MIRA INFORM REPORT

 

Report Date :

07.04.2014

 

IDENTIFICATION DETAILS

 

Name :

TSM TECH CO., LTD.

 

 

Registered Office :

448, Sanam-ro, Onsan-eup, Ulju-gun, Ulsan

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

16.02.1998

 

 

Com. Reg. No.:

113-81-46733

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Special Purpose Machinery, n.e.c.

 

 

No of Employees :

306

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

With Financials 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP.

 

Source : CIA


Basic Information

 

Basic

 

Company Name

TSM TECH CO., LTD.

(Korean Company Name : “()티에스엠텍”)

Registered Address

448, Sanam-ro, Onsan-eup, Ulju-gun, Ulsan, Korea

Zip Code

689-892

Tel

+82-52-227-1680

Fax

+82-52-227-1725

E-mail

lglee@tsm-tech.com;nyuseok777@tsm-tech.com

Website

www.tsm-tech.com

Trading Address

448, Sanam-ro, Onsan-eup, Ulju-gun, Ulsan, Korea

(Old Address System : 261, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea)

Tel

+82-52-227-1680

Fax

+82-52-227-1725

Other Address- Ansan Factory

4Ba-505-1, Sihwa Industrial Complex, 784-6, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-432-5511

Fax

+82-31-432-0412

Other Address-Onsan Factory

San 47, Ijin-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Tel

+82-52-237-7500

Fax

+82-52-270-1750

Type

Export/Import

Industry

Manufacture of Other Special Purpose Machinery, n.e.c.

  Main Business

Titanium Etching Chamber, Heat Exchanger

Established (mm/dd/yyyy)

02/16/1998

The Subject owns the premises of registered HQ address and Ansan Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Paint systems(23153500)

Sell

Nickel(11101706)

Sell

Storage racks or shelves(24102004)

Sell

Zirconium Zr(12141751)

Sell

Heat exchangers(40101802)

Sell

Washers(31161800)

Sell

Nuts(31161700)

Sell

Bolts(31161600)

Sell

Busways(39121206)

 

CEO’s

 

Name

Park Dae-Joo

Date of Birth

04/12/1972

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

5,215,360,000

Employees

306

Formation

Listed Company (KOSDAQ: 066350) as of 01/21/2003

Bank Details

Citibank, Korea

Hana Bank

Korea Development Bank

Corporate Registered No.

110111-1513137

Business Registered No.

113-81-46733

Permit & Licenses

01/2001 ISO 9001 by HSB-RS(USA)

07/2005 ISO 14001 by HSB-RS(USA)

 

Int’l Trade No.: 11494506

Shareholder Position

Name

Shares

%

MA DEA-YOUL

792,026

7.59

PARK DAE-JOO

961,054

9.21

MA SUNG-RYEOL

251,367

2.41

SHIN JI-HO

140,729

1.35

MA SANG-RYEOL

53,510

0.51

MA OK-RYEON

53,510

0.51

PARK WON-TAIK

53,510

0.51

OTHERS

8,125,014

77.90

TOTAL

10,430,720

100.00

Company History

02/16/1998 Incorporated as TS Metal Co., Ltd.

04/2001 Changed company name to the present name

07/27/2005 Designated as a Venture business

03/23/2007 Moved to 22-3, Bugok-dong, Nam-gu, Ulsan, Korea from 4Ba-505-1, Sihwa Industrial Complex, 784-6, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

11/2011 Awarded US$ 100 Million Export Top Prize

12/2013 Moved to the present HQ address from 22-3, Bugok-dong, Nam-gu, Ulsan, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education / Career

President & CEO

Mr.

Park Dae-Joo

Korean

1972.04.12

Korea University, Korea

Director

Mr.

Ma Hyo-Sang

Korean

1987.04

Canada Humber College

Auditor

Mr.

Kim Sung-Hwan

Korean

1971.09

Korea University, Korea

Outside Director

Mr.

Ma Hyo-Eng

Korean

1952.10

-

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2013

203,621,800,396

318,563,047,347

-23,954,917,341

(*)2012

324,363,554,586

346,758,494,483

1,872,474,316

(*)2011

309,708,068,834

363,011,825,912

9,311,887,740

2010

246,908,361,831

328,197,999,984

2,166,047,178

2009

186,400,904,262

274,838,441,735

(-)6,365,167,660

2008

222,352,611,205

276,582,945,601

3,846,261,160

2007

136,892,553,193

161,838,949,975

8,852,418,067

2006

117,278,353,794

140,154,278,583

12,620,630,971

2005

85,351,519,667

99,411,433,857

10,086,971,838

2004

56,099,607,942

69,069,178,262

5,685,971,939

2003

27,507,987,918

40,327,822,630

3,372,768,694

(*)Figures are based on the K-IFRS Accounting System.

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

5,215,360,000

Total Issued Shares

10,430,720

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

318,563,047,347

346,758,494,483

363,011,825,912

Current Assets

203,022,160,423

246,188,009,943

259,179,418,794

Cash & Cash Equivalents

6,666,734,351

3,111,094,819

15,191,748,926

Trade Receivables & Other Receivables

120,847,021,085

164,619,756,529

168,671,529,863

Current Financial Instruments

13,151,135,415

9,179,150,248

6,015,911,563

Deferred Income Tax Assets

249,712,579

0

0

Current Non-Financial Instruments

3,566,548,596

3,081,850,062

5,487,517,864

Inventories

58,541,008,397

66,196,158,285

63,812,710,578

Non-Current Assets

115,540,886,924

100,570,484,540

103,832,407,118

Tangibles

91,092,128,989

80,539,317,011

82,144,539,952

Intangibles

3,495,333,117

3,544,654,958

6,357,235,383

Investment_Related Companies

1,846,978,705

2,973,917,808

3,332,245,659

Deferred Income Tax Assets

9,454,884,691

3,042,927,945

2,020,299,591

Non-Current Financial Instruments

7,223,933,461

7,738,795,311

7,052,697,071

Non-Current Non-Financial Instruments

2,427,627,961

2,730,871,507

2,925,389,462

Total Liabilities

254,106,303,041

259,912,835,274

277,274,646,913

Current Liabilities

185,921,236,050

225,150,155,961

231,645,137,848

Trade Payables & Other Payables

38,534,041,349

49,378,827,276

51,503,301,891

Other Payables-Construction

8,905,715,637

1,326,393,946

12,512,677,059

Short-Term Borrowings

73,414,795,102

110,262,214,667

93,631,486,200

Current Portion of Long-Term Debts

42,319,616,000

48,800,000,000

58,458,382,214

Deferred Income Tax Credit

0

179,875,203

3,208,736,244

Other Current Financial Debts

20,223,011,855

11,813,204,945

10,190,046,297

Other Current Non-Financial Debts

2,524,056,107

3,389,639,924

2,140,507,943

Non-Current Liabilities

68,185,066,991

34,762,679,313

45,629,509,065

Long-Term Borrowings

63,066,664,000

29,646,719,505

40,000,000,000

Provision for Severance & Retirement

5,015,402,991

5,106,959,808

5,529,509,065

Other Non-Current Non-Financial Debts

103,000,000

9,000,000

100,000,000

Capital Stock

5,215,360,000

4,988,209,500

4,939,808,000

Capital Surplus

30,698,868,493

29,119,583,553

28,566,083,919

Others

-2,059,219,770

-2,063,922,155

-1,916,943,881

Profit Surplus

30,601,735,583

54,801,788,311

54,148,230,961

Total Equity

64,456,744,306

86,845,659,209

85,737,178,999

Liab. & Shareholder’s Equity

318,563,047,347

346,758,494,483

363,011,825,912

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

203,621,800,396

324,363,554,586

309,708,068,834

Cost of Sold Goods

189,220,295,438

275,413,060,872

263,646,642,047

Gross Profit

14,401,504,958

48,950,493,714

46,061,426,787

Selling & Admin. Expenses

31,038,096,059

28,418,068,587

24,372,083,230

Operating Income

-16,636,591,101

20,532,425,127

21,689,343,557

Other Income

6,144,154,699

8,172,932,143

10,398,787,332

Other Expenses

8,114,879,062

14,632,069,940

7,459,110,729

Finance Income

180,834,540

189,178,261

324,495,826

Finance Expenses

11,900,155,303

11,970,028,811

12,812,522,549

Income Before Taxes

-30,326,636,227

2,292,436,780

12,140,993,437

Income Taxes Expenses

-6,371,718,886

419,962,464

2,829,105,697

Net Income

-23,954,917,341

1,872,474,316

9,311,887,740

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

32,601,471,669

-5,597,615,697

11,155,196,186

Cash Flows from Operating

43,739,634,390

8,140,083,785

22,499,559,828

Income Taxes

-429,587,783

-4,529,002,222

-370,177,219

Interests Received

110,076,747

258,036,959

221,768,535

Interests Paid

-10,818,651,685

-9,466,734,219

-11,195,954,958

Cash Flows from Investing

-19,181,071,476

-2,517,113,188

2,688,747,872

Cash Flows from Financing

-9,833,013,270

-3,912,694,992

-4,223,673,441

Increase/Decrease in Cash

3,555,639,532

-12,080,654,107

9,738,587,156

Cash at the Beginning of Year

3,111,094,819

15,191,748,926

5,453,161,770

Cash at the End of Year

6,666,734,351

3,111,094,819

15,191,748,926

 

 

Products, Technologies, Services Description

 

Main Products & Services

1) EQUIPMENT

PTA(Purified Terephthalic Acid) Equipment

Chemical/Petrochemical Equipment

-Tower

-Column

-Heat Exchanger

-Reactor

-Vessel

 

Generation Equipment

-Condenser

-Feed Water Heater

-Heat Exchanger

-Piping Spool

 

Ocean Plant Equipment

Mining Equipment

 

 

2) PARTS

-Flange

-Elbow

-Basket

-Busbar

-Bolt

-Nut

Trade Partners & Competitors

 

Suppliers

NSC-JAPAN

SUMITOMO-JAPAN

ROLLED-ALLOYS-UK

GRANDIS-US

Customers

SK ENERGY CO., LTD.(110111-3710385)

KP CHEMICAL CORP.(230111-0082112)

SKC LTD.(130111-0001585)

TAEKWANG INDUSTRIAL CO., LTD.(110111-0185276)

HANWHA  E&C CO., LTD.(110111-2558405)

HYUNDAI ENGINEERING & CONSTRUCTION CO., LTD.(110111-0007909)

KOLON CHEMICAL CO., LTD.(110111-0191405)

S-OIL CORPORATION(110111-0189955)

KOREA WESTERN POWER CO., LTD(110111-2207177)

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

KOREA MIDLAND POWER CO., LTD.(110111-2207193)

KOREA EAST-WEST POWER CO., LTD.(110111-2207151)

SAMSUNG PETROCHEMICAL CO., LTD.(181211-0000435)

KOREA HYDRO & NUCLEAR POWER CO., LTD.(110111-2207127)

 

MITSUBISHI HEAVY INDUSTRIES-JAPAN

JORD INTERNATIONAL ENGINEERING-AUSTRALIA

FLUOR DANIEL

JACOBS

TECHNIMONT

Competitors

DAEKYUNG MACHINERY & ENGINEERING CO. LTD

125-2 BUHGOK-DONG NAM-GU ULSAN-SI, 608-110 KOREA

TEL:+82-52-2789000 FAX:+82-52-2739898

 

BUMWOO ENG CO., LTD.

165-2 JANGJI-RI GUNBUK-MYEON HAMAN-GUN GYEONGSANGNAM-DO, 637-824 KOREA

TEL:+82-55-5853800 FAX:+82-55-5853805

 

KYUNGDONG NAVIEN CO., LTD.

437, SEHGYO-DONG PYUNGTAEK-SI, GYEONGGI-DO, 450-818 KOREA

TEL:+82-31-6591144 FAX:+82-31-6591111

 

KOREA INSTITUTE OF MACHINERY AND METALS

KPC CORPORATION(170111-0019605)

HYNDAI TITANIUM(110111-1115488)

ALL MAT CO., LTD.(135511-0129780)

 

COEK-BELGIUM

HITACHI-JAPAN

MITSUBISHI-JAPAN

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Joint Venture

TSM ARABIA(SAUDI ARABIA) : JV with SSP(SAUDI STEEL PIPE CO., LTD.)

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD(110111-0013328)

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

HYUNDAI MARINE & FIRE INSURANCECO., LTD.(110111-0035893)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2013

2012

2011

Export

114,686

232,096

122,990

Domestic

88,935

92,267

186,718

Total

203,621

324,363

309,708

The Subject imports from Japan, UK & USA, and exports to USA, Middle East, Mexico and Europe.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 60.32

UK Pound

1

Rs. 100.03

Euro

1

Rs. 82.65

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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.