MIRA INFORM REPORT

 

 

Report Date :

01.07.2013

 

IDENTIFICATION DETAILS

 

Name :

S&W CORPORATION

 

 

Registered Office :

560, Sinpyeong 1-dong, Saha-gu, Busan, Korea 604-836

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.01.1990

 

 

Com. Reg. No.:

603-81-11659

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Internal Combustion Piston Engines

 

 

No. of Employees :

213

 

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 – 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

S&W CORPORATION

Registered Address

560, Sinpyeong 1-dong, Saha-gu, Busan, Korea

Zip Code

604-836

Tel

+82-51-205-7411

Fax

+82-51-205-7417

E-mail

snw@snwcorp.com

Website

www.snwcorp.com

Trading Address

560, Sinpyeong 1-dong, Saha-gu, Busan, Korea

Tel

+82-51-205-7411

Fax

+82-51-205-7417

Other Address-2nd Factory

532, Sinpyeong-dong, Saha-gu, Busan, Korea

Tel

+82-51-209-2327

Fax

+82-51-209-2360

Other Address-Jillye Factory

38-1, Sanbon-ri, Jillye-myeon, Gimhae-si, Gyeongsangnam-do, Korea

Tel

+82-55-345-9816

Fax

+82-55-345-9820

Type

Export

Industry

Manufacture of Internal Combustion Piston Engines

  Main Business

Diesel Engine Component, Bolts ,Nuts, Cam Shaft

Established (mm/dd/yyyy)

01/01/1990

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

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Bolts(31161600)

Sell

Nuts(31161700)

Sell

Stud bolts(31161619)

Buy

Base Metals(11101700)

Buy

Non ferrous alloy(11101711)

Buy

Steel(11101704)

Buy

Ferrous alloy(11101712)

 

 

CEO’s

 

Name

Jung Hwa-Sup

Date of Birth

12/13/1946

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,600,000,000

Employees

213

Formation

Listed Company (KOSDAQ : 103230) as of 08/05/2009

Bank Details

Industrial Bank of Korea

Korea Exchange Bank

Corporate Registered No.

180111-0095637

Business Registered No.

603-81-11659

Permit & Licenses

10/31/2005 ISO 9001 by LRQA

03/2009 ISO 14001

 

Int’l Trade No.: 12026175

Shareholder Position

Name

Shares

%

JUNG HWA-SUP

5,052,300

70.17

JUNG WOO-JIN

90,960

1.26

JUNG MOON-SUB

25,980

0.36

PARK WOO-HO

2,700

0.04

OTHERS

2,028,060

28.17

TOTAL

7,200,000

100.00

Company History

03/02/1967 Established as SHINIL NUT INDUSTRIES CO.(Sole Proprietorship)

01/01/1990 Incorporated as SHINIL BOLT INDUSTRY CO., LTD.

05/01/2003 M&A with Woosung Valve Co., Ltd., and changed company name to the present name

06/15/2003 Designated as a Venture Business

06/15/2005 Designated as a Venture Business again

12/2009 Designated as a Promising Export SME

04/2011 Designated as an INNO-BIZ Company

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Jung Hwa-Sup

Korean

1946.12.13

Dongah University, Korea

Vice President

Mr.

Jung Woo-Jin

Korean

1974.03

Busan national University, Korea

Executive Director

Mr.

Lim Chae-Yoon

Korean

1957.08.14

Gyungnam Technical college, Korea

Auditor

Mr.

Kim Han-Jong

Korean

1948.04.16

Dongah University, Korea

Outside Director

Mr.

Jung Young-Hwan

Korean

1952.03.20

Seoul National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2013

14,143,694,675

83,382,133,502

690,675,524

(*)2012

70,545,756,157

85,865,763,018

2,565,332,815

(*)2011

86,447,591,775

95,587,807,838

-1,282,758,245

2010

75,588,068,845

75,312,259,521

3,233,557,541

2009

65,527,106,511

68,746,403,459

5,689,201,809

2008

66,135,876,883

69,539,013,772

2,423,151,318

2007

50,287,217,812

40,269,780,619

5,745,609,015

2006

38,672,400,789

23,959,152,380

2,222,045,482

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

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

3,600,000,000

Total Issued Shares

7,200,000

 

Balance Sheet

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

83,382,133,502

85,865,763,018

95,587,807,838

Current Assets

31,290,550,195

33,185,865,995

42,655,535,345

Cash & Cash Equivalents

3,464,553,780

3,426,537,989

972,821,374

Other Financial Assets

0

0

21,227,560

Trade Receivables

11,275,510,140

13,253,781,222

14,922,501,717

Other Receivables

42,942,430

42,002,140

460,428,587

Other Current Assets

82,948,539

35,252,304

63,774,092

Inventories

16,424,595,306

16,428,292,340

26,214,782,015

Non-Current Assets

52,091,583,307

52,679,897,023

52,932,272,493

Other Financial Assets

2,500,000

2,500,000

2,500,000

Marketable Financial Instruments

1,071,633,900

1,071,633,900

144,633,900

Other Receivables

1,177,500,000

1,179,500,000

1,214,340,000

Tangibles

49,376,474,850

49,941,006,751

50,776,666,972

Intangibles

463,474,557

485,256,372

794,131,621

Total Liabilities

27,540,703,378

30,801,327,665

43,564,289,663

Current Liabilities

23,214,140,894

26,514,913,421

38,323,782,302

Trade Payables

3,351,802,182

2,519,561,731

4,317,948,047

Short-Term Borrowings

17,121,810,700

6,500,000,000

13,032,875,142

Deferred Income Tax Credit

852,877,768

624,788,652

0

Current Portion of Long-Term Debts

200,000,000

15,656,525,000

18,601,132,400

Other Payables

1,571,305,525

1,071,089,727

1,647,554,597

Other Current Liabilities

116,344,719

142,948,311

724,272,116

Non-Current Liabilities

4,326,562,484

4,286,414,244

5,240,507,361

Long-Term Borrowings

- 

50,000,000

250,000,000

Confirmed Salaries

3,071,325,147

2,618,426,164

2,915,581,633

Deferred Income Tax Credit

1,255,237,337

1,617,988,080

2,074,925,728

Capital Stock

3,600,000,000

3,600,000,000

3,600,000,000

Capital Surplus

12,349,437,000

12,349,437,000

12,349,437,000

Profit Surplus

39,891,993,124

39,114,998,353

36,074,081,175

Total Equity

55,841,430,124

55,064,435,353

52,023,518,175

Liab. & Shareholder’s Equity

83,382,133,502

85,865,763,018

95,587,807,838

 

Income Statement

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

14,143,694,675

70,545,756,157

86,447,591,775

Cost of Sold Goods

13,265,171,733

65,120,016,067

80,341,681,807

Gross Profit

878,522,942

5,425,740,090

6,105,909,968

Selling & Admin. Expenses

1,303,398,136

4,915,681,361

5,000,255,324

Operating Income

-424,875,194

510,058,729

1,105,654,644

Other Income

253,403,809

714,189,953

184,402,218

Other Expenses

3,393,030

82,146,902

249,353,622

Finance Income

863,661,736

2,972,281,787

160,201,438

Finance Expenses

154,583,197

1,268,112,157

2,283,304,830

Income Before Taxes

534,214,124

2,846,271,410

-1,082,400,152

Income Taxes Expenses

-156,461,400

280,938,595

200,358,093

Net Income

690,675,524

2,565,332,815

-1,282,758,245

 

Cash Flows

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

4,197,939,199

12,337,853,925

9,693,509

Cash Flows from Operating

4,338,321,717

13,741,867,143

1,725,480,906

Net Income

690,675,524

2,565,332,815

-1,282,758,245

Adjustment

467,772,649

2,642,684,957

6,500,792,580

Changes in Asset/ & Liability

3,179,873,544

8,533,849,371

-3,492,553,429

Interests Received

17,430,942

1,405,798

79,953,108

Interests Paid

-155,373,820

-1,158,627,546

-1,147,461,664

Income Taxes

-2,439,640

-246,791,470

-648,278,841

Cash Flows from Investing

-114,886,630

-3,012,027,433

-2,973,520,028

-Cash Inflow from Investing

57,794,030

241,658,924

1,474,988,316

-Cash Outflows for Investing

-172,680,660

-3,253,686,357

-4,448,508,344

Cash Flows from Financing

-4,051,578,720

-6,855,525,142

3,445,015,454

-Cash Inflows from Financing

0

59,118,262,864

93,449,145,118

-Cash Outflows from Financing

-4,051,578,720

-65,973,788,006

-90,004,129,664

Increase/Decrease in Cash

38,015,791

2,453,716,615

467,840,049

Cash at the Beginning of Year

3,426,537,989

972,821,374

504,981,325

Cash at the End of Year

3,464,553,780

3,426,537,989

972,821,374

 

 

Products, Technologies, Services Description

 

Main Products & Services

Diesel Engine Component, Bolts ,Nuts, Cam Shaft

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

STX METAL CO., LTD(194211-0048381)

STX ENGINE CO,. LTD.(194211-0066763)

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD.(110111-2095837)

DOOSAN ENGINE CO., LTD.(194211-0038423)

Competitors

NSK KOREA CO., LTD.

60, SEONGSAN-DONG, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-287-6001  FAX:+82-55-285-9982

 

YOOSUNG ENTERPRISE CO., LTD.

279-47, UNYONG-RI, DUNPO-MYEON, ASAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-539-5000~2  FAX:+82-41-539-5009

 

PUSAN CAST IRON CO., LTD.

60-4, HAKNAM-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-231-3824  FAX:+82-52-231-3897

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

FREEMAC KOREA CO., LTD.(180111-0609686)

(51.00% held by the subject company)

 

SHINIL INDUSTRIAL CO., LTD.(180111-0563981)

(100.00% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

FREEMAC KOREA CO., LTD.(180111-0609686)

(51.00% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured company

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

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

News Clipping

 

Not Available.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.91.14

Euro

1

Rs.77.97

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.