MIRA INFORM REPORT

 

 

Report Date :

04.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SNNC CO., LTD.

 

 

Registered Office :

878, Geumho-dong, Gwangyang-si, Jeollanam-do

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

18.05.2006

 

 

Com. Reg. No.:

416-81-52508

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Ferro-Alloys

 

 

No. of Employees :

224

 

 

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

(31.03.2012)

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

 

Company Name

SNNC CO., LTD.

(Korean Company Name : “(주)에스엔엔씨”)

Registered Address

878, Geumho-dong, Gwangyang-si, Jeollanam-do, Korea

Zip Code

545-090

Tel

+82-61-797-9114

Fax

+82-61-797-9191

E-mail

parkhd@snnc.co.kr

Website

www.snnc.co.kr

Trading Address

878, Geumho-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-797-9114

Fax

+82-61-797-9191

Type

Export/Import

Industry

Manufacture of Ferro-Alloys

  Main Business

Ferronickel

Established (mm/dd/yyyy)

05/18/2006

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ferronickel

 

 

CEO’s

 

Name

Lee Sang-Hong

Address

Suite 201-402, 1045, Ma-dong, Gwangyang-si, Jeollanam-do, Korea

Date of Birth

01/12/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

185,000,000,000

Employees

224

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

A Company of POSCO Group

Bank Details

Woori Bank

Korea Development Bank

Corporate Registered No.

204611-0023415

Business Registered No.

416-81-52508

Permit & Licenses

N/A

Shareholder Position

Name

Shares

%

SOCIETE MINIERE DU SUD PACIFIQUE(SMSP : FRANCE)

18,870,000

51.00

POSCO(174611-0000741)

18,130,000

49.00

TOTAL

37,000,000

100.00

Company History

05/18/2006 Incorporated as the present name

06/28/2006 Registered as a Foreign Direct Investment Corporation

09/04/2006 Increased the authorized shares to 42,000,000 KRW from 2,400,000 KRW

11/15/2007 Increased capital to 185,000,000,000 KRW from 120,000,000,000 KRW

08/01/2008 Moved to the present HQ address from 700, Geumho-dong, Gwangyang-si, Jeollanam-do, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Sang-Hong

Male

Korean

05/18/2006

Director

Mr.

Kim Ki-Bong

Male

Korean

03/02/2009

Director

Mr.

Choi Tae-Ho

Male

Korean

03/19/2012

Director

Mr.

Andrei Danvengha

Male

French

02/26/2008

Director

Mr.

Marcel Thomas

Male

French

02/26/2008

Director

Mr.

Dominic Nazzi

Male

French

03/02/2010

Auditor

Mr.

Philip Feriviore

Male

French

09/04/2006

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

447,148,450,067

610,058,831,057

81,246,054,902

(*)2010

519,870,543,796

648,530,168,350

149,376,555,802

2009

368,348,636,617

505,055,034,008

85,685,888,345

2008

34,358,401,715

409,132,368,994

-47,958,883,951

2007

-

193,366,805,371

-)1,850,125,102

2006

-

38,583,523,183

-513,355,456

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

 

Financial Description

 

Authorized Capital(KRW)

210,000,000,000

Paid-Up Capital(KRW)

185,000,000,000

Total Issues Shares

37,000,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

610,058,831,057

648,530,168,350

 

Current Assets

348,116,165,655

350,991,198,050

 

Cash & Cash Equivalents

30,526,958,539

45,366,469,979

 

Trade Receivables

23,180,292,478

58,205,066,660

 

Other Finance Assets

250,164,238,850

181,789,431,673

 

Other Current Assets

1,554,116,206

685,140,010

 

Inventories

42,690,559,582

64,945,089,728

 

Non-Current Assets

261,942,665,402

297,538,970,300

 

Tangibles

259,616,376,070

294,884,334,401

 

Intangibles

2,274,453,313

2,600,197,896

 

Marketable Financial Instruments

2,000,000

2,000,000

 

Other Non-Current Assets

49,836,019

52,438,003

 

Total Liabilities

269,318,376,103

305,485,294,087

 

Current Liabilities

87,518,523,629

92,503,289,752

 

Trade Payables

32,140,321,102

40,471,872,948

 

Other Current Financial Debts

12,339,020,594

14,318,837,911

 

Other Current Liabilities

100,769,431

144,606,033

 

Short-Term Borrowings

30,000,000,000

30,000,000,000

 

Deferred Income Tax Credit

10,764,507,244

6,161,849,683

 

Current Portion of Provisions

2,173,905,258

1,406,123,177

 

Non-Current Liabilities

181,799,852,474

212,982,004,335

 

Long-Term Borrowings

180,000,000,000

210,000,000,000

 

Other Non-Current Financial Debts

-

-

 

Deferred Income Tax Credit

326,645,111

175,766,025

 

Provision for Severance & Retirement

1,473,207,363

2,806,238,310

 

Capital Stock

185,000,000,000

185,000,000,000

 

Others

-

-

 

Profit Surplus

155,740,454,954

158,044,874,263

 

Total Equity

340,740,454,954

343,044,874,263

 

Liab. & Shareholder’s Equity

610,058,831,057

648,530,168,350

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

447,148,450,067

519,870,543,796

 

Cost of Sold Goods

345,626,431,785

344,997,661,651

 

Gross Profit

101,522,018,282

174,872,882,145

 

Logistics

2,720,031,601

3,656,205,669

 

Admin. Expenses

11,767,173,741

11,026,899,388

 

Other Operating Income

12,650,248,908

1,025,823,072

 

Other Operating Expenses

3,023,152,200

721,419,270

 

Operating Income

96,661,909,648

160,494,180,890

 

Finance Profits

-1,888,448,420

-3,427,603,966

 

Finance Income

13,080,279,855

11,863,501,624

 

Finance Expenses

14,968,728,275

15,291,105,590

 

Income Before Taxes

94,773,461,228

157,066,576,924

 

Income Taxes Expenses

13,527,406,326

7,690,021,122

 

Net Income

81,246,054,902

149,376,555,802

 

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

165,015,203,044

161,986,210,142

 

Cash Flows from Operating

176,439,131,104

169,303,389,848

 

Net Income

81,246,054,902

149,376,555,802

 

Adjustment

59,395,159,251

53,988,349,269

 

Changes in Asset/ & Liability

35,797,916,951

-34,061,515,223

 

Interests Received

7,104,460,133

3,663,741,298

 

Interests Paid

-9,850,448,275

-9,767,299,666

 

Income Taxes

-8,677,939,918

-1,213,621,338

 

Cash Flows from Investing

-66,630,730,849

-105,942,141,835

 

Cash Flows from Financing

-113,250,000,000

-25,900,000,000

 

Increase/Decrease in Cash

-14,865,527,805

30,144,068,307

 

Cash at the Beginning of Year

45,366,469,979

15,146,597,067

 

Cash at the End of Year

30,526,958,539

45,366,469,979

 

 

Products, Technologies, Services Description

 

Main Products & Services

Ferronickel

 

Trade Partners & Competitors

 

Suppliers

NMC(NICKEL MINING COMPANY SAS : NEW CALEDONIA)

COAL & ALLIED OPERATIONS PTY LTD.(AUSTRALIA)

Customers

POSCO(174611-0000741)

Competitors

RISTEC-BIZ CO., LTD.

SAN 32, YOJA-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-279-6436  FAX:+82-54-279-6440

 

MECHEM KOREA CO., LTD.

9TH FL., ILJIN BLDG., 50-1, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-323-5193  FAX:+82-2-323-5195

 

KTC KOREA CO., LTD.

567-49, YEONNAM-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-3144-5052  FAX:+82-2-3141-5846

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

SAMJUNG PACKING AND ALUMINUM CO., LTD.(174611-0000866)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSCON(174611-0002242)

POSTEEL(110111-0344591)

POSCO SPECIALTY STEEL CO., LTD. (194211-0025248)

POSCO MACHINERY CO., LTD.(206411-0010175)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSMATE CO., LTD.(110111-0739841)

POSCO POWER CORPORATION(110111-1829576)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.

POSWITH CO., LTD.(171711-0075927)

P&R CO., LTD.

BASYS INDUSTRY CO. LTD.(110111-0954647)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

UI TRANS CO., LTD.(110111-3792309)

DAKOS(131110-0246297)

MAPO HIBROAD PARKING CO., LTD.(110111-4250140)

PURE GIMPO CO., LTD.(110111-4290394)

PLANT EST CO., LTD.(171711-0087592)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

METAPOLIS CO., LTD.(134811-0094475)

SEOUNG GWANG CO., LTD.(120111-0222844)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET CO., LTD.(161511-0097480)

DAEWOO ENGINEERING COMPANY CO., LTD.(110111-0203268)

Corporate Ownership

SOCIETE MINIERE DU SUD PACIFIQUE(SMSP : FRANCE)

Major Shareholders

SOCIETE MINIERE DU SUD PACIFIQUE(SMSP : FRANCE)

POSCO(174611-0000741)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO.,LTD.(10111-0095285)

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

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Australia and New Caledonia.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.33

UK Pound

1

Rs.84.30

Euro

1

Rs.67.44

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.