MIRA INFORM REPORT

 

 

Report Date :

26.03.2013

 

IDENTIFICATION DETAILS

 

Name :

KOREAN HYDRAULIC MACHINERY CO., LTD.

 

 

Registered Office :

768-6, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea, Zip Code 425-852

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.12.1997

 

 

Com. Reg. No.:

113-81-46091

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Civil Engineering and Similar Machine Equipment

 

 

No. of Employees :

21

 

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 :

Slow

 

 

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

KOREAN HYDRAULIC MACHINERY CO., LTD.

(Korean Company Name : “코막중공업()”)

Registered Address

768-6, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Zip Code

425-852

Tel

+82-31-498-3223

Fax

+82-31-498-4204

E-mail

salesdom@komac.co.kr

Website

www.komac.co.kr

Trading Address

768-6, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-498-3223

Fax

+82-31-498-4204

Other Address

Rm.601, Shinsong Bldg., 25-4, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-761-0880

Type

Export

Industry

Manufacture of Civil Engineering and Similar Machine Equipment

  Main Business

Hydraulic Breaker, Heavy Equipment Spare Parts, Excavator, Mini Forklift, Mini Crusher, Mini Shear, Pulverizer, Quick Coupler, Compacter, Demolition Grappler, Grappler, Recycling Plant, Skid Steer Loader, Feeder, Horizontal Vibrating Screen, Vibrating Roller

Established (mm/dd/yyyy)

12/08/1997

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Crushers and breakers and grinders(20101700)

Sell

Rock breakers(20101711)

Sell

Hydraulic pumps(40151533)

Sell

Heavy equipment components(22101700)

Sell

Air coupling(27131613)

Sell

Cold chisels(27111901)

Sell

Seal kits(31181606)

Sell

Rollers(22101505)

Sell

Lifting equipment and accessories(24101600)

Sell

Hoists(24101602)

Buy

Bearings(31171500)

Buy

Stainless steel plate(30102205)

Buy

Iron plate(30102203)

Buy

Electrical cable and accessories(26121600)

Buy

Hydraulic motors(26101613)

Buy

Valves(40141600)

Buy

Nuts(31161700)

Buy

Bolts(31161600)

Buy

Gearmotors(26111526)

 

CEO’s

 

Name

Cho Boong-Gu

Address

Suite 502-203, 254, Yanghyeon-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

Date of Birth

05/14/1965

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,650,000,000

Employees

21

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Shihwa Industrial Complex

Shinhan Bank

Corporate Registered No.

1101111-492191

Business Registered No.

113-81-46091

Permit & Licenses

06/20/2003 CE Mark

08/2003 ISO 9001

04/2007 CE Mark

 

Int’l Trade No.: 11432067

Shareholder Position

Name

Shares

%

CHO BOONG-GU

239,000

72.42

LEE GEUN-BUM

21,600

6.55

PARK YOUNG-HO

18,800

5.70

CHOI SANG-HWAN

11,600

3.52

OTHERS

39,000

11.82

TOTAL

330,000

100.00

Company History

12/08/1997 Incorporated as the present name

08/2001 Designated as a Venture Business

11/2001 Designated as an INNO-BIZ Company

10/25/2005 Moved to the present HQ address from Rm.108, 2Ba, Shihwa Industrial Complex, Jeongwang-dong, Siheung-si, Gyeonggi-do, Korea

12/18/2007 Designated as a Venture Business again

11/01/2010 Moved to the present HQ address from 686-9, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

12/25/2010 Decreased the authorized shares to 750,000 shares from 1,000,000 shares

02/26/2011 Increased capital to 1,650,000,000 KRW from 1,250,000,000 KRW

04/23/2012 Decided to start Corporate Reviving Procedure

11/16/2012 Decided to be approved of Corporate Reviving Plan by Seoul District Court(2012HOIHAP43)

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO / Trustee

Mr.

Cho Boong-Gu

Male

Korean

08/29/2011

Director

Mr.

Park No-Taik

Male

Korean

06/19/2012

Director

Mr.

Cho Se-Goo

Male

Korean

06/19/2012

Auditor

Mr.

Kim Ki-Chang

Male

Korean

01/15/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

12,831,908,809

17,912,623,764

-1,567,132,141

2010

9,537,892,230

18,045,079,635

-13,031,713,429

2009

20,453,941,159

27,353,906,524

-2,278,074,687

 

 

Financial Description

 

Authorized Capital(KRW)

3,750,000,000

Paid-Up Capital(KRW)

1,650,000,000

Total Issued Shares

330,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

17,912,623,764

18,045,079,635

27,353,906,524

Current Assets

5,556,060,788

5,627,687,555

13,547,591,945

-Quick Assets

2,868,461,242

5,627,687,555

10,733,414,570

-Inventories

2,687,599,546

-

2,814,177,375

Fixed Assets

12,356,562,976

12,417,392,080

13,806,314,579

-Investment

30,000,000

30,000,000

1,356,734,224

-Tangibles

12,236,053,052

12,253,854,466

12,323,709,206

-Intangibles

55,174,924

97,752,614

42,787,149

-Others

35,335,000

35,785,000

83,084,000

Total Liabilities

31,630,668,368

32,195,992,098

28,473,105,558

Current Liabilities

18,684,604,436

19,935,557,079

21,528,656,914

Fixed Liabilities

12,946,063,932

12,260,435,019

6,944,448,644

Capital Stock

1,650,000,000

1,250,000,000

2,500,000,000

Capital Surplus

2,850,000,000

1,250,000,000

-

Profit Surplus

-22,226,479,195

-20,659,347,054

-7,627,633,625

Capital Adjustment

4,008,434,591

4,008,434,591

4,008,434,591

Total Equity

-13,718,044,604

-14,150,912,463

-1,119,199,034

Liab. & Shareholder’s Equity

17,912,623,764

18,045,079,635

27,353,906,524

 

Current Liabilities

18,684,604,436

19,935,557,079

21,528,656,914

Trade Payables

3,178,898,984

6,084,041,730

6,729,273,199

Short-Term Borrowings

14,440,033,183

12,754,007,672

11,919,379,557

Account Payables

799,237,828

984,570,566

424,880,319

Withholdings

31,609,180

12,434,030

10,231,940

Advance Receipts

50,528,491

74,421,836

444,898,643

Accrued Expenses

184,296,770

26,081,245

210,988,385

Current Portion of Long-Term Debts

- 

- 

1,789,004,871

Fixed Liabilities

12,946,063,932

12,260,435,019

6,944,448,644

Long-Term Borrowings

12,228,137,946

11,663,977,673

6,527,651,870

Long-Term Account Payables

624,229,000

450,000,000

178,000,000

Provision for Severance & Retirement

136,056,847

170,230,810

261,788,110

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

12,831,908,809

9,537,892,230

20,453,941,159

Cost of Sold Goods

11,381,736,001

9,283,594,039

14,880,835,804

Gross Profit

1,450,172,808

254,298,191

5,573,105,355

Selling & Admin. Expenses

2,444,267,527

7,982,707,951

2,745,469,668

Operating Income

-994,094,719

-7,728,409,760

2,827,635,687

Non-Operating Income

714,178,612

48,264,262

1,701,919,513

Non-Operating Expenses

1,287,216,034

5,351,567,931

6,851,932,007

Income Before Taxes

-1,567,132,141

-13,031,713,429

-2,322,376,807

Income Taxes Expenses

-

-

-44,302,120

Net Income

-1,567,132,141

-13,031,713,429

-2,278,074,687

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-2,109,585,793

-4,459,212,508

-4,096,255,977

-Net Income

-1,567,132,141

-13,031,713,429

-2,278,074,687

-Exp. without Cash Outflow

1,849,730,872

10,004,256,019

1,060,151,766

-Revenue without Cash Inflows

-626,931,026

-11,937,585

-1,182,101,530

-Changes in Asset/ & Liability

-1,765,253,498

-1,419,817,513

-1,696,231,526

Cash Flows from Investing

-104,054,085

1,011,899,785

230,737,696

-Cash Inflow from Investing

104,970,924

1,222,923,657

1,816,600,588

-Cash Outflows for Investing

-209,025,009

-211,023,872

-1,585,862,892

Cash Flows from Financing

2,210,428,419

3,419,298,115

3,659,487,586

-Cash Inflows from Financing

5,245,201,135

14,256,635,996

10,620,893,583

-Cash Outflows from Financing

-3,034,772,716

-10,837,337,881

-6,961,405,997

Increase/Decrease in Cash

3,211,459

28,014,608

206,030,695

Cash at the Beginning of Year

3,663,926

31,678,534

237,709,229

Cash at the End of Year

452,467

3,663,926

31,678,534

 

(*)The Subject needs to be monitored because Net Income is (-)1,567,000,000 KRW, and Total Liabilities exceed Total Assets as much as 13,129,000,000 KRW.

 

 

Products, Technologies, Services Description

 

Main Products & Services

Hydraulic Breaker, Heavy Equipment Spare Parts, Excavator, Mini Forklift, Mini Crusher, Mini Shear, Pulverizer, Quick Coupler, Compacter, Demolition Grappler, Grappler, Recycling Plant, Skid Steer Loader, Feeder, Horizontal Vibrating Screen, Vibrating Roller

 

 

Trade Partners & Competitors

 

Competitors

EVERDIGM CORP.

332-3, JANGGWAN-RI, JINCHEON-EUP, JINCHEON-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-530-3300  FAX:+82-43-530-3318

 

DAEMO ENGINEERING CO., LTD.

2BA-515, SIHWA INDUSTRIAL COMPLEX, 2178-5, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-488-6011  FAX:+82-31-496-0067

 

MSB CORPORATION

123B-4L, NAMDONG INDUSTRIAL COMPLEX, 693-3, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-821-6980~3  FAX:+82-32-818-1698

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Subsidiary

KOMAC EUROPE B.V(EUROPE)

KOMAC QINGDAO(CHINA)

KOMAC AMERICA(USA)

 


Sales by Region

(Activity & Markets)

 

The Subject exports to South America, Mexico, USA, Saudi Arabia, Europe, China and Hong Kong.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.09

UK Pound

1

Rs.82.47

Euro

1

Rs.70.49

 

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.