MIRA INFORM REPORT
|
Report Date : |
01.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
WEARFUN
INTERNATIONAL, INC. |
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Registered Office : |
70-13, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea, 8th Fl., Bojeon Bldg.
East Bldg., 135-530 |
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Country : |
South Korea |
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|
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
17.01.1990 |
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Com. Reg. No.: |
215-81-14162 |
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Legal Form : |
Co., Ltd by shares |
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Line of Business : |
Wholesale of Shirts, Outer Garments, Clothing, Accessory, Jewelry etc. |
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No. of Employees : |
91 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
|
Company Name |
WEARFUN
INTERNATIONAL, INC. (Korean Company
Name : “(주)웨어펀인터내셔날”) |
|
Registered Address |
70-13, Nonhyeon 2-dong,
Gangnam-gu, Seoul, Korea |
|
Building |
8th Fl., Bojeon Bldg. East Bldg. |
|
Zip Code |
135-530 |
|
Tel |
+82-2-3446-3100 |
|
Fax |
+82-2-3446-3109 |
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E-mail |
|
|
Website |
|
|
Trading Address |
8th Fl., Bojeon Bldg. East
Bldg., 70-13, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea (New Address System : 725, Eonju-ro, Gangnam-gu,
Seoul, Korea) |
|
Tel |
+82-2-3446-3100 |
|
Fax |
+82-2-3446-3109 |
|
Type |
Import |
|
Industry |
Wholesale of Shirts and Outer Garments |
|
Main Business |
Clothing, Accessory, Jewelry |
|
Established (mm/dd/yyyy) |
12/17/1990 |
The Subject owns the
premises of registered HQ address.
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Mens suits(53101902) |
|
Sell |
Clothing(53100000) |
|
Sell |
Womens slacks or trousers or shorts(53101504) |
|
Name |
Gwon Gee-Chan |
|
Address |
Suite 3801, 87, Samseong-dong,
Gangnam-gu, Seoul, Korea |
|
Date of Birth |
03/01/1951 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
|
Capital (KRW) |
2,900,000,000 |
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|
Employees |
91 |
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Formation |
Co., Ltd by shares |
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Bank Details |
Woori Bank-Jamsil Branch Kookmin Bank Shinhan Bank SC First Bank of Korea Hana Bank Kookmin Bank |
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Corporate Registered No. |
110111-0737085 |
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Business Registered No. |
215-81-14162 |
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Permit & Licenses |
Int’l Trade No.: 11555993 |
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Shareholder Position |
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Company History |
12/17/1990 Incorporated as the present name 11/30/2004 Increased the authorized shares to
600,000 shares from 300,000 shares 03/21/2007 Moved to the present HQ address
from 106-8, Cheongdam-dong, Gangnam-gu, Seoul, Korea 10/28/2008 Increased capital to
1,900,000,000 KRW from 1,500,000,000 KRW 06/25/2010 Increased capital to
2,400,000,000 KRW from 1,900,000,000 KRW 07/13/2011 Acquired WEARFUN
KOREA 11/13/2012 Moved to the present HQ address
from 5th Fl., Sinil Tower, 68-22, Cheongdam-dong, Gangnam-gu, Seoul, Korea 11/13/2012 Increased capital to 2,900,000,000 KRW from 2,400,000,000 KRW |
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Management
|
Job Description |
Title |
Name |
Sex |
Nationality |
Inauguration Date |
|
President & CEO |
Mr. |
Gwon Gee-Chan |
Male |
Korean |
12/17/1993 |
|
Director |
Mr. |
Yang Joo-Hwan |
Male |
Korean |
12/17/1993 |
|
Director |
M/S. |
Lee Kyung-Jae |
Female |
Korean |
12/17/1993 |
|
Auditor |
Mr. |
Kim Jae-Myung |
Male |
Korean |
03/20/1994 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
24,760,404,700 |
26,342,601,588 |
178,694,658 |
|
|
2011 |
23,879,111,383 |
25,295,992,009 |
450,967,066 |
|
2010 |
21,499,030,096 |
19,972,820,056 |
519,292,716 |
|
2009 |
19,238,763,662 |
28,024,193,456 |
-1,025,842,318 |
|
2008 |
21,138,504,620 |
30,281,212,957 |
-1,165,980,939 |
|
2007 |
21,178,870,790 |
28,800,404,497 |
2,478,001,545 |
|
2006 |
22,755,094,550 |
16,896,476,789 |
612,443,181 |
|
2005 |
21,736,739,436 |
15,622,103,522 |
556,108,204 |
|
2004 |
18,206,362,517 |
14,879,834,280 |
174,678,853 |
Financial
Description
|
Authorized Capital(KRW) |
3,000,000,000 |
|
Paid-Up Capital(KRW) |
2,900,000,000 |
|
Total Issued Shares |
580,000 |
|
Unit : Korean Won |
As of 12/31/2012 |
As of 12/31/2011 |
As of 12/31/2010 |
|
Total Assets |
26,342,601,588 |
25,295,992,009 |
19,972,820,056 |
|
Current Assets |
20,778,838,560 |
19,264,516,566 |
18,232,599,737 |
|
-Quick Assets |
3,068,519,893 |
3,811,164,426 |
10,328,857,282 |
|
-Inventories |
17,710,318,667 |
15,453,352,140 |
7,903,742,455 |
|
Fixed Assets |
5,563,763,028 |
6,031,475,443 |
1,740,220,319 |
|
-Investment |
482,115,706 |
491,402,815 |
146,600,952 |
|
-Tangibles |
1,883,895,958 |
2,004,060,778 |
1,362,879,974 |
|
-Intangibles |
2,918,081,294 |
3,261,384,976 |
- |
|
-Others |
279,670,070 |
274,626,874 |
230,739,393 |
|
Total Liabilities |
18,520,587,574 |
18,158,885,544 |
13,287,244,394 |
|
Current Liabilities |
16,768,929,444 |
17,947,564,091 |
12,002,569,390 |
|
Fixed Liabilities |
1,751,658,130 |
211,321,453 |
1,284,675,004 |
|
Capital Stock |
2,900,000,000 |
2,400,000,000 |
2,400,000,000 |
|
Profit Surplus |
4,914,638,434 |
4,735,943,776 |
4,288,071,710 |
|
Capital Adjustment |
7,375,580 |
1,162,689 |
-2,496,048 |
|
Total Equity |
7,822,014,014 |
7,137,106,465 |
6,685,575,662 |
|
Liab. & Shareholder’s Equity |
26,342,601,588 |
25,295,992,009 |
19,972,820,056 |
|
Current Liabilities |
16,768,929,444 |
17,947,564,091 |
12,002,569,390 |
|
Short-Term Borrowings |
13,932,515,372 |
13,518,682,462 |
9,758,179,768 |
|
Trade Payables |
1,073,337,983 |
1,389,139,751 |
409,093,900 |
|
Account Payables |
769,674,071 |
962,049,143 |
1,001,269,824 |
|
Advance Receipts |
165,700,867 |
426,689,281 |
519,962,265 |
|
Withholdings |
37,806,592 |
36,967,144 |
29,034,223 |
|
Accrued Expenses |
313,617,798 |
260,014,359 |
235,415,528 |
|
Accrued Income Tax |
226,276,765 |
238,141,602 |
49,613,882 |
|
Current Portion of Long-Term Debts |
249,999,996 |
16,660,000 |
- |
|
Current Portion of Debentures |
- |
1,100,000,000 |
- |
|
Fixed Liabilities |
1,751,658,130 |
211,321,453 |
1,284,675,004 |
|
Long-Term Borrowings |
562,500,007 |
- |
|
|
Debentures |
880,000,000 |
- |
1,100,000,000 |
|
Provision for Severance & Retirement |
140,009,183 |
56,321,453 |
46,329,200 |
|
Leasehold Deposit Received |
90,000,000 |
75,000,000 |
50,000,000 |
|
Guarantee Deposit Withhold |
80,000,000 |
80,000,000 |
90,000,000 |
|
Unit : Korean Won |
As of 12/31/2012 |
As of 12/31/2011 |
As of 12/31/2010 |
|
Sales |
24,760,404,700 |
23,879,111,383 |
21,499,030,096 |
|
Cost of Sold Goods |
8,530,242,582 |
8,717,557,348 |
8,973,450,792 |
|
Gross Profit |
16,230,162,118 |
15,161,554,035 |
12,525,579,304 |
|
Selling & Admin. Expenses |
14,981,338,706 |
13,559,786,229 |
11,434,767,530 |
|
Operating Income |
1,248,823,412 |
1,601,767,806 |
1,090,811,774 |
|
Non-Operating Income |
463,301,903 |
367,983,897 |
1,563,023,163 |
|
Non-Operating Expenses |
1,425,886,822 |
1,253,779,625 |
2,079,727,859 |
|
Income Before Taxes |
286,238,493 |
715,972,078 |
574,107,078 |
|
Income Taxes Expenses |
107,543,835 |
265,005,012 |
54,814,362 |
|
Net Income |
178,694,658 |
450,967,066 |
519,292,716 |
|
Unit : Korean Won |
As of 12/31/2012 |
As of 12/31/2011 |
As of 12/31/2010 |
|
Cash Flows from Operating |
-1,667,103,760 |
-1,367,871,750 |
2,041,726,901 |
|
-Net Income |
178,694,658 |
450,967,066 |
519,292,716 |
|
-Exp. without Cash Outflow |
1,489,821,310 |
1,152,870,010 |
1,335,770,378 |
|
-Revenue without Cash Inflows |
-92,438,726 |
-181,488,439 |
-1,254,363,925 |
|
-Changes in Asset/ & Liability |
-3,243,181,002 |
-2,790,220,387 |
1,441,027,732 |
|
Cash Flows from Investing |
-57,127,038 |
5,534,336,071 |
7,198,567,696 |
|
-Cash Inflow from Investing |
1,736,556,804 |
8,673,515,772 |
15,597,368,641 |
|
-Cash Outflows for Investing |
-1,793,683,842 |
-3,139,179,701 |
-8,398,800,945 |
|
Cash Flows from Financing |
1,574,017,339 |
-4,273,146,678 |
-8,982,580,080 |
|
-Cash Inflows from Financing |
15,207,391,295 |
12,458,260,258 |
8,720,025,078 |
|
-Cash Outflows from Financing |
-13,633,373,956 |
-16,731,406,936 |
-17,702,605,158 |
|
Increase/Decrease in Cash |
-150,213,459 |
-96,522,974 |
257,714,517 |
|
Cash at the Beginning of Year |
172,345,219 |
268,868,193 |
11,153,676 |
|
Cash at the End of Year |
22,131,760 |
172,345,219 |
268,868,193 |
|
Main Products & Services |
Clothing, Accessory, Jewelry Brand Name : VERSACE, AIGNER, KENZO, SONIA RYKIEL, ORLA KIELY, ANYA
HINDMARCH, PAULE KA, HARRODS, KENZO HOMME, ICEBERG, BASLER |
|
Suppliers |
HANA CAPITAL, CO., LTD.(110111-0519970) and HYUNDAI CAPITAL SERVICES,
INC.(110111-0995378) provide the vehicle leasing services to the subject
company. |
|
Customers |
WOORI HOME SHOPPING CO., LTD.(110111-2248957) |
|
Competitors |
HERMES KOREA LTD. 630-26, SINSA-DONG, GANGNAM-GU, SEOUL,
KOREA TEL:+82-2-544-7722 FAX:+82-2-545-1224 KOREA OZAKI CO., LTD. RM. 603, ACE TECHNO TOWER, 55-7, MULLAEDONG
3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA TEL:+82-2-2633-7821 FAX:+82-2-2633-7834 MERKAVA CO., LTD. 1029-28, HOGYE 1-DONG, DONGAN-GU,
ANYANG-SI, GYEONGGI-DO, KOREA TEL:+82-70-7090-4900 FAX:+82-31-427-4950 |
|
Affiliates |
FUN SUPPLY CO., LTD.(110111-1984635) WEARFUN KOREA CO., LTD.(110111-1337149) W& FUN ENTERTAINMENT CO. LTD.(110111-3663998) OPERA GALLERY KOREA LTD.(110114-0070843) |
|
Cooperative Enterprise |
-Insured Company MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328) |
The Subject imports
from France, Germany, Italy and Japan.
No.
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DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.97 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.