MIRA INFORM REPORT

 

 

Report Date :

04.10.2012

 

IDENTIFICATION DETAILS

 

Name :

CHOSUN WELDING CO., LTD.

 

 

 

 

Registered Office :

321, Hwasan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea 689-896

 

 

 

 

Country :

South Korea

 

 

 

 

Financials (as on) :

31.12.2011

 

 

 

 

Date of Incorporation :

01/08/2010

 

 

 

 

Com. Reg. No.:

610-86-00965

 

 

 

 

Legal Form :

Co., Ltd by shares

 

 

 

 

Line of Business :

Manufacture of Other General- Purpose Machinery

 

 

 

 

No. of Employees :

119

 

 

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

CHOSUN WELDING CO., LTD.

(Korean Company Name : CHOSUN WELDING ONSAN CO., LTD., “조선선재온산(주)”)

Registered Address

321, Hwasan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea

Zip Code

689-896

Tel

+82-52-231-3400

Fax

+82-52-237-3311

E-mail

csadmin@chosunwelding.com

Website

www.chosunwelding.com

Trading Address

90, Dangsandong 4-ga, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-3459-9376

Fax

+82-2-553-6116

Type

Export/Import

Industry

Manufacture of Other General- Purpose Machinery n.e.c.

  Main Business

Welding Rod, Welding Machines

Established (mm/dd/yyyy)

01/08/2010

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welders(23171508)

Sell

Welding rods(23171512)

Sell

Welding wire(23171510)

 

 

CEO’s

 

Name

Chang Won-Young

Address

Suite 110-2303, 944, Yongho-dong, Nam-gu, Busan, Korea

Date of Birth

08/26/1975

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,000,000,000

Employees

119

Formation

Co., Ltd by shares

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

Bank Details

Citibank, Korea-Ulsan Sales Dept.

Corporate Registered No.

230111-0161677

Business Registered No.

610-86-00965

Permit & Licenses

Int’l Trade No.: 30663325

Shareholder Position

Name

Shares

%

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

600,000

100.00

TOTAL

600,000

100.00

Company History

01/01/2010 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

01/08/2010 Incorporated as the present name

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Chang Won-Young

Male

Korean

01/08/2010

Director

Mr.

Cho Sung-Eun

Male

Korean

06/30/2011

Director

Mr.

Chang Joon-Young

Male

Korean

09/09/2010

Auditor

Mr.

Do Byung-Woon

Male

Korean

06/30/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

85,834,254,373

98,685,455,451

4,603,832,892

2010

78,846,202,118

94,473,652,415

3,045,081,056

 

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

3,000,000,000

Total Issued Shares

600,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

98,685,455,451

94,473,652,415

 

Current Assets

30,696,165,532

27,788,991,553

 

Cash & Cash Equivalents

9,406,536,025

7,122,490,661

 

Trade Receivables

8,713,316,567

10,495,817,841

 

Other Receivables

1,580,051,891

508,351,978

 

Other Current Assets

30,975,972

176,931,053

 

Inventories

10,965,285,077

9,485,400,020

 

Non-Current Assets

67,989,289,919

66,684,660,862

 

Other Receivables

284,342,886

212,383,175

 

Non-Current Financial Instruments

478,781,000

-

 

Investment_Subsidiaries

266,078,000

266,078,000

 

Tangibles

58,817,309,088

57,993,584,556

 

Intangibles

53,978,120

53,978,120

 

Investment_Real Estates

8,088,800,825

8,158,637,011

 

Total Liabilities

12,825,297,946

12,744,153,111

 

Current Liabilities

11,400,440,944

11,604,722,742

 

Trade Payables

8,366,934,877

9,027,029,931

 

Short-Term Borrowings

511,108,884

214,852,232

 

Other Payables

1,643,883,626

1,797,042,981

 

Other Current Liabilities

175,961,658

391,526,228

 

Accrued Income Tax

702,551,899

174,271,370

 

Non-Current Liabilities

1,424,857,002

1,139,430,369

 

Confirmed Salaries

1,045,704,292

744,267,875

 

Other Payables

196,667,618

194,390,623

 

Deferred Income Tax Credit

182,485,092

200,771,871

 

Capital Stock

3,000,000,000

3,000,000,000

 

Capital Surplus

75,862,024,685

75,862,024,685

 

Others

-2,326,294

-

 

Profit Surplus

7,000,459,114

2,867,474,619

 

Total Equity

85,860,157,505

81,729,499,304

 

Liab. & Shareholder’s Equity

98,685,455,451

94,473,652,415

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

85,834,254,373

78,846,202,118

 

Cost of Sold Goods

75,719,808,495

68,724,338,513

 

Gross Profit

10,114,445,878

10,121,863,605

 

Selling & Admin. Expenses

6,329,057,510

7,558,915,188

 

Other Operating Income

1,410,018,098

774,244,537

 

Other Operating Expenses

109,655,556

207,375,470

 

Operating Income

5,085,750,910

3,129,817,484

 

Finance Income

996,355,210

1,010,588,992

 

Finance Expenses

435,229,265

676,835,360

 

Income Before Taxes

5,646,876,855

3,463,571,116

 

Income Taxes Expenses

1,043,043,963

418,490,060

 

Net Income

4,603,832,892

3,045,081,056

 

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

5,220,890,619

8,116,975,839

 

Cash Flows from Operating

5,664,336,750

8,626,019,622

 

Net Income

4,603,832,892

3,045,081,056

 

Adjustment

2,519,263,876

3,269,319,029

 

Changes in Asset/ & Liability

-1,458,760,018

2,311,619,537

 

Interests Received

91,672,887

13,524,119

 

Interests Paid

-50,912,948

-70,136,142

 

Income Taxes

-484,206,070

-452,431,760

 

Cash Flows from Investing

-2,926,270,842

-2,675,277,470

 

Cash Flows from Financing

-10,574,413

211,435,518

 

Increase/Decrease in Cash

2,284,045,364

5,653,133,887

 

Cash at the Beginning of Year

7,122,490,661

1,469,356,774

 

Cash at the End of Year

9,406,536,025

7,122,490,661

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Welding Rod, Welding Machines

 

 

Trade Partners & Competitors

 

Competitors

KISWEL CO., LTD.

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

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

 

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

 

CHEGIM WELDING CO., LTD.

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

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

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

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

CHOSUN WELDING POHANG CO., LTD.(171711-1186312)

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.

Subsidiary

CHOSUN WELDING JAPAN CO., LTD.

(100.0% held by the subject company)

Major Shareholders

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

 

 

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

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

 

The Subject Company

 

-

35,000,000

The Subject won at 1st round.

 

 

 

The Subject Company

-

408,184,000

The Subject won at 2nd round, and 3rd round is proceeding.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.33

UK Pound

1

Rs.84.30

Euro

1

Rs.67.45

 

 

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%)

 

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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.