MIRA INFORM REPORT

 

 

Report No. :

307812

Report Date :

12.02.2015

 

IDENTIFICATION DETAILS

 

Name :

CENTURY PRECISION CO., LTD.

 

 

Registered Office :

254, Seunggicheon-ro, Namdong-gu, Incheon, 23B-10L, Namdong Industrial Complex, Zip Code 405-849

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

14.05.1996

 

 

Com. Reg. No.:

139-81-27873

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Saws, Saw Blades and Interchangeable Tools such as Standard HOB, Spline HOB, Worm Gear HOB, Chain(Sprocket) HOB, Timing Pulley HOB, Ratchet HOB, Pinion Cutter, Involute Gear Cutter & Milling Cutter

 

 

No of Employees :

36

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

Company Name

CENTURY PRECISION CO., LTD.

(Korean Company Name : “()세기정공”)

Registered Address

254, Seunggicheon-ro, Namdong-gu, Incheon, Korea

Building

23B-10L, Namdong Industrial Complex

Zip Code

405-849

Tel

+82-32-819-5051~4

Fax

+82-32-819-5055

E-mail

century@cty.co.kr

Website

www.cty.co.kr

Trading Address

23B-10L, Namdong Industrial Complex, 254, Seunggicheon-ro, Namdong-gu, Incheon, Korea

(Old Address System : 23B-10L, Namdong Industrial Complex, 453-10, Nonhyeon-dong, Namdong-gu, Incheon, Korea)

Tel

+82-32-819-5051~4

Fax

+82-32-819-5055

Type

Export/Import

  Main Business

Manufacturer of Saws, Saw Blades and Interchangeable Tools such as Standard HOB, Spline HOB, Worm Gear HOB, Chain(Sprocket) HOB, Timing Pulley HOB, Ratchet HOB, Pinion Cutter, Involute Gear Cutter & Milling Cutter

Established (mm/dd/yyyy)

05/14/1996

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Castings(31100000)

Sell

Hobs(23171613)

Sell

Cutting tools(23153300)

Sell

Gear units(26111524)

 

 

CEO’s

 

Name

Shin Tae-Ki

Address

Suite C-903, 1685-3, Seocho-dong, Seocho-gu, Seoul, Korea

Date of Birth

02/16/1970

Title

President & CEO

Sex

Male

Nationality

Korean

 

 


Profiles

 

Capital (KRW)

25,000,000

Employees

36

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Hana Bank-Yeokgok Branch

Corporate Registered No.

120111-0133348

Business Registered No.

139-81-27873

Permit & Licenses

Int’l Trade No.: 14105229

Shareholder Position

Name

Shares

%

SHIN TAE-KI

3,500

70.00

SHIN HO-KI

1,300

26.00

SHIN EUN-YOUNG

200

4.00

TOTAL

5,000

100.00

Company History

05/14/1996 Incorporated as the present name

11/2010 Awarded US$ 1 Million Export Top Prize

12/31/2010 Decreased capital to 25,000,000 KRW from 50,000,000 KRW

12/31/2010 Decreased the authorized shares to 20,000 shares from 40,000 shares

12/31/2010 Split off and established Samyang Machinery Co., Ltd.

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Shin Tae-Ki

Male

Korean

07/09/2003

Director

Mr.

Shin Ho-Ki

Male

Korean

05/14/1999

Director

Mr.

Shin Yong-Jo

Male

Korean

03/27/2004

Auditor

M/S.

Lee Byung-Koon

Female

Korean

03/27/2004

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

6,410,322,963

13,414,360,927

-364,132,845

2012

6,302,283,565

13,346,386,603

-218,486,126

2011

6,953,289,854

14,089,562,105

311,169,020

2010

5,739,602,453

18,518,256,922

41,269,071

2009

3,581,152,000

19,263,156,000

-638,634,000

2008

4,120,050,000

18,876,124,000

19,544,000

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000

Paid-Up Capital(KRW)

25,000,000

Total Issued Shares

5,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

13,414,360,927

13,346,386,603

14,089,562,105

Current Assets

3,966,280,166

3,212,441,201

3,824,604,481

-Quick Assets

2,402,840,733

1,498,064,907

1,995,705,187

-Inventories

1,563,439,433

1,714,376,294

1,828,899,294

Fixed Assets

9,448,080,761

10,133,945,402

10,264,957,624

-Investment

-

94,000,000

46,000,000

-Tangibles

9,434,799,161

10,032,827,402

10,207,376,124

-Intangibles

2,902,500

5,313,000

9,776,500

-Others

10,379,100

1,805,000

1,805,000

Total Liabilities

9,274,198,327

8,842,091,158

9,366,780,534

Current Liabilities

7,917,576,644

6,890,139,138

7,085,697,046

Fixed Liabilities

1,356,621,683

1,951,952,020

2,281,083,488

Capital Stock

25,000,000

25,000,000

25,000,000

Capital Surplus

 

 

 

Profit Surplus

950,796,267

1,314,929,112

1,533,415,238

Capital Adjustment

3,164,366,333

3,164,366,333

3,164,366,333

Total Equity

4,140,162,600

4,504,295,445

4,722,781,571

Liab. & Shareholder’s Equity

13,414,360,927

13,346,386,603

14,089,562,105

 

Current Liabilities

7,917,576,644

6,890,139,138

7,085,697,046

Trade Payables

171,016,029

191,746,330

203,450,397

Short-Term Borrowings

2,695,823,364

2,452,709,461

2,378,065,645

Short-Term Borrowings to Shareholders/ Executives/ Employees

3,034,274,860

3,244,274,860

3,604,274,860

Account Payables

252,066,381

213,547,402

279,614,527

Advance Receipts

33,904,309

60,317,192

39,030,373

Withholdings

17,462,420

23,878,160

26,384,490

Accrued Expenses

42,829,281

38,765,733

38,276,754

Current Portion of Long-Term Debts

1,670,200,000

664,900,000

516,600,000

Fixed Liabilities

1,356,621,683

1,951,952,020

2,281,083,488

Long-Term Borrowings

833,800,000

1,464,000,000

1,726,900,000

Leasehold Deposit Received

318,782,800

320,150,000

267,900,000

Provision for Severance & Retirement

421,294,671

314,860,899

434,458,492

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

6,410,322,963

6,302,283,565

6,953,289,854

Cost of Sold Goods

5,273,230,627

4,963,840,383

5,058,567,288

Gross Profit

1,137,092,336

1,338,443,182

1,894,722,566

Selling & Admin. Expenses

1,433,282,998

1,543,066,242

1,537,086,890

Operating Income

-296,190,662

-204,623,060

357,635,676

Non-Operating Income

201,846,946

248,948,801

278,286,883

Non-Operating Expenses

269,789,129

262,811,867

324,753,539

Income Before Taxes

-364,132,845

-218,486,126

311,169,020

Income Taxes Expenses

-

-

-

Net Income

-364,132,845

-218,486,126

311,169,020

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

477,522,534

1,484,348,168

158,500,942

-Net Income

-364,132,845

-218,486,126

311,169,020

-Exp. without Cash Outflow

1,143,984,857

1,281,817,684

1,146,521,257

-Revenue without Cash Inflows

-6,915,711

-11,236,826

-46,168,528

-Changes in Asset/ & Liability

-295,413,767

432,253,436

-1,253,020,807

Cash Flows from Investing

-285,748,972

-1,064,179,677

4,132,575,147

-Cash Inflow from Investing

134,005,000

39,181,818

5,724,084,652

-Cash Outflows for Investing

-419,753,972

-1,103,361,495

-1,591,509,505

Cash Flows from Financing

406,846,703

-347,706,184

-874,434,355

-Cash Inflows from Financing

1,283,113,903

1,267,622,065

3,965,565,645

-Cash Outflows from Financing

-876,267,200

-1,615,328,249

-4,840,000,000

Increase/Decrease in Cash

598,620,265

72,462,307

-174,370,738

Cash at the Beginning of Year

299,279,036

226,816,729

401,187,467

Cash at the End of Year

897,899,301

299,279,036

226,816,729

 

 

Products, Technologies, Services Description

 

Main Products & Services

Standard HOB, Spline HOB, Worm Gear HOB, Chain(Sprocket) HOB, Timing Pulley HOB, Ratchet HOB, Pinion Cutter, Involute Gear Cutter, Milling Cutter

 

 

Trade Partners & Competitors

 

Competitors

HWACHEON MACHINERY WORKS CO., LTD.

1022-7, BANGBAE 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-523-7766  FAX:+82-2-523-7767

 

DAEHWA INDUSTRIAL MACHINERY CO., LTD.

676-1, NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-979-3000  FAX:+82-54-979-3030

 

FUSO INDUSTRIAL MACHINERY CO., LTD.

385-3, DEOKPO 2-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-302-1771  FAX:+82-51-302-3112

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.15

UK Pound

1

Rs.94.72

Euro

1

Rs.70.33

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.