MIRA INFORM REPORT

 

 

Report Date :

26.09.2014

 

IDENTIFICATION DETAILS

 

Name :

KOREA GORBEL CRANES INC.

 

 

Registered Office :

16, Baekbeom-ro 630beon-gil, Seo-gu, Incheon, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

21.08.1985

 

 

Com. Reg. No.:

122-81-33004

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of other work trucks, lifting and handling equipment

 

 

No. of Employees :

160

 

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 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

 

 

 

 

Company name and address

 

Basic

 

Company Name

KG INC.

(English Company Name : KOREA GORBEL CRANES INC.)

(Korean Company Name : “한국고벨(주)”)

Registered Address

16, Baekbeom-ro 630beon-gil, Seo-gu, Incheon, Korea

Building

 

Zip Code

404-817

Tel

+82-32-583-6671

Fax

+82-32-583-6453

E-mail

overseas@kgcrane.com

Website

www.kgcrane.com

Trading Address

16, Baekbeom-ro 630beon-gil, Seo-gu, Incheon, Korea

(Old Address System : 482-1, Gajwa 3-dong, Seo-gu, Incheon, Korea)

Tel

+82-32-583-6671

Fax

+82-32-583-6453

Other Address-Mokpo 1 Factory

311, Dodeok-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-62-943-8430

Fax

+82-62-943-9849

Other Address-Mokpo 2 Factory

1708-4, Nanjeon-ri, Samho-eup, Yeongam-gun, Jeollanam-do, Korea

Tel

+82-61-464-8430

Fax

+82-61-464-0008

Other Address-Gimpo Factory

448-187, Hagun-ri, Yangchon-myeon, Gimpo-si, Gyeonggi-do, Korea

Tel

+82-31-988-6411

Fax

+82-31-988-6415

Type

Export/Import

Industry

Manufacture of Other Work trucks, Lifting and Handling Equipment

  Main Business

Wire Hoist, Chain Hoist, Mini Hoist, Jib Crane, Overhead Crane, DB Hoist

  Sub Business

 

Established (mm/dd/yyyy)

08/21/1985

The Subject owns the premises of registered HQ address.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Lifting equipment and accessories(24101600)

Sell

Hoists(24101602)

Sell

Cans and pails(24112200)

Sell

Motors(26101600)

Sell

Gear units(26111524)

 

 

 

CEO’s

 

Name

Jang Ho-Sung

Address

Suite 105-1708, 452-22, Ssangchon-dong, Seo-gu, Gwangju, Korea

Date of Birth

02/23/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

3,605,000,000

Employees

160

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Cheongchun Dong Branch

Hana Bank

Citibank, Korea

Korea Development Bank-Mokpo Branch

Korea Exchange Bank-Juan Industrial Complex Branch

Kookmin Bank-Guwol Dong Branch

Corporate Registered No.

120111-0019621

Business Registered No.

122-81-33004

Permit & Licenses

06/30/2003 CSA

06/30/2003 UL Mark

 

Int’l Trade No.: 14051029

Shareholder Position

Name

Shares

%

JANG HO-SUNG

137,989

38.28

CHA HEE-SOOK

118,000

32.73

JANG HWAN-SUN

77,509

21.50

TREASURY STOCK

27,002

7.49

TOTAL

360,500

100.00

Company History

08/21/1985 Incorporated as DAEHA CO., LTD.

01/01/1991 Changed company name to HANKUK GEAR CO., LTD.

07/19/2002 Changed company name to KOREA HOIST CO., LTD.

10/31/2002 Moved to the present HQ address from 180-9, Cheongcheon-dong, Bupyeong-gu, Incheon, Korea

04/07/2003 Increased the authorized shares to 400,000 shares from 20,000 shares

04/09/2003 Changed company name to BANDO JONGKONG CO., LTD.

06/20/2005 Changed company name to the present name

12/19/2007 Increased capital to 3,305,000,000 KRW from 2,305,000,000 KRW

12/31/2007 Increased capital to 3,605,000,000 KRW from 3,305,000,000 KRW

12/31/2007 Acquired Korea Crane Co., Ltd.

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Jang Ho-Sung

Male

Korean

03/26/2003

Director

M/S.

Cha Hee-Sook

Female

Korean

03/26/2003

Director

Mr.

Jang Ho-Cheol

Male

Korean

06/10/2010

Auditor

M/S.

Kim Mi-Ja

Female

Korean

03/31/2013

Supervisor

Mr.

Shin Boong-Sub

Male

Korean

10/31/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

68,411,537,530

78,309,192,566

-697,406,800

2012

100,921,790,950

86,605,006,042

1,135,677,033

2011

79,478,741,861

81,240,920,240

977,983,482

2010

66,126,342,296

74,412,326,181

405,438,477

2009

72,699,350,460

68,249,731,346

1,235,421,832

2008

79,057,398,844

70,671,965,528

3,152,069,135

2007

46,300,141,359

44,204,048,663

1,344,432,624

2006

28,678,258,064

25,883,980,802

851,412,475

2005

19,055,840,603

9,257,645,815

801,076,744

 

Financial Description

 

Authorized Capital(KRW)

4,000,000,000

Paid-Up Capital(KRW)

3,605,000,000

Total Issued Shares

360,500

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

78,309,192,566

86,605,006,042

81,240,920,240

Current Assets

54,426,896,523

62,581,456,974

59,586,638,749

-Quick Assets

32,817,818,073

46,223,434,819

43,722,956,885

-Inventories

21,609,078,450

16,358,022,155

15,863,681,864

Fixed Assets

23,882,296,043

24,023,549,068

21,654,281,491

-Investment

4,691,374,211

4,291,756,257

2,106,151,173

-Tangibles

15,591,180,652

16,192,542,154

16,635,953,448

-Intangibles

2,264,786,758

1,433,722,423

1,287,471,164

-Others

1,334,954,422

2,105,528,234

1,624,705,706

Total Liabilities

63,375,679,591

70,863,486,426

66,709,058,139

Current Liabilities

56,432,006,712

68,636,274,370

63,833,283,698

Fixed Liabilities

6,943,672,879

2,227,212,056

2,875,774,441

Capital Stock

3,605,000,000

3,605,000,000

3,605,000,000

Capital Surplus

1,377,157,979

1,377,157,979

1,377,157,979

Profit Surplus

8,756,704,618

9,454,111,418

8,318,434,385

Capital Adjustment

1,194,650,378

1,305,250,219

1,231,269,737

Total Equity

14,933,512,975

15,741,519,616

14,531,862,101

Liab. & Shareholder’s Equity

78,309,192,566

86,605,006,042

81,240,920,240

 

Current Liabilities

56,432,006,712

68,636,274,370

63,833,283,698

Trade Payables

28,085,457,127

38,302,594,782

32,143,295,354

Account Payables

1,338,225,807

1,732,045,061

1,555,400,488

Withholdings

64,266,042

52,303,373

53,397,768

VAT Withhold

 

 

264,390,243

Guarantee Deposit Withhold

266,070,000

266,070,000

296,070,000

Advance Receipts

1,916,514,794

421,834,614

3,035,734,989

Short-Term Borrowings

22,112,500,000

26,670,000,000

25,040,000,000

Accrued Expenses

735,639,609

591,426,540

578,334,856

Current Portion of Long-Term Debts

1,913,333,333

600,000,000

866,660,000

Fixed Liabilities

6,943,672,879

2,227,212,056

2,875,774,441

Long-Term Borrowings

6,536,666,667

2,115,000,000

2,715,000,000

Provision for Severance & Retirement

2,243,222,327

2,164,832,695

1,979,809,513

Convertible Bonds

50,000,000

50,000,000

50,000,000

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

68,411,537,530

100,921,790,950

79,478,741,861

Cost of Sold Goods

60,197,952,148

89,574,709,296

70,837,214,073

Gross Profit

8,213,585,382

11,347,081,654

8,641,527,788

Selling & Admin. Expenses

7,933,633,924

7,893,006,943

6,857,107,581

Operating Income

279,951,458

3,454,074,711

1,784,420,207

Non-Operating Income

1,645,387,157

1,203,314,356

2,352,469,710

Non-Operating Expenses

2,622,745,415

3,521,712,034

3,158,906,435

Income Before Taxes

-697,406,800

1,135,677,033

977,983,482

Income Taxes Expenses

 

0

0

Net Income

-697,406,800

1,135,677,033

977,983,482

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

-4,512,655,978

39,991,261

-514,661,402

-Net Income

-697,406,800

1,135,677,033

977,983,482

-Exp. without Cash Outflow

3,718,440,022

2,094,558,638

2,223,943,454

-Revenue without Cash Inflows

-537,870,032

-23,743,839

-596,914,331

-Changes in Asset/ & Liability

-6,995,819,168

-3,166,500,571

-3,119,674,007

Cash Flows from Investing

333,881,367

-672,385,271

-1,520,534,878

-Cash Inflow from Investing

6,182,676,894

10,737,502,125

10,208,416,358

-Cash Outflows for Investing

-5,848,795,527

-11,409,887,396

-11,728,951,236

Cash Flows from Financing

1,177,500,000

763,340,000

1,665,010,000

-Cash Inflows from Financing

11,570,000,000

12,210,000,000

6,590,000,000

-Cash Outflows from Financing

-10,392,500,000

-11,446,660,000

-4,924,990,000

Increase/Decrease in Cash

-3,001,274,611

130,945,990

-370,186,280

Cash at the Beginning of Year

4,230,857,301

4,099,911,311

4,470,097,591

Cash at the End of Year

1,229,582,690

4,230,857,301

4,099,911,311

 

Products, Technologies, Services Description

 

Main Products & Services

Hoist/Crab

Crane

Crane Attachment

Crane Components

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

KUMKWANG ENGINEERING & CONSTRUCTION CO., LTD.(200111-0000467)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD.(194211-0000943)

DOOSAN MECATEC CO., LTD.(110111-0126022)

Competitors

BANDO HOIST CRANE CO., LTD.

652-4, SOCHON-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-942-6611  FAX:+82-62-941-0054

 

DAESUNG CRANE & HEAVY INDUSTRIES CO., LTD.

680-16, NAEGI-RI, POSEUNG-EUP, PYEONGTAEK-SI, GYEONGGI-DO, KOREA

TEL:+82-31-432-3550  FAX:+82-31-432-3552

 

HYUNDAI HOIST CO., LTD.

408-5, HANJIN-RI, SONGAK-MYEON, DANGJIN-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-359-7777  FAX:+82-41-359-7782

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

BJ TECH CO., LTD.(KOREA)

SAMHWA TECH CO., LTD.(200111-0314785)

Overseas Office

PT. KG INDONESIA

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

JING JIANG KG INC(CHINA)

(100.0% held by the subject company)

 

HANKOOK TOWER CRANE CO., LTD.(VIETNAM)

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Japan, and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.99.42

Euro

1

Rs.77.84

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.