MIRA INFORM REPORT

 

 

Report No. :

353082

Report Date :

10.12.2015

 

IDENTIFICATION DETAILS

 

Name :

ACE TRACK CO., LTD.

 

 

Registered Office :

41, Hwadangsan-Ro, Chukdong-Myeon, Sacheon-Si, Gyeongsangnam-Do, Korea 52509

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

11.01.2011

 

 

Com. Reg. No.:

613-81-59209

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Civil Engineering and Similar Machine Equipment.

 

 

No. of Employees :

65

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 

 

Basic Information

 

Company Name

ACE TRACK CO., LTD.

Registered Address

41, Hwadangsan-ro, Chukdong-myeon, Sacheon-si, Gyeongsangnam-do, Korea

Building

 

Zip Code

52509

Tel

+82-55-850-8005

Fax

+82-55-855-0062

E-mail

acetrackcoltd@gmail.com

Website

www.acetrack.co.kr

Trading Address

41, Hwadangsan-ro, Chukdong-myeon, Sacheon-si, Gyeongsangnam-do, Korea

(Old Address System : 272, Gasan-ri, Chukdong-myeon, Sacheon-si, Gyeongsangnam-do, Korea)

Tel

+82-55-850-8005

Fax

+82-55-855-0062

Other Address

31, Keundeul-ro, Jinju-si, Gyeongsangnam-do, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Civil Engineering and Similar Machine Equipment

  Main Business

Track Link, Heavy Equipment Components

  Sub Business

 

Established (mm/dd/yyyy)

01/11/2011

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Heavy equipment components(22101700)

Sell

Engine components and accessories(26101700)

 

 

CEO’s

 

Name

Cho Su-An

Address

Suite 202-801, 1637-1, Chojeon-dong, Jinju-si, Gyeongsangnam-do, Korea

Date of Birth

12/07/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,019,620,000

Employees

65

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Kookmin Bank

Industrial Bank of Korea

Corporate Registered No.

1954110-020532

Business Registered No.

613-81-59209

Permit & Licenses

07/31/2012 ISO 9001

07/11/2012 ISO 14001

 

Int’l Trade No.: 30695779

Shareholder Position

Name

Shares

%

CHO SU-AN

211,111

31.67

MOON YOUNG-SIK

171,387

25.71

LEE SU-DUCK

55,556

8.33

KIM BONG-SOO

33,334

5.00

KIM SOON-KON

33,334

5.00

MOON SEUNG-JIN

17,500

2.62

CHOI MYUNG-MIN

11,112

1.67

KDBC BIO MEDICAL NEW GROWTH INVESTMENT FUND

133,333

20.00

TOTAL

666,667

100.00

(*)The list is based as of 12/31/2014.

Company History

01/11/2011 Incorporated as the present name

04/20/2011 Designated as a Venture Business

09/07/20111 Moved to the present HQ address from San 64-4, Gasan-ri, Chukdong-myeon, Sacheon-si, Gyeongsangnam-do, Korea

09/07/2011 Increased the authorized shares to 1,000,000 shares from 280,000 shares

05/10/2012 Increased capital to 5,000,000,000 KRW from 4,650,000,000 KRW

03/30/2013 Increased capital to 6,666,670,000 KRW from 5,333,340,000 KRW

04/20/2013 Designated as a Venture Business

09/03/2014 Applied for Corporate Reviving Procedure to Changwon District Court

09/30/2014 Decided to start Corporate Reviving Procedure(2014HOIHAP1063) by the order of Changwon District Court

06/01/2015 Approved of Corporate Reviving Plan(2014HOIHAP1063) by Changwon District Court

06/01/2015 Decreased capital to 95,200,000 KRW from 6,666,670,000 KRW

06/02/2015 Increased capital to 3,019,620,000 KRW from 95,200,000 KRW

 

 


 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO / Trustee

Mr.

Cho Su-An

Male

Korean

03/08/2011

Director

Mr.

Moon Seung-Jin

Male

Korean

03/24/2014

Director

Mr.

Kim Kil-Seok

Male

Korean

03/24/2014

Auditor

Mr.

Shin Jung-Sik

Male

Korean

06/10/2015

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

36,023,994,499

35,212,333,671

-23,867,105,023

2013

62,434,799,611

48,107,612,636

-1,204,737,550

2012

69,583,528,004

58,981,279,901

2,047,954,242

2011

28,952,700,000

39,504,000,000

701,500,000

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

3,019,620,000

Total Issued Shares

301,962(Common : 300,058 / Preferable : 1,904)

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

35,212,333,671

48,107,612,636

58,981,279,901

Current Assets

15,732,280,949

28,900,411,541

38,002,616,919

-Quick Assets

7,479,656,533

9,723,034,377

20,856,941,190

-Inventories

8,252,624,416

19,177,377,164

17,145,675,729

Fixed Assets

19,480,052,722

19,207,201,095

20,978,662,982

-Investment

214,225,122

852,412,337

1,827,920,000

-Tangibles

18,865,938,151

17,783,192,687

18,846,974,661

-Intangibles

137,993,929

273,264,551

57,964,401

-Others

261,895,520

298,331,520

245,803,920

Total Liabilities

47,061,224,429

36,089,398,371

49,630,158,506

Current Liabilities

46,700,734,828

31,093,115,361

39,721,609,682

Fixed Liabilities

360,489,601

4,996,283,010

9,908,548,824

Capital Stock

6,666,670,000

6,666,670,000

5,333,340,000

Capital Surplus

3,850,561,740

3,850,561,740

1,312,061,320

Profit Surplus

-22,366,122,498

1,500,982,525

2,705,720,075

Capital Adjustment

 

 

 

Total Equity

-11,848,890,758

12,018,214,265

9,351,121,395

Liab. & Shareholder’s Equity

35,212,333,671

48,107,612,636

58,981,279,901

 

Current Liabilities

46,700,734,828

31,093,115,361

39,721,609,682

Trade Payables

10,402,647,515

8,250,523,896

14,778,876,046

Short-Term Borrowings

31,225,676,750

16,379,791,936

21,642,738,694

Current Portion of Long-Term Debts

-

5,028,378,994

1,032,933,863

Account Payables

2,387,453,259

682,993,754

1,658,299,070

Accrued Expenses

2,206,383,144

385,862,910

274,181,301

Withholdings

42,780,200

31,834,390

31,576,130

Advance Receipts

435,793,960

333,729,481

189,557,920

Accrued Income Tax

 

 

113,446,658

Fixed Liabilities

360,489,601

4,996,283,010

9,908,548,824

Long-Term Borrowings

-

4,464,220,000

9,198,860,000

Provision for Severance & Retirement

396,120,290

404,690,850

236,858,430

Long-Term Account Payables

 

 

293,738,994

Guarantee Deposit fro Sales

25,000,000

200,000,000

200,000,000

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

36,023,994,499

62,434,799,611

69,583,528,004

Cost of Sold Goods

41,790,978,793

56,259,665,324

61,444,125,525

Gross Profit

-5,766,984,294

6,175,134,287

8,139,402,479

Selling & Admin. Expenses

14,049,749,317

3,904,816,313

3,880,875,236

Operating Income

-19,816,733,611

2,270,317,974

4,258,527,243

Non-Operating Income

1,125,169,873

705,884,944

1,188,767,174

Non-Operating Expenses

5,211,366,825

4,084,500,216

3,217,604,077

Income Before Taxes

-23,902,930,563

-1,108,297,298

2,229,690,340

Income Taxes Expenses

-35,825,540

96,440,252

181,736,098

Net Income

-23,867,105,023

-1,204,737,550

2,047,954,242

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

-1,349,087,246

3,946,228,902

-16,444,672,449

-Net Income

-23,867,105,023

-1,204,737,550

2,047,954,242

-Exp. without Cash Outflow

3,942,355,219

3,338,498,047

1,862,145,633

-Revenue without Cash Inflows

-60,450,000

-171,206,447

-534,023,869

-Changes in Asset/ & Liability

18,636,112,558

1,983,674,852

-19,820,748,455

Cash Flows from Investing

-3,509,184,336

-1,311,028,550

-4,683,038,495

-Cash Inflow from Investing

3,042,158,416

96,208,000

6,350,000

-Cash Outflows for Investing

-6,551,342,752

-1,407,236,550

-4,689,388,495

Cash Flows from Financing

4,685,890,178

-2,254,575,727

20,846,273,060

-Cash Inflows from Financing

28,194,460,309

47,795,320,889

44,119,255,332

-Cash Outflows from Financing

-23,508,570,131

-50,049,896,616

-23,272,982,272

Increase/Decrease in Cash

-172,381,404

380,624,625

-281,437,884

Cash at the Beginning of Year

398,002,231

17,377,606

298,815,490

Cash at the End of Year

225,620,827

398,002,231

17,377,606

(*)The Subject needs to be monitored because Total Current Liabilities exceed Total Current Assets as much as 39,221,000,000 KRW, Total Liabilities exceed Total Assets as much as 11,849,000,000 KRW and Net Income is (-)23,867,000,000 KRW as of 12/31/2014.

 

 

Products, Technologies, Services Description

 

Main Products & Services

Track Link, Heavy Equipment Components

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

KOREAN HYDRAULIC MACHINERY CO., LTD.

6B-28L, BANWOL INDUSTRIAL COMPLEX, 403-9, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-498-9696  FAX:+82-31-498-4204

 

SAN ENGINEERING CO., LTD.

847-10, NAE-RI, GUJI-MYEON, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-557-4960  FAX:+82-53-557-4962

 

WONWOO ENG CO., LTD.

11-11, GUEO-RI, OEDONG-EUP, GYEONGJU-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-746-8286~8  FAX:+82-54-746-8284

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

RE ONE TRACK CO., LTD.(191111-0048550)

(50.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

2014KAHAP30

Changwon District Court-Jinju Branch

Valuepart Incorporated

The Subject Company

Infringement of Exclusive Sales Rights

-

proceeding

01-04-0000-2903

International Centre For Dispute Resolution in American Arbitration Association

Valuepart Incorporated/Valuepart Europe S.p.A

The Subject Company

Infringement of Exclusive Sales Rights & Brand License

USD 45,000,000

Under Arbitration procedure

 

News Clipping

 

------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.75

UK Pound

1

Rs.100.29

Euro

1

Rs.72.89

KRW

1

Rs.0.057

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

NIT

 

               

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.