MIRA INFORM REPORT

 

 

Report Date :

19.10.2012

 

IDENTIFICATION DETAILS

 

Name :

NEXANS KOREA LTD.

 

 

Registered Office :

165, Sadong-ri, Nami-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea, Zip Code 363-812

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

21.11.1960

 

 

Com. Reg. No.:

127-81-00963

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Other Insulated Wire and Cable

 

 

No. of Employees :

187 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

 

Maximum Credit Limit :

USD 4300000

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

NEXANS KOREA LTD.

(Korean Company Name : “넥상스코리아()”)

Registered Address

165, Sadong-ri, Nami-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Zip Code

363-812

Tel

+82-43-270-0200

Fax

+82-43-270-0219

E-mail

contact.kr@nexans.com

Website

www.nexanskorea.com

Trading Address

7th Fl., I`Park Tower, 160, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2140-2400

Fax

+82-2-2140-2419

Type

Export/Import

Industry

Manufacture of Other Insulated Wire and Cable

  Main Business

Power Cable, Communication Cable, Optical Cable

Established (mm/dd/yyyy)

11/21/1960

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Telecommunications cable(26121616)

Sell

Power cable(26121629)

Sell

Fiber optic cable(26121607)

Sell

Electrical wire(26121500)

Sell

Automotive or aircraft wire(26121508)

Buy

Polyvinyl Chloride PVC(13102030)

Buy

Asynchronous transfer mode ATM network equipment(43221805)

Buy

Copper clad aluminum wire(26121519)

Buy

Copper wire(26121517)

Buy

Polyethylene(13111016)

 

 

CEO’s

 

Name

Kang In-Koo

Address

Suite 302-1601, 435, Olympic-ro, Songpa-gu, Seoul, Korea

Date of Birth

12/23/1956

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

17,707,074,000

Employees

187

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank-Coex Corporate Finance Branch

Corporate Registered No.

111511-0000798

Business Registered No.

127-81-00963

Permit & Licenses

06/16/1987 UL Mark

03/23/1992 ISO 9002

 

Int’l Trade No.: 812016

Shareholder Position

Name

Shares

%

NEXANS PARTICIPATIONS S.A.(FRANCE)

21,912,434

61.88

NEXANS S.A.(FRANCE)

12,169,830

34.36

OTHERS

1,331,884

3.76

TOTAL

35,414,148

100.00

Company History

11/21/1960 Incorporated as Daesung Jeonup Co., Ltd.

01/01/1972 Changed company name to Daesung Electric Cable Co., Ltd.

03/13/1989 Listed at Korea Stock Exchange (Code :003050)

07/01/1998 Acquired Daesung Cable Co., Ltd.

04/26/2001 Changed company name to the present name

12/22/2004 Delisted from Korea Stock Exchange

12/04/2006 Increased capital to 17,707,074,000 KRW from 19,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Career

President & CEO

Mr.

Kang In-Koo

Korean

1956.12.23

Seogang University, Korea

Director

Mr.

Choi Byung-Cheol

Korean

1946.07.14

Seoul National University, Korea

Director

Mr.

Nicholas Peter Ballas

USA

1960.07.27

Cabot Corporation Asia

Director

Mr.

Francis Bailleux

French

1961.07.19

-

Director

Mr.

Kumar Hingorani

Canadian

1971.02.07

-

Auditor

Mr.

Lee Won-Wook

Korean

1955.07.05

Sungkyunkwan University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

06/2012

167,944,028,671

162,959,289,671

2,101,036,588

2011

356,327,042,896

160,497,967,457

-9,662,031,819

2010

252,658,338,747

166,903,519,881

2,217,998,241

2009

203,458,050,116

146,236,407,753

22,447,711,155

2008

222,420,928,566

142,847,080,956

-14,217,380,810

2007

199,979,371,858

145,839,560,588

4,140,901,391

2006

190,805,743,714

148,873,932,770

5,589,700,163

 

 

Financial Description

 

Authorized Capital(KRW)

40,000,000,000

Paid-Up Capital(KRW)

17,707,074,000

Total Issues Shares

35,414,148

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~06/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

162,959,289,671

160,497,967,457

166,903,519,881

Current Assets

124,002,094,416

121,385,692,883

126,377,005,332

-Quick Assets

98,811,426,358

105,345,841,513

115,355,040,068

-Inventories

25,190,668,058

16,039,851,370

11,021,965,264

Fixed Assets

38,957,195,255

39,112,274,574

40,526,514,549

-Investment

8,950,611,095

9,383,888,472

10,786,673,725

-Tangibles

25,039,058,020

25,968,771,166

26,341,296,732

-Intangibles

112,805,578

148,472,236

162,361,112

-Others

4,854,720,562

3,611,142,700

3,236,182,980

Total Liabilities

66,614,376,241

66,308,066,911

61,205,783,861

Current Liabilities

63,501,328,913

64,972,914,879

59,640,122,924

Fixed Liabilities

3,113,047,328

1,335,152,032

1,565,660,937

Capital Stock

17,707,074,000

17,707,074,000

17,707,074,000

Capital Surplus

64,678,934,174

64,678,934,174

64,678,934,174

Profit Surplus

17,672,599,113

15,571,562,525

27,425,706,854

Capital Adjustment

-3,713,693,857

-3,767,670,153

-4,113,979,008

Total Equity

96,344,913,430

94,189,900,546

105,697,736,020

Liab. & Shareholder’s Equity

162,959,289,671

160,497,967,457

166,903,519,881

 

Current Liabilities

63,501,328,913

64,972,914,879

59,640,122,924

Trade Payables

38,294,100,297

42,512,343,257

43,271,428,858

Account Payables

4,295,379,901

5,573,416,406

9,388,117,909

Advance Receipts

1,832,506,151

801,375,374

1,155,019,721

Withholdings

229,703,929

311,029,575

253,555,908

Accrued Expenses

2,713,007,153

1,893,860,980

1,608,425,088

Accrued Income Tax

466,920,887

77,400,555

-

VAT Withhold

-

2,317,882,683

2,651,664,095

Accrued Dividends

3,554,680

3,554,680

3,274,360

Short-Term Borrowings

12,710,504,299

5,273,393,621

-

Derivatives

2,955,651,616

6,208,657,748

535,148,959

Current Portion of Deferred Income Tax Credit

-

-

773,488,026

Fixed Liabilities

3,113,047,328

1,335,152,032

1,565,660,937

Derivatives

1,024,461,355

0

0

Provision for Severance & Retirement

6,491,063,303

5,684,413,727

4,909,885,842

Leasehold Deposit Received

431,446,000

231,446,000

525,868,500

Provision for Severance & Retirement

1,156,130,459

1,103,706,032

1,039,792,437

 

 

Income Statement

 

Unit : Korean Won

01/01/2011~06/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

167,944,028,671

356,327,042,896

252,658,338,747

Cost of Sold Goods

160,532,320,515

338,331,048,389

242,866,543,160

Gross Profit

7,411,708,156

17,995,994,507

9,791,795,587

Selling & Admin. Expenses

7,987,938,297

15,173,402,504

13,131,895,003

Operating Income

-576,230,141

2,822,592,003

-3,340,099,416

Non-Operating Income

12,604,266,934

16,208,636,893

15,758,237,214

Non-Operating Expenses

9,639,843,817

30,694,371,951

10,533,599,311

Income Before Taxes

2,388,192,976

-11,663,143,055

1,884,538,487

Income Taxes Expenses

287,156,388

-2,001,111,236

-333,459,754

Net Income

2,101,036,588

-9,662,031,819

2,217,998,241

 

 

Cash Flows

 

Unit : Korean Won

01/01/2011~06/30/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-6,322,691,384

-13,726,607,283

3,794,440,819

-Net Income

2,101,036,588

-2,330,392,689

2,217,998,241

-Exp. without Cash Outflow

6,286,950,262

5,366,433,491

9,041,434,850

-Revenue without Cash Inflows

-1,624,972,425

-2,953,335,234

-6,144,726,033

-Changes in Asset/ & Liability

-13,085,705,809

-13,809,312,851

-1,320,266,239

Cash Flows from Investing

-750,336,420

2,742,160,117

-12,862,396,741

-Cash Inflow from Investing

61,084,806,437

68,345,081,848

51,931,793,850

-Cash Outflows for Investing

-61,835,142,857

-65,602,921,731

-64,794,190,591

Cash Flows from Financing

7,637,110,678

-2,486,254,692

-1,095,916,096

-Cash Inflows from Financing

7,637,110,678

5,857,820

-

-Cash Outflows from Financing

-

-2,492,112,512

-1,095,916,096

Increase/Decrease in Cash

564,082,874

-13,470,701,858

-10,163,872,018

Cash at the Beginning of Year

6,801,996,586

19,394,665,521

29,558,537,539

Cash at the End of Year

7,366,079,460

5,923,963,663

19,394,665,521

 

 

Products, Technologies, Services Description

 

Main Products & Services

Power Cable, Communication Cable, Optical Cable

 

 

Trade Partners & Competitors

 

Suppliers

NEXANS DAEYOUNG CO., LTD.(115211-0012779)

TAIHAN ELECTRIC WIRE CO.,LTD(110111-0035835)

Competitors

LS CABLE LTD.(134111-0168357)

12TH FL., LS TOWER, 1026-6, HOGYE 1-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-2-2189-9114  FAX:+82-2-2189-9259

 

TAIHAN ELECTRIC WIRE CO.,LTD(110111-0035835)

113-119, SIHEUNG 1-DONG, GEUMCHEON-GU, SEOUL 153-839 KOREA

TEL:+82-2-890-9114 FAX: +82-2-892-9387

 

GAON CABLE CO.,LTD.(134111-0000567)

166, GEUMJEONG-DONG, GUNPO-SI, GYEONGGI-DO, KOREA

TEL:+82-31-459-6222  FAX:+82-31-454-1916

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

NEXANS VIETNAM POWER CABLE CO., LTD.

(59.05% held by the subject company)

 

KUKDONG ELECTRIC WIRE CO., LTD.(115211-0000609)

Subsidiary

NEXANS DAEYOUNG CO., LTD.(115211-0012779)

(100.0% held by the subject company)

Corporate Ownership

NEXANS S.A.

Major Shareholders

NEXANS PARTICIPATIONS S.A.

Cooperative Enterprise

-Insured Company

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

 

-General Relations Agreement

NEXANS S.A.

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

06/2012

2011

2010

Export

34,954

60,801

34,827

Domestic

132,990

295,526

217,831

Total

167,944

356,327

252,658

 

The Subject deals with the companies in Australia, France, Hong Kong, Japan and Vietnam.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.96

UK Pound

1

Rs.85.45

Euro

1

Rs.69.46

 

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%)

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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.