MIRA INFORM REPORT

 

 

Report Date :

21.06.2012

 

IDENTIFICATION DETAILS

 

Name :

WEARFUN INTERNATIONAL, INC.

 

 

Registered Office :

5th Fl., Sinil Tower 68-22, Cheongdam-dong, Gangnam-gu, Seoul, Korea 135-953

 

 

Country :

South Korea

 

 

Financials (as on) :

17.12.1990

 

 

Date of Incorporation :

31.12.2011

 

 

Com. Reg. No.:

215-81-14162

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Shirts and Outer Garments

 

 

No. of Employees :

95

 

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 :

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

 

Company Name

WEARFUN INTERNATIONAL, INC.

(Korean Company Name : “()웨어펀인터내셔날”)

Registered Address

68-22, Cheongdam-dong, Gangnam-gu, Seoul, Korea

Building

5th Fl., Sinil Tower

Zip Code

135-953

Tel

+82-2-3446-3100

Fax

+82-2-3446-3109

E-mail

andre-cho@wearfun.co.kr

Website

www.wearfun.co.kr

Trading Address

5th Fl., Sinil Tower, 68-22, Cheongdam-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-3446-3100

Fax

+82-2-3446-3109

Type

Import

Industry

Wholesale of Shirts and Outer Garments

  Main Business

Clothing, Accessory, Jewelry

Established (mm/dd/yyyy)

12/17/1990

The Subject owns the premises of registered HQ address.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Mens suits(53101902)

Sell

Clothing(53100000)

Sell

Womens slacks or trousers or shorts(53101504)

 

 

CEO’s

 

Name

Gwon Gee-Chan

Address

Suite 3801, 87, Samseong-dong, Gangnam-gu, Seoul, Korea

Date of Birth

03/01/1951

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

2,400,000,000

Employees

95

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Jamsil Branch

Kookmin Bank

Shinhan Bank

SC First Bank of Korea

Hana Bank

Kookmin Bank

Corporate Registered No.

110111-0737085

Business Registered No.

215-81-14162

Permit & Licenses

Int’l Trade No.: 11555993

Shareholder Position

Name

Shares

%

GWON GEE-CHAN

237,500

62.50

LEE KYUNG-JAE

142,500

37.50

TOTAL

380,000

100.00

Company History

12/17/1990 Incorporated as the present name

11/30/2004 Increased the authorized shares to 600,000 shares from 300,000 shares

03/21/2007 Moved to the present HQ address from 106-8, Cheongdam-dong, Gangnam-gu, Seoul, Korea

10/28/2008 Increased capital to 1,900,000,000 KRW from 1,500,000,000 KRW

06/25/2010 Increased capital to 2,400,000,000 KRW from 1,900,000,000 KRW

12/12/2010 Moved to the present HQ address from 6th Fl., Wearfun Bldg., 52-17, Samseong 1-dong, Gangnam-gu, Seoul, Korea

07/13/2011 Acquired WEARFUN KOREA

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Gwon Gee-Chan

Male

Korean

12/17/1993

Director

Mr.

Yang Joo-Hwan

Male

Korean

12/17/1993

Director

M/S.

Lee Kyung-Jae

Female

Korean

12/17/1993

Auditor

Mr.

Kim Jae-Myung

Male

Korean

03/20/1994

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

23,879,111,383

25,295,992,009

450,967,066

2010

21,499,030,096

19,972,820,056

519,292,716

2009

19,238,763,662

28,024,193,456

-1,025,842,318

2008

21,138,504,620

30,281,212,957

-1,165,980,939

2007

21,178,870,790

28,800,404,497

2,478,001,545

2006

22,755,094,550

16,896,476,789

612,443,181

2005

21,736,739,436

15,622,103,522

556,108,204

2004

18,206,362,517

14,879,834,280

174,678,853

 

 

Financial Description

 

Authorized Capital(KRW)

3,000,000,000

Paid-Up Capital(KRW)

2,400,000,000

Total Issued Shares

480,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

25,295,992,009

19,972,820,056

28,024,193,456

Current Assets

19,264,516,566

18,232,599,737

12,944,436,333

-Quick Assets

3,811,164,426

10,328,857,282

3,596,680,941

-Inventories

15,453,352,140

7,903,742,455

9,347,755,392

Fixed Assets

6,031,475,443

1,740,220,319

15,079,757,123

-Investment

491,402,815

146,600,952

258,230,460

-Tangibles

2,004,060,778

1,362,879,974

14,782,035,270

-Intangibles

3,261,384,976

-

39,491,393

-Others

274,626,874

230,739,393

 

Total Liabilities

18,158,885,544

13,287,244,394

22,435,413,462

Current Liabilities

17,947,564,091

12,002,569,390

22,385,413,462

Fixed Liabilities

211,321,453

1,284,675,004

50,000,000

Capital Stock

2,400,000,000

2,400,000,000

1,900,000,000

Profit Surplus

4,735,943,776

4,288,071,710

3,768,778,994

Capital Adjustment

1,162,689

-2,496,048

-79,999,000

Total Equity

7,137,106,465

6,685,575,662

5,588,779,994

Liab. & Shareholder’s Equity

25,295,992,009

19,972,820,056

28,024,193,456

 

Current Liabilities

17,947,564,091

12,002,569,390

22,385,413,462

Short-Term Borrowings

13,518,682,462

9,758,179,768

18,797,871,751

Trade Payables

1,389,139,751

409,093,900

310,829,516

Account Payables

962,049,143

1,001,269,824

659,470,212

Advance Receipts

426,689,281

519,962,265

442,834,134

Withholdings

36,967,144

29,034,223

24,718,621

Accrued Expenses

260,014,359

235,415,528

295,720,797

Accrued Income Tax

238,141,602

49,613,882

-

Current Portion of Long-Term Debts

16,660,000

-

-

Leasehold Deposit Received

- 

- 

256,000,000

Current Portion of Debentures

1,100,000,000

-

1,600,000,000

Fixed Liabilities

211,321,453

1,284,675,004

50,000,000

Debentures

-

1,100,000,000

-

Provision for Severance & Retirement

56,321,453

46,329,200

-

Leasehold Deposit Received

75,000,000

50,000,000

-

Guarantee Deposit Withhold

80,000,000

90,000,000

50,000,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

23,879,111,383

21,499,030,096

19,238,763,662

Cost of Sold Goods

8,717,557,348

8,973,450,792

8,780,923,544

Gross Profit

15,161,554,035

12,525,579,304

10,457,840,118

Selling & Admin. Expenses

13,559,786,229

11,434,767,530

10,348,857,082

Operating Income

1,601,767,806

1,090,811,774

108,983,036

Non-Operating Income

367,983,897

1,563,023,163

1,003,674,852

Non-Operating Expenses

1,253,779,625

2,079,727,859

2,138,500,206

Income Before Taxes

715,972,078

574,107,078

-1,025,842,318

Income Taxes Expenses

265,005,012

54,814,362

-

Net Income

450,967,066

519,292,716

-1,025,842,318

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-1,367,871,750

2,041,726,901

-225,192,263

-Net Income

450,967,066

519,292,716

-1,025,842,318

-Exp. without Cash Outflow

1,152,870,010

1,335,770,378

1,045,430,881

-Revenue without Cash Inflows

-181,488,439

-1,254,363,925

-568,393,335

-Changes in Asset/ & Liability

-2,790,220,387

1,441,027,732

323,612,509

Cash Flows from Investing

5,534,336,071

7,198,567,696

-147,998,483

-Cash Inflow from Investing

8,673,515,772

15,597,368,641

1,758,625,776

-Cash Outflows for Investing

-3,139,179,701

-8,398,800,945

-1,906,624,259

Cash Flows from Financing

-4,273,146,678

-8,982,580,080

341,531,853

-Cash Inflows from Financing

12,458,260,258

8,720,025,078

17,867,608,792

-Cash Outflows from Financing

-16,731,406,936

-17,702,605,158

-17,526,076,939

Increase/Decrease in Cash

-96,522,974

257,714,517

-31,658,893

Cash at the Beginning of Year

268,868,193

11,153,676

42,812,569

Cash at the End of Year

172,345,219

268,868,193

11,153,676

 

 


Products, Technologies, Services Description

 

Main Products & Services

Clothing, Accessory, Jewelry

 

Brand Name : VERSACE, AIGNER, KENZO, SONIA RYKIEL, ORLA KIELY, ANYA HINDMARCH, PAULE KA, HARRODS, KENZO HOMME, ICEBERG, BASLER

 

 

Trade Partners & Competitors

 

Suppliers

HANA CAPITAL, CO., LTD.(110111-0519970) and HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provide the vehicle leasing services to the subject company.

Customers

WOORI HOME SHOPPING CO., LTD.(110111-2248957)

Competitors

HERMES KOREA LTD.

630-26, SINSA-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-544-7722  FAX:+82-2-545-1224

 

KOREA OZAKI CO., LTD.

RM. 603, ACE TECHNO TOWER, 55-7, MULLAEDONG 3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2633-7821  FAX:+82-2-2633-7834

 

MERKAVA CO., LTD.

1029-28, HOGYE 1-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-70-7090-4900  FAX:+82-31-427-4950

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

FUN SUPPLY CO., LTD.(110111-1984635)

WEARFUN KOREA CO., LTD.(110111-1337149)

W& FUN ENTERTAINMENT CO. LTD.(110111-3663998)

OPERA GALLERY KOREA LTD.(110114-0070843)

Cooperative Enterprise

-Insured Company

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

 

 


Sales by Region

(Activity & Markets)

 

The Subject imports from France, Germany, Italy and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.86

UK Pound

1

Rs.87.93

Euro

1

Rs.70.88

 

 

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.