MIRA INFORM REPORT

 

 

Report Date :

21.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ILSHIN SPINNING CO., LTD.

 

 

Registered Office :

15-15, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea Ilshin Bldg. 150-872

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

11.03.1951

 

 

Com. Reg. No.:

116-81-40780

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Cotton Spinning

 

 

No. of Employees :

1,082

 

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 :

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 currently is among the world's 20 largest economies. 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. 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. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

Basic Information

 

Company Name

ILSHIN SPINNING CO., LTD.

Registered Address

15-15, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea

Building

Ilshin Bldg.

Zip Code

150-872

Tel

+82-2-3774-0114

Fax

+82-2-786-5891~3

E-mail

grchoi@ilshin.co.kr;cwlee@ilshin.co.kr;donghkim@ilshin.co.kr

Website

www.ilshin.co.kr

Trading Address

15-15, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea (C.P.O.BOX 91)

(New Address System : 11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Korea)

Tel

+82-2-3774-0114

Fax

+82-2-786-5891~3

Other Address-Gwangju Factory

100, Im-dong, Buk-gu, Gwangju, Korea

Tel

+82-62-510-5111

Fax

+82-62-570-5105

Other Address-Cheongwon Factory

231-1, Seongsan-ri, Ochang-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-219-3114

Fax

+82-43-219-3119

Other Address-Banwol Factory

644-1, Choji-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-489-4604~5

Fax

+82-31-489-4600

Type

Export/Import

Industry

Cotton Spinning

  Main Business

Cotton spun yarn, P/C blended spun yarn, P/C blended fabric, Combed Cotton Yarns, Melange Yarns, Core Spun Yarns, Blended Yarns, OE Yarns, Dyed Yarns, Dyed Fabrics, Cotton Fabrics, Knitted Fabrics, Modal Yarn

Established (mm/dd/yyyy)

11/03/1951

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Yarns(11151700)

-Garment Use Yarns spun with raw cotton & top dyed fibre.

Sell

Cotton fabrics(11161700)

Sell

Knit synthetic fabrics(11161804)

Sell

Dyeing or printing or finishing services(73141706)

Sell

Threads(11151600)

Sell

Synthetic fabrics(11161800)

Buy

Cotton(11121802)

 

 

CEO’s

 

Name

Kim Young-Ho

Address

 

Date of Birth

03/09/1944

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

12,000,000,000

Employees

1,082

Formation

Listed Company (Korea Stock Exchange : 003200 ) as of 03/1999

A company of ILSHIN SPINNING CO., LTD.

Bank Details

Citi Bank, Korea

Seo Yoido Branch

Corporate Registered No.

110111-0041717

Business Registered No.

116-81-40780

Permit & Licenses

01/2000 ISO 9002

 

Int’l Trade No.: 672139

Shareholder Position

Name

Shares

%

KIM YOUNG-HO

495,141

20.63

ILSHIN CULTURE FOUNDATION

216,000

9.00

KIM JUNG SOO

132,339

5.51

SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)

235,121

9.80

OTHERS

1,321,399

55.06

TOTAL

2,400,000

100.00

Company History

11/03/1951 Incorporated as the present name

03/1995 Awarded The Presidential Prize on the Tax Day

04/2004 Awarded The Commissioner Prize of National Tax Office on the Tax Day

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Kim Young-Ho

Korean

1944-03-09

New Yok Pratt Institute, USA

President & CEO

Mr.

Kim Jung Soo

Korean

1963-06-15

University of Biola, USA

Executive Director

Mr.

Kim Min-Soo

Korean

1966-09-

Chapman University, USA

Executive Director

Mr.

Han Maeng-Yong

Korean

1951-01-11

Jeonju Technical High School, Korea

Director

Mr.

Ko Jeong-Seock

Korean

1957-05-22

Seoul National University, Korea

Outside Director

Mr.

Shin Young-Moo

Korean

1944-03-02

Seoul National University, Korea

Outside Director

Mr.

Song Ja

Korean

1936-12-02

Yonsei University, Korea

Auditor

Mr.

Jeong Young-Sik

Korean

1959-09-16

Sogang University, Korea

Auditor

Mr.

Kim Jae-Hak

Korean

1948-09-27

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/0212

250,129,996,041

534,012,033,536

-11,203,908,255

(*)2011

380,131,312,496

570,909,115,439

1,101,455,649

(*)2010

374,483,214,849

601,433,022,867

46,626,986,390

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

 

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

12,000,000,000

Total Issued Shares

2,400,000

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

534,012,033,536

570,909,115,439

601,433,022,867

Current Assets

152,257,491,873

185,083,375,044

173,521,365,616

Cash & Cash Equivalents

16,247,263,816

27,927,031,709

1,345,173,637

Current Financial Instruments

24,000,000,000

15,733,927,451

52,818,241,813

Derivatives

0

72,554,432

0

Trade Receivables & Other Receivables

40,193,815,304

45,872,715,710

53,352,496,034

Other Current Assets

1,254,920,323

821,123,363

704,372,842

Inventories

70,451,048,700

90,692,482,226

65,301,081,290

Accrued Income Tax

110,443,730

3,963,540,153

0

Non-Current Assets

381,754,541,663

385,825,740,395

427,911,657,251

Marketable Financial Instruments

22,080,201,273

19,899,377,760

50,159,199,970

Other Financial Assets

604,252,345

2,500,000

84,230,000

Non-Current Financial Instruments

381,327,470

381,387,470

434,387,470

Investment_Subsidiaries

112,847,645,207

112,847,645,207

112,847,645,207

Tangibles

154,739,303,705

165,087,506,766

173,617,442,506

Investment_Real Estates

89,530,195,402

86,015,469,379

89,077,211,575

Intangibles

1,571,616,261

1,591,853,813

1,691,540,523

Total Liabilities

68,481,687,849

91,043,383,006

95,309,223,561

Current Liabilities

41,275,836,463

54,149,980,774

55,059,019,433

Short-Term Borrowings

21,109,387,769

24,850,049,097

12,364,562,882

Trade Payables & Other Payables

20,166,448,694

29,299,931,677

29,257,830,078

Deferred Income Tax Credit

0

0

13,436,626,473

Non-Current Liabilities

27,205,851,386

36,893,402,232

40,250,204,128

Long-Term Borrowings

5,951,189,183

11,838,173,708

7,398,588,593

Derivatives

0

0

98,401,718

Other Non-Current Liabilities

9,444,298,202

8,952,895,022

8,607,764,662

Deferred Income Tax Credit

11,810,364,001

16,102,333,502

24,145,449,155

Capital Stock

12,000,000,000

12,000,000,000

12,000,000,000

Capital Surplus

5,927,607,486

6,815,200,156

8,735,289,046

Others

4,875,558,534

4,809,949,355

23,371,443,878

Profit Surplus

442,727,179,667

456,240,582,922

462,017,066,382

Total Equity

465,530,345,687

479,865,732,433

506,123,799,306

Liab. & Shareholder’s Equity

534,012,033,536

570,909,115,439

601,433,022,867

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

250,129,996,041

380,131,312,496

374,483,214,849

Cost of Sold Goods

259,625,633,536

387,348,067,354

309,379,235,036

Gross Profit

-9,495,637,495

-7,216,754,858

65,103,979,813

Selling & Admin. Expenses

7,951,052,525

10,876,510,468

11,848,287,614

Other Operating Income

1,063,354,645

2,089,737,610

4,357,124,816

Other Operating Expenses

1,387,432,879

2,840,278,349

3,515,763,476

Operating Income

-17,770,768,254

-18,843,806,065

54,097,053,539

Finance Income

3,514,754,977

22,570,344,632

6,838,691,559

Finance Expenses

447,880,065

2,807,733,313

543,076,451

Income Before Taxes

-14,703,893,342

918,805,254

60,392,668,647

Income Taxes Expenses

-3,499,985,087

182,650,395

13,765,682,257

Net Income

-11,203,908,255

1,101,455,649

46,626,986,390

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

14,468,385,449

-43,138,464,680

62,211,129,563

Net Income

-11,203,908,255

1,101,455,649

46,626,986,390

Adjustment

20,512,130,376

-28,052,953,874

15,400,258,855

Interests Received

789,697,425

794,808,247

496,703,172

Interests Paid

-265,368,851

-704,454,833

-496,187,541

Dividends Received

1,593,227,900

0

1,921,696,497

Income Taxes

3,042,606,854

-16,277,319,869

-1,738,327,810

Cash Flows from Investing

-14,015,290,484

63,290,793,116

-56,415,392,497

Cash Flows from Financing

-12,132,802,685

6,429,533,299

-5,779,110,992

Increase/Decrease in Cash

-11,679,767,893

26,581,858,072

16,217,273

Cash at the Beginning of Year

27,927,031,709

1,345,173,637

1,328,956,364

Cash at the End of Year

16,247,263,816

27,927,031,709

1,345,173,637

 

 

Products, Technologies, Services Description

 

Main Products & Services

Combed yarns are the Subject Company's main products. The Subject Company is biggest combed cotton yarn spinning mill in Korea which has production capacity of 2,500 tons per month.

 

Brand Name : THREE STAR

 

 

Trade Partners & Competitors

 

Suppliers

The Subject imports cotton 100% from Australia, USA, Brazil and Greece, and imports yarn from Pakistan and Vietnam.

 

HUVIS-Polyester

Oh Young Industrial Co., Ltd.-Chemicals for Dyes

Customers

Sales Channel

Domestic : Domestic Direct Buyers ( 26%)

Local Export: Fabric Exporters (62%)

Export: Overseas Direct Buyers (12%)

 

Conditions

Export: L/C, BANK CHEQUE, T/T

Domestic: Cash and Credit

Competitors

The subject is 1st player in the domestic market among Jeon Bang, Kyung Bang and Dong Il Spinning.

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

ILSHIN INVESTMENT CO., LTD.(200111-0020308)

ILSHIN INDUSTRY DEVELOPMENT CO., LTD.(110111-0790877)

SHIN DONG CORPORATION(110111-0006159)

SHIN DONG WINE CO., LTD.(110111-0744072)

SHIN DONG WINE SALES CO., LTD.(110111-0965454)

BSK CORPORATION     (110111-1358616)

WELBEING SPA CO., LTD.(110111-1433905)

Overseas Office

HONG KONG OFFICE

#913, KWAI CHEONG CENTER, 40-52, KWAI CHEONG ROAD, KWAI CHUNG, N.T. HONG KONG

TEL: +852-2573-3664  FAX: +852-2573-3755

 

USA OFFICE

2517 W. 237TH ST. #B TORRANCE. CA 90505 USA

TEL:+1-310-541-6871  FAX +1-310-265-8561

E-MAIL: ENXENLA@HOTMAIL.COM

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

163,869

254,557

274,765

Domestic

86,261

125,574

99,718

Total

250,130

380,131

374,483

The Subject deals with the companies in Taiwan, Singapore, Japan, China, Thailand and Hong Kong. The Subject imports from Brazil, USA and India.

 

 

News Clipping

 

Not Available

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.84

UK Pound

1

Rs.89.11

Euro

1

Rs.72.46

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.