MIRA INFORM REPORT

 

 

Report Date :

19.08.2014  

 

IDENTIFICATION DETAILS

 

Name :

LIFTEC CORPORATION

 

 

Registered Office :

812, Daewangpangyo-ro, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea 2nd Fl., Pos Bldg. 461-370

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

04.12.1997

 

 

Com. Reg. No.:

135-81-25403

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Elevators

 

 

No. of Employees

31

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

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 :

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

 

Source : CIA

 

 

 

Basic Information

 

Basic

 

Company Name

LIFTEC CORPORATION

(Korean Company Name : “(주)리프텍”)

Registered Address

812, Daewangpangyo-ro, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea

Building

2nd Fl., Pos Bldg.

Zip Code

461-370

Tel

+82-31-322-3000

Fax

+82-31-322-3010

E-mail

sales@liftec.co.kr

Website

www.liftec.co.kr

Trading Address

2nd Fl., Pos Bldg., 812, Daewangpangyo-ro, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea

(Old Address System : 2nd Fl., Pos Bldg., 280-4, Siheung-dong, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea)

Tel

+82-31-755-3002

Fax

+82-31-322-3010

Other Address

Rm.202, 42-5, Haeun-daero 143beon-gil, Haeundae-gu, Busan, Korea

Tel

 

Fax

 

Type

Export

Industry

Manufacture of Elevators

  Main Business

Lift, Work Platform, Tower Crane, Batch Plant

  Sub Business

Installation of Machinery Equipment for Building

Established (mm/dd/yyyy)

12/04/1997

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Lifts(24101604)

Sell

Aerial lifts(22101800)

Sell

Doors(30171500)

 

CEO’s

 

Name

Ryu Kyung-Nam

Address

Suite 207-1203, 15, Hanteo-ro 152beon-gil, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea

Date of Birth

08/05/1962

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

2,334,565,000

Employees

31

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Woori Bank

Industrialo Bank of Korea

Corporate Registered No.

134511-0025955

Business Registered No.

135-81-25403

Permit & Licenses

08/2002 ISO 9001

12/2010 ISO 14001

 

Int’l Trade No.: 11594464

Shareholder Position

Name

Shares

%

RYU KYUNG-NAM

268,175

57.44

SEO JA-RYONG

65,100

13.94

MIRAE ASSETS GOOD COMPANIES INVESTMENT ASSOCIATION 2

57,274

12.27

LG CHINA FUND 1

76,364

16.36

TOTAL

466,913

100.00

Company History

11/01/1991 Established as DONG WOO CO.(Sole Proprietorship)

12/04/1997 Incorporated as DONG WOO PRECISION CO., LTD.

03/15/2000 Changed company name to the present name

03/30/2011 Increased the authorized shares to 2,000,000 shares from 560,000 shares

05/2011 Designated as an INNO-BIZ Company

07/20/2011 Increased capital to 2,334,565,000 KRW from 1,825,470,000 KRW

09/22/2011 Designated a Venture Business

03/30/2012 Moved to the present HQ address from 248-8, Siheung-dong, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea

09/26/2013 Designated a Venture Business again

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Ryu Kyung-Nam

Male

Korean

03/25/2003

Director

Mr.

Seo Ja-Ryong

Male

Korean

03/31/2006

Director

M/S.

Jeon Young-Boon

Female

Korean

03/31/2012

Auditor

Mr.

You Wan-Sun

Male

Korean

04/10/2014

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

12,295,594,585

20,608,471,255

200,332,343

2012

11,070,358,333

19,780,271,537

-2,967,857,557

2011

19,299,757,193

21,701,796,014

500,621,512

2010

15,411,409,335

20,349,072,192

851,384,615

2009

17,526,958,551

18,177,761,118

335,030,354

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

2,334,565,000

Total Issued Shares

466,913 (Common : 365,094 / Preferable :101,819)

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

20,608,471,255

19,780,271,537

21,701,796,014

Current Assets

9,853,043,500

7,994,432,223

9,751,529,880

-Quick Assets

8,674,142,973

7,821,342,223

9,416,879,880

-Inventories

1,178,900,527

173,090,000

334,650,000

Fixed Assets

10,755,427,755

11,785,839,314

11,950,266,134

-Investment

6,013,898,528

6,095,831,782

6,156,230,553

-Tangibles

4,431,556,864

5,287,904,408

5,699,341,696

-Intangibles

15,522,363

22,153,124

28,783,885

-Others

294,450,000

379,950,000

65,910,000

Total Liabilities

13,694,592,026

13,157,315,605

11,592,201,208

Current Liabilities

12,821,765,586

11,369,701,876

10,855,899,876

Fixed Liabilities

872,826,440

1,787,613,729

736,301,332

Capital Stock

2,334,565,000

2,334,565,000

2,334,565,000

Capital Surplus

2,782,907,952

2,782,907,952

2,782,907,952

Profit Surplus

2,547,342,620

2,352,101,227

5,337,873,634

Capital Adjustment

-750,936,343

-846,618,247

-345,751,780

Total Equity

6,913,879,229

6,622,955,932

10,109,594,806

Liab. & Shareholder’s Equity

20,608,471,255

19,780,271,537

21,701,796,014

 

Current Liabilities

12,821,765,586

11,369,701,876

10,855,899,876

Trade Payables

3,298,207,688

1,382,507,981

1,227,797,587

Account Payables

880,080,445

660,001,676

1,344,544,300

Advance Receipts

335,483,706

798,529,758

821,610,558

Withholdings

16,235,140

25,654,080

40,266,260

Accrued Expenses

167,447,167

102,643,130

14,934,271

Accrued Dividends

9,397,920

4,306,970

-

Interests Rate Swap

-

13,739,351

-

Short-Term Borrowings

7,633,444,798

7,573,914,829

7,022,289,511

Lease Deferred Profits

136,177,076

102,002,817

61,321,389

Current Portion of Long-Term Debts

345,291,646

706,401,284

323,136,000

Fixed Liabilities

872,826,440

1,787,613,729

736,301,332

Long-Term Borrowings

-

229,146,673

208,300,000

Lease Deferred Profits

194,381,412

393,211,296

198,783,502

Finance Lease Debts

448,176,539

882,347,913

-

Provision for Severance & Retirement

403,960,155

440,232,498

407,767,068

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

12,295,594,585

11,070,358,333

19,299,757,193

Cost of Sold Goods

9,653,192,724

8,822,683,954

13,448,629,910

Gross Profit

2,642,401,861

2,247,674,379

5,851,127,283

Selling & Admin. Expenses

2,160,553,468

3,850,332,925

5,058,859,112

Operating Income

481,848,393

-1,602,658,546

792,268,171

Non-Operating Income

687,338,669

565,817,210

1,029,531,990

Non-Operating Expenses

934,105,249

2,011,352,656

1,188,531,084

Income Before Taxes

235,081,813

-3,048,193,992

633,269,077

Income Taxes Expenses

34,749,470

-80,336,435

132,647,565

Net Income

200,332,343

-2,967,857,557

500,621,512

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

3,715,941,129

-64,574,635

-951,337,483

-Net Income

200,332,343

-2,967,857,557

500,621,512

-Exp. without Cash Outflow

2,254,289,513

3,283,368,462

3,079,462,029

-Revenue without Cash Inflows

-500,857,567

-368,547,825

-256,831,304

-Changes in Asset/ & Liability

1,762,176,840

-11,537,715

-4,274,589,720

Cash Flows from Investing

-2,869,313,905

-2,046,450,194

-868,731,387

-Cash Inflow from Investing

967,954,254

490,945,426

3,343,197,519

-Cash Outflows for Investing

-3,837,268,159

-2,537,395,620

-4,211,928,906

Cash Flows from Financing

-765,459,819

1,746,204,918

1,712,632,162

-Cash Inflows from Financing

1,668,881,700

12,525,871,764

7,825,946,871

-Cash Outflows from Financing

-2,434,341,519

-10,779,666,846

-6,113,314,709

Increase/Decrease in Cash

81,167,405

-364,819,911

-107,436,708

Cash at the Beginning of Year

92,833,801

457,653,712

565,090,420

Cash at the End of Year

174,001,206

92,833,801

457,653,712

 

Products, Technologies, Services Description

 

Main Products & Services

Lift, Work Platform, Tower Crane, Batch Plant

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

SOOSAN HEAVY INDUSTRIES CO., LTD.

109-2, SONGSAN-RI, YANGGAM-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-352-7733  FAX:+82-31-350-5290

 

JEIL CRANE CO., LTD.

1042-1, YONGTAN-DONG, CHUNGJU-SI, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-853-1114  FAX:+82-43-853-8572

 

SEWON CRANE CO., LTD.

132-2, YUSAN-RI, HOBEOP-MYEON, ICHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-2-2637-8585  FAX:+82-2-2637-8289

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

MKTEC CO., LTD.(KOREA)

LIFTEC GLOBAL CO., LTD.(131111-0184984)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

LIFTEC MAL SDN.BHD

(100.0% held by the subject company)

 

LIFTEC E&C INDIA PVT. LTD.

(99.98% held by the subject company)

 

HAN LIFTEC LLC

(100.0% held by the subject company)

 

LIFTEC CAMBODIA CO., LTD.

(100.0% held by the subject company)

 

LIFTEC VIETNAM CO., LTD.

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2013

2012

2011

Export

 

 

 

Domestic

 

 

 

The Subject deals with the companies in Vietnam, Malaysia, Cambodia, Dubai, Uzbekistan and India.

 

Court Action

 

Case No.

 

Court

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

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

Cause

Amount (KRW)

Status

2014DA 3948

Supreme Court, Korea

-

The Subject Company

Fees of Equipment Lease

57,750,000

The Subject was defeated in 2nd round, and 3rd round is proceeding.

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.06

UK Pound

1

Rs.101.84

Euro

1

Rs.81.56

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.