MIRA INFORM REPORT

 

 

Report Date :

16.02.2013

 

IDENTIFICATION DETAILS

 

Name :

RIFA INDUSTRIAL CO., LTD.

 

 

Registered Office :

9-4, Dangsan-dong 5-ga, Yeongdeungpo-gu, Seoul, Rifa Bldg. 150-045

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

29.03.1950

 

 

Com. Reg. No.:

107-81-13542

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Wholesale of Dyes, Pigments and Related Products

 

 

No. of Employees :

72

 

 

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 :

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

RIFA INDUSTRIAL CO., LTD.

(Korean Company Name : “이화산업()”)

Registered Address

9-4, Dangsan-dong 5-ga, Yeongdeungpo-gu, Seoul, Korea

Building

Rifa Bldg.

Zip Code

150-045

Tel

+82-2-2007-5555

Fax

+82-2-2636-2230

E-mail

rifa@rifa.co.kr

Website

www.rifa.co.kr

Trading Address

Rifa Bldg., 9-4, Dangsan-dong 5-ga, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-2007-5555

Fax

+82-2-2636-2230

Other Address-Incheon Factory

223-1, Seongnam 2-dong, Seo-gu, Incheon, Korea

Tel

+82-32-571-5221

Fax

+82-32-574-7113

Other Address-Daegu Branch

2004-10, Bisan-dong, Seo-gu, Daegu, Korea

Tel

+82-53-352-7314

Fax

+82-53-351-2453

Other Address-Busan Branch

938, Yeongseondong 4-ga, Yeongdo-gu, Busan, Korea

Tel

+82-51-415-0391

Fax

+82-51-415-0396

Type

Export/Import

Industry

Wholesale of Dyes, Pigments and Related Products

  Main Business

Dye, Food Additives, Technical Grade

Established (mm/dd/yyyy)

03/29/1950

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Personal communication devices(43191500)

Sell

Digital video disk players or recorders(52161516)

Sell

Ethers or its substitutes(12352112)

Sell

Inorganic metal salts(12352302)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Organic acids or its substitutes(12352106)

Buy

Keyboards(43211706)

Buy

Television tuners(52161546)

Buy

Dry cell batteries(26111705)

Buy

Screws(31161500)

Buy

Remote control(52161525)

Buy

Rubber and elastomers(13100000)

Buy

Signal cable(26121604)

Buy

Light emitting diodes LEDs(32111503)

Buy

Inter connect wire(26121532)

Buy

Indicating and recording instruments(41111900)

Buy

Electrical cable and accessories(26121600)

Buy

Power cable for direct burial(26121615)

 

 

CEO’s

 

Name

Min Kyung-Seo

Date of Birth

12/29/1945

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

14,000,000,000

Employees

72

Formation

Listed Company (Korea Stock Exchange : 000760) as of 04/29/1994

Bank Details

Shinhan Bank-Dangsan Dong Branch

Woori Bank

Corporate Registered No.

110111-0018138

Business Registered No.

107-81-13542

Permit & Licenses

03/15/1995 ISO 9002 by DNV

07/09/2000 ISO 14001 by DNV

04/17/2003 QS 9000 by TUV

11/2008 Certified of REACH[Regulation (EC) NO 1907/2006] by KTR Europe GmbH

08/2008 Certified of Global Organic Textile Standard (GOTS) by Control Union Certifications Korea

 

Int’l Trade No.: 680183

Shareholder Position

Name

Shares

%

RIFA ADVANCED MATERIALS CO,. LTD.(110111-0432601)

640,517

22.88

CHO KYU-WAN

837,173

29.90

CHO HONG-SEOK

392,476

14.02

RIFA ENG CO., LTD.(110111-0700373)

91,887

3.28

OTHERS

837,947

29.93

TOTAL

2,800,000

100.00

Company History

03/29/1950 Incorporated as the present name

11/30/1988 Awarded US$ 10 Million Export Top Prize

 

 


Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman

Mr.

Cho Chang-Hwan

Korean

1937.09.10

Western Reserve College

Vice Chairman

Mr.

Cho Kyu-Wan

Korean

1963.08.17

FDU

President & CEO

Mr.

Min Kyung-Seo

Korean

1945.12.29

Sungkyunkwan University, Korea

Outside Director

Mr.

Kim Hyun-Tae

Korean

1964.01.

-

Auditor

Mr.

Jang Yoon-Zip

Korean

1939.12.17

Dongkuk University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

32,962,610,280

95,483,860,236

-1,271,802,043

(*)03/2011

63,435,159,044

98,386,328,791

-1,804,888,424

(*)03/2010

65,013,387,025

100,229,512,052

6,957,699,418

03/2009

54,882,811,834

72,944,156,520

-942,117,631

03/2008

51,695,295,044

78,281,693,421

101,662,750

03/2007

50,243,928,303

75,306,371,582

(-)6,022,758,489

03/2006

54,960,720,087

83,357,921,282

(-)10,224,279,532

03/2005

72,243,437,421

93,661,255,558

(-)9,479,393,293

03/2004

84,340,634,472

99,050,498,605

(-)5,895,978,267

(*)Figures are based on the K-IFRS Accounting System.

 

Financial Description

 

Authorized Capital(KRW)

28,000,000,000

Paid-Up Capital(KRW)

14,000,000,000

Total Issues Shares

2,800,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 09/30/2012

As of 03/31/2011

As of 03/31/2010

Total Assets

95,483,860,236

98,386,328,791

100,229,512,052

Current Assets

42,687,756,509

45,386,068,878

48,537,183,233

Cash & Cash Equivalents

2,193,630,857

1,631,794,699

3,071,173,129

Trade Receivables

30,640,496,027

30,716,958,619

32,867,120,232

Other Receivables

91,735,819

115,879,835

118,917,370

Inventories

9,643,455,698

12,780,620,009

12,301,634,540

Incoem Taxes

2,708,100

 

 

Other Current Assets

115,730,008

140,815,716

178,337,962

Non-Current Assets

52,796,103,727

53,000,259,913

51,692,328,819

Non-Current Financial Instruments

16,500,000

16,500,000

147,415,016

Other Receivables

32,173,281

132,173,281

139,230,811

Other Financial Assets

22,775,000

22,775,000

23,425,000

Tangibles

21,036,595,421

21,140,751,607

21,407,128,749

Intangibles

207,963,917

207,963,917

207,963,917

Investment_Related Companies

31,480,096,108

31,480,096,108

29,767,165,326

Total Liabilities

54,203,247,652

55,837,824,117

55,548,580,118

Current Liabilities

52,745,247,400

54,472,911,168

54,369,980,792

Trade Payables

2,063,024,373

2,624,232,470

2,740,227,734

Short-Term Borrowings

49,128,183,951

50,208,987,068

50,160,958,859

Other Payables

1,173,487,962

1,266,499,255

1,216,929,220

Other Current Liabilities

380,551,114

373,192,375

251,864,979

Non-Current Liabilities

1,458,000,252

1,364,912,949

1,178,599,326

Other Payables

365,620,000

430,310,000

431,680,000

Provision for Severance & Retirement

1,092,380,252

934,602,949

746,919,326

Capital Stock

14,000,000,000

14,000,000,000

14,000,000,000

Capital Surplus

8,820,000,000

8,820,000,000

8,820,000,000

Profit Surplus

10,650,628,896

11,918,520,986

14,050,948,246

Others

7,809,983,688

7,809,983,688

7,809,983,688

Total Equity

41,280,612,584

42,548,504,674

44,680,931,934

Liab. & Shareholder’s Equity

95,483,860,236

98,386,328,791

100,229,512,052

 

 

Income Statement

 

Unit : Korean Won

As of 09/30/2012

As of 03/31/2011

As of 03/31/2010

Sales

32,962,610,280

63,435,159,044

65,013,387,025

Cost of Sold Goods

28,102,910,057

54,949,174,972

55,395,743,804

Gross Profit

4,859,700,223

8,485,984,072

9,617,643,221

Selling & Admin. Expenses

4,642,508,078

8,861,091,435

7,688,058,474

Other Operating Income

217,192,145

-375,107,363

1,929,584,747

Other Operating Expenses

326,516,178

2,638,670,147

8,955,600,577

Operating Income

121,284,222

560,091,492

917,442,860

Finance Income

23,945,524

45,141,422

28,997,748

Finance Expenses

1,718,171,668

3,553,501,138

3,039,040,794

Income Before Taxes

-1,271,802,043

-1,804,888,424

6,957,699,418

Income Taxes Expenses

 

 

 

Net Income

-1,271,802,043

-1,804,888,424

6,957,699,418

 

 

Cash Flows

 

Unit : Korean Won

As of 09/30/2012

As of 03/31/2011

As of 03/31/2010

Operating Activities Cash Flows

1,688,340,275

-1,576,046,655

-8,392,793,802

Cash Flows from Operating

3,390,795,601

1,924,876,722

-5,420,597,255

Interests Received

19,934,863

40,470,446

27,854,301

Interests Paid

-1,722,390,189

-3,541,393,823

-3,000,050,848

Income Taxes

 

 

 

Cash Flows from Investing

-45,701,000

88,640,016

-45,894,910

Cash Inflow from Investing

2,000,000

131,565,016

7,920,000

Cash Outflows for Investing

-47,701,000

-42,925,000

-53,814,910

Cash Flows from Financing

-1,080,803,117

48,028,209

9,624,702,425

Cash Inflows from Financing

 

48,028,209

9,624,702,425

Cash Outflows from Financing

-1,080,803,117

 

 

Increase/Decrease in Cash

561,836,158

-1,439,378,430

1,186,013,713

Cash at the Beginning of Year

1,631,794,699

3,071,173,129

1,885,159,416

Cash at the End of Year

2,193,630,857

1,631,794,699

3,071,173,129

 

 

Products, Technologies, Services Description

 

Main Products & Services

Dyestuffs

 

Chemicals

-Food additives

Preservative

Antioxidant

Flavor Enhancer

Acidifier

Sweetener

Solvent

Enriched agents

 

-Solvent

Aceton

Ethyl Acetate

Isopropyl Alcohol

Methanol

Methylethyl Ketone

Toluene

Xylene

 

 

Trade Partners & Competitors

 

Competitors

KYUNG-IN SYNTHETIC CORPORATION

223-52, SEONGNAM-DONG SEO-GU INCHEON, 404-220 SOUTH KOREA

TEL:+82-32-5717498 FAX:+82-2-36608539

 

DIAMINES & CHEMICALS LTD

PLOT NO.13, PCC AREA, PO. PETROCHEMICALS, VODODRA, 391 346 INDIA

TEL:+91-265-2230305 FAX:+91-265-2230218

 

VIDHI DYESTUFFS MANUFACTURING LTD

E/27, COMMERCE CENTRE 78 TARDEO ROAD, 5TH FLOOR MUMBAI, 400 034 INDIA

TEL:+91-22-23514349 FAX:+91-22-23521980

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

YOUNG HWA INDUSTRIAL CO., LTD.(110111-0015754)

(31.52% held by the subject company)

 

RIFA ADVANCED MATERIALS CO., LTD.(110111-0432601)

RIFA ENG CO., LTD.(110111-0700373)

SAMMYUNG CO., LTD.(120111-0002923)

RIFATRON CO., LTD.(110111-1500051)

DMCC SPORTS CO., LTYD.(110111-3593666)

OCTAGON PARTNERS CO., LTD.(110111-3711226)

RIFA & COMPANY(110111-3732793)

N- RIFA CO., LTD.(110111-3742940)

RIFA YUTONG CO., LTD.(110111-1812729)

RIFA MULSAN CO., LTD.(120111-0492158)

Affiliates-Overseas

RIFA SHANGHAI CO., LTD.(CHINA)

(100.0% held by the subject company)

Subsidiary

RIFA SHANGHAI DYESTUFF CO., LTD.(CHINA)

(100.0% held by the subject company)

 

RIFA SHANGHAI CO., LTD.(CHINA)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

03/2011

03/2010

Export

6,119

9,449

12,205

Domestic

26,844

53,986

52,808

Total

32,963

63,435

65,013

The Subject exports to Hong Kong, Netherland, U.S.A., Japan and Italy.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

 

 

The Subject Company

Compensation for Damage

165,983,000

Proceeding

 

 

News Clipping

 

---


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.98

UK Pound

1

Rs.83.72

Euro

1

Rs.72.08

 

 

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.