

Adjustment

11,454,044,526

19,278,198,423

15,576,101,722

Changes in Asset/ & Liability

8,126,460,751

213,320,395

-25,994,991,143

Interests Received

2,222,115,509

2,876,209,283

2,759,229,986

Interests Paid

-798,607,156

-2,390,838,305

-1,819,016,564

Income Taxes

-1,659,730,890

-5,740,200,157

3,166,603,370

Cash Flows from Investing

-20,945,279,187

-181,859,066,665

-26,653,000,316

Cash Flows from Financing

-14,825,435,806

101,335,061,398

2,999,019,926

Increase/Decrease in Cash

-10,450,490,877

-50,876,501,949

-2,784,600,912

Cash at the Beginning of Year

33,892,535,076

84,475,768,805

87,760,451,372

Cash at the End of Year

23,395,394,253

33,892,535,076

84,475,768,805

 

Products, Technologies, Services Description

 

Main Products & Services

Flange, Gear, Channel Cover, Sheet, Shell, Shaft, Coupling, Pitch Bearing, Yaw Bearing, Propeller Shaft, Rudder Stock, Intermediate Shaft, Pintle, Rudder Trunk, Connecting Rad, Main Journal, Cross Head Pin, Clinder Cover, Piston Crown Piston Rod, Channel Cover, Forged Shell, Girth Flange, Reducer, Tube Sheet, Blind Cover, Forged Neck, Forged Pipe, Head Skirt, Diaphagm, Drum Tube Sheet, Trunnion, Tube Sheet, Casting Mold, Crane Wheel, Forged Ring, Kiln Trie, Toller For Kiln, Round Bar, Aluminium Forged Rings, Titanium Forged Rings

 

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI STEEL COMPANY(120111-0001743)

POSCO SPECIALTY STEEL CO., LTD.(194211-0025248)

SEAH BESTEEL CORPORATION(110111-0035794)

Customers

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

 

SIEPUH GEARS SYSTEM GMBH(GERMANY)

SIEMENS WIND POWER A/S(USA)

B.Y.W WIND TECHNOLOGY(CHINA)

GE

VESTAS

SIEMENS

Competitors

PYUNG HWA ANTI-VIBRATION SYSTEM CO., LTD.

29-17, BONRI-RI, NONGONG-EUP, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-610-7000  FAX:+82-53-615-0566

 

SKF KOREA CO., LTD.

1171, JISA-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-970-2401  FAX:+82-51-970-2498

 

KOREA SINTERED METAL CO., LTD.

DALSEONG INDUSTRIAL COMPLEX, 29-10, BONRI-RI, NONGONG-EUP, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-610-0700  FAX:+82-53-610-0701

 

SCHAEFFLER KOREA CORPORATION

452-9, NAE-DONG, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-280-8700  FAX:+82-55-280-7890

 

 

 

 

Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

149,189

255,747

185,638

Domestic

101,439

224,918

147,988

Total

250,628

480,665

333,626

The Subject imports from Brazil and Russia.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Busan District Court

AH Industries Flanges A/S

The Subject Company

-

2,054,500,000

Proceeding

 

Busan District Court

The Subject Company

AH Industries Flanges A/S

Receivables

3,421,000,000

Proceeding

 

Denmark Commercial Arbitration Commission

AH Industries Flanges A/S

The Subject Company

Compensation

DKK13,728,858

Proceeding

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.82.65

Euro

1

Rs.70.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.