MIRA INFORM REPORT

 

 

Report Date :

27.12.2013

 

IDENTIFICATION DETAILS

 

Name :

AKZO NOBEL AMIDES CO., LTD.

 

 

Registered Office :

1070-2, Hwangseong-dong, Gyeongju-si, Gyeongsangbuk-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.09.1998

 

 

Com. Reg. No.:

505-81-16495

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Basic Organic Chemicals

 

 

No. of Employees :

39

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 is currently the world's 12th largest economy. 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. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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 Information

 

Basic

 

Company Name

AKZO NOBEL AMIDES CO., LTD.

(Korean Company Name : “악소노벨아마이드())

Registered Address

1070-2, Hwangseong-dong, Gyeongju-si, Gyeongsangbuk-do, Korea

(new Address System : 64, Yurim-ro 13beon-gil, Gyeongju-si, Gyeongsangbuk-do, Korea)

Building

 

Zip Code

780-952

Tel

+82-54-770-4500

Fax

+82-54-776-0623

E-mail

sukwon.jung@akzonobel.com

Website

www.akzonobel.com

Trading Address

101-908, Yeouido The Sharp Island Park, 17, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-2090-7360~5

Fax

+82-2-392-5188

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Other Basic Organic Chemicals

  Main Business

Amide, Erucamide

  Sub Business

 

Established (mm/dd/yyyy)

09/29/1998

The Subject owns the premises of registered HQ address.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Amides or imides(12352111)

Buy

Biochemicals(12352200)

Buy

Inorganic acids(12352301)

 

CEO’s

 

Name

Lee Kyung-Ryun

Address

Suite 202-401, 1380, Yonggang-dong, Gyeongju-si, Gyeongbuk, Korea

Date of Birth

03/17/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

5,350,000,000

Employees

39

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Citibank, Korea

Corporate Registered No.

171211-0018258

Business Registered No.

505-81-16495

Permit & Licenses

Int’l Trade No.: 11567114

Shareholder Position

Name

Shares

%

AKZO NOBEL CHEMICALS INTERNATIONAL B.V. (NETHERLANDS)

535

100.00

TOTAL

535

100.00

Company History

09/29/1998 Incorporated as the present name

10/13/1998 Registered as a Foreign Direct Investment Corporation

12/21/2007 Decreased the authorized shares to 550 shares from 700 shares

12/21/2007 Decreased capital to 5,350,000,000 KRW from 6,850,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Kyung-Ryun

Male

Korean

04/30/2007

Director

Mr.

Jan Allen Lenatsbad

Male

Swedish

04/20/2011

Director

Mr.

Steven Hunt

Male

USA

09/29/2010

Auditor

Mr.

Richard Bekers

Male

Netherlands

08/01/2011

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

32,337,318,226

14,686,866,582

1,836,384,254

2011

38,762,155,040

16,467,158,612

2,606,503,962

2010

43,054,719,135

20,104,188,767

5,492,671,069

2009

43,239,559,098

23,323,704,742

7,022,158,128

2008

31,153,019,209

16,496,997,912

4,582,441,663

2007

24,677,811,352

14,560,195,792

4,132,646,493

2006

25,018,414,511

14,800,822,981

2,966,246,905

2005

27,285,727,027

14,334,424,114

2,308,098,778

2004

19,822,014,467

11,639,574,709

2,255,013,075

 

Financial Description

 

Authorized Capital(KRW)

7,000,000,000

Paid-Up Capital(KRW)

5,350,000,000

Total Issues Shares

535

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

14,686,866,582

16,467,158,612

20,104,188,767

Current Assets

11,716,854,452

8,798,811,301

16,847,012,544

-Quick Assets

7,969,831,120

5,150,008,967

13,142,022,141

-Inventories

3,747,023,332

3,648,802,334

3,704,990,403

Fixed Assets

2,970,012,130

7,668,347,311

3,257,176,223

-Investment

52,500,000

4,540,510,100

56,857,300

-Tangibles

2,794,967,239

3,002,911,466

3,073,959,212

-Intangibles

122,544,891

124,925,745

126,359,711

Total Liabilities

4,834,386,699

6,081,513,927

7,331,710,709

Current Liabilities

4,768,661,603

6,081,513,927

7,331,710,709

Fixed Liabilities

65,725,096

-

-

Capital Stock

5,350,000,000

5,350,000,000

5,350,000,000

Capital Surplus

 

 

 

Profit Surplus

4,502,479,883

5,035,644,685

7,422,478,058

Capital Adjustment

 

 

 

Total Equity

9,852,479,883

10,385,644,685

12,772,478,058

Liab. & Shareholder’s Equity

14,686,866,582

16,467,158,612

20,104,188,767

 

Current Liabilities

4,768,661,603

6,081,513,927

7,331,710,709

Trade Payables

2,860,804,703

4,755,368,404

5,919,175,570

Account Payables

954,779,565

663,069,655

708,787,564

Accrued Expenses

597,426,858

437,165,697

127,723,518

Accrued Expenses

118,147,114

19,885,218

-

Withholdings

119,625,623

109,358,719

116,791,886

Accrued Income Tax

117,877,740

96,666,234

459,232,171

Fixed Liabilities

65,725,096

-

-

Provision for Severance & Retirement

65,725,096

-

-

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

32,337,318,226

38,762,155,040

43,054,719,135

Cost of Sold Goods

26,599,994,210

31,282,066,796

31,363,736,326

Gross Profit

5,737,324,016

7,480,088,244

11,690,982,809

Selling & Admin. Expenses

3,388,703,573

4,302,646,305

4,513,361,591

Operating Income

2,348,620,443

3,177,441,939

7,177,621,218

Non-Operating Income

892,595,051

1,599,815,261

2,241,466,257

Non-Operating expenses

901,792,064

1,397,729,507

2,238,264,268

Income Before Taxes

2,339,423,430

3,379,527,693

7,180,823,207

Income Taxes Expenses

503,039,176

773,023,731

1,688,152,138

Net Income

1,836,384,254

2,606,503,962

5,492,671,069

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

346,701,620

2,943,618,524

5,504,017,228

-Net Income

1,836,384,254

2,606,503,962

5,492,671,069

-Exp. without Cash Outflow

810,400,070

1,044,597,795

818,148,907

-Revenue without Cash Inflows

-46,775,985

-135,559,904

-146,532,055

-Changes in Asset/ & Liability

-2,253,306,719

-571,923,329

-660,270,693

Cash Flows from Investing

4,308,900,000

-299,979,237

-791,875,581

-Cash Inflow from Investing

4,506,150,000

4,520,987,727

8,652,273

-Cash Outflows for Investing

-197,250,000

-4,820,966,964

-800,527,854

Cash Flows from Financing

-2,369,549,056

-4,993,337,335

-6,173,496,894

-Cash Inflows from Financing

-

-

-

-Cash Outflows from Financing

-2,369,549,056

-4,993,337,335

-6,173,496,894

Increase/Decrease in Cash

2,286,052,564

-2,349,698,048

1,461,355,247

Cash at the Beginning of Year

687,453,321

3,037,151,369

4,498,506,616

Cash at the End of Year

2,973,505,885

687,453,321

3,037,151,369

 

Products, Technologies, Services Description

 

Main Products & Services

Amide, Erucamide

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

LION CHEMTECH CO., LTD.

41-5, MUNPYEONG-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-42-930-3300  FAX:+82-42-930-3333

 

HEEMANG TECHFLON CO.

598-1, OJEONG-DONG, OJEONG-GU, BUCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-32-671-1300  FAX:+82-32-671-1302

 

GEO-YOUNG CORPORATION

46-4, SSANGJEONG-RI, MAENGDONG-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-877-3463  FAX:+82-43-878-0738

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

AKZO NOBEL POLYMER CHEMICALS B.V.

AKZO NOBEL POLYMER CHEMICALS LLC

AKZO NOBEL LTDA.

TIANJIN AKZO NOBEL PEROXIDES CO., LTD.

AKZO NOBEL CROSS LINKING PEROXIDES CO., LTD.

KAYAKU AKZO CORPORATION

AKZO NOBEL QUIMICA S.A.

AKZO NOBEL CHEMICALS INDIA LTD.

AKZO NOBEL CHEMICALS PTE LTD.

AKZO NOBEL CHEMICALS S.A.DE C.V.

AKZO NOBEL N.V.

AKZO NOBEL ASIA PTE LTD.

AKZO NOBEL INDUSTRIAL CHEMICALS BV.

AKZO NOBEL INDUSTRIAL COATINGS KOREA LTD

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

AKZO NOBEL CHEMICALS INTERNATIONAL B.V.(NETHERLANDS)

Major Shareholders

AKZO NOBEL CHEMICALS INTERNATIONAL B.V.(NETHERLANDS)

Cooperative Enterprise

-Insured Company

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

 

-Brand & Technology Support from

AKZO NOBEL CHEMICALS INTERNATIONAL B.V.(NETHERLANDS)

 

Sales by Region (Activity & Markets)

 

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

 

Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.98

UK Pound

1

Rs.101.49

Euro

1

Rs.84.79

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.