MIRA INFORM REPORT

 

 

Report Date :

28.09.2012

 

IDENTIFICATION DETAILS

 

Name :

U-JIN CHEMICAL CO., LTD.

 

 

Registered Office :

207-2, Daeyeon 3-dong, Nam-gu, Busan, Korea, Zip cdoe 608-806

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

18.05.1962

 

 

Com. Reg. No.:

617-81-00578

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Other Fertilizers and Nitrogen Compounds

 

 

No. of Employees :

12

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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

U-JIN CHEMICAL CO., LTD.

(Korean Company Name : “유진화학공업(주)”)

Registered Address

207-2, Daeyeon 3-dong, Nam-gu, Busan, Korea

Zip Code

608-806

Tel

+82-51-622-3171~4

Fax

+82-51-622-4362

Website

www.ujinchem.co.kr

Trading Address

207-2, Daeyeon 3-dong, Nam-gu, Busan, Korea

Tel

+82-51-622-3171~4

Fax

+82-51-622-4362

Type

Export

Industry

Manufacture of Other Fertilizers and Nitrogen Compounds

  Main Business

Formalin, Di-Pentaerythritol, Melamine(MF), Mono-Pentaerythritol

Established (mm/dd/yyyy)

05/18/1962

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Organic derivatives and substituted compounds(12352100)

Sell

Aldehydes or its substitutes(12352114)

Sell

Formaldehydes(12352501)

Sell

Phenols or its substitutes or derivatives(12191503)

Sell

Melamine MF(13101905)

 

 

CEO’s

 

Name

Kim Yong-Chul

Address

51, Daeyeong-ro 45beon-gil, Seo-gu, Busan, Korea

Date of Birth

04/15/1925

Title

Representative Director

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

499,500,000

Employees

12

Formation

Co., Ltd by Shares

Bank Details

SC First Bank of Korea-Busan Branch

Corporate Registered No.

1801110-004802

Business Registered No.

617-81-00578

Permit & Licenses

Int’l Trade No.: 844785

Shareholder Position

Name

Shares

%

KIM YONG-CHUL

71,728

71.80

OTHERS

28,172

28.20

TOTAL

99,900

100.00

Company History

05/18/1962 Incorporated as the present name

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Representative Director

Mr.

Kim Yong-Chul

Male

Korean

02/06/2001

Auditor

M/S.

Yang Soo-Bok

Female

Korean

03/28/2000

Director

Mr.

Kim Bo-Kwon

Male

Korean

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2007

34,245,090

6,924,648,351

-1,895,037,889

2006

208,710,450

8,826,816,168

-909,531,087

2005

184,000,000

9,767,000,000

-874,000,000

 

The latest financials are not available, and the Subject Company does not have any obligations to release its financials to the public.

 

 

Financial Description

 

Authorized Capital(KRW)

1,950,000,000

Paid-Up Capital(KRW)

499,500,000

Total Issued Shares

99,900

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2008

As of 12/31/2007

As of 12/31/2006

Total Assets

 

6,924,648,351

8,826,816,168

Current Assets

 

3,504,173,653

3,080,964,671

-Quick Assets

 

3,425,745,965

2,990,314,520

-Inventories

 

78,427,688

90,650,151

Fixed Assets

 

3,420,474,698

5,745,851,497

-Investment

 

1,490,682,000

1,490,892,000

-Tangibles

 

1,917,254,698

4,242,421,497

-Intangibles

 

12,538,000

12,538,000

Total Liabilities

 

995,515,401

1,002,645,329

Current Liabilities

 

706,757,358

730,183,718

Fixed Liabilities

 

288,758,043

272,461,611

Capital Stock

 

499,500,000

499,500,000

Capital Surplus

 

344,764,856

344,764,856

Profit Surplus

 

3,754,674,094

5,649,711,983

Capital Adjustment

 

1,330,194,000

1,330,194,000

Total Equity

 

5,929,132,950

7,824,170,839

Liab. & Shareholder’s Equity

 

6,924,648,351

8,826,816,168

 

Current Liabilities

　

706,757,358

730,183,718

Short-Term Borrowings

　

5,000,000

-

Account Payables

　

15,214,543

14,041,888

Short-Term Borrowings to Shareholders/ Executives/ Employees

　

849,564

-

Withholdings

　

3,295,804

6,684,264

Short-Term Borrowings to related companies

　

673,957,775

706,729,655

VAT Withhold

　

8,439,672

2,727,911

Fixed Liabilities

　

288,758,043

272,461,611

Provision for Severance & Retirement

　

288,758,043

272,461,611

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

 

34,245,090

208,710,450

Cost of Sold Goods

 

13,487,918

49,145,957

Gross Profit

 

20,757,172

159,564,493

Selling & Admin. Expenses

 

370,378,656

370,617,794

Operating Income

 

-349,621,484

-211,053,301

Non-Operating Income

 

604,342,180

209,767,251

Non-Operating Expenses

 

2,149,758,585

908,245,037

Income Before Taxes

 

-1,895,037,889

-909,531,087

Income Taxes Expenses

 

-

-

Net Income

 

-1,895,037,889

-909,531,087

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

 

-157,906,186

-121,311,279

-Net Income

 

-1,895,037,889

-909,531,087

-Exp. without Cash Outflow

 

2,168,178,126

905,064,525

-Revenue without Cash Inflows

 

-540,944,895

-74,227,359

-Changes in Asset/ & Liability

 

109,898,472

-42,617,358

Cash Flows from Investing

 

163,720,028

69,256,028

-Cash Inflow from Investing

 

4,989,263,269

4,194,009,806

-Cash Outflows for Investing

 

-4,825,543,241

-4,124,753,778

Cash Flows from Financing

 

-25,749,661

-43,564,874

-Cash Inflows from Financing

 

26,924,307

27,796,597

-Cash Outflows from Financing

 

-52,673,968

-71,361,471

Increase/Decrease in Cash

 

-19,935,819

-95,620,125

Cash at the Beginning of Year

 

22,223,750

117,843,875

Cash at the End of Year

 

2,287,931

22,223,750

 

 

Products, Technologies, Services Description

 

Main Products & Services

Formalin, Di-Pentaerythritol, Melamine(MF), Mono-Pentaerythritol

 

 

Trade Partners & Competitors

 

Competitors

SHARON CHEMICALS & TRADE CO., LTD.

105-117, DONGJAK SANGTEVILLE OFFICETEL, 719, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-832-6822~3  FAX:+82-2-832-6825

 

DNS INTERNATIONAL

RM. 701, HARVARD OFFICETEL, 875-7, CHEONGNYONG-DONG, GWANAK-GU, SEOUL, KOREA

TEL:+82-2-872-0947  FAX:+82-2-6280-0960

 

SAMBO GLOBAL CO., LTD

RM. 818, HANSHIN CORE OFFICETEL, 11-9, SINCHEON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-2202-2251  FAX:+82-2-2202-2254

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

AJIN CO., LTD.(KOREA)

(81.0% held by the subject company)

 

Sales by Region

(Activity & Markets)

 

Not Available.

 

 

Court Action

 

Not Available.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.26

UK Pound

1

Rs.86.23

Euro

1

Rs.68.64

 

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.