MIRA INFORM REPORT

 

 

Report No. :

341738

Report Date :

22.09.2015

 

IDENTIFICATION DETAILS

 

Name :

KOVAC MED CO., LTD.

 

 

Registered Office :

13, Haean-ro 31beon-gil, Danwon-gu, Ansan-si, Gyeonggi-do

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

24.09.2001

 

 

Com. Reg. No.:

134-81-73955

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Medical, Precision and Scientific Instruments and Equipment.

 

 

No. of Employee :

300

 

 

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 – 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

 


 

KOREA (SOUTH) 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 AsianFINANCIAL 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 FreeTRADE 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

 

Basic

 

Company Name

KOVAC MED CO., LTD.

Registered Address

13, Haean-ro 31beon-gil, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

(Old Address System : 617-3, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea)

Building

 

Zip Code

15608

Tel

+82-31-491-2339

Fax

+82-31-491-2217

E-mail

sales@kovacmed.com

Website

www.kovacmed.com

Trading Address

Rm.613, Hanshin Intervalley 24 East Bldg., 322, Teheran-ro, Gangnam-gu, Seoul, Korea

(Old Address System : Rm.613, Hanshin Intervalley 24 East Bldg., 707-34, Yeoksam-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-2183-1155  +82-70-8656-8026

Fax

+82-2-2183-1154

Other Address-2nd Factory

210, Sandan-ro 35beon-gil, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

manufacture of Medical, Precision and Scientific Instruments and Equipment

  Main Business

Medical Devices, Medical Supplies

  Sub Business

 

Established (mm/dd/yyyy)

09/24/2001

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Injection and aspiration needles and accessories(42142500)

Sell

Medical equipment and accessories and supplies(42000000)

Sell

Pharmaceutical industry machinery and equipment and supplies(23151800)

Sell

Syringes and accessories(42142600)

 

 

CEO’s

 

Name

In Chi-Man

Address

Suite A-4602, Tower Palace 1 Cha, 56, Eonju-ro 30-gil, Gangnam-gu, Seoul, Korea

Date of Birth

08/02/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,254,810,000

Employees

300

Formation

Co., Ltd by Shares

Bank Details

KEB Hana Bank

SWhinhan Bank

Corporate Registered No.

135011-0117511

Business Registered No.

134-81-73955

Permit & Licenses

N/A

Shareholder Position

Name

Shares

%

IN CHI-MAN

135,178

53.86

IN JUNG-RYEON

26,385

10.51

IN HAN-JIN

89,399

35.63

TOTAL

250,962

100.00

Company History

09/24/2001 Incorporated as the present name

04/01/2003 Moved to the present HQ address from 394, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

09/17/2013 Acquired Ace Machine Co., Ltd., and Kovac Machine Co., Ltd.

09/17/2013 Increased capital to 1,254,810,000 KRW from 500,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

In Chi-Man

Male

Korean

04/13/2011

Director

Mr.

Lee Dong-Soo

Male

Korean

04/13/2011

Director

Mr.

In Han-Jin

Male

Korean

09/17/2013

Director

Mr.

Lee Sang-Koo

Male

Korean

09/17/2013

Auditor

Mr.

Ahn Young-Min

Male

Korean

09/17/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

20,883,710,099

32,189,579,290

689,206,178

2013

16,982,218,866

34,048,530,176

990,511,916

2012

15,388,894,289

12,556,157,017

858,746,490

2011

14,318,682,826

12,535,395,485

196,647,130

2010

11,680,412,145

11,363,305,194

842,809,668

 

 

Financial Description

 

Authorized Capital(KRW)

2,000,000,000

Paid-Up Capital(KRW)

1,254,810,000

Total Issued Shares

250,962

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

32,189,579,290

34,048,530,176

12,556,157,017

Current Assets

12,523,227,243

13,395,440,559

7,511,514,699

-Quick Assets

4,551,676,813

7,657,726,137

5,301,767,520

-Inventories

7,971,550,430

5,737,714,422

2,209,747,179

Fixed Assets

19,666,352,047

20,653,089,617

5,044,642,318

-Investment

3,000,000

3,000,000

3,000,000

-Tangibles

16,351,109,375

17,099,882,176

4,971,911,713

-Intangibles

3,264,534,367

3,439,420,136

-

-Others

47,708,305

110,787,305

69,730,605

Total Liabilities

8,350,104,482

10,898,261,546

5,171,655,441

Current Liabilities

6,960,356,057

9,371,095,457

4,540,570,256

Fixed Liabilities

1,389,748,425

1,527,166,089

631,085,185

Capital Stock

1,254,810,000

1,254,810,000

500,000,000

Capital Surplus

14,020,445,138

14,020,445,138

-

Profit Surplus

8,564,219,670

7,875,013,492

6,884,501,576

Capital Adjustment

-

-

-

Total Equity

23,839,474,808

23,150,268,630

7,384,501,576

Liab. & Shareholder’s Equity

32,189,579,290

34,048,530,176

12,556,157,017

 

 

Current Liabilities

6,960,356,057

9,371,095,457

4,540,570,256

Trade Payables

1,207,088,293

1,430,866,440

1,059,318,266

Account Payables

362,843,668

183,826,828

887,222,873

Short-Term Borrowings

3,289,600,000

6,695,193,218

1,832,227,062

Withholdings

79,116,810

78,473,662

20,201,097

Advance Receipts

1,197,572,361

64,615,870

105,158,035

Accrued Expenses

803,690,580

717,931,938

448,903,911

Deferred Income Tax Credit

20,444,345

200,187,501

187,539,012

Fixed Liabilities

1,389,748,425

1,527,166,089

631,085,185

Leasehold Deposit Received

177,000,000

221,200,000

12,000,000

Provision for Severance & Retirement

1,212,748,425

1,305,966,089

619,085,185

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

20,883,710,099

16,982,218,866

15,388,894,289

Cost of Sold Goods

17,753,255,119

13,592,862,332

12,765,455,374

Gross Profit

3,130,454,980

3,389,356,534

2,623,438,915

Selling & Admin. Expenses

2,461,603,782

1,761,251,089

1,269,929,401

Operating Income

668,851,198

1,628,105,445

1,353,509,514

Non-Operating Income

479,640,982

353,521,324

360,540,159

Non-Operating Expenses

285,449,818

645,728,450

627,007,436

Income Before Taxes

863,042,362

1,335,898,319

1,087,042,237

Income Taxes Expenses

173,836,184

345,386,403

228,295,747

Net Income

689,206,178

990,511,916

858,746,490

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

4,694,236,551

-1,917,858,914

449,489,161

-Net Income

689,206,178

990,511,916

858,746,490

-Exp. without Cash Outflow

3,572,994,227

2,350,905,545

1,456,329,570

-Revenue without Cash Inflows

-7,016,044

-9,779,664

-188,621,121

-Changes in Asset/ & Liability

439,052,190

-5,249,496,711

-1,676,965,778

Cash Flows from Investing

-1,214,488,184

-18,131,346,347

-53,323,800

-Cash Inflow from Investing

1,048,772,469

66,135,055

728,305,853

-Cash Outflows for Investing

-2,263,260,653

-18,197,481,402

-781,629,653

Cash Flows from Financing

-3,449,793,218

19,851,890,264

-195,569,055

-Cash Inflows from Financing

15,550,882,584

22,265,524,327

1,402,292,121

-Cash Outflows from Financing

-19,000,675,802

-2,413,634,063

-1,597,861,176

Increase/Decrease in Cash

29,955,149

-197,314,997

200,596,306

Cash at the Beginning of Year

16,567,085

213,882,082

13,285,776

Cash at the End of Year

46,522,234

16,567,085

213,882,082

 

 

Products, Technologies, Services Description

 

Main Products & Services

Hypodermic Needles

Hypodermic Cannula

Probes

Tubular Surgical Components

Cut Tubes

Assemblies

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

KYUNG GI MEDICAL SUPPLIES CORP.

RM. 522, ILSAN VISTA OFFICETEL, 49, GANGSEON-RO, ILSANSEO-GU, GOYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-924-2035~6  FAX:+82-31-924-2037

 

MEDIWAY KOREA CO., LTD.

3RD FL., SEOKCHO BLDG., 1784-1, SEOBYEON-DONG, BUK-GU, DAEGU, KOREA

TEL:+82-53-955-2225  FAX:+82-53-955-1124

 

MD MEDICAL CO., LTD.

RM.301, SEJIN BLDG., 1157-8, CHORYANG-DONG, DONG-GU, BUSAN, KOREA

TEL:+82-70-7124-2600  FAX:+82-51-944-2606

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SBD CO., LTD.(176011-0069846)

 

ADVANCED TUBE TECHNOLOGIES CO., LTD.(131411-0221954)

(20.00% held by the subject company)

 

TAECHANG CO., LTD.(KOREA)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Comp[any

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.75

UK Pound

1

Rs.102.17

Euro

1

Rs.74.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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.