MIRA INFORM REPORT

 

 

Report Date :

15.10.2012

 

IDENTIFICATION DETAILS

 

Name :

INDO KOREAN PETROCHEM LTD.

 

 

Registered Office :

443, Jung-Ri, Seokjeok-Eup, Chilgok-Gun, Gyeongsangbuk-Do, Korea, Zip Code 718-833

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

29.04.2009

 

 

Com. Reg. No.:

513-81-52793

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Synthetic Fibers

 

 

No. of Employees :

24 employees

 

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 :

Slow but Correct

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

INDO KOREAN PETROCHEM LTD.

(Korean Company Name : “인도코리안페트로켐()”)

Registered Address

443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

Zip Code

718-833

Tel

+82-54-970-1200

Fax

+82-54-970-1234

Trading Address

443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

(New Address System : 12, 3gongdan-ro, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea)

Tel

+82-54-970-1200

Fax

+82-54-970-1234

Type

Export

Industry

Manufacture of Synthetic Fibers

  Main Business

Polyester Yarn, Polyester Chip

Established (mm/dd/yyyy)

04/29/2009

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Synthetic yarn(11151709)

Sell

Yarns(11151700)

 

 

CEO’s

 

Name

Lekhwani Jaikumar Sureshkumar

Address

443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

Date of Birth

05/01/1967

Title

President & CEO

Sex

Male

Nationality

Indian

 

 

Profiles

 

Capital (KRW)

6,392,060,000

Employees

24

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Co., Ltd by Shares

Corporate Registered No.

175211-0028865

Business Registered No.

513-81-52793

Permit & Licenses

Int’l Trade No.: 30674619

Shareholder Position

Name

Shares

%

NAKODA TEXTILE INDUSTRIES LIMITED(INDIA)

158,480

26.59

GERBACK HOLDINGS PTE.LTD

437,536

73.41

TOTAL

596,016

100.00

(*)The above list is based as of 12/31/2011.

Company History

04/29/2009 Incorporated as the present name

05/04/2009 Registered as a Foreign Direct Investment Corporation

02/23/2010 Increased the authorized shares to 10,000,000 shares from 400,000 shares02/09/2012 Increased capital to 6,392,060,000 KRW from 2,980,080,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lekhwani Jaikumar Sureshkumar

Male

Indian

07/26/2011

Director

Mr.

Jaywaramuheshi Kumar Jekisandra

Male

Indian

07/26/2011

Director

Mr.

Gaisas Madab Padmakar

Male

Indian

07/26/2011

Auditor

Mr.

Sriniwa Sanvenko Barao

Male

Indian

07/26/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

69,536,521,204

46,002,355,230

-11,952,260,600

2010

23,644,647,039

48,779,006,205

1,014,128,661

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

6,392,060,000

Total Issues Shares

1,278,412 (Common : 1,188,358 / Preferable : 90,054)

 

 

Balance Sheet

 

Unit : Million Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

46,002,355,230

48,779,006,205

 

Current Assets

10,110,973,408

16,899,912,781

 

-Quick Assets

4,127,135,647

11,378,294,676

 

-Inventories

5,983,837,761

5,521,618,105

 

Fixed Assets

35,891,381,822

31,879,093,424

 

-Investment

32,952,381,822

14,209,001,826

 

-Tangibles

-

14,896,091,598

 

-Intangibles

2,939,000,000

2,774,000,000

 

Total Liabilities

45,609,003,216

36,433,393,591

 

Current Liabilities

33,653,147,988

19,300,979,495

 

Fixed Liabilities

11,955,855,228

17,132,414,096

 

Capital Stock

2,980,080,000

2,980,080,000

 

Capital Surplus

8,555,130,000

8,555,130,000

 

Profit Surplus

-11,141,857,986

810,402,614

 

Capital Adjustment

-

-

 

Total Equity

393,352,014

12,345,612,614

 

Liab. & Shareholder’s Equity

46,002,355,230

48,779,006,205

 

 

Current Liabilities

33,653,147,988

19,300,979,495

 

Trade Payables

6,450,000

250,462,530

 

Account Payables

1,763,175,811

410,762,997

 

Withholdings

1,746,013,086

5,375,540

 

Advance Receipts

2,938,966,918

1,309,478,068

 

Short-Term Borrowings

20,957,001,934

15,911,103,182

 

Accrued Expenses

1,916,665,239

1,413,797,178

 

Current Portion of Long-Term Debts

4,324,875,000

-

 

Fixed Liabilities

11,955,855,228

17,132,414,096

 

Long-Term Borrowings

11,893,406,250

17,083,500,000

 

Provision for Severance & Retirement

62,448,978

42,088,734

 

Long-Term Account Payables

-

6,825,362

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

69,536,521,204

23,644,647,039

 

Cost of Sold Goods

74,628,561,570

24,703,555,687

 

Gross Profit

5,092,040,366

1,058,908,648

 

Selling & Admin. Expenses

1,849,996,681

459,666,471

 

Operating Income

-6,942,037,047

-1,518,575,119

 

Non-Operating Income

781,514,212

3,282,408,745

 

Non-Operating expenses

5,791,737,765

749,704,965

 

Income Before Taxes

-11,952,260,600

1,014,128,661

 

Income Taxes Expenses

-

-

 

Net Income

-11,952,260,600

1,014,128,661

 

 


 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-4,576,514,275

-1,444,032,011

 

-Net Income

-11,952,260,600

1,014,128,661

 

-Exp. without Cash Outflow

4,728,630,081

1,625,490,109

 

-Revenue without Cash Inflows

-42,720,801

-1,847,014,058

 

-Changes in Asset/ & Liability

2,689,837,045

-2,236,636,723

 

Cash Flows from Investing

1,185,456,148

-36,534,898,632

 

-Cash Inflow from Investing

9,111,200,000

-

 

-Cash Outflows for Investing

-7,925,743,852

-36,534,898,632

 

Cash Flows from Financing

3,612,661,334

37,926,402,942

 

-Cash Inflows from Financing

4,687,205,446

37,935,963,249

 

-Cash Outflows from Financing

-1,074,544,112

-9,560,307

 

Increase/Decrease in Cash

221,603,207

-52,527,701

 

Cash at the Beginning of Year

47,750,510

100,278,211

 

Cash at the End of Year

269,353,717

47,750,510

 

 

(*)The Subject needs to be monitored because Net Income is (-)11,952,000,000 KRW, and Current Liabilities exceed Current Assets as much as 23,542,000,000 KRW.

 

07/2011 The Subject Company has been damaged by the fire, and it is known that it delayed several times to pay the salaries to the employees.

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Yarn, Polyester Chip

 

 

Trade Partners & Competitors

 

Competitors

N & T GLOBAL INC.

RM. 2109, RENAISSNACE TOWER BLDG., 456, GONGDEOK-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-704-6401  FAX:+82-2-704-6403

 

GLOBAL KOREA TRADING CO., LTD.

RM. 304, SEOKTOP OFFICETEL, 1588-7, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3472-3751  FAX:+82-2-3472-3752

 

GATE TRADING CO., LTD.

RM. 302-1, SEONGU BLDG., YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-556-3153  FAX:+82-2-555-7633

 

Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in India.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.70

UK Pound

1

Rs.84.51

Euro

1

Rs.68.16

 

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.