MIRA INFORM REPORT

 

 

Report Date :

01.11.2012

 

IDENTIFICATION DETAILS

 

Name :

EHWHA GLOTECH CO., LTD.

 

 

 

 

Registered Office :

Rm. 407, Gyeonggi Techno Park 1271-11, Sa 3-dong, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea 426-901

 

 

 

 

Country :

South Korea

 

 

 

 

Financials (as on) :

31.12.2011

 

 

 

 

Date of Incorporation :

25.11.1985

 

 

 

 

Com. Reg. No.:

134-81-05461

 

 

 

 

Legal Form :

Co., Ltd by shares

 

 

 

 

Line of Business :

Manufacture of Industrial Machinery for Washing, Dyeing, Finishing and Processing Industrial Machinery of Fibers

 

 

 

 

No. of Employees :

103

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

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

EHWHA GLOTECH CO., LTD.

(Korean Company Name : “(주)이화글로텍”)

Registered Address

1271-11, Sa 3-dong, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

Building

Rm. 407, Gyeonggi Techno Park

Zip Code

426-901

Tel

+82-31-491-4191

Fax

+82-31-491-4194

E-mail

ehwha@ehwhaglotech.com;foxone@ehwhaglotech.com;

uk0203@ehwhaglotech.com;thjtwlove@nate.com

Website

www.ehwhaglotech.com

Trading Address

Rm. 407, Gyeonggi Techno Park, 1271-11, Sa 3-dong, Sangnok-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-4191

Fax

+82-31-491-4194

Other Address-Factory

408-41, Hanjin-ri, Songak-myeon, Dangjin-gun, Chungcheongnam-do, Korea

Tel

+82-41-358-4490

Fax

+82-41-358-4496

Type

Export/Import

Industry

Manufacture of Industrial Machinery for Washing, Dyeing, Finishing and Processing Industrial Machinery of Fibers

  Main Business

Tenter (Drying & Heat, Setting Tenter)

Established (mm/dd/yyyy)

11/25/1985

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Textile processing machinery and accessories(23121500)

Sell

Textile working machinery and equipment and accessories(23121600)

Sell

Air filters(40161505)

Sell

Switches and controls and relays and accessories(39121500)

Buy

Pipe(40142100)

Buy

Deburring equipment(23171605)

Buy

Iron plate(30102203)

Buy

Drivetrain systems(25173800)

Buy

Inverters(32121705)

 

 

CEO’s

 

Name

Chung Byung-Sik

Address

403, Bugokgongdan-ro, Dangjin-si, Chungcheongnam-do, Korea

Date of Birth

03/14/1939

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,460,000,000

Employees

103

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Corporate Registered No.

130111-0009159

Business Registered No.

134-81-05461

Permit & Licenses

10/2008 ISO 9001

 

Int’l Trade No.: 500964

Shareholder Position

Name

Shares

%

CHUNG BYUNG-SIK

69,000

47.26

CHUNG JOONG-HAN

24,000

16.44

OTHERS(5)

53,000

36.30

TOTAL

146,000

100.00

Company History

11/25/1985 Incorporated as EHWHA MACHINERY MFG. CO., LTD.

11/2001 Awarded US$10 Million Export Top Prize

11/2003 Awarded US$20 Million Export Top Prize

11/2007 Awarded US$30 million Export Top Prize

12/06/2007 Changed company name to the present name

12/25/2009 Increased capital to 1,460,000,000 KRW from 1,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Chung Byung-Sik

Male

Korean

12/25/2009

Director

Mr.

Lee Son-Duck

Male

Korean

11/25/2000

Director

M/S.

Lim Soon-Im

Female

Korean

11/25/2000

Director

Mr.

Chung Joong-Han

Male

Korean

04/01/2004

Auditor

Mr.

Lee Jin-Won

Male

Korean

08/20/2009

Supervisor of HQ Office

Mr.

Kang Sung-Joo

Male

Korean

06/15/2009

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

48,084,802,540

26,791,945,381

1,149,511,653

2010

51,075,420,426

24,632,165,498

1,127,612,487

2009

39,123,888,260

25,183,188,924

1,019,159,549

2008

24,485,887,211

20,149,537,070

-2,174,252,660

2007

31,009,755,480

19,846,007,280

6,057,656,944

2006

29,353,970,547

14,489,198,161

-6,312,784,018

2005

24,039,078,650

20,666,263,034

-650,710,033

2004

25,959,682,016

22,374,658,280

-477,356,937

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

1,460,000,000

Total Issues Shares

146,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

26,791,945,381

24,632,165,498

25,183,188,924

Current Assets

14,569,629,816

12,443,372,726

13,307,407,864

-Quick Assets

12,480,214,408

8,305,105,980

9,513,516,617

-Inventories

2,089,415,408

4,138,266,746

3,793,891,247

Fixed Assets

12,222,315,565

12,188,792,772

11,875,781,060

-Investment

472,552,000

351,212,000

231,212,000

-Tangibles

10,651,848,941

10,918,570,279

10,822,664,049

-Intangibles

803,874,179

547,451,566

460,957,284

-Others

294,040,445

371,558,927

360,947,727

Total Liabilities

17,305,734,868

16,295,466,638

17,974,102,551

Current Liabilities

14,605,832,548

12,281,021,384

14,608,002,469

Fixed Liabilities

2,699,902,320

4,014,445,254

3,366,100,082

Capital Stock

1,460,000,000

1,460,000,000

1,460,000,000

Capital Surplus

　

　

　

Profit Surplus

3,871,692,412

2,722,180,759

1,594,568,272

Capital Adjustment

4,154,518,101

4,154,518,101

4,154,518,101

Total Equity

9,486,210,513

8,336,698,860

7,209,086,373

Liab. & Shareholder’s Equity

26,791,945,381

24,632,165,498

25,183,188,924

 

Current Liabilities

14,605,832,548

12,281,021,384

14,608,002,469

Trade Payables

9,846,393,328

8,389,183,222

9,593,364,884

Short-Term Borrowings

800,000,000

800,000,000

-

Account Payables

1,776,879,403

1,268,446,656

762,166,737

Advance Receipts

1,135,076,328

1,049,129,701

796,647,150

Accrued Expenses

12,263,237

13,120,829

15,433,455

Withholdings

19,630,252

12,220,976

47,270,243

Current Portion of Long-Term Debts

1,015,590,000

748,920,000

3,393,120,000

Fixed Liabilities

2,699,902,320

4,014,445,254

3,366,100,082

Long-Term Borrowings

2,439,000,000

3,754,590,000

3,003,510,000

Provision for Severance & Retirement

735,111,836

573,846,360

364,092,275

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

48,084,802,540

51,075,420,426

39,123,888,260

Cost of Sold Goods

39,028,539,737

40,308,196,387

30,528,134,225

Gross Profit

9,056,262,803

10,767,224,039

8,595,754,035

Selling & Admin. Expenses

7,888,187,568

9,263,519,614

6,920,580,927

Operating Income

1,168,075,235

1,503,704,425

1,675,173,108

Non-Operating Income

926,760,583

946,740,956

682,929,822

Non-Operating Expenses

945,324,165

1,322,832,894

1,338,943,381

Income Before Taxes

1,149,511,653

1,127,612,487

1,019,159,549

Income Taxes Expenses

-

-

-

Net Income

1,149,511,653

1,127,612,487

1,019,159,549

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

2,696,870,395

-1,561,862,737

7,014,847,824

-Net Income

1,149,511,653

1,127,612,487

1,019,159,549

-Exp. without Cash Outflow

1,099,391,999

1,455,831,564

1,318,717,214

-Revenue without Cash Inflows

-192,209,597

-90,126,386

-44,236,906

-Changes in Asset/ & Liability

640,176,340

-4,055,180,402

4,721,207,967

Cash Flows from Investing

-751,318,013

-846,222,758

-806,679,601

-Cash Inflow from Investing

3,510,301,836

4,269,632,914

2,031,440,803

-Cash Outflows for Investing

-4,261,619,849

-5,115,855,672

-2,838,120,404

Cash Flows from Financing

-550,961,721

-370,353,076

-2,718,278,126

-Cash Inflows from Financing

20,805,149,369

19,394,542,072

14,959,989,562

-Cash Outflows from Financing

-21,356,111,090

-19,764,895,148

-17,678,267,688

Increase/Decrease in Cash

1,394,590,661

-2,778,438,571

3,489,890,097

Cash at the Beginning of Year

863,311,441

3,641,750,012

151,859,915

Cash at the End of Year

2,257,902,102

863,311,441

3,641,750,012

 

 

Products, Technologies, Services Description

 

Main Products & Services

Padding mangles

Roller squeezers

Tentering and stentering machines

Tensionless and conveyor dryers

Drying chambers, ovens

Software systems for the knitting industry

 

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides vehicle leasing services to the subject company.

Competitors

SHINIL ENTERPRISE COMPANY

RM. 322, SK HURBGREEN OFFICETEL, 556, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-2273-0581~2  FAX:+82-2-2277-2387

 

CHUNG SONG MACHINERY IND. CO., LTD.

2NA-702, SIHWA INDUSTRIAL COMPLEX, 1259-1, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-431-8595  FAX:+82-31-431-8598

 

NPI LTD.

A-709, GEUMGANG PENTERIUM IT TOWER, 333-7, SANGDAEWON 1-DONG, JUNGWON-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-730-0922  FAX:+82-31-730-0923

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Subsidiary

SOHUNG EHWA MACHINERY INDUSTRIES CO., LTD. (100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD.(110111-0017586)

AMERICAN HOME ASSURANCE COMPANY KOREA

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to Bangladesh, China, Egypt(Syria, Morocco), India and Turkey.

 

 

Court Action

 

No.

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.12

UK Pound

1

Rs.87.07

Euro

1

Rs.70.15

 

 

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.