MIRA INFORM REPORT

 

 

Report Date :

17.07.2012

 

IDENTIFICATION DETAILS

 

Name :

CHOSUN WELDING POHANG CO., LTD.

 

 

Registered Office :

865, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea 790-240

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

01.01.2010

 

 

Com. Reg. No.:

506-81-70186

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Fabricated and Processed Metal Products

 

 

No. of Employees :

116

 

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 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 Information

 

Company Name

CHOSUN WELDING POHANG CO., LTD.

(Korean Company Name : “조선선재()”)

Registered Address

865, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Building

 

Zip Code

790-240

Tel

+82-54-289-8200

Fax

+82-54-285-8543

E-mail

csadmin@chosunwelding.com

Website

www.chosunwelding.com

Trading Address

865, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-285-8221

Fax

+82-54-285-8543

Type

Export/Import

Industry

Manufacture of Other Fabricated and Processed Metal Products n.e.c

  Main Business

Covered Arc Welding Electrodes, COWire, Flux Cored Wire

Established (mm/dd/yyyy)

01/01/2010

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welding wire(23171510)

 

 

CEO’s

 

Name

Chang Won-Young

Address

 

Date of Birth

08/26/1975

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

628,825,500

Employees

116

Formation

Listed Company (Korea Stock Exchange : 120030) as of 02/19/2010

A Company of DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

Bank Details

Citibank, Korea-Ulsan Sales Dept

Corporate Registered No.

171711-0086312

Business Registered No.

506-81-70186

Permit & Licenses

Int’l Trade No.: 30663341

Shareholder Position

Name

Shares

%

CS HOLDINGS CO., LTD.(110111-0008486)

570,059

45.33

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

93,761

7.46

OTHERS

593,831

47.22

TOTAL

1,257,651

100.00

Company History

01/01/2010 Incorporated as the present name, after Ex. CHOSUN WELDING CO., LTD., has spin off into 3 companies as below;

CS HOLDINGS CO., LTD.(110111-0008486 Existing company),

the subject company, CHOSUN WELDING POHANG CO., LTD.(171711-1186312, Newly established company) which took welding materials business division,

and CHOSUN WELDING ONSAN CO., LTD.(230111-0161677 Newly established company) which took FCW Welding material Business Division

 

(*)Before spin off

01/12/1949 Incorporated as CHOSUN STEEL WIRE CO., LTD.

03/23/1977 Changed company name to CHOSUN WELDING CO., LTD.

08/1995 Moved to 7th Fl., Chosun Bldg., 830-47, Yeoksam 1-dong, Gangnam-gu, Seoul, Korea

12/2001 Moved to 865, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea from Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Chang Won-Young

Korean

1975.08.26

Boston University, USA

Director

Mr.

Jo Sung-Eun

Korean

1975.07.20

-

Outside Director

Mr.

Kim Jin-Hoo

Korean

1965.11.16

Yonsei University, Korea

Auditor

Mr.

Jo Yong-Ok

Korean

1945.09.03

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2012

19,756,659,663

48,182,245,582

2,452,554,816

2011

75,614,864,699

45,093,751,338

11,666,001,708

2010

69,513,189,816

38,386,634,157

9,616,021,228

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

 

 

 

 

Financial Description

 

Authorized Capital(KRW)

2,400,000,000

Paid-Up Capital(KRW)

628,825,500

Total Issued Shares

1,257,651

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

48,182,245,582

45,093,751,338

38,386,634,157

Current Assets

36,963,607,016

33,801,767,956

26,986,078,224

Cash & Cash Equivalents

11,671,995,620

10,816,934,438

3,401,421,521

Trade Receivables

8,770,369,134

8,428,862,362

8,570,826,321

Other Receivables

188,118,415

125,679,465

119,718,472

Inventories

16,308,719,616

14,401,871,097

14,835,785,064

Other Current Assets

24,404,231

28,420,594

58,326,846

Non-Current Assets

11,218,638,566

11,291,983,382

11,400,555,933

Other Receivables

387,385,217

384,324,348

108,030,000

Tangibles

10,788,401,030

10,864,544,875

11,248,364,414

Intangibles

42,852,319

43,114,159

44,161,519

Total Liabilities

13,121,554,125

12,400,222,432

16,593,973,942

Current Liabilities

11,339,248,762

10,624,713,131

15,298,535,750

Short-Term Borrowings

 

 

5,000,000,000

Trade Payables

7,233,660,447

6,755,163,323

6,306,687,475

Other Payables

1,597,516,729

2,008,152,218

2,385,991,025

Other Current Liabilities

54,767,131

39,054,026

162,817,223

Deferred Income Tax Credit

2,453,304,455

1,822,343,564

1,443,040,027

Non-Current Liabilities

1,782,305,363

1,775,509,301

1,295,438,192

Confirmed Salaries

1,396,593,840

1,231,845,325

780,067,054

Deferred Income Tax Credit

385,711,523

543,663,976

515,371,138

Capital Stock

628,825,500

628,825,500

628,825,500

Capital Surplus

11,718,865,854

11,718,865,854

11,718,865,854

Profit Surplus

22,714,010,267

20,346,847,716

9,445,979,025

Others

-1,010,164

-1,010,164

-1,010,164

Total Equity

35,060,691,457

32,693,528,906

21,792,660,215

Liab. & Shareholder’s Equity

48,182,245,582

45,093,751,338

38,386,634,157

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

19,756,659,663

75,614,864,699

69,513,189,816

Cost of Sold Goods

15,088,391,696

57,378,101,796

51,315,983,744

Gross Profit

4,668,267,967

18,236,762,903

18,197,206,072

Selling & Admin. Expenses

1,241,934,636

4,514,846,122

5,895,407,164

Other Operating Income

95,194,008

748,473,530

600,833,405

Other Operating Expenses

1,209,635

40,983,531

107,419,514

Operating Income

3,520,317,704

14,429,406,780

12,795,212,799

Finance Income

130,024,368

544,571,185

150,684,241

Finance Expenses

115,045,958

238,975,561

612,982,449

Income Before Taxes

3,535,296,114

14,735,002,404

12,332,914,591

Income Taxes Expenses

-1,082,741,298

-3,069,000,696

-2,716,893,363

Net Income

2,452,554,816

11,666,001,708

9,616,021,228

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

960,166,682

13,506,940,417

7,545,190,636

Net Income

2,452,554,816

11,666,001,708

9,616,021,228

Adjustment

1,253,112,268

3,590,070,325

5,327,818,386

Changes in Asset/ & Liability

-2,226,373,991

926,344,877

-5,235,121,079

Interests Received

66,521,451

79,159,669

36,839,744

Interests Paid

 

-131,695,884

-449,854,788

Income Taxes

-585,647,862

-2,622,940,278

-1,750,512,855

Cash Flows from Investing

-105,105,500

-462,667,000

-143,318,951

Cash Inflow from Investing

 

122,256,000

58,460,888

Cash Outflows for Investing

 

-584,923,000

-201,779,839

Cash Flows from Financing

 

-5,628,760,500

-5,001,010,164

Cash Inflows from Financing

 

 

 

Cash Outflows from Financing

 

-5,628,760,500

-5,001,010,164

Increase/Decrease in Cash

855,061,182

7,415,512,917

2,400,861,521

Cash at the Beginning of Year

10,816,934,438

3,401,421,521

1,000,560,000

Cash at the End of Year

11,671,995,620

10,816,934,438

3,401,421,521

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

DONGBU METAL CO., LTD.(110111-3836678)

Competitors

KISWEL CO., LTD.

721-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-317-3131~40  FAX:+82-51-325-3627

 

CHEGIM WELDING CO., LTD.

42-499, IHYEON-DONG, SEO-GU, DAEGU, KOREA

TEL:+82-53-250-0600  FAX:+82-53-256-8117

 

HYUNDAI WELDING CO., LTD.

16TH FL., ILSONG BLDG., 157-37, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-6230-6010~2  FAX:+82-2-598-6928

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

CS HOLDINGS CO., LTD.(110111-0008486)

CHOSUN WELDING ONSAN CO., LTD.(230111-0161677)

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

DONGKUK R&S CO., LTD.( 195511-0069249)

DONGYAN METAL CO., LTD.(KOREA)

SEYOUNG SYSTEME CO., LTD.(230111-0130838)

DONGKUK S&C(110111-2276784)

DAEWON STEEL CO., LTD.(120111-0123711)

DONGKUK REFRACTORIES CO., LTD.(195511-0069249)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER CO., LTD.(201111-0023666)

GO DEOK WIND POWER CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNGSEOK DEVELOPMENT CO., LTD.

DK AMERICA, INC.

KUMHWA METAL CO., LTD.

DK WIND POWER CO., LTD.(234111-0045158)

NAMWON WIND POWER CO., LTD.(211311-0005428)

DK DONGSHIN CO., LTD.(110111-3850959)

Affiliates-Overseas

CHOSUN VINA CO., LTD.

CHOSUN WELDING JAPAN CO., LTD.

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in Canada, China, Japan, Middle East, South America and South East Asia.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.92

UK Pound

1

Rs.85.47

Euro

1

Rs.67.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.