MIRA INFORM REPORT

 

 

Report Date :

12.09.2012

 

IDENTIFICATION DETAILS

 

Name :

KOREA HOUGHTON CORPORATION

 

 

Registered Office :

322, Sindong-ri, Seonjang-myeon, Asan-si, Chungcheongnam-do

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

10.11.1980

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Lubricating Oils and Greases

 

 

No. of Employees :

228

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

South Korea

 

 

 

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

KOREA HOUGHTON CORPORATION

(Korean Company Name : ” ()한국하우톤”)

Registered Address

322, Sindong-ri, Seonjang-myeon, Asan-si, Chungcheongnam-do, Korea

Zip Code

336-893

Tel

+82-41-541-8384~6

Fax

+82-41-541-8387

E-mail

houghton@houghton.co.kr

Website

www.houghton.co.kr

Trading Address

322, Sindong-ri, Seonjang-myeon, Asan-si, Chungcheongnam-do, Korea

Tel

+82-41-541-8384~6

Fax

+82-41-541-8387

Other Address-Seoul Branch

19th Fl., Korea Specialty Contractor Center, 395-70, Sindaebang 2-dong, Dongjak-gu, Seoul, , Korea

Tel

+82-2-3284-3300

Fax

+82-2-3284-3333~5

Other Address

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

Tel

+82-52-238-7431~4

Fax

+82-52-238-7783

Other Address

445-21, Wolpi-dong, Sangrok-gu, Ansan-si, Gyeonggi-do, Korea

Type

Export/Import

Industry

Manufacture of Lubricating Oils and Greases

  Main Business

Eco-friendly Cutting Fluids, Metal Cutting Fluids, Rust Preventives, Steel and Aluminum Rolling Oils, Metal Forming Fluids, Drawing Oils, Synthetic Lubricants, Heat Treatment Oils, Industrial Lubricant Fluids, Cleaners, Grease Products, Engine Oil, Metal Surface Treatments, Waterborne Coats/Paints, Specialty Resins

Established (mm/dd/yyyy)

11/10/1980

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Quenching oils(15121525)

Sell

Anti corrosion lubricant(15121802)

Sell

Grease(15121902)

Sell

Cutting oil(15121502)

Sell

Degreasing compounds(47131821)

Sell

Cleaning and disinfecting solutions(47131800)

 

 

CEO’s

 

Name

Im Seok-Soon

Address

Suite 102-706, 713, Sindaebang-dong, Dongjak-gu, Seoul, Korea

Date of Birth

06/17/1961

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

858,480,000

Employees

228

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Kookmin Bank

Korea Development Bank

Korea Exchange Bank-Yoido Nam Branch

Corporate Registered No.

120111-0010124

Business Registered No.

122-81-30079

Permit & Licenses

Int’l Trade No.: 827018

Shareholder Position

Name

Shares

%

KIM KWANG-SOON

85,848

50.00

EFHCO. INC. & OTHERS(1)

85,848

50.00

TOTAL

171,696

100.00

Company History

11/10/1980 Incorporated as the present name

04/16/2002 Moved to the present HQ address from 553-2, Hyoseong-dong, Gyeyang-gu, Incheon, Korea

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Im Seok-Soon

Male

Korean

02/25/2004

Co-President & CEO

Mr.

Kim Kwang-Soon

Male

Korean

03/17/2002

Director

Mr.

Piat Kouski

Male

USA

03/31/2009

Director

Mr.

CY Lai

Male

USA

03/31/2009

Auditor

Mr.

Choi Joon-Ki

Male

Korean

03/31/2009

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

164,475,398,842

104,656,193,514

8,490,020,629

2010

134,220,057,796

93,219,902,673

10,741,921,815

2009

99,843,026,547

80,412,803,691

7,685,939,519

2008

101,595,712,929

77,655,037,657

3,526,678,897

2007

81,681,468,828

64,528,680,565

4,100,015,620

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000

Paid-Up Capital(KRW)

858,480,000

Total Issues Shares

171,696

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

104,656,193,514

93,219,902,673

80,412,803,691

Current Assets

66,346,429,813

58,534,964,697

47,531,194,853

-Quick Assets

47,216,381,016

41,059,103,861

32,984,661,967

-Inventories

19,130,048,797

17,475,860,836

14,546,532,886

Fixed Assets

38,309,763,701

34,684,937,976

32,881,608,838

-Investment

20,109,130,436

18,584,934,520

17,782,943,133

-Tangibles

12,428,237,151

12,294,413,435

12,022,689,485

-Intangibles

2,270,321,415

244,638,422

283,585,021

-Others

3,502,074,699

3,560,951,599

2,792,391,199

Total Liabilities

47,096,258,455

41,586,258,551

37,553,259,747

Current Liabilities

40,774,029,632

34,871,030,374

28,760,695,716

Fixed Liabilities

6,322,228,823

6,715,228,177

8,792,564,031

Capital Stock

858,480,000

858,480,000

858,480,000

Capital Surplus

2,571,329,983

2,571,329,983

2,571,329,983

Profit Surplus

52,625,637,918

47,135,617,289

38,425,695,474

Capital Adjustment

1,504,487,158

1,068,216,850

1,004,038,487

Total Equity

57,559,935,059

51,633,644,122

42,859,543,944

Liab. & Shareholder’s Equity

104,656,193,514

93,219,902,673

80,412,803,691

 

Current Liabilities

40,774,029,632

34,871,030,374

28,760,695,716

Trade Payables

16,005,270,332

13,076,510,452

8,678,223,699

Account Payables

509,760,454

71,020,202

2,015,162

Accrued Expenses

1,915,705,158

1,232,484,191

1,196,345,090

Short-Term Borrowings

19,000,000,000

16,500,000,000

16,000,000,000

Advance Receipts

594,052,194

111,686,382

61,144,982

Withholdings

180,364,090

183,117,800

142,699,600

VAT Withhold

407,496,265

303,883,531

368,906,674

Accrued Income Tax

193,391,139

1,501,173,436

1,049,178,929

Current Portion of Long-Term Borrowings

1,965,990,000

1,879,154,380

941,935,180

Current Portion of Long-Term Borrowings-Foreign Currency

 

 

308,246,400

Leasehold Deposit Received

-

10,000,000

10,000,000

Sales Deposit Received

2,000,000

2,000,000

2,000,000

Fixed Liabilities

6,322,228,823

6,715,228,177

8,792,564,031

Long-Term Borrowings

4,211,330,000

3,749,514,560

4,398,031,540

Long-Term Borrowings-Foreign Currency

 

 

1,530,723,600

Leasehold Deposit Received

145,000,000

145,000,000

155,000,000

Provision for Severance & Retirement

10,636,370,419

10,299,442,703

8,777,849,566

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

164,475,398,842

134,220,057,796

99,843,026,547

Cost of Sold Goods

138,709,780,920

108,640,961,826

79,014,661,476

Gross Profit

25,765,617,922

25,579,095,970

20,828,365,071

Selling & Admin. Expenses

17,571,196,912

15,235,750,933

13,400,594,029

Operating Income

8,194,421,010

10,343,345,037

7,427,771,042

Non-Operating Income

3,267,351,169

4,011,249,643

3,400,648,544

Non-Operating expenses

1,826,835,890

1,547,569,050

1,827,970,369

Income Before Taxes

9,634,936,289

12,807,025,630

9,000,449,217

Income Taxes Expenses

1,144,915,660

2,065,103,815

1,314,509,698

Net Income

8,490,020,629

10,741,921,815

7,685,939,519

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

1,722,011,632

4,722,448,458

3,778,030,266

-Net Income

8,490,020,629

10,741,921,815

7,685,939,519

-Exp. without Cash Outflow

4,253,993,364

3,094,942,651

3,774,023,147

-Revenue without Cash Inflows

-2,120,244,201

-2,877,297,312

-2,119,205,292

-Changes in Asset/ & Liability

-8,901,758,160

-6,237,118,696

-5,562,727,108

Cash Flows from Investing

-2,385,031,054

-1,529,515,005

1,154,586,131

-Cash Inflow from Investing

5,058,537,954

2,095,335,394

12,028,610,868

-Cash Outflows for Investing

-7,443,569,008

-3,624,850,399

-10,874,024,737

Cash Flows from Financing

48,651,060

-3,060,283,580

-5,592,981,460

-Cash Inflows from Financing

15,000,000,000

24,902,025,970

11,116,554,200

-Cash Outflows from Financing

-14,951,348,940

-27,962,309,550

-16,709,535,660

Increase/Decrease in Cash

-614,368,362

132,649,873

-660,365,063

Cash at the Beginning of Year

4,228,069,295

4,095,419,422

4,755,784,485

Cash at the End of Year

3,613,700,933

4,228,069,295

4,095,419,422

 

Products, Technologies, Services Description

 

Main Products & Services

Eco-friendly Cutting Fluids, Metal Cutting Fluids, Rust Preventives, Steel and Aluminum Rolling Oils, Metal Forming Fluids, Drawing Oils, Synthetic Lubricants, Heat Treatment Oils, Industrial Lubricant Fluids, Cleaners, Grease Products, Engine Oil, Metal Surface Treatments, Waterborne Coats/Paints, Specialty Resins

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Customers

VALVOLINE KOREA CO., LTD.(181211-0008257)

Competitors

HANKOOK SHELL OIL CO., LTD.(180111-0002591)

KUKDONG OIL & CHEMICALS CO., LTD. (184511-0001335)

KOREA PETRO INDUSTRIAL CO., LTD(110111-0048490)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TECTYL OIL & CHEMICALS (INDIA) PVT. LTD.

(100.0% held by the subject company)

 

DAITTO HOUGHTON CO., LTD.(174611-0011805)

(49.98% held by the subject company)

 

DH CHEMICAL CO., LTD.

(100.0% held by the subject company)

 

SHANGHAI TERRYDUCK CHEMICALS CO., LTD.(CHINA)

(19.0% held by the subject company)

 

KOREA OIL SERVICE CO., LTD.(110111-3808982)

Cooperative Enterprise

-Technical Support from

EFHCO. INC.

 

 

Sales by Region (Activity & Markets)

 

The subject deals with the companies in China.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.52

UK Pound

1

Rs.88.84

Euro

1

Rs.70.85

 

 

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.