MIRA INFORM REPORT

 

 

Report No. :

356368

Report Date :

23.12.2015

 

IDENTIFICATION DETAILS

 

Name :

TAIHAN TEXTILE CO., LTD.

 

 

Registered Office :

17, Gukjegeumyung-ro 2-gil, Yeongdeungpo-gu, Seoul

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

10.08.1953

 

 

Com. Reg. No.:

116-81-33353

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Export/Import Cotton of Spinning, Cotton Yarn, Chemical Yarn, Blended Spun Yarn, Chemical Fabrics

·         Wholesale of Textiles

 

 

No. of Employee :

618

 

 

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 :

Exist

 

 

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)

Korea (South)

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

TAIHAN TEXTILE CO., LTD.

Registered Address

17, Gukjegeumyung-ro 2-gil, Yeongdeungpo-gu, Seoul, Korea

Building

13th Fl., Taihan Bldg.

Zip Code

150-878

Tel

+82-2-368-0114

Fax

+82-2-368-0461~2

E-mail

hoon74@thtc.co.kr

Website

www.thtc.co.kr

Trading Address

13th Fl., Daehan Bldg., 17, Gukjegeumyung-ro 2-gil, Yeongdeungpo-gu, Seoul, Korea

(Old Address System : 13th Fl., Daehan Bldg., 25, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea(P.O.BOX 145))

Tel

+82-2-368-0114

Fax

+82-2-368-0461~2

Other Address-Jeonju Factory

151, Hyojadong 3-ga, Wansan-gu, Jeonju-si, Jeollabuk-do, Korea

Tel

+82-63-222-7121~5

Fax

+82-62-222-1142

Other Address-Daegu Factory

1900, Bisan 7-dong, Seo-gu, Daegu, Korea

Tel

+82-53-720-4400

Fax

+82-53-720-4401

Other Address-Daegu Office

20, Chilseongdong 2-ga, Buk-gu, Daegu, Korea

Tel

+82-53-213-5000

Fax

+82-53-720-4410

Type

Export/Import

Industry

Cotton of Spinning

  Main Business

Cotton Yarn, Chemical Yarn, Blended Spun Yarn, Chemical Fabrics

  Sub Business

Wholesale of Textiles

Established (mm/dd/yyyy)

08/10/1953

The Subject owns the premises of Jeonju Factory (221,124m2), Daegu Factory(49,392m2) and Daegu Office(4,777m2).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Fabrics and leather materials(11160000)

Sell

Knit synthetic fabrics(11161804)

Sell

Specialty fabrics or cloth(11162100)

Sell

Synthetic fabrics(11161800)

Buy

Yarns(11151700)

Buy

Cotton yarn(11151702)

Buy

Polyester yarn(11151703)

Buy

Rayon fibers(11151506)

 

 

CEO’s

 

Name

Sull Bum

Address

 

Date of Birth

03/05/1958

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

5,300,000,000

Employees

618

Formation

Listed Company (Korea Stock Exchange : 001070) as of 12/28/1973

A Company of TAIHAN TEXTILE CO., LTD.

Bank Details

Hana Bank-Gangseo Corporate Branch

Woori Bank

Kookmin Bank

Daegu Bank

Corporate Registered No.

110111-0019350

Business Registered No.

116-81-33353

Permit & Licenses

07/26/2001ISO9002

 

Int’l Trade No.: 673286

Shareholder Position

Name

Shares

%

SULL BUM

158,577

14.96

SULL KYUNG-HWA

14,967

1.41

LIM HEE-SOOK

26,446

2.49

MIN OK-KI

24,162

2.28

SULL WOO-JUNG

24,496

2.31

SULL YOUNG-KI

2,015

0.19

SULL YOUNG-KIL

9,420

0.89

PARK SUCK-KIL

17,250

1.63

PARK TAE-HO

5,950

0.56

SULL JONG-HAK

11,346

1.07

OTHERS

765,371

72.20

TOTAL

1,060,000

100.00

Company History

08/10/1953 Incorporated as the present name

06/1987 Acquired TAIHAN TOTAL DEVELOPMENT CO., LTD.

01/2002 Sold the Subject’s HQ office building to KORAMCO REITS MGT & TRUST CO.,LTD(110111-2359837)

 

 


 

Management

 

Job Description

 

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Sull Bum

Korean

1958.03.05

Yonsei University, Korea

President & CEO

Mr.

Sull Young-Ki

Korean

1964.08.02

Chungang University, Korea

Sr. Executive Director

Mr.

Seok Young-Kil

Korean

1955.03.28

Youngnam University, Korea

Director

Mr.

Kim In-Ho

Korean

1968.09.

Sungsil University, Korea

Outside Director

Mr.

Kim Duck-Cheol

Korean

1963.10.04

Seoul National University, Korea

Auditor

Mr.

Han Joon-Ho

Korean

1971.01.

Yonsei University, Korea

Outside Director

Mr.

Kim Sung-Ho

USA

1954.09.

Sunlin Commercial High, Korea

 

 

Financials

 

Year / Unit : KRW

 

Sales

Assets

Net Income

(*)03/2015

54,860,051,765

388,852,700,216

-651,181,088

(*)2014

234,702,605,279

373,958,935,141

-22,297,067,379

(*)2013

269,900,175,211

271,948,173,408

5,234,287,547

(*)2012

259,438,524,837

259,775,593,331

-9,613,705,730

2011

286,063,131,150

281,588,814,841

-10,934,986,889

2010

288,762,884,386

248,776,849,020

7,451,968,416

2009

261,546,466,653

239,190,313,515

-14,874,895,494

2008

289,017,980,261

260,421,446,851

-13,199,547,723

2007

243,340,902,864

209,507,187,415

-9,927,790,894

2006

244,836,984,723

212,112,362,129

-4,386,600,009

2005

236,487,648,720

224,000,230,297

39,107,095,790

2004

234,032,552,123

198,232,597,700

7,241,659,034

2003

236,205,168,557

219,513,337,407

14,500,298,141

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

5,300,000,000

Total Issues Shares

1,060,000

 

 

BALANCE SHEET

 

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

388,852,700,216

373,958,935,141

271,948,173,408

Current Assets

124,934,446,792

109,376,296,773

147,082,373,544

Cash & Cash Equivalents

2,085,530,705

3,343,309,196

947,241,985

Current Financial Instruments

104,000,000

0

0

Marketable Financial Instruments

0

0

243,905,273

Trade Receivables

43,598,654,492

39,464,737,782

39,931,510,360

Other Receivables

26,315,536,358

23,096,347,029

40,487,537,403

Inventories

51,659,203,425

42,523,758,403

62,022,755,852

Deferred Income Tax Assets

1,898,501

1,749,881

10,724,200

Other Financial Assets

1,169,623,311

946,394,482

3,438,698,471

Non-Current Assets

263,918,253,424

264,582,638,368

124,865,799,864

Non-Current Financial Instruments

13,000,000

13,000,000

13,000,000

Marketable Financial Instruments

1,951,929,934

2,004,754,934

2,149,570,651

Other Long-Term Receivables

1,558,826,926

1,558,826,926

1,727,889,183

Investment_Subsidiaries

6,801,666,434

6,801,666,434

6,801,666,434

Tangibles

225,545,330,038

226,033,685,180

81,400,435,064

Investment_Real Estates

27,537,317,528

27,660,428,924

28,585,610,549

Intangibles

496,322,564

496,415,970

621,481,650

Deferred Income Tax Assets

0

0

3,551,131,333

Other Non-Current Assets

13,860,000

13,860,000

15,015,000

Total Liabilities

211,215,787,729

195,670,841,566

182,652,863,132

Current Liabilities

164,557,263,073

147,679,229,734

157,182,957,123

Trade Payables

18,059,730,963

12,732,192,576

13,298,882,400

Account Payables

6,472,626,123

6,018,918,476

5,954,723,574

Other Payables

2,876,372,082

2,663,322,859

2,953,024,944

Short-Term Borrowings

119,366,197,104

107,851,192,975

113,553,890,225

Current Portion of Long-Term Debts

14,545,256,924

15,030,351,000

19,139,916,368

Other Current Liabilities

3,237,079,877

3,383,251,848

2,282,519,612

Non-Current Liabilities

46,658,524,656

47,991,611,832

25,469,906,009

Other Long-Term Payables

1,394,494,524

1,372,815,184

1,315,978,783

Other Non-Current Financial Debts

3,737,418,740

3,988,157,588

1,551,618,847

Debentures

11,278,469,127

11,273,706,113

0

Long-Term Borrowings

700,407,476

1,721,707,900

16,618,725,570

Provision for Severance & Retirement

6,982,324,252

6,906,360,918

5,581,442,341

Deferred Income Tax Credit

22,223,783,455

22,375,134,370

0

Other Non-Current Liabilities

341,627,082

353,729,759

402,140,468

Capital Stock

5,300,000,000

5,300,000,000

5,300,000,000

Capital Surplus

1,935,478,247

1,935,478,247

1,935,478,247

Treasury Stock

-51,960

-51,960

-51,960

Installments

111,434,948,432

111,434,948,432

0

Profit Surplus

58,966,537,768

59,617,718,856

82,059,883,989

Total Equity

177,636,912,487

178,288,093,575

89,295,310,276

Liab. & Shareholder’s Equity

388,852,700,216

373,958,935,141

271,948,173,408

 

 

INCOME STATEMENT

 

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

54,860,051,765

234,702,605,279

269,900,175,211

Cost of Sold Goods

50,833,277,221

227,086,211,631

252,073,595,138

Gross Profit

4,026,774,544

7,616,393,648

17,826,580,073

Selling & Admin. Expenses

3,047,774,293

12,468,282,841

14,043,855,962

Operating Income

979,000,251

-4,851,889,193

3,782,724,111

Other Income

1,184,871,550

7,612,246,281

17,934,482,918

Other Expenses

1,572,863,626

24,378,767,733

8,541,841,098

Finance Income

80,517,373

345,255,140

289,051,869

Finance Expenses

1,474,057,551

6,487,091,234

6,235,254,405

Income Before Taxes

-802,532,003

-27,760,246,739

7,229,163,395

Income Taxes Expenses

-151,350,915

-5,463,179,360

1,994,875,848

Net Income

-651,181,088

-22,297,067,379

5,234,287,547

 

 

CASH FLOWS

 

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

-11,067,943,673

18,934,773,340

-24,058,181,796

Net Income

-651,181,088

-22,297,067,379

5,234,287,547

Adjustment

2,403,043,445

21,107,021,920

3,681,944,113

Changes in Asset/ & Liability

-11,346,545,037

26,381,018,662

-26,879,181,148

Interests Received

11,142,864

362,555,089

280,957,503

Interests Paid

-1,484,403,857

-6,642,616,112

-6,322,735,689

Income Taxes

0

10,724,200

-62,559,917

Dividends Received

0

13,136,960

9,105,795

Cash Flows from Investing

-354,049,414

-2,888,236,361

7,556,483,582

Cash Inflow from Investing

18,909,091

1,970,005,705

9,966,354,320

Cash Outflows for Investing

-372,958,505

-4,858,242,066

-2,409,870,738

Cash Flows from Financing

10,008,609,629

-13,420,463,850

13,732,913,326

Cash Inflows from Financing

11,515,004,129

26,885,222,030

26,691,904,329

Cash Outflows from Financing

-1,506,394,500

-40,305,685,880

-12,958,991,003

Increase/Decrease in Cash

-1,413,383,458

2,626,073,129

-2,768,784,888

Cash at the Beginning of Year

3,635,786,094

1,009,712,965

3,778,497,853

Cash at the End of Year

2,222,402,636

3,635,786,094

1,009,712,965

 

 

Products, Technologies, Services Description

 

Main Products & Services

Yarn

-Melange Yarn

-Cotton Yarn

-Combined Yarn

 

Textiles

-Super Silky

-Shape Memory

-Mixture Fabric

-Lyocell Fabric

-Compact Yarn Fabric

 

New Materials

-Pill-Free

-Bamboo Yarn

-Soybean Yarn

 

Brand Name : Melanors, Baikma, Rainbow

Detailed Products Spec.

--

Technologies Acquired

--

 

 

Trade Partners & Competitors

 

Suppliers

--

Customers

--

Competitors

CHONBANG CO., LTD.(110111-0005664)

12~13TH FI., CHUNGJEONG TOWER BLDG., 464, CHUNGJEONGNO 3-GA, SEODAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2122-6000  FAX:+82-2-392-3923

 

KYUNGBANG LTD.(110111-0013287)

441-10, YEONGDEUNGPODONG 4-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2639-6114  FAX:+82-2-2639-6079

 

DONGIL CORPORATION(110111-0019219)

8TH FL., JEONG-HEON BLDG., 944-1, DAECHI 3-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2222-3071  FAX:+82-2-2222-3280

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

--

Overseas Office

--

Liaison Office

--

Overseas Branch

DAEWON TEXTILE(QINGDAO) CO., LTD.(CHINA)

TEL:+86 532-8859-9621~2 FAX:+86 532-8859-9627

Joint Venture

--

Subsidiary

DAEWON TEXTILE(QINGDAO) CO., LTD.(CHINA)

(95.00% held by the subject company)

TEL:+86 532-8859-9621~2 FAX:+86 532-8859-9627

 

DAEWON DYEING(QINGDAO) CO., LTD.(CHINA)

(100.00% held by the subject company)

 

TAIHAN TEXTILE(SHANGHAI) CO., LTD.(CHINA)

(100.00% held by the subject company)

 

PT.TAIHAN INDONESIA

(99.70% held by the subject company)

Corporate Ownership

--

Major Shareholders

--

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2010

2009

2008

Export

136,062

162,769

187,785

Domestic

74,230

97,300

99,764

Others

1,299

1,477

1,469

Total

211,591

261,546

289,018

The Subject Company deals with the companies in China, USA and Europe. It imports from USA and Germany.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

2014NA52921

Seoul Nambu District Court

Yewool Design Co., Ltd.(Korea) & Others

The Subject Company

Transferring Properties

22,448,500

Proceeding

2014NA23975

Seoul High Court

Dajeon Trading Co., Ltd.(Korea)

The Subject Company

Claim for Compensation from Damages

287,549,361

Proceeding

2013GAHAP15068

Seoul Nambu District Court

The Subject Company

Visual Resourse & Others

Receivables

511,596,308

Proceeding

2014NA55821

Seoul Nambu District Court

The Subject Company

CHEIL INDUSTRIES INC.(110111-0015762)

Other Receivables

56,000,000

Proceeding

2015GAHAP101321

Seoul Nambu District Court

The Subject Company

MOOLRAE SPINNING CO.,LTD.(200111-0073597)

Claim for Compensation from Damages

405,101,000

Proceeding

 

 

News Clipping

 

--

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.30

UK Pound

1

Rs.98.71

Euro

1

Rs.72.33

KRW

1

Rs.0.057

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.