MIRA INFORM REPORT

 

 

Report Date :

29.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ELCANTO CO., LTD.

 

 

Registered Office :

1-19, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea 5th Fl., New Core Outlet 427-705

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.06.1977

 

 

Com. Reg. No.:

126-81-02600

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Shoes

 

 

No. of Employees :

1,119

 

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 – 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

ELCANTO CO., LTD.

Registered Address

1-19, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea

Building

5th Fl., New Core Outlet

Zip Code

427-705

Tel

+82-2-3408-8600

Fax

+82-2-3408-8640

E-mail

hannibal@elcanto.co.kr

Website

www.elcanto.co.kr

Trading Address

5th Fl., New Core Outlet, 1-19, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea

Tel

+82-2-3408-8600

Fax

+82-2-3408-8640

Type

Export

Industry

Manufacture of Shoes

  Main Business

Shoes, Casual Shoes, Handbags

Established (mm/dd/yyyy)

06/08/1977

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Womens suits(53101904)

Sell

Womens shoes(53111602)

Sell

Perfumes or colognes or fragrances(53131620)

Sell

Shoes(53111600)

Sell

Suits(53101900)

Sell

Belts or suspenders(53102501)

Sell

Socks(53102402)

Sell

Golf gloves(49211606)

Sell

Wrist watches(54111501)

Buy

Nylon thread(11151608)

Buy

Shoe accessories(53112000)

Buy

Fibers and threads and yarns(11150000)

Buy

Pig leather(11162306)

Buy

Cow leather(11162305)

Buy

Suede(11131507)

Buy

Other adhesives and sealants(31201600)

 

CEO’s

 

Name

Wu Sang-Bae

Address

Suite 1108-203, 120, Neunggok-ro, Siheung-si, Gyeonggi-do, Korea

Date of Birth

04/25/1964

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

7,758,915,000

Employees

1,119

Formation

Co., Ltd by shares

A Company of E-LAND GROUP

Bank Details

Woori Bank

Shinhan Bank-Seocho Central Branch

Corporate Registered No.

134211-0001183

Business Registered No.

126-81-02600

Permit & Licenses

12/19/1982 KS Mark

 

Int’l Trade No.: 792167

Shareholder Position

Name

Shares

%

E LAND RETAIL LIMITED(110111-0243800)

611,783

100.00

TOTAL

611,783

100.00

(*)The above list is based as of 12/31/2012.

Company History

08/1957 Established as MIJIN SHOES CO.(Sole Proprietorship)

10/1972 Changed company name to Elcanto Co.

06/08/1977 Incorporated as the present name

12/08/1997 Bankrupted due to decreased sales and economy doun-turn

07/17/1998 Approved of Special Court Protection

01/2005 Approved of Corporate Clearing Plan by Suwon District Court

11/08/2005 Completed the Corporate Clearing Procedure(2004HOI5)

12/07/2011 Moved to the present HQ address from 434-12, Sangdaewon-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea

09/25/2012 Increased capital to 7,758,915,000 KRW from 3,058,915,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Wu Sang-Bae

Male

Korean

06/14/2011

Director

Mr.

Kim Hoi-Sun

Male

Korean

06/14/2011

Director

Mr.

Lom Chae-Jeon

Male

Korean

06/14/2011

Auditor

Mr.

Lee Kil-Bong

Male

Korean

06/14/2011

Supervisor

Mr.

Kim Sung-Young

Male

Korean

03/12/2012

 

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

19,149,241,504

14,916,045,720

-5,618,052,228

2010

28,937,124,021

14,466,753,168

-2,942,721,514

2009

37,117,631,765

19,815,344,163

238,801,624

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

7,758,915,000

Total Issues Shares

1,551,783

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

14,916,045,720

14,466,753,168

19,815,344,163

Current Assets

14,166,628,964

13,064,473,581

18,000,213,836

-Quick Assets

5,703,254,018

3,040,780,992

4,583,861,799

-Inventories

8,463,374,946

10,023,692,589

13,416,352,037

Fixed Assets

749,416,756

1,402,279,587

1,815,130,327

-Investment

8,000,000

12,000,000

12,000,000

-Tangibles

529,914,543

445,094,621

821,486,709

-Intangibles

25,102,213

62,684,966

89,888,718

-Others

186,400,000

882,500,000

891,754,900

Total Liabilities

17,048,658,676

19,934,552,096

38,754,545,397

Current Liabilities

15,911,657,026

17,701,188,295

36,032,168,358

Fixed Liabilities

1,137,001,650

2,233,363,801

2,722,377,039

Capital Stock

3,058,915,000

15,471,505,000

1,758,895,000

Capital Surplus

24,067,342,020

2,701,513,820

-

Profit Surplus

-29,258,869,976

-23,640,817,748

-20,698,096,234

Capital Adjustment

-

-

-

Total Equity

-2,132,612,956

-5,467,798,928

-18,939,201,234

Liab. & Shareholder’s Equity

14,916,045,720

14,466,753,168

19,815,344,163

 

Current Liabilities

15,911,657,026

17,701,188,295

36,032,168,358

Trade Payables

5,124,128,961

4,389,686,466

8,312,010,390

Short-Term Borrowings

4,542,152,107

1,455,000,000

11,225,982,900

Short-Term Borrowings to Shareholders/ Executives/ Employees

-

341,000,000

-

Account Payables

1,572,256,379

4,387,808,813

3,762,204,462

Accrued Expenses

92,125,853

65,334,978

467,502,069

Advance Receipts

15,731,951,806

15,609,146,859

16,806,392,595

Merchandise Coupon

-11,198,398,970

-8,689,035,834

-7,589,560,450

Withholdings

47,440,890

142,247,013

47,636,392

Current Portion of Debentures

-

-

3,000,000,000

Fixed Liabilities

1,137,001,650

2,233,363,801

2,722,377,039

Provision for Severance & Retirement

553,611,172

733,362,970

624,647,940

Leasehold Deposit Received

2,200,000

22,200,000

22,200,000

Guarantee Deposit Withhold

583,735,478

1,462,198,500

1,971,732,061

Provisions for Refund

-

22,339,531

110,534,238

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

19,149,241,504

28,937,124,021

37,117,631,765

Cost of Sold Goods

9,740,910,342

13,268,860,650

15,783,979,233

Gross Profit

9,408,331,162

15,668,263,371

21,333,652,532

Selling & Admin. Expenses

12,971,601,266

17,600,010,028

19,796,745,030

Operating Income

-3,563,270,104

-1,931,746,657

1,536,907,502

Non-Operating Income

431,280,174

107,772,003

156,074,704

Non-Operating expenses

2,486,062,298

1,118,746,860

1,454,180,582

Income Before Taxes

-5,618,052,228

-2,942,721,514

238,801,624

Income Taxes Expenses

-

-

-

Net Income

-5,618,052,228

-2,942,721,514

238,801,624

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-9,327,781,539

-3,988,645,523

-181,292,941

-Net Income

-5,618,052,228

-2,942,721,514

238,801,624

-Exp. without Cash Outflow

3,450,627,503

1,976,974,923

1,128,843,492

-Revenue without Cash Inflows

-316,582,318

-

-1,339,516

-Changes in Asset/ & Liability

-6,843,774,496

-3,022,898,932

-1,547,598,541

Cash Flows from Investing

180,076,401

-285,250,752

-467,617,407

-Cash Inflow from Investing

725,918,181

28,518,069

314,984,000

-Cash Outflows for Investing

-545,841,780

-313,768,821

-782,601,407

Cash Flows from Financing

11,979,390,307

3,794,152,420

525,982,900

-Cash Inflows from Financing

12,387,112,107

3,880,017,100

1,525,982,900

-Cash Outflows from Financing

-407,721,800

-85,864,680

-1,000,000,000

Increase/Decrease in Cash

2,831,685,169

-479,743,855

-122,927,448

Cash at the Beginning of Year

85,159,457

564,903,312

687,830,760

Cash at the End of Year

2,916,844,626

85,159,457

564,903,312

(*)The Subject needs to be monitored because Net Income in 2011 was 5,618,000,000 KRW, Current Liabilities exceed Current Assets as much as 1,745,000,000 KRW, and Total Liabilities exceed total assets as much as 2,133,000,000 KRW.

 

 

Products, Technologies, Services Description

 

Main Products & Services

Shoes, Casual Shoes, Handbags

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

E LAND RETAIL LIMITED(110111-0243800)

E-LAND WORLD CO., LTD.(110111-0365797)

Competitors

TAE KWANG IND. CO., LTD.

258-9, AN-DONG, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-333-7151  FAX:+82-55-336-4917

 

KUMKANG CO., LTD.

406-3, HYOSEONG 2-DONG, GYEYANG-GU, INCHEON, KOREA

TEL:+82-32-540-7500  FAX:+82-32-540-7790

 

EFC CO., LTD.

656-294, SEONGSU 1-GA 1-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-31-730-9292  FAX:+82-31-747-4100

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

E-LAND CO., LTD.(110111-0536859)

E LAND RETAIL LIMITED(110111-0243800)

NETISHION.COM CO., LTD.(110111-0409858)

DECO CO., LTD.(110111-0242985)

C&C MOKSAN CO., LTD.(110111-3894999)

GLOBAL SPORTS CO., LTD.(110111-2111386)

E-LAND WORLD CO., LTD.(110111-0365797)

E-LAND DEVELOPMENT CO., LTD.(110111-0841688)

LEAD CO., LTD.(110111-0723555)

E-LAND SYSTEMS CO., LTD.(110111-0747224)

FRANCIA CO., LTD.(120111-0101733)

LEADON CO., LTD.(110111-2999352)

WINE CASTLE CO., LTD.(134211-0080103)

E-SERBIZ CO., LTD.(110111-3656688)

FREMONT CO., LTD.(110111-3683251)

ELAND CHINA FASHION DESIGN CO., LTD.(110111-3814020)

E-LAND FOUNDATION(114222-0005912)

KIMS CLUB MART CO., LTD.(110111-0167498)

E-LAND LEISURVICE CO., LTD.(144411-0000098)

Corporate Ownership

E LAND RETAIL LIMITED(110111-0243800)

Major Shareholders

E LAND RETAIL LIMITED(110111-0243800)

Cooperative Enterprise

-Insured Company

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

 

 

News Clipping

 

Not Available.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.85

UK Pound

1

Rs.88.40

Euro

1

Rs.72.63

 

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.