MIRA INFORM REPORT

 

 

Report Date :

08.01.2013

 

IDENTIFICATION DETAILS

 

Name :

SHIMRO MUSICAL INSTRUMENTS CO., LTD.

 

 

Registered Office :

Shimro Bldg. 701-5, Banpo 1-dong, Seocho-gu, Seoul, Korea 137-808

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

23.12.1986

 

 

Com. Reg. No.:

120-81-01812

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Stringed Instruments

 

 

No. of Employees :

54

 

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

(31.03.2011)

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 Information

 

Company Name

SHIMRO MUSICAL INSTRUMENTS CO., LTD.

(Korean Company Name : “심로악기()”)

Registered Address

701-5, Banpo 1-dong, Seocho-gu, Seoul, Korea

Building

Shimro Bldg.

Zip Code

137-808

Tel

+82-2-544-9934

Fax

+82-2-516-6362

E-mail

shimro@shimro.com

Website

www.shimro.com

Trading Address

Shimro Bldg., 701-5, Banpo 1-dong, Seocho-gu, Seoul, Korea (P.O.BOX 3106)

Tel

+82-2-544-9934

Fax

+82-2-544-9924

Other Address-Logistics Center

1512-1, Gungchon-ri, Munmak-eup, Wonju-si, Gangwon-do, Korea

Other Address-Branch

5-9, Cheongdam-dong, Gangnam-gu, Seoul, Korea

Other Address-Gangwon Branch

990-5, Hongje-dong, Gangneung-si, Gangwon-do, Korea

Type

Export/Import

Industry

Manufacture of Stringed Instruments

  Main Business

Violin, Viola, Cello, Double Base, Musical Instrument Case, Bow

  Sub Business

Wholesale of Musical Instruments

Established (mm/dd/yyyy)

12/23/1986

The Subject owns the premises of registered HQ address and Munmak Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Violoncellos(60131308)

Sell

Violins(60131304)

Sell

String instruments(60131300)

Sell

Musical instrument parts and accessories(60131500)

 

 

CEO’s

 

Name

Kim Won-Jung

Address

Suite 106-103, 1780, Gyo-dong, Gangneung-si, Gangwon-do, Korea

Date of Birth

02/14/1953

Title

President & CEO

Sex

Female

Nationality

Korean

 

Profiles

 

Capital (KRW)

1,340,000,000

Employees

54

Formation

Co., Ltd by shares

Bank Details

Korea Exchange Bank-Nonhyun Dong Branch

Acct. No.: 247-JSP-100584-1

 

Industrial Bank of Korea-Nonhyun Dong Branch

Corporate Registered No.

110111-0514350

Business Registered No.

120-81-01812

Permit & Licenses

Int’l Trade No.: 931258

Shareholder Position

Name

Shares

%

SHIM JAE-YUB

214,720

48.80

OTHERS(6)

225,280

51.20

TOTAL

440,000

100.00

(*) The above list is based as of 12/31/2008.

Company History

06/28/2009 Decreased capital to 1,340,000,000 KRW from 2,000,000,000 KRW

05/2006 'Shimro Violin Aims at World's Market' on Air

10/2005 Appointed Mr. Shim Jae Yup as Head Advisor

07/2003 Appointed Mrs. Kim Won Jung as President

06/13/2001 Relocated head Office to present HQ address from 5-9, Cheongdam-dong, Gangnam-gu, Seoul, Korea

04/2001 Founded German Shimro Musikinstrument Gmbh

03/2001 Appointed Mr. Shim Jae Yup as President

12/1998 Achieving awards from the Minister of Labor

12/24/1997 Increased capital to 2,000,000,000 KRW from 1,500,000,000 KRW

11/1996 Achieving 5 million USA dollars exports & the prime minister's award

01/1996 Changed companyname to the present name

12/1995 Founded WonJu Factory II

05/1995 Founded TianJin Factory in China

05/1994 Achieving awards from the Administrator of the National Tax Service

10/1993 Built an Apartment for employees

05/1993 Selected as favorable company by Industrial Bank of Korea

05/1992 Achieving awards from the minister of KangWon province

12/1992 Started construction of an Apartment for employees

12/1992 Started Bass production

11/1991 Achieving 1 million USA dollars exports

08/1989 Began Exports to USA & EC

07/1989 Started Cello production

05/1989 Started Violin & Viola production

05/1989 Founded WonJu Factory I

04/1987 Started construction of WonJu factory I

12/23/1986 Incorporated as DONGHAE GENERAL TRADE CO., LTD.

05/1978 Established as DONGHAE TRADE

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

M/S.

Kim Won-Jung

Female

Korean

07/23/2003

Executive Director

Mr.

Shim Jae-Yeob

Male

Korean

03/02/2009

Executive Director

M/S.

Hwang Yoo-Sook

Female

Korean

03/02/2009

Auditor

Mr.

Kim Hyun-Soo

Male

Korean

06/16/2006

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

20,248,299,891

19,122,159,373

433,355,646

2010

15,153,814,653

17,673,386,502

716,801,203

2009

15,186,626,716

19,199,986,774

1,476,925,321

2008

15,556,058,269

19,855,062,645

1,563,974,208

2007

13,436,870,065

17,632,281,181

1,062,988,763

2006

11,157,565,064

18,828,781,440

906,119,541

2005

 10,858,843,024

 20,531,916,351

 470,088,190

2004

10,955,134,240

19,840,858,779

833,333,286

2003

13,426,027,134

21,385,180,632

813,130,495

 

 

Financial Description

 

Authorized Capital(KRW)

4,400,000,000

Paid-Up Capital(KRW)

1,340,000,000

Total Issues Shares

134,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

19,122,159,373

17,673,386,502

19,199,986,774

Current Assets

10,266,758,177

8,972,790,597

10,205,612,108

-Quick Assets

4,523,738,374

4,391,013,021

5,278,635,550

-Inventories

5,743,019,803

4,581,777,576

4,926,976,558

Fixed Assets

8,855,401,196

8,700,595,905

8,994,374,666

-Investment

4,840,972,746

4,785,682,028

5,125,368,022

-Tangibles

3,584,831,814

3,451,479,174

3,525,893,313

-Intangibles

355,467

718,534

1,309,661

-Others

429,241,169

462,716,169

341,803,670

Total Liabilities

2,084,179,938

1,221,668,036

2,806,902,118

Current Liabilities

1,876,213,030

1,156,953,992

2,663,057,113

Fixed Liabilities

207,966,908

64,714,044

143,845,005

Capital Stock

1,340,000,000

1,340,000,000

1,340,000,000

Capital Surplus

 

 

 

Profit Surplus

14,834,737,266

14,401,381,620

14,184,580,417

Capital Adjustment

863,242,169

710,336,846

868,504,239

Total Equity

17,037,979,435

16,451,718,466

16,393,084,656

Liab. & Shareholder’s Equity

19,122,159,373

17,673,386,502

19,199,986,774

 

Current Liabilities

1,876,213,030

1,156,953,992

2,663,057,113

Trade Payables

805,827,711

896,556,565

497,292,262

Account Payables

12,530,448

-

5,016,605

Withholdings

316,328,846

45,724,390

18,474,340

Advance Receipts

15,041,798

24,209,816

15,141,600

Short-Term Borrowings

500,000,000

-

1,600,000,000

Accrued Income Tax

20,802

25,358,062

377,068,391

Accrued Expenses

126,463,425

65,105,159

35,063,915

Guarantee Deposit Received

100,000,000

100,000,000

115,000,000

Fixed Liabilities

207,966,908

64,714,044

143,845,005

Provision for Severance & Retirement

207,966,908

64,714,044

143,845,005

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

20,248,299,891

15,153,814,653

15,186,626,716

Cost of Sold Goods

15,082,927,738

11,559,979,733

11,065,853,937

Gross Profit

5,165,372,153

3,593,834,920

4,120,772,779

Selling & Admin. Expenses

4,747,031,729

2,599,290,269

2,217,187,176

Operating Income

418,340,424

994,544,651

1,903,585,603

Non-Operating Income

335,433,071

376,460,855

726,059,356

Non-Operating Expenses

200,964,165

375,494,423

573,228,948

Income Before Taxes

552,809,330

995,511,083

2,056,416,011

Income Taxes Expenses

119,453,684

278,709,880

579,490,690

Net Income

433,355,646

716,801,203

1,476,925,321

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-698,413,508

1,180,376,051

1,473,144,158

-Net Income

433,355,646

716,801,203

1,476,925,321

-Exp. without Cash Outflow

1,407,601,806

482,764,752

574,337,864

-Revenue without Cash Inflows

-37,687,649

-24,256,881

-220,717,915

-Changes in Asset/ & Liability

-2,501,683,311

5,066,977

-357,401,112

Cash Flows from Investing

-915,791,437

1,347,599,270

-219,941,455

-Cash Inflow from Investing

120,451,364

1,515,954,364

743,910,000

-Cash Outflows for Investing

-1,036,242,801

-168,355,094

-963,851,455

Cash Flows from Financing

500,000,000

-2,115,000,000

-1,060,000,000

-Cash Inflows from Financing

500,000,000

-

-

-Cash Outflows from Financing

-

-2,115,000,000

-1,060,000,000

Increase/Decrease in Cash

-1,114,204,945

412,975,321

193,202,703

Cash at the Beginning of Year

1,933,037,757

1,520,062,436

1,326,859,733

Cash at the End of Year

818,832,812

1,933,037,757

1,520,062,436

 

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacture of String Instruments including Violin, Viola, Cello, Bass, Bow and Case

Import Wind & String Instruments

Import related parts including Electronic Instruments, P/A Systems

Import Percussion Instruments & Related Parts

 

Brand Name : Shimro, St. Antonio, Karl Heinrich

 

 

Trade Partners & Competitors

 

Suppliers

LANEY

DIGITECH

TIANJIN SHIMRO MUSICAL INSTRUMENTS CO., LTD.(CHINA)

Competitors

COR-TEK CORP.

660, DEUNGCHON-DONG, GANGSEO-GU, SEOUL, KOREA

TEL:+82-2-3661-1981  FAX:+82-2-3661-1986~7

 

DAE WON MUSICAL INSTRUMENT CO., LTD.

RM. 607, JEUSPLAZA, 924, SAU-DONG, GIMPO-SI, GYEONGGI-DO, KOREA

TEL:+82-31-984-4115~6  FAX:+82-31-984-4118

 

SPG MUSICAL INSTRUMENTS CO., LTD.

414-2, CHEONGCHEON 2-DONG, BUPYEONG-GU, INCHEON, KOREA

TEL:+82-32-525-3540  FAX:+82-32-525-3539

 

 


Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Overseas Office

TIANJIN SHIMRO MUSICAL INSTRUMENTS CO., LTD.(CHINA)

(100.0% held by the subject company)

TIONJIN NEW TECHNOLOGY INDUSTRIAL PARK WUGING DEVELOPMENT AREA, CHINA

TEL:+86-22-8212-3242 FAX:+86-22-8212-3243

 

SHIMRO GERMANY GMBH I. G CO., LTD.

(100.0% held by the subject company)

GEWERBEPARK 31-33, 08258 MARKNEUKIRCHEN, GERMANY

Subsidiary

TIANJIN SHIMRO MUSICAL INSTRUMENTS CO., LTD.(CHINA)

(100.0% held by the subject company)

TIONJIN NEW TECHNOLOGY INDUSTRIAL PARK WUGING DEVELOPMENT AREA, CHINA

TEL:+86-22-8212-3242 FAX:+86-22-8212-3243

 

SHIMRO GERMANY GMBH I. G CO., LTD.

(100.0% held by the subject company)

GEWERBEPARK 31-33, 08258 MARKNEUKIRCHEN, GERMANY

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to 35 countries including USA and Europe, and imports from China.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.98

UK Pound

1

Rs.88.11

Euro

1

Rs.71.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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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