MIRA INFORM REPORT

 

 

Report Date :

11.07.2012

 

IDENTIFICATION DETAILS

 

Name :

LAFARGE HALLA CEMENT CORPORATION

 

 

Formerly Known As :

RH Cement Co., Ltd.

 

 

Registered Office :

280-1, Sangye-ri, Okgye-myeon, Gangneung-si, Gangwon-do, Korea, Zip Code 210-834

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

27.10.1998

 

 

Com. Reg. No.:

226-81-22191

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Cement

 

 

No. of Employees :

502

 

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

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Basic

 

Company Name

LAFARGE HALLA CEMENT CORPORATION

(Korean Company Name : “라파즈한라시멘트()”)

Registered Address

280-1, Sangye-ri, Okgye-myeon, Gangneung-si, Gangwon-do, Korea

Zip Code

210-834

Tel

+82-33-534-1000

Fax

+82-33-534-0716

E-mail

manjoon.lee@kr.lafargehalla.com;yongjin.park@kr.lafarge.com

Website

www.lafargehalla.com

Trading Address

4th Fl., Rosedale Officetel, 724, Suseo-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-6902-3200

Fax

+82-2-6902-3292

Other Address-Singi Factory

23, Anui-ri, Singi-myeon, Samcheok-si, Gangwon-do, Korea

Tel

+82-33-540-0312

Fax

+82-33-540-0319

Other Address-Gwangyang Factory

1659-3, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-8291

Fax

+82-61-792-8290

Other Address-Pohang Factory

140-10, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-285-1751~3

Fax

+82-54-285-1930

Other Address-Icheon Office

358-4, Huan-ri, Hobeop-myeon, Icheon-si, Gyeonggi-do, Korea

Tel

+82-31-632-3286

Fax

+82-31-632-3287

Other Address-Maepo Office

374-4, Noho-ri, Buyong-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-269-2153

Fax

+82-43-269-2852

Other Address-Samho Office

1237-8, Sampo-ri, Samho-eup, Yeongam-gun, Jeollanam-do, Korea

Tel

+82-61-461-1415

Fax

+82-61-461-1692

Other Address-Janghang Branch

420-2, Sinchang-ri, Janghang-eup, Seocheon-gun, Chungcheongnam-do, Korea

Tel

+82-41-956-7235

Fax

+82-41-956-7237

Other Address-Uiwang Office

71-3, I-dong, Uiwang-si, Gyeonggi-do, Korea

Tel

+82-31-461-4288

Fax

+82-31-461-4971

Other Address-Eumseong Office

785-1, Pyeonggok 1-ri, Eumseong-eup, Eumseong-gun, Chungcheongbuk-do, Korea

Tel

+82-43-872-4695

Fax

+82-43-872-1937

Other Address-Jeju Office

1007, Sangdae-ri, Hallim-eub, Jeju-si, Jeju-do, Korea

Tel

+82-64-796-7270

Fax

+82-64-796-7290

Type

Export/Import

Industry

Manufacture of Cement

  Main Business

Cement, Clinker

Established (mm/dd/yyyy)

10/27/1998

The Subject owns the premises of registered HQ address, Singi Factory, Gwangyang Factory, Maepo Office and Samho Office.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cement(30111601)

 

CEO’s

 

Name

Michel Puchercos

Address

4th Fl., Rosedale Officetel, 724, Suseo-dong, Gangnam-gu, Seoul, Korea

Date of Birth

10/02/1957

Title

President & CEO

Sex

Male

Nationality

French

 

Profiles

 

Capital (KRW)

221,737,035,000

Employees

502

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Korea Exchange Bank

Woori Bank

Corporate Registered No.

141111-0012331

Business Registered No.

226-81-22191

Permit & Licenses

11/2002 ISO 14001

 

Int’l Trade No.: 404486

Shareholder Position

Name

Shares

%

FINANCIERE LAFARGE

18,071,508

40.75

LAFARGE KOREA B.V.

4,621,550

10.42

ARISEPT SAS

9,011,342

20.32

JUNG MONG-WON

9,236,014

20.83

HALLA ENGINEERING & CONSTRUCTION CORPORATION(110111-0274699)

892,000

2.01

TREASURY STOCK

4,463

0.01

EMPLOYEES AND OTHERS

2,510,530

5.66

TOTAL

44,347,407

100.00

Company History

10/27/1998 Incorporated as RH Cement Co., Ltd.

12/1998 Acquired Cement Business from Halla Cement Co., Ltd.

01/14/2000 Changed company name to the present name

01/25/2000 Registered as a Foreign Direct Investment Corporation

05/07/2004 Decreased capital to 221,737,035,000 KRW from 226,460,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Michel Puchercos

Male

Korean

01/29/2009

Director

Mr.

Silvang Garno

Male

French

03/30/2012

Director

Mr.

Fredrick Viyon

Male

French

03/30/2012

Director

Mr.

Wig Bacel Donbreval

Male

French

03/30/2012

Director

Mr.

Pablichio Olivares

Male

French

03/30/2012

Auditor

M/S.

Lee Hee-Sook

Female

Korean

03/29/2009

Mr. Michel Puchercos

-Ecole Polytechnique (1976)

-Ecole Nationale du Genie Rural, des Eaux et des Forets (National School of Rural Engineering, Waterways and Forests) (1981)

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2012

85,460,605,716

494,236,437,401

-5,492,022,609

2011

375,594,489,526

500,547,979,422

-28,757,135,986

2010

 345,480,312,226

507,250,215,002

-14,920,340,319

2009

394,324,503,241

424,468,027,658

-13,504,758,194

2008

364,298,220,254

483,801,781,406

-9,746,864,525

2007

335,172,949,511

477,122,509,000

-11,378,798,726

2006

342,586,712,387

469,445,093,908

-2,973,565,869

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

221,737,035,000

Total Issued Shares

44,347,407

 


 

Balance Sheet

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

494,236,437,401

500,547,979,422

507,250,215,002

Current Assets

136,148,376,436

137,708,453,730

136,542,111,773

-Quick Assets

86,439,784,229

100,965,664,334

97,955,088,610

-Inventories

49,708,592,207

36,742,789,396

38,587,023,163

Fixed Assets

358,088,060,965

362,839,525,692

370,708,103,229

-Investment

6,135,694,195

8,373,507,410

5,987,761,650

-Tangibles

311,515,760,211

313,934,926,960

324,139,232,601

-Intangibles

36,009,779,684

36,259,166,568

37,436,402,354

-Others

4,426,826,875

4,271,924,754

3,144,706,624

Total Liabilities

170,738,318,906

171,566,115,871

148,482,971,187

Current Liabilities

106,395,060,057

105,231,911,049

74,859,806,896

Fixed Liabilities

64,343,258,849

66,334,204,822

73,623,164,291

Capital Stock

221,737,035,000

221,737,035,000

221,737,035,000

Capital Surplus

 

 

 

Profit Surplus

28,692,227,634

34,184,250,243

62,941,386,229

Capital Adjustment

73,068,855,861

73,060,578,308

74,088,822,586

Total Equity

323,498,118,495

328,981,863,551

358,767,243,815

Liab. & Shareholder’s Equity

494,236,437,401

500,547,979,422

507,250,215,002

 

Current Liabilities

106,395,060,057

105,231,911,049

74,859,806,896

Trade Payables

48,633,882,010

49,401,749,991

33,857,468,269

Short-Term Borrowings

8,522,217,958

 

 

Account Payables

35,327,767,288

41,060,336,654

30,203,170,265

Advance Receipts

1,121,642,811

2,758,119,082

2,290,679,338

Withholdings

1,607,603,292

1,222,454,543

711,402,241

Unearned Income

793,581,838

217,161,621

201,241,441

Accrued Expenses

3,053,935,573

3,235,773,008

1,803,114,414

Accrued Dividends

685,660

685,660

685,660

Current Portion of Long-Term Debts

4,992,614,500

5,025,209,500

5,007,539,500

Current Portion of Long-Term Lease Debts

877,550,189

858,097,821

784,505,768

Accrued Income Tax

1,452,323,169

1,452,323,169

 

Derivatives

11,255,769

 

 

Fixed Liabilities

64,343,258,849

66,334,204,822

73,623,164,291

Long-Term Borrowings

8,956,024,500

10,187,686,000

15,192,695,500

Provision for Severance & Retirement

29,850,458,745

29,525,105,659

33,298,619,321

Other Provisions

10,227,294,771

9,950,641,681

9,087,075,646

Leasehold Deposit Received

419,458,120

416,958,120

399,278,590

Guarantee Deposit

983,700,000

983,700,000

1,023,700,000

Deferred Income Tax Credit

4,321,678,932

5,475,350,951

4,080,604,302

Long-Term Lease Debts

9,920,696,081

10,147,514,511

11,005,612,332

 

Income Statement

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

85,460,605,716

375,594,489,526

 345,480,312,226

Cost of Sold Goods

85,118,595,400

359,393,461,568

 327,345,400,231

Gross Profit

342,010,316

16,201,027,958

   18,134,911,995

Selling & Admin. Expenses

7,269,745,932

38,211,816,416

   36,232,830,857

Operating Income

-6,927,735,616

-22,010,788,458

-18,097,918,862

Non-Operating Income

1,777,687,179

6,415,075,782

   30,061,044,065

Non-Operating Expenses

1,869,007,703

11,801,865,035

   21,836,089,748

Income Before Taxes

-7,019,056,140

-27,397,577,711

-9,872,964,545

Income Taxes Expenses

-1,527,033,531

1,359,558,275

    5,047,375,774

Net Income

-5,492,022,609

-28,757,135,986

-14,920,340,319

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-17,233,128,729

19,167,583,674

17,827,558,677

-Net Income

-5,492,022,609

-28,757,135,986

-14,920,340,319

-Exp. without Cash Outflow

6,602,235,555

32,330,104,182

43,778,584,719

-Revenue without Cash Inflows

-26,119,403

-1,881,824,425

-26,243,374,025

-Changes in Asset/ & Liability

-18,317,222,272

17,476,439,903

15,212,688,302

Cash Flows from Investing

-2,313,722,371

-13,392,896,315

-7,010,358,295

-Cash Inflow from Investing

313,198,768

5,385,118,823

9,732,028,378

-Cash Outflows for Investing

-2,626,921,139

-18,778,015,138

-16,742,386,673

Cash Flows from Financing

7,050,595,396

-6,801,118,860

-4,061,834,554

-Cash Inflows from Financing

8,522,217,958

 

1,297,000,000

-Cash Outflows from Financing

-1,471,622,562

-6,801,118,860

-5,358,834,554

Increase/Decrease in Cash

-12,496,255,704

-1,026,431,501

6,755,365,828

Cash at the Beginning of Year

18,751,443,658

19,777,875,159

13,022,509,331

Cash at the End of Year

6,255,187,954

18,751,443,658

19,777,875,159

 

 

Products, Technologies, Services Description

 

Main Products & Services

Cement, Clinker

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI OIL REFINERY CO., LTD.(110111-0090558)

NAMHAE CHEMICAL CORPORATION(110111-0164717)

OXBOW

Competitors

SSANGYONG CEMENT INDUSTRIAL CO., LTD.

SSANG-YONG BLDG., 24-1, JEODONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2270-5114  FAX:+82-2-2275-7040

 

HANIL CEMENT CO., LTD.

15TH FL., UDEOK BLDG., 832-2, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-531-7000  FAX:+82-2-531-7113

 

TONG YANG CEMENT CORPORATION

ALPHA BLDG., 70, SEORIN-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-3770-3000  FAX:+82-2-3770-3305

 

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

LAFARGE S.A.

LAKO LTD.(141111-0027009)

POSFINE CO., LTD.(204611-0030668)

CEMENTIA TRADING CO.

LAFARGE ASIA SDN BHD

LAFARGE CEMENT LIMITED LIABLITY COMPANY

LAFARGE SHUI ON(BEIJING)

LAFARGE SURMA CEMENT

MALAYAN CEMENT BERHAD

PT.SEMEN ANDALAS INDONESIA

Corporate Ownership

LAFARGE S.A.

FINANCIERE LAFARGE

Cooperative Enterprise

-Franchise Agreement with

LAFARGE S.A.

 

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO.,LTD.(110111-0035893)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 


Sales by Region

 

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

12,931

17,999

67,945

Domestic

72,530

50,284

307,649

Total

85,461

68,283

375,594

 

The Subject deals with the companies in China and Taiwan.

 

 

Court Action

 

No.

 

 

News Clipping

 

---


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.81

UK Pound

1

Rs.86.53

Euro

1

Rs.68.58

 

INFORMATION DETAILS

 

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.