MIRA INFORM REPORT

 

 

Report Date :

09.10.2012

 

IDENTIFICATION DETAILS

 

Name :

KISWEL CO., LTD.

 

 

Registered Office :

721-3, Hakjang-dong, Sasang-gu, Busan, Korea, Zip Code 617-843

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

10.09.1964

 

 

Com. Reg. No.:

606-81-03615

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacturer of Other Fabricated and Processed Metal Products

 

 

No. of Employees :

294 employees

 

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

KISWEL CO., LTD.

(Korean Company Name : “고려용접봉()”)

Registered Address

721-3, Hakjang-dong, Sasang-gu, Busan, Korea

Zip Code

617-843

Tel

+82-51-317-3131~40

Fax

+82-51-325-3627

E-mail

master@kiswel.com

Website

www.kiswel.com

Trading Address

7FL., Heungkook Bldg., 43-1, Juja-dong, Jung-gu, Seoul, Korea (P.O.BOX 8641)

Tel

+82-2-2270-9400  +82-2-2270-9468

Fax

+82-2-2272-7233~4  +82-2-2275-2826

Other Address-Changwon Factory

58-2, Seongju-dong, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-269-7200

Fax

+82-55-285-1655

Other Address-Busan Office

667-1, Buam-dong, Busanjin-gu, Busan, Korea

Tel

+82-51-806-3133

Type

Export/Import

Industry

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

  Main Business

Welding Electrode, Flux Cored Wire

Established (mm/dd/yyyy)

09/10/1964

 

The Subject owns the premises of registered HQ address and Changwon Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welding rods(23171512)

Sell

Welding wire(23171510)

 

 

CEO’s

 

Name

Hong Min-Chul

Address

8Ho, 330-356, Seongbuk-dong, Seongbuk-gu, Seoul, Korea

Date of Birth

06/11/1951

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

990,000,000

Employees

294

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Woori Bank-Myung-Dong Branch

Corporate Registered No.

180111-0011261

Business Registered No.

606-81-03615

Permit & Licenses

10/29/1998 KS Mark

09/1999 QS 9000

09/22/1999 ISO 14001 by UKAS

02/2005 ISO/TS 16949

 

Int’l Trade No.: 741455

Shareholder Position

Name

Shares

%

HONG MIN-CHUL

134,640

68.00

OTHERS

63,360

32.00

TOTAL

198,000

100.00

Company History

09/10/1964 Incorporated as the present name

12/13/1970 Moved to the present HQ address from 21, Sogong-dong, Jung-gu, Seoul, Korea

11/26/1996 Awarded US$50 Million Export Top Prize

12/2008 Awarded US$100 Million Export Top Prize

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Hong Min-Chul

Male

Korean

03/23/2001

Co-President & CEO

Mr.

Lee Ki-Hong

Male

Korean

09/25/2009

Director

Mr.

Ahn Joon

Male

Korean

11/25/2008

Director

Mr.

Lee Young-Rang

Male

Korean

03/24/2012

Auditor

Mr.

Choi Ho-Seok

Male

Korean

03/24/2006

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

300,194,852,055

361,439,883,767

24,851,497,252

2010

232,608,544,974

325,256,195,932

35,610,480,538

2009

184,429,273,509

269,645,098,846

14,984,567,033

2008

240,267,484,538

260,596,073,245

29,403,304,006

2007

174,914,805,175

223,452,404,785

16,114,847,319

2006

162,174,931,673

199,120,057,270

12,149,157,022

2005

154,726,415,344

192,528,196,778

20,680,651,387

2004

143,137,784,279

169,976,489,352

11,874,881,749

Financial Description

 

Authorized Capital(KRW)

1,500,000,000

Paid-Up Capital(KRW)

990,000,000

Total Issued Shares

198,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

361,439,883,767

325,256,195,932

269,645,098,846

Current Assets

216,377,302,191

189,816,307,566

151,469,836,564

-Quick Assets

172,365,301,153

155,468,579,243

120,676,943,175

-Inventories

44,012,001,038

34,347,728,323

30,792,893,389

Fixed Assets

145,062,581,576

135,439,888,366

118,175,262,282

-Investment

82,655,977,021

77,906,382,411

60,460,296,396

-Tangibles

57,534,871,988

53,332,304,504

54,279,732,933

-Intangibles

4,871,732,567

4,201,201,451

3,435,232,953

Total Liabilities

38,782,987,748

30,184,587,877

26,020,502,016

Current Liabilities

35,942,969,417

27,086,316,762

23,289,889,575

Fixed Liabilities

2,840,018,331

3,098,271,115

2,730,612,441

Capital Stock

990,000,000

990,000,000

990,000,000

Capital Surplus

44,965,971,981

44,965,971,981

44,965,971,981

Profit Surplus

250,280,879,071

225,429,381,819

189,818,901,281

Capital Adjustment

26,420,044,967

23,686,254,255

7,849,723,568

Total Equity

322,656,896,019

295,071,608,055

243,624,596,830

Liab. & Shareholder’s Equity

361,439,883,767

325,256,195,932

269,645,098,846

 

Current Liabilities

35,942,969,417

27,086,316,762

23,289,889,575

Trade Payables

26,093,068,774

18,604,816,505

14,574,654,032

Account Payables

6,094,872,602

4,937,467,789

6,977,389,258

Advance Receipts

87,932,896

45,813,045

39,757,053

Withholdings

68,694,108

104,722,821

176,575,651

Accrued Income Tax

3,598,401,037

3,393,496,602

1,521,513,581

Fixed Liabilities

2,840,018,331

3,098,271,115

2,730,612,441

Provision for Severance & Retirement

10,627,811,400

9,558,264,700

8,679,908,400

Guarantee Deposit Withhold

170,000,000

180,000,000

150,000,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

300,194,852,055

232,608,544,974

184,429,273,509

Cost of Sold Goods

253,424,173,521

189,684,006,517

146,948,004,665

Gross Profit

46,770,678,534

42,924,538,457

37,481,268,844

Selling & Admin. Expenses

25,279,310,517

21,425,380,177

19,848,568,394

Operating Income

21,491,368,017

21,499,158,280

17,632,700,450

Non-Operating Income

14,877,113,866

26,059,198,922

10,643,370,529

Non-Operating Expenses

4,976,421,962

5,800,478,442

8,005,811,371

Income Before Taxes

31,392,059,921

41,757,878,760

20,270,259,608

Income Taxes Expenses

6,540,562,669

6,147,398,222

5,285,692,575

Net Income

24,851,497,252

35,610,480,538

14,984,567,033

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

8,451,127,963

5,332,407,455

42,794,953,196

-Net Income

24,851,497,252

35,610,480,538

14,984,567,033

-Exp. without Cash Outflow

8,543,968,614

7,389,610,881

7,184,028,449

-Revenue without Cash Inflows

-7,270,225,828

-18,958,277,743

-2,996,445,835

-Changes in Asset/ & Liability

-17,674,112,075

-18,709,406,221

23,622,803,549

Cash Flows from Investing

-18,663,617,907

11,159,504,027

-38,651,936,061

-Cash Inflow from Investing

60,117,955,974

96,340,692,335

94,003,332,159

-Cash Outflows for Investing

-78,781,573,881

-85,181,188,308

-132,655,268,220

Cash Flows from Financing

19,000,000

116,650,000

-

-Cash Inflows from Financing

19,000,000

116,650,000

-

-Cash Outflows from Financing

-

-

-

Increase/Decrease in Cash

-10,193,489,944

16,608,561,482

4,143,017,135

Cash at the Beginning of Year

34,554,332,433

17,945,770,951

13,802,753,816

Cash at the End of Year

24,360,842,489

34,554,332,433

17,945,770,951

 

 

Products, Technologies, Services Description

 

Main Products & Services

Welding Electrode, Flux Cored Wire

 

 

Trade Partners & Competitors

 

Customers

SAMHWA STEEL CO., LTD.(180111-0085373)

Competitors

HYUNDAI WELDING CO., LTD.

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

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

 

CHOSUN WELDING CO., LTD.

865, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-8221  FAX:+82-54-285-8543

 

PYUNGSAN METALS CO., LTD.

5-4, MULLAE-DONG 5-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2635-5454  FAX:+82-2-2635-5453

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA HEAT TREATMENT CO., LTD.(180111-0025014)

(46.56% held by the subject company)

 

KOREAOMEGA INVESTMENT ADVISORY CO., LTD.(110111-1551955)

(38.23% held by the subject company)

Subsidiary

KISWEL SDN BHD

(100.0% held by the subject company)

 

KISWEL JAPAN

(100.0% held by the subject company)

 

KISWEL USA

(100.0% held by the subject company)

 

KISWEL DALIAN

(100.0% held by the subject company)

 

KISWEL DALIAN TRADING

(100.0% held by the subject company)

 

KISWEL SINGAPORE PTE. LTD.

(80.0% held by the subject company)

Corporate Ownership

HONG MIN-CHUL

Major Shareholders

HONG MIN-CHUL

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in Japan, USA, Middle East and Europe.

 

Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.21

UK Pound

1

Rs.84.00

Euro

1

Rs.67.75

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.