MIRA INFORM REPORT

 

 

Report Date :

03.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

TATA DAEWOO COMMERCIAL VEHICLE CO., LTD.

 

 

Registered Office :

172, Dongjangsan-ro, Gunsan-si, Jeollabuk-do, Korea 573-715

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.11.2002

 

 

Com. Reg. No.:

401-81-22865

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Motor Vehicles for the Transport of Goods and Special Purpose

 

 

No. of Employees :

1,135

 

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 :

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

KOREA (SOUTH) - 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

 

Company Name

TATA DAEWOO COMMERCIAL VEHICLE CO., LTD.

(Korean Company Name : “타타대우상용차(주)”)

Registered Address

172, Dongjangsan-ro, Gunsan-si, Jeollabuk-do, Korea

Zip Code

573-715

Tel

+82-63-469-3114

Fax

+82-63-469-3179

E-mail

cjkwak@tata-daewoo.com; hkhim3@tata-daewoo.com

Website

www.tata-daewoo.com

Trading Address

172, Dongjangsan-ro, Gunsan-si, Jeollabuk-do, Korea

(Old Address System : 1589-1, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea)

Tel

+82-63-469-3114

Fax

+82-63-469-3029

Type

Export/Import

Industry

Manufacture of Motor Vehicles for the Transport of Goods and Special Purpose

  Main Business

Heavy Truck, Medium Truck, Truck Parts

Established (mm/dd/yyyy)

11/01/2002

The Subject Company owns the premises of registered HQ address/Factory(488,713.30).

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Dump trucks(25101601)

Sell

Cargo trucks(25101611)

Sell

Product and material transport vehicles(25101600)

Sell

Truck tractors(25102100)

 

CEO’s

 

Name

Kim Kwan-Kyu

Address

Suite 20-211, 212, Samseong-ro, Gangnam-gu, Seoul, Korea

Date of Birth

10/19/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

15,080,300,000

Employees

1,135

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation by India

Bank Details

Korea Exchange Bank

S.C. First Bank of Korea

Citi Bank, Korea

Kookmin Bank

Corporate Registered No.

211111-0015819

Business Registered No.

401-81-22865

Permit & Licenses

10/1996 ISO 9001

10/1997 ISO 14001

 

Int’l Trade No.: 45056806

Shareholder Position

Name

Shares

%

TML HOLDINGS PTE LIMITED

3,016,060

100.00

TOTAL

3,016,060

100.00

Company History

11/01/2002 Incorporated as Daewoo Commercial Vehicle Co., Ltd., after spin-off from Daewoo Motor Company

03/29/2004 Acquired by Tata Motors Limited-India

03/30/2004 Decreased capital to 15,080,300,000 from 87,768,665,000 KRW

05/29/2004 Changed company name to the present name from Daewoo Commercial Vehicle Co., Ltd.

05/06/2004 Completed Corporate Clearing procedure

05/29/2004 Changed financial closing date from 12/31 to 03/31.

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Kwan-Kyu

Male

Korean

10/22/2012

Chairman

Mr.

Chandrasekaran Ramacrishinan

Male

India

07/23/2009

Director

Mr.

Rabintra Pisharodi

Male

India

07/27/2012

Director

Mr.

Satisibal Crishina Borwanka

Male

India

07/27/2012

Auditor

Mr.

Nageshipinge

Male

India

11/12/2009

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2014

884,079,249,405

564,070,026,941

23,502,901,759

03/2013

823,915,559,432

591,372,133,664

-9,205,468,127

03/2012

763,468,338,475

560,157,443,988

2,030,187,119

03/2011

726,665,517,881

532,243,862,909

16,066,091,375

 

Financial Description

 

Authorized Capital(KRW)

350,000,000,000

Paid-Up Capital(KRW)

15,080,300,000

Total Issued Shares

3,016,060

 


Balance Sheet

 

Unit : Korean Won

As of 03/31/2014

As of 03/31/2013

As of 03/31/2012

Total Assets

564,070,026,941

591,372,133,664

560,157,443,988

Current Assets

321,048,739,620

334,565,419,246

306,817,745,173

-Quick Assets

171,296,789,142

176,017,892,078

127,271,628,208

-Inventories

149,751,950,478

158,547,527,168

179,546,116,965

Fixed Assets

243,021,287,321

256,806,714,418

253,339,698,815

-Investment

3,780,625,055

3,245,422,756

4,199,525,022

-Tangibles

205,783,023,738

215,072,678,483

210,798,276,569

-Intangibles

27,925,350,558

30,689,155,534

30,819,366,073

-Others

5,532,287,970

7,799,457,645

7,522,531,151

Total Liabilities

273,056,838,586

323,886,630,320

283,466,472,517

Current Liabilities

246,387,135,784

274,273,886,062

214,514,718,628

Fixed Liabilities

26,669,702,802

49,612,744,258

68,951,753,889

Capital Stock

15,080,300,000

15,080,300,000

15,080,300,000

Capital Surplus

143,403,772,201

143,403,772,201

143,403,772,201

Profit Surplus

132,371,095,954

108,868,194,195

118,073,662,322

Capital Adjustment

158,020,200

133,236,948

133,236,948

Total Equity

291,013,188,355

267,485,503,344

276,690,971,471

Liab. & Shareholder’s Equity

564,070,026,941

591,372,133,664

560,157,443,988

 

Current Liabilities

246,387,135,784

274,273,886,062

214,514,718,628

Short-Term Borrowings

30,000,000,000

50,000,000,000

60,000,000,000

Trade Payables

144,261,799,582

160,467,678,685

101,340,318,672

Account Payables

18,325,306,568

22,188,610,104

21,491,692,029

Advance Receipts

2,781,189,380

6,387,493,369

5,735,447,494

Withholdings

1,421,151,197

1,140,084,551

1,797,300,001

Accrued Expenses

34,372,690,955

27,780,623,094

10,449,964,298

Accrued Income Tax

5,221,680,090

657,358,883

3,585,051,744

Current Portion of Long-Term Debts

10,000,000,000

5,000,000,000

10,000,000,000

Derivatives

3,318,012

652,037,376

114,944,390

Fixed Liabilities

26,669,702,802

49,612,744,258

68,951,753,889

Long-Term Borrowings

-

10,000,000,000

20,000,000,000

Long-Term Withholdings

36,000,000

36,000,000

36,000,000

Long-Term Account Payables

1,437,530,000

87,530,000

45,760,000

Provision for Severance & Retirement

32,561,986,880

26,532,756,150

36,564,646,990

Provision for Sales Guarantee

15,963,626,494

13,192,339,808

12,652,055,899

 

 


Income Statement

 

Unit : Korean Won

As of 03/31/2014

As of 03/31/2013

As of 03/31/2012

Sales

884,079,249,405

823,915,559,432

763,468,338,475

Cost of Sold Goods

748,534,046,795

730,677,864,315

670,803,077,426

Gross Profit

135,545,202,610

93,237,695,117

92,665,261,049

Selling & Admin. Expenses

103,581,863,016

97,002,532,444

87,615,314,521

Operating Income

31,963,339,594

-3,764,837,327

5,049,946,528

Non-Operating Income

8,414,433,665

6,842,575,469

9,911,082,985

Non-Operating Expenses

9,856,166,670

13,519,896,637

8,535,721,405

Income Before Taxes

30,521,606,589

-10,442,158,495

6,425,308,108

Income Taxes Expenses

7,018,704,830

-1,236,690,368

4,395,120,989

Net Income

23,502,901,759

-9,205,468,127

2,030,187,119

 

 

Cash Flows

 

Unit : Korean Won

As of 03/31/2014

As of 03/31/2013

As of 03/31/2012

Cash Flows from Operating

7,256,817,437

104,186,390,234

164,006,730

-Net Income

23,502,901,759

-9,205,468,127

2,030,187,119

-Exp. without Cash Outflow

53,299,516,280

51,464,518,720

42,976,718,784

-Revenue without Cash Inflows

-3,639,090,412

-1,787,957,028

-1,037,077,908

-Changes in Asset/ & Liability

-65,906,510,190

63,715,296,669

-43,805,821,265

Cash Flows from Investing

-16,917,358,162

-34,108,998,735

-1,496,630,458

-Cash Inflow from Investing

4,634,918,631

4,033,900,909

19,302,519,728

-Cash Outflows for Investing

-21,552,276,793

-38,142,899,644

-20,799,150,186

Cash Flows from Financing

-25,000,000,000

-25,000,000,000

20,721,895,000

-Cash Inflows from Financing

-

67,000,000,000

70,000,000,000

-Cash Outflows from Financing

-25,000,000,000

-92,000,000,000

-49,278,105,000

Increase/Decrease in Cash

-34,660,540,725

45,077,391,499

19,389,271,272

Cash at the Beginning of Year

100,618,684,064

55,541,292,565

36,152,021,293

Cash at the End of Year

65,958,143,339

100,618,684,064

55,541,292,565

 

Products, Technologies, Services Description

 

Main Products & Services

Medium Sized Truck

Cargo Truck

Tractor Truck

Dump & Mixer Truck

CNG Refuse Truck

Special Purpose Truck

 

Trade Partners & Competitors

 

Customers

TATA MOTORS LIMITED

HV AXLES LIMITED

TATA CUMMINS LIMITED

Competitors

HYUNDAI MOTOR COMPANY(110111-0085450)

231, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3464-1114  FAX:+82-2-3464-3469

 

KIA MOTORS CORPORATION(110111-0037998)

231, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3464-1114  FAX:+82-2-3464-6800

 

RETECH CO., LTD.

I-2-1-1B, DAEDEOK TECHNO VALLEY, 699, TAMNIP-DONG, YUSEONG-GU, DAEJEON, KOREA

TEL:+82-42-933-9101  FAX:+82-42-933-9105

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TATA MOTORS LIMITED

TATA TECHNOLOGY LIMITED

HV AXLES LIMITED

TATA TECHNOLOGIES LTD.-THAILAND

TATA SONS LIMITED

TML DRIVELINES LTD.

TATA MOTORS (SA)(PTY) LTD.

Subsidiary

DAEWOO MOTOR SALES CORPORATION(120111-0005414)

(100.0% held by the subject company)

Corporate Ownership

TATA MOTORS LIMITED

TML HOLDINGS PTE LIMITED

Major Shareholders

TML HOLDINGS PTE LIMITED

Cooperative Enterprise

- Domestic Sales Agent

DAEWOO MOTOR SALES CORPORATION(120111-0005414)

 

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

Sales by Region (Activity & Markets)

 

The subject exports to South Africa, and Middle East and India.

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Supreme Court of Korea

Kwon Joong-Hee

The Subject Company

Claim for Compensation from Damages

10,000,000

3rd round is proceeding

 

Seoul High Court, Korea

Employee

The Subject Company

Salaries

17,243,044,051

2nd round is proceeding

 

Seoul District Court, Korea

Tae Won-Sung & Others(1435)

The Subject Company

Claim for Compensation from Damages

1,435,000,000

1st round is proceeding

 

Seoul District Court, Korea

Gimpo Construction Heavy Equipment & Others(30)

The Subject Company

Claim for Compensation from Damages

147,000,000

1st round is proceeding

 

Jeonju District Court, Korea

Jung Chang-Kyun

The Subject Company

Receivables

20,000,100

1st round is proceeding

 

 

News Clipping

 

--

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.61

UK Pound

1

Rs.100.48

Euro

1

Rs.79.56

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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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