MIRA INFORM REPORT

 

 

Report Date :

20.05.2013

 

IDENTIFICATION DETAILS

 

Name :

KTURBO INC.

 

 

Formerly Known As :

Korea Turbo Machine, Inc.

 

 

Registered Office :

64-2, Haengjeong-ri, Gadeok-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea 363-852

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.08.1999

 

 

Com. Reg. No.:

314-81-29619

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Pumps and Compressors

 

 

No. of Employees :

129

 

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 :

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 Information

 

Basic

 

Company Name

KTURBO INC.

(English Name : Korea Turbo Machine, Inc.)

Registered Address

64-2, Haengjeong-ri, Gadeok-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Zip Code

363-852

Tel

+82-43-275-7573

Fax

+82-43-275-7581

E-mail

www.kturbo.com

Website

www.kturbo.com

Trading Address

64-2, Haengjeong-ri, Gadeok-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

(New Address System : 242, Sangjangincharo, Gaduk-myun, Chungwon-gun, Chungbuk, Korea)

Tel

+82-43-275-7573

Fax

+82-43-275-7581

Other Address-Cheongwon Factory

256, Gumho-ri, Buyong-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Type

Export/Import

Industry

Manufacture of Pumps and Compressors

  Main Business

Turbo Blower, Turbo Compressor, Potable Flowmter, High Speed Motor, Precision Cast Impeller, Data Acquisition System(DAS)

Established (mm/dd/yyyy)

12/08/1999

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Air compressors(40151601)

Sell

Blowers(40101601)

 

 

CEO’s

 

Name

Lee Heon-Seok

Address

Suite 201-702, 147, Baeul 1-ro, Yuseong-gu, Daejeon, Korea

Date of Birth

06/05/1966

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

 

Profiles

 

Capital (KRW)

3,168,648,000

Employees

129

Formation

Co., Ltd by Shares

Venture Business

Foreign Direct Investment Corporation

Bank Details

Industrial Bank of Korea

Shinhan Bank

Hana Bank

Corporate Registered No.

160111-0090409

Business Registered No.

314-81-29619

Permit & Licenses

03/2004 ISO 9001

11/2004 EM

10/2006 ISO 14001

10/2007 CE Mark

12/2007 CE Mark

 

Int’l Trade No.: 45304172

Shareholder Position

Name

Shares

%

LEE HEON-SEOK

1,746,214

27.55

AERZENER MASCHINEBFABRIK GMBH

474,032

7.48

KIM SUNG-KWANG

221,738

3.50

EBARJITSUGYO CO., LTD

133,334

2.10

OTHERS

2,129,312

33.60

KOREA DEVELOPMENT BANK(110135-0000937)

583,333

9.20

ILJARI CHANGCHUL SME INVESTMENT PRIVATE EQUITY CO., LTD.(110113-0014851 )

583,333

9.20

KDB CAPITAL CORPORATION(110111-0137558)

466,000

7.35

TOTAL

6,337,296

100.00

Company History

12/1997 Established as Powertech Co.(Sole Proprietorship)

12/08/1999 Incorporated as the present name

07/2002 Designated as an INNO-BIZ Company

11/15/2002 Designated as a Venture Business

05/15/2006 Increased the par value to 500 KRW from 100 KRW

05/09/2008 Registered as a Foreign Direct Investment Corporation

07/08/2010 Designated as a Venture Business again

11/23/2011 Moved to the present HQ address from 631, Bugang-ri, Cheongwon-gun, Chungcheongbuk-do, Korea

12/16/2011 Increased capital to 3,168,648,000 KRW from 2,876,981,500 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Heon-Seok

Male

Korean

03/31/2004

Director

Mr.

Shim Kyu-Hwan

Male

Korean

01/24/2011

Director

Mr.

Axel Chikon

Male

German

01/24/2011

Director

Mr.

Seo Seung-Bum

Male

Korean

06/15/2012

Outside Director

Mr.

Chang Seok-Joo

Male

Korean

06/15/2012

Auditor

Mr.

Lee Cheol-Jong

Male

Korean

01/24/2011

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

19,241,552,862

48,425,743,642

-7,864,989,343

2011

38,215,077,350

47,431,686,536

2,171,691,097

2010

24,150,468,216

37,147,126,873

3,129,069,082

 

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

3,168,648,000

Total Issued Shares

6,337,296(Common : 4,704,630 / Preferable : 1,632,666)

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

48,425,743,642

47,431,686,536

37,147,126,873

Current Assets

21,831,246,059

23,951,767,118

22,368,653,902

-Quick Assets

9,669,541,665

18,431,863,270

15,727,305,658

-Inventories

12,161,704,394

5,519,903,848

6,641,348,244

Fixed Assets

26,594,497,583

23,479,919,418

14,778,472,971

-Investment

83,000,000

237,674,750

163,674,750

-Tangibles

15,467,219,379

13,904,109,997

1,409,708,826

-Intangibles

10,990,535,414

7,507,919,351

11,414,959,395

-Others

53,742,790

1,830,215,320

1,790,130,000

Total Liabilities

37,085,751,244

28,126,402,692

18,423,110,426

Current Liabilities

23,238,221,597

9,583,739,118

16,431,320,347

Fixed Liabilities

13,847,529,647

18,542,663,574

1,991,790,079

Capital Stock

3,168,648,000

3,168,648,000

3,631,688,000

Capital Surplus

23,229,664,993

23,229,664,993

14,250,001,993

Profit Surplus

-4,305,021,443

3,660,270,003

1,488,578,906

Capital Adjustment

-10,753,299,152

-10,753,299,152

-646,252,452

Total Equity

11,339,992,398

19,305,283,844

18,724,016,447

Liab. & Shareholder’s Equity

48,425,743,642

47,431,686,536

37,147,126,873

 

Current Liabilities

23,238,221,597

9,583,739,118

16,431,320,347

Short-Term Borrowings

12,327,518,971

5,089,173,236

8,007,801,146

Trade Payables

5,941,516,242

2,592,025,733

4,051,671,266

Account Payables

1,103,552,757

1,405,191,308

726,487,502

Accrued Expenses

241,020,766

148,807,862

1,432,386,986

Withholdings

55,371,654

93,771,979

43,731,634

Advance Receipts

17,791,207

124,169,000

238,641,813

Short-Term Borrowings to Shareholders/ Executives/ Employees

- 

- 

1,800,000,000

Current Portion of Long-Term Debts

3,551,450,000

130,600,000

130,600,000

Fixed Liabilities

13,847,529,647

18,542,663,574

1,991,790,079

Convertible Bonds

5,563,106,682

5,228,565,319

-

Long-Term Borrowings

7,447,000,000

12,919,050,000

223,150,000

Provision for Sales Guarantee

492,219,378

-

-

Provision for Severance & Retirement

283,121,113

14,411,661

1,175,082,387

Long-Term Account Payables

62,082,474

380,636,594

593,557,692

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

19,241,552,862

38,215,077,350

24,150,468,216

Cost of Sold Goods

10,277,723,080

19,630,314,309

12,150,893,756

Gross Profit

8,963,829,782

18,584,763,041

11,999,574,460

Selling & Admin. Expenses

14,958,263,935

14,286,569,281

7,930,531,131

Operating Income

-5,994,434,153

4,298,193,760

4,069,043,329

Non-Operating Income

824,425,134

1,868,724,750

321,791,214

Non-Operating Expenses

2,694,980,324

3,995,227,413

1,261,765,461

Income Before Taxes

-7,864,989,343

2,171,691,097

3,129,069,082

Income Taxes Expenses

-

-

-

Net Income

-7,864,989,343

2,171,691,097

3,129,069,082

 

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

-813,589,669

1,752,963,513

356,916,128

-Net Income

-7,864,989,343

2,171,691,097

3,129,069,082

-Exp. without Cash Outflow

8,262,035,577

2,770,871,404

581,720,583

-Revenue without Cash Inflows

-265,314,421

-999,406,152

-

-Changes in Asset/ & Liability

-945,321,482

-2,190,192,836

-3,353,873,537

Cash Flows from Investing

-6,106,178,228

-13,093,159,670

-2,612,884,878

-Cash Inflow from Investing

281,818,182

2,813,636,538

-

-Cash Outflows for Investing

-6,387,996,410

-15,906,796,208

-2,612,884,878

Cash Flows from Financing

5,381,745,735

12,654,069,823

2,703,244,815

-Cash Inflows from Financing

14,336,768,971

28,889,717,433

3,558,800,000

-Cash Outflows from Financing

-8,955,023,236

-16,235,647,610

-855,555,185

Increase/Decrease in Cash

-1,538,022,162

1,313,873,666

447,276,065

Cash at the Beginning of Year

2,150,856,456

836,982,790

389,706,725

Cash at the End of Year

612,834,294

2,150,856,456

836,982,790

 

 

Products, Technologies, Services Description

 

Main Products & Services

Turbo Blower, Turbo Compressor, Potable Flowmter, High Speed Motor, Precision Cast Impeller, Data Acquisition System(DAS)

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

HALLA CLIMATE CONTROL CORPORATION

1689-1, SINIL-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-42-930-6114  FAX:+82-42-930-6129

 

CENTURY CORP.

345, BOCHE-RI, MIYANG-MYEON, ANSEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-646-8000  FAX:+82-31-646-8100

 

SHINHUNG CO., LTD.

8TH FL., SINHEUNG BLDG., 10-3, JUNGNIM-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-6366-2000  FAX:+82-2-6366-2131

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TURBOMAN CO., LTD.(160111-0323462)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KTURBO USA, INC

(100.0% held by the subject company)

1183 PIERSON DR, UNIT 118, BATAVIA, IL 60510 USA

TEL: +1-630-406-1473

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

AERZENER MASCHINEBFABRIK GMBH

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2012

2011

2010

Export

 

 

 

Domestic

 

 

 

Total

 

 

 

The Subject deals with the companies in China and Japan.

 

 

News Clipping

 

Not Available


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.88

UK Pound

1

Rs.83.66

Euro

1

Rs.70.58

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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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