MIRA INFORM REPORT

 

 

Report Date :

22.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KYUNGIN SYNTHETIC CORPORATION

 

 

Registered Office :

223-52, Seongnam-dong, Seo-gu, Incheon

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

14.10.1977

 

 

Com. Reg. No.:

137-81-00562

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents

 

 

No. of Employees :

370

 

 

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 – 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

KYUNGIN SYNTHETIC CORPORATION

(Trade Name: KISCO)

(Korean Company Name : “()경인양행”)

Registered Address

223-52, Seongnam-dong, Seo-gu, Incheon, Korea

Zip Code

404-220

Tel

+82-32-571-7498

Fax

+82-32-571-7497

E-mail

kisco@kyungin.co.kr

Website

www.kyungin.co.kr

Trading Address

112-31, Yeomchang-dong, Gangseo-gu, Seoul, Korea

Tel

+82-2-3665-4001

Fax

+82-2-3660-8539

Other Address-Siheung Factory

1Ra-706, Sihwa Industrial Complex, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-499-4020

Fax

+82-31-499-2155

Other Address-Ansan Factory

785-7, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-0111

Fax

+82-31-495-3521

Type

Export/Import

Industry

Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents

  Main Business

Reactive Dyestuffs, Disperse Dyestuffs, Acid Dyestuffs, Direct Dyestuffs, Fluorescent Dyestuffs, Solvent Dyestuffs

  Sub Business

Food, Food Additives, Ginseng Products

Established (mm/dd/yyyy)

10/14/1977

The Subject owns the premises of registered address/ Factory(4,826.0), Siheung Factory(6,694) and Ansan Factory (5,600).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Dyes(12171500)

-Colorants

Sell

Reactives (Bifunctional, Vinylsulfone)

Sell

Disperse(Synolon Dyes, Papilion Dyes)

Sell

Direct(Fast yellow, Black)

Sell

Acid(Syno Acid Dyestuffs)

Sell

For Leather(Brown, Black, Others)

Sell

OBA (Cotton & Rayon, Nylon, Pulp & Paper, Detergent, Polyester)

Sell

Solvent Dyes

Buy

P-Base

Buy

H-ACID

 

CEO’s

 

Name

Kim Heung-Joon

Address

-

Date of Birth

06/14/1967

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

18,750,000,000 KRW

Employees

370

Formation

Listed Company (Korea Stock Exchange : 012610 ) as of 10/05/1995

Foreign Direct Investment Corporation

Bank Details

Industrial Bank of Korea-Youngdungpo Branch

Citibank, Korea-Youngdungpo Branch

Shinhan Bank

Corporate Registered No.

120111-0005703

Business Registered No.

137-81-00562

Permit & Licenses

05/31/1995 ISO 9002

11/30/1997 ISO 14001

 

Int’l Trade No.: 860477

Shareholder Position

Name

Shares

%

KIM HEUNG-JOON

8,008,260

21.36

SUMITOMO CORP(JAPAN)

6,159,180

16.42

KIM DONG-KIL

2,052,801

5.47

KIM SEOK-IM

984,580

2.63

KIM SUNG-YEON

1,190,340

3.17

TREASURY STOCK

405,580

1.08

OTHERS

18,699,259

49.86

TOTAL

37,500,000

100.00

Company History

10/1971 Established Syno Chemical Industrial Co., Ltd.

08/1976 Founded Samjung Industrial Co., Ltd.

10/1976 Renamed Syno Chemical Industrial Co., Ltd. to Kyung-In Chemical Co., Ltd.

10/1977 Changed Kyung-In Chemical Co., Ltd. to Kyung-In Synthetic Corporation (KISCO)

01/1978 Changed Samjung Industrial Co., Ltd. to Kyung-In Synthetic Co., Ltd. (KISC)

01/1978 Kim Dong-Gil inaugurated as chairman of the board of directors

06/1980 Dedicated KISCO's Seoul office building and the Dyestuff Research and Development Institute

03/1983 KISCO installed a spray dryer for the first time in Korea.

08/1984 KISCO designated as an outstanding small and medium-sized industrial firm by Korea Industrial Research Institute

09/1984 Dedicated the Ansan Factory of KISC

11/1987 KISCO awarded US$5 Million Export Tower from the government and the Prime Minister Award

12/1987 KISCO presented the Best Industry Award (at the award ceremony of the first National Science Award)

02/1988 Dedicated the expanded Ansan Factory of KISC

04/1988 KISC signed a technical cooperation agreement with Showa Kako Corporation of Japan.

10/1988 KISCO'S Dyestuff Institute designated by the government as a research institute whose workers are exempted from the active military service

11/1988 KISCO received the US$10 Million Export Tower

12/1988 KISCO's new chemical product registered with Japanese government according to Japan'schemical substance control law.

08/1989 KISCO acquired Samwon Chemical Industrial Co., Ltd.

10/1989 KISCO dedicated low-cost apartments for the employees in Inchon; KISC built low-cost apartments for the employees in Ansan

11/1989 KISC received the US$5 Million Export Tower

12/1989 Dedicated the expanded Seoul office of KISCO

08/1992 KISC acquired equity of Rachada Chemicals Co., Ltd. based in Thailand

11/1992 Founded Eastwell Co., Ltd.

12/1994 KISCO received the 12th Venture Business Award

05/1995 KISCO acquired ISO 9002 Quality Assurance Certificate from Lloyd's Register Q.A. of the United  Kingdom

07/1995 KISCO awarded the Korea Textile Grand Prize in the Dyestuff and Pigment Division

10/1995 KISCO stocks listed on the Korea Stock Exchange (Paid-in capital: 6.5 billion won)

04/1996 KISCO acquired equity of Namo Interactive Inc.

06/1996 KISCO won Textile Industry Grand Award in Dyestuff and Pigment Division

03/1997 KISCO received a citation from the West Inchon Tax Office on Taxation Day.

05/1997 KISCO received a citation from the Prime Minister on Labor Day.

05/1997 KISCO established Turkey joint ventures Kimsoy Chemical Industries, Inc. and Kimsoy Exim, Inc.

05/1997 KISCO established United States joint-venture KISCO USA, Inc.

06/1997 KISCO signed a Strategic Alliance Agreement with Sumitomo Chemical Co., Ltd. of Japan for  overall cooperation in dyestuff technology and production

06/1997 KISCO established Joint Ventures PAPITECH.CO., Ltd.

11/1997 KISCO received Bronze Tower Medal on Export Award Day.

12/1997 KISCO received ISO 14001 (KSA QA)

08/1998 KISCO signed the sale contract for Disperse dyestuffs with Ciba-Geigy of Switzerland.

12/1998 KISC merged into KISCO.

07/1999 KISCO was admitted to the membership of ETAD

07/1999 KISCO launched in an environmental business (Green Systems Engineering Services)

05/2000 KISCO made the investment into YangWoo corporation

01/23/2013 Acquired EASTWELL CO., Ltd.(110111-0900525)

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education & Career

Vice Chairman & CEO

Mr.

Kim Heung-Joon

Korean

1967.06.14

Hanyang University, Korea

Chairman

Mr.

Kim Dong-Kil

Korean

1938.03.03

Seoul National University, Korea

President

Mr.

Huh Dadvid Jeong-Sun

Korean

1965.11.02

Dowling College MBA

Vice President

Mr.

Cho Sung-Yong

Korean

1968.11.04

Seoul National University, Korea

Outside Director

Mr.

Chang Sang-Jae

Korean

1936.10.10

Seoul National University, Korea

Outside Director

Mr.

Kim Jeong-Hong

Korean

1937.08.08

Seoul National University, Korea

Auditor

Mr.

Sung Nak-Gwan

Korean

1936.01.03

Seoul National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

107,484,169,071

248,383,888,144

4,019,634,160

(*)2011

128,707,611,144

245,825,939,561

2,788,642,280

(*)2010

149,007,815,759

250,809,033,564

3,367,162,134

2009

129,006,385,709

218,551,978,762

11,569,545,044

2008

125,462,289,226

163,333,430,906

12,873,680,246

2007

93,016,593,682

120,854,546,914

4,246,011,551

2006

84,978,240,253

95,503,927,506

883,371,290

2005

88,050,292,316

100,565,451,354

2,533,411,044

2004

95,832,343,219

92,524,130,882

4,301,525,438

2003

129,006,385,709

218,551,978,762

11,569,545,044

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

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

18,750,000,000

Total Issues Shares

37,500,000

 


Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

248,383,888,144

245,825,939,561

250,809,033,564

Current Assets

105,296,762,448

99,039,936,815

104,532,345,363

Cash & Cash Equivalents

7,537,672,336

1,889,398,488

2,315,063,261

Current Financial Instruments

86,839,759

86,839,759

86,839,759

Trade Receivables & Other Receivables

54,596,357,715

43,619,403,706

47,788,947,007

Other Current Financial Instruments

714,196,403

550,768,276

263,380,326

Inventories

40,746,722,940

51,423,188,073

51,843,016,885

Other Current Non-Financial Instruments

1,614,973,295

1,470,338,513

2,235,098,125

Non-Current Assets

143,087,125,696

146,786,002,746

146,276,688,201

Non-Current Financial Instruments

150,943,245

105,395,514

53,729,740

Marketable Financial Instruments

911,769,649

917,448,292

1,047,816,821

Held-to-Maturity Financial Assets

0

25,420,000

25,420,000

Investment_Related Companies

64,487,314,380

67,519,815,173

67,519,815,173

Tangibles

67,982,332,774

69,431,560,262

68,435,611,169

Investment_Real Estates

2,169,236,816

1,673,379,773

2,049,469,938

Intangibles

994,425,032

968,875,032

971,634,660

Other Non-Current Financial Instruments

6,391,103,800

6,144,108,700

6,173,190,700

Total Liabilities

86,900,723,394

86,943,666,685

93,123,885,144

Current Liabilities

76,737,146,602

64,682,273,575

71,223,637,582

Trade Payables & Other Payables

11,859,571,173

11,456,888,957

14,240,067,764

Short-Term Borrowings

48,978,510,449

46,049,234,377

51,789,283,871

Current Portion of Long-Term Debts

11,602,800,000

3,712,900,000

1,746,350,000

Other Current Financial Debts

2,919,630,275

2,890,756,758

2,457,515,919

Accrued Income Tax

1,086,060,478

90,765,335

81,814,178

Other Current Liabilities

290,574,227

481,728,148

908,605,850

Non-Current Liabilities

10,163,576,792

22,261,393,110

21,900,247,562

Long-Term Borrowings

2,051,400,000

13,856,450,000

13,492,700,000

Deferred Income Tax Credit

8,112,176,792

8,404,943,110

8,407,547,562

Capital Stock

18,750,000,000

18,750,000,000

18,750,000,000

Capital Surplus

27,926,478,099

27,926,478,099

27,926,478,099

Others

-1,431,206,219

-1,735,533,275

-2,022,273,816

Installments

-167,022,988

-288,953,646

-255,695,281

Profit Surplus

116,404,915,858

114,230,281,698

113,286,639,418

Total Equity

161,483,164,750

158,882,272,876

157,685,148,420

Liab. & Shareholder’s Equity

248,383,888,144

245,825,939,561

250,809,033,564

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

107,484,169,071

128,707,611,144

149,007,815,759

Cost of Sold Goods

91,593,037,423

109,831,812,699

129,714,311,973

Gross Profit

15,891,131,648

18,875,798,445

19,293,503,786

Selling & Admin. Expenses

13,251,013,262

16,999,541,036

18,592,720,171

Operating Income

2,640,118,386

1,876,257,409

700,783,615

Finance Income

1,230,421,628

2,352,691,278

3,668,907,914

Finance Expenses

1,893,924,210

2,415,785,356

1,923,689,286

Non-Operating Income

4,311,619,204

3,945,518,464

4,550,066,415

Non-Operating Expenses

1,486,782,727

2,829,726,858

3,657,771,000

Income Before Taxes

4,801,452,281

2,928,954,937

3,338,297,658

Income Taxes Expenses

781,818,121

140,312,657

-28,864,476

Net Income

4,019,634,160

2,788,642,280

3,367,162,134

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

9,048,953,053

10,022,891,410

-12,213,959,377

Net Income

4,019,634,160

2,788,642,280

3,367,162,134

Adjustment

5,614,570,250

7,604,414,312

-17,665,904,135

Interests Received

8,448,258

55,025,011

317,602,795

Dividends Received

1,065,715,262

2,114,591,858

3,376,094,248

Interests Paid

-1,545,734,882

-2,415,196,663

-1,810,850,027

Income Taxes

-113,679,995

-124,585,388

201,935,608

Cash Flows from Investing

-734,955,277

-4,871,099,509

-6,741,432,509

Cash Flows from Financing

-2,665,723,928

-5,585,049,494

18,815,730,941

Increase/Decrease in Cash

5,648,273,848

-433,257,593

-139,660,945

Cash at the Beginning of Year

1,889,398,488

2,315,063,261

2,472,795,074

Cash at the End of Year

7,537,672,336

1,889,398,488

2,315,063,261

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturer of Reactive dyes for cotton, rayon & wool, Disperse dyes for polyester, acetate, triacetate & micro fiber, O.B.A. for paper, pulp, cotton, polyester, nylon, acrylic & detergent, Acid dyes for nylon, silk, wool & leather, Direct dyes for paper, leather & cotton, Solvent dyes for polyester fiber, plastic, resin, master batch, Ink for color ink jet printer."

 

Brand Name : Synozol

 

Trade Partners & Competitors

 

Customers

CIBA SPECIALTY CHEMICALS INC

EASTWELL CO., LTD.(110111-0900525)

YANGWOO CO., LTD.(115911-0018773)

Competitors

OH YOUNG INDUSTRIAL CO., LTD.(115611-0001071)

RIFA INDUSTRIAL CO., LTD.(110111-0018138)

M.DOHMENKOREA, LTD.(110111-2189953)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JMC CO., LTD.(124611-0284494)

(83.50% held by the subject company)

 

YANGWOO CO., LTD.(115911-0018773)

(60.00% held by the subject company)

 

EASTWELL CO., LTD.(110111-0900525)

(38.96% held by the subject company)

 

DAITO-KISCO CORPORTION(120111-0368466)

(50.00% held by the subject company)

 

KISCO SHANGHAI(CHINA)

(100.00% held by the subject company)

 

LIANYUNGANG KISCO(CHINA)

(100.00% held by the subject company)

 

KISCO USA(USA)

(35.00% held by the subject company)

 

KIMSOY CHEMICAL(TURKEY)

(50.00% held by the subject company)

 

KIMSOY EXIM(TURKEY)

(50.00% held by the subject company)

 

RACHADA CHEMICAL(THAILAND)

(14.00% held by the subject company)

 

NAMO  IT(THAILAND)

(49.00% held by the subject company)

 

DAITO KISCO

(50% held by the Subject Company)

Subsidiary

JMC CO., LTD.(124611-0284494)

(83.50% held by the subject company)

 

YANGWOO CO., LTD.(115911-0018773)

(60.00% held by the subject company)

 

EASTWELL CO., LTD.(110111-0900525)

(38.96% held by the subject company)

 

LIANYUNGANG KISCO CHEMICAL CO., LTD.

(100% held by the Subject Company)

 

KISCO SHANGHAI

(100.0% held by the Subject Company)

Cooperative Enterprise

SUMITOMO CHEMICAL-JAPAN

T.H INT-USA

 

-Insured Company

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

03/2010

2009

2008

Export

22,637,000,000

81,251,470,091

81,456,569,665

Domestic

11,916,000,000

47,754,915,618

44,005,719,561

Total

34,553,000,000

129,006,385,709

125,462,289,226

The subject deals with the companies in Pakistan, USA, Asian Countries and European Countries.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.48

UK Pound

1

Rs.82.71

Euro

1

Rs.72.23

 

 

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%)

 

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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.