MIRA INFORM REPORT

 

 

Report Date :

18.07.2013

 

IDENTIFICATION DETAILS

 

Name :

LOTTE CHEMICAL CORPORATION

 

 

Registered Office :

395-67, Sindaebang 2-dong, Dongjak-gu, Seoul, Korea, 11th Fl., Lotte Gwanak Tower, Zip Code 156-711

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.03.1976

 

 

Com. Reg. No.:

188-11-5012

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals

 

 

No. of Employees :

2,431

 

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 – 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

 

Company Name

LOTTE CHEMICAL CORPORATION

(Ex. Company Name : HONAM PETROCHEMICAL CORPORATION, “호남석유화학(”))

(Korean Company Name : “롯데케미칼()”)

Registered Address

395-67, Sindaebang 2-dong, Dongjak-gu, Seoul, Korea

Building

11th Fl., Lotte Gwanak Tower

Zip Code

156-711

Tel

+82-2-829-4114

Fax

+82-2-843-1010

E-mail

Kilee@hpc.co.kr;bonsoo@hpc.co.kr;tora@hpc.co.kr ; jiman@lottelpc.com;skchung@lottelpc.com

Website

www.hpc.co.kr

Trading Address

11th Fl., Lotte Gwanak Tower, 395-67, Sindaebang 2-dong, Dongjak-gu, Seoul, Korea

Tel

+82-2-829-4114

Fax

+82-2-843-1010

Other Address-Yeosu Factory

172, Jungheung-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-688-2114

Fax

+82-61-688-2460

Other Address-Yeosu II Factory

1-2, Wolha-dong, Yeosu-si, Jeollanam-do, Korea

Tel

+82-61-688-2114

Other Address-Daesan Factory

634, Dokgot-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea

Tel

+82-41-689-5114

Fax

+82-41-689-5118

Other Address-Research Lab.

24-1, Jang-dong, Yuseong-gu, Daejeon, Korea

Tel

+82-42-861-6161

Other Address-Daejeon Branch

32, Hongdo-dong, Dong-gu, Daejeon, Korea

Tel

+82-42-635-2961

Fax

 

Other Address-Busan Office

394-8, Samnak-dong, Sasang-gu, Busan, Korea

Tel

+82-51-301-5846

Fax

+82-51-301-5880

Other Address-Daegu Branch

3rd Fl., National Pension Corporation Daegu Bldg., 1198-5, Igok 2-dong, Dalseo-gu, Daegu, Korea

Tel

+82-53-593-7104

Fax

+82-53-593-7108

Other Address-Gwangju Office

Rm. 501, Dongsin Bldg., 150, Unam 2-dong, Buk-gu, Gwangju, Korea

Tel

+82-62-524-7870

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

High Density Polyethylene(HDPE), Polypropylene(PP), Polyethylene Terephthalate(PET), Ethylene Glycol, Methyl Methacrylate(MMA), Styrene Monomer, Mono Ethylene Glycol, Butadiene,BTX Product, Benzene, Toluene, Xylene, PE, PP, Compounded Polymer

Established (mm/dd/yyyy)

03/16/1976

 

The Subject owns the premises of Yeosu Factory(1,190,377㎡).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyethylene Terepthalate PET(13102020)

Sell

Polypropylene resin(13111019)

Sell

Resins(13111000)

Sell

Chemistry reagents or solutions(41116105)

Sell

High Density Polyethylene HDPE(13102017)

Sell

Organic derivatives and substituted compounds(12352100)

Sell

Tea bags(50201713)

Sell

Laminated papers(14121700)

Sell

Inorganic compounds(12352300)

Sell

Alcohols or its substitutes(12352104)

 

 

CEO’s

 

Name

Shin Dong-Bin

Date of Birth

02/14/1995

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

171,377,095,000

Employees

2,431

Formation

Listed Company (Korea Stock Exchange : 011170 ) as of 05/30/1991

Foreign Direct Investment Corporation

A Company of LOTTE GROUP

Bank Details

Nonghyup Bank

Woori Bank-Boramae Branch

Corporate Registered No.

110111-0193196

Business Registered No.

188-11-5012

Permit & Licenses

08/01/1995 ISO 9001

12/1995 ISO 14001

 

Int’l Trade No.: 789015

Shareholder Position

Name

Shares

%

LOTTE MOOLSAN CO., LTD. (110111-0320707)

10,718,818

31.27

HOTEL LOTTE CO., LTD.(110111-0145410)

4,346,818

12.68

LOTTE HOLDINGS CO.,LTD.(JAPAN)

3,186,000

9.30

NATIONAL PENSION SERVICE(110171-0007134)

2,442,727

7.13

OTHERS

13,581,056

39.62

TOTAL

34,275,419

100.00

Company History

03/16/1976 Incorporated as the present name

04/1976 Imported technologies from Mitsui Petrochemical, Mitsui Toatsu Chemical and UK Shell Development

03/1979 Construction of PP, PE, EOG and UC plants

03/1979 Construction of PP, PE, EOG and UC plants

06/1979 Privatization of domestic shares (Lotte)

06/1979 Privatization of domestic shares (Lotte)

12/1979 Commercial production of HDPE, PP, and EOG

12/1979 Commercial production of HDPE, PP, and EOG

09/1984 Construction of Compound Resin Factory (Gradual expansion)

06/1986 Launche of research institute

04/1988 Construction of the 2nd HDPE plant

11/1988 Construction of the 2nd PP plant

01/1991 Moved labs to Daeduk R&D complex

05/1991 Construction of the 2nd EOG plant

04/1992 Launched operation of Naphtha Cracking Center and BTX plant

08/1995 Attained ISO 9001 (Quality system) certificate

11/1996 Attained ISO 14001 (Environmental system) model certificate

01/1997 Designated as KOLAS nationally authorized laboratory and attained UN MARK from Korean Register of Shipping

06/1997 Expansion of the 3rd EOG plant

05/1998 Launched operation of PET plant

06/1999 Expansion of the 3rd HDPE plant

02/2000 Launched operation of EOA plant

06/2001 Launched operation of MMA plant

11/2001 Completed revamping of Naphtha Cracking Center and BTX plant, expansion of the 3rd PP plant

05/2003 Completed steam supply and power plant, 3AS plant, Formed LG Chemical & HPC Consortium

06/2003 Acquired Hyundai Petrochemical 2nd Complex

01/2004 Implemented ERP

11/2004 Acquired KP Chemical

12/2005 Honam petrochemical corp. entered into a contract on introducing polycarbonate manufacturing technologies with Asahi-Kasei, Japan.

01/2006 Honam petrochemical corp. entered into a MOU on establishing MMA,PMMA joint venture with Mitsubishi Rayon, Japan.

01/2006 Acquired Jiaxing Honam Engineering Plastic Co,Ltd

06/2008 PC Plant Will be Completed.

01/05/2009 Acquired LOTTE DAESAN PETROCHEMICAL CORPORATION (161411-0014684)

12/27/2012 Merged with KP CHEMICAL CORP(230111-0082112)

12/27/2012 Changed company name to the present name

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Shin Dong-Bin

Korean

1955.02.14

MBA, Columbia University, Director of LOTTE CO., LTD.(Japan)

President & CEO

Mr.

Hur Soo-Young

Korean

1951.06.07

Seoul National University, President of LOTTE DAESAN PETROCHEMICAL CORPORATION(161411-0014684)

Sr. Executive Director

Mr.

Choi Tae-Hyun

Korean

1953.08.28

Yonsei University, Korea

Outside Director & Auditor

Mr.

Jung Hae-Wang

Korean

1947.03.24

New York State University, USA

Outside Director & Auditor

Mr.

Keum Dong-Hwa

Korean

1951.12.15

Stanford University, Korea

Outside Director

Mr.

Kim Kyung-Ha

Korean

1953.01.

Seoul National University, Korea

Outside Director & Auditor

Mr.

Cho Seung-Sik

Korean

1952.01.20

Seoul National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

9,095,887,163,330

9,500,149,213,114

343,035,975,098

(*)2011

8,463,484,252,787

8,279,107,535,291

748,633,827,649

(*)2010

7,189,058,848,259

6,894,490,327,752

686,875,043,330

2009

5,969,758,436,345

5,677,438,913,166

796,701,068,020

2008

3,098,210,282,676

3,550,957,330,652

-45,284,006,833

2007

2,255,268,363,372

3,587,375,456,169

463,359,940,843

2006

2,181,315,418,229

2,997,624,545,038

381,592,272,590

2005

2,112,793,648,507

2,791,475,554,945

511,431,593,224

2004

1,952,094,050,240

2,318,300,810,683

535,258,456,479

2003

1,460,335,438,818

1,690,406,350,363

210,663,325,711

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

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

171,377,095,000

Total Issued Shares

34,275,419

 


Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

9,500,149,213,114

8,279,107,535,291

6,894,490,327,752

Current Assets

3,027,509,417,540

2,518,885,577,353

1,881,924,075,150

Cash & Cash Equivalents

648,543,812,324

457,001,236,829

141,824,551,653

Current Financial Instruments

186,621,846,423

476,457,926,032

390,056,621,108

Marketable Financial Instruments

232,110,000

 

 

Trade Receivables & Other Receivables

1,269,700,088,168

1,027,379,346,492

791,477,846,607

Inventories

891,908,409,125

542,406,263,546

476,625,259,300

Finance Lease Receivables

192,361,845

123,341,088

 

Income Taxes

4,477,090,730

 

 

Current Financial Instruments

13,685,885,568

8,083,190,740

74,063,377,295

Current Non-Financial Instruments

12,147,813,357

7,434,272,626

7,876,419,187

Non-Current Assets

6,472,639,795,574

5,760,221,957,938

5,012,566,252,602

Non-Current Financial Instruments

43,521,000,000

25,018,500,000

18,500,000

Marketable Financial Instruments

113,247,071,993

35,821,011,245

35,054,539,425

Finance Lease Receivables

5,505,727,434

3,651,468,806

1,937,965,484

Investment_Subsidiaries

3,211,592,411,193

3,024,946,357,844

2,851,265,474,748

Tangibles

2,983,464,411,051

2,614,891,126,496

2,068,586,082,444

Investment_Real Estates

47,813,561,314

41,015,873,725

41,464,203,593

Intangibles

15,100,945,096

8,494,926,542

7,631,090,960

Non-Current Financial Instruments

52,394,667,493

6,382,693,280

6,608,395,948

Total Liabilities

3,375,791,118,758

3,188,812,009,029

2,490,382,599,765

Current Liabilities

1,870,380,289,266

1,597,175,849,333

1,320,203,481,324

Trade Payables & Other Payables

1,371,753,813,348

1,294,775,029,926

671,362,682,804

Short-Term Borrowings

375,482,119,968

99,959,828,921

426,429,900,071

Accrued Income Tax

51,803,765,816

149,135,363,221

178,574,870,715

Other Current Financial Debts

34,501,962,549

12,199,010,694

13,163,275,202

Other Current Non-Financial Debts

36,838,627,585

41,106,616,571

30,672,752,532

Non-Current Liabilities

1,505,410,829,492

1,591,636,159,696

1,170,179,118,441

Long-Term Borrowings

1,209,609,902,911

1,351,037,321,284

947,036,044,895

Confirmed Salaries

22,575,050,475

13,654,279,014

7,368,505,791

Deferred Income Tax Credit

184,006,012,755

166,497,142,824

149,830,312,517

Other Non-Current Financial Debts

84,190,341,558

56,811,050,935

61,955,943,254

Other Non-Current Non-Financial Debts

5,029,521,793

3,636,365,639

3,988,311,984

Capital Stock

171,377,095,000

159,300,000,000

159,300,000,000

Others

763,267,158,942

28,484,478,232

28,484,478,232

Profit Surplus

5,185,502,759,088

4,907,885,556,688

4,222,973,032,320

 

4,211,081,326

-5,374,508,658

-6,649,782,565

Total Equity

6,124,358,094,356

5,090,295,526,262

4,404,107,727,987

Liab. & Shareholder’s Equity

9,500,149,213,114

8,279,107,535,291

6,894,490,327,752

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

9,095,887,163,330

8,463,484,252,787

7,189,058,848,259

Cost of Sold Goods

8,454,954,182,119

7,238,740,508,324

6,078,161,811,081

Gross Profit

640,932,981,211

1,224,743,744,463

1,110,897,037,178

Selling & Admin. Expenses

241,923,871,719

211,235,617,610

167,246,215,192

Operating Income

399,009,109,492

1,013,508,126,853

943,650,821,986

Finance Income

71,139,202,586

55,449,869,181

119,337,908,538

Finance Expenses

102,394,585,401

79,677,646,470

126,921,787,891

Other Non-Operating Income

66,731,970,129

17,077,007,387

-35,720,750,182

Income Before Taxes

434,485,696,806

1,006,357,356,951

900,346,192,451

Income Taxes Expenses

91,449,721,708

257,723,529,302

213,471,149,121

Net Income

343,035,975,098

748,633,827,649

686,875,043,330

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

105,718,340,705

1,367,894,302,140

802,595,780,280

Net Income

343,035,975,098

748,633,827,649

686,875,043,330

Adjustment

-46,728,112,480

887,013,415,227

180,728,049,468

Income Taxes

-190,589,521,913

-267,752,940,736

-65,007,312,518

Cash Flows from Investing

18,019,794,166

-1,016,312,886,119

-1,496,025,781,216

Cash Flows from Financing

68,426,092,844

-36,782,491,004

444,073,051,031

Increase/Decrease in Cash

192,164,227,715

314,798,925,017

-249,356,949,905

Cash at the Beginning of Year

457,001,236,829

141,824,551,653

391,398,190,471

Cash at the End of Year

648,543,812,324

457,001,236,829

141,824,551,653

 

Products, Technologies, Services Description

 

Main Products & Services

PE: Polyethylene

-High Density Polyethylene(HDPE)

-Low Density Polyethylene(LDPE)

-Linear Low Density Polyethylene(LLDPE)

-Ethylene Vinyl Acetate Copolymer(EVA)

 

PP: Polypropylene

 

PET: Polyethylene Terephthalate

 

BTX(Aromatic Compounds)

-Benzene

-Toluene

-Xylene

 

Ethylene Oxide /Ethylene Glycol(EO/EG)

-HPEO(High PressureEthylene Oxide)

-MEG(Mono Ethylene Glycol)

-DEG(Di Ethylene Glycol)

-TEG(Tri Ethylene Glycol)

 

MMA(Methyl Methacrylate)

 

 

Trade Partners & Competitors

 

Suppliers

GS-CALTEX CORPORATION(110111-0078819)

ADNOC

Customers

KP CHEMICAL CORP.(230111-0082112)

LOTTE DAESAN PETROCHEMICAL CORPORATION(161411-0014684)

Competitors

KOREA PETRO CHEMICAL IND CO., LTD.(110111-0024698)

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.(161411-0013066)

LG CHEM LTD.(110111-2207995)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

LOTTE SAMKANG CO., LTD(110111-0033722)

LOTTE CHILSUNG BEVERAGE CO., LTD(110111-0003684)

LOTTE CONFECTIONERY CO., LTD.(110111-0076300)

LOTTE DATA COMMUNICATION CO., LTD.(110111-1358343)

LOTTE MIDOPA CO., LTD(110111-0045983)

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

LOTTE HAM CO., LTD.(110111-0229371)

LOTTERIA CO., LTD.(110111-0262850)

LOTTE FRESH DELICA CO., LTD.(134511-0034295)

LOTTE BOULANGERIE CO., LTD(135511-0109807)

LOTTE PHARM CO., LTD.(110111-0657788)

FOOD STAR, INC.(110111-1739155)

CINEMA TRADING CO., LTD(110111-3180918)

WELLGA INC.(184511-0000379)

SANJUNG BEVERAGE CO., LTD.(111511-0013288)

CHANG DAE TRADING CO., LTD.(110111-0904907)

HOTEL LOTTE CO., LTD.(110111-0145410)

LOTTE GIANTS BASEBALL CLUB(110111-0317556)

HOTEL LOTTE PUSAN CO., LTD(180111-0053461)

LOTTE MOOLSAN CO., LTD.(110111-0320707)

LOTTE JTB CO., LTD(110111-3685710)

THE CINEMA OF KOREA(110111-3837501)

LOTTE CITY HOTEL CO., LTD(110111-3946518)

LOTTE TRADING CO., LTD(110111-0159099)

LOTTE LOGISTICS CORP.(110111-0040446)

KOREA SEVEN CO., LTD.(110111-0899976)

LOTTE.COM INC(110111-1843972)

LOTTE ASAHI LIQUOR COMPANY LTD.(110111-0530033)

WOORI HOME SHOPPING(110111-2248957)

KP CHEMTECH(230111-0100443)

DAESAN MMA CORPORATION(161411-0016995)

KOREA FUJIFILM CO., LTD(110111-0042715)

HOWTECH CORPORATION(110111-2110114)

LOTTE ALUMINUM CO., LTD.(110111-0003121)

LOTTE ENGINEERING & MACHINERY MFG. CO., LTD.(110111-0154560)

LOTTE ASSET DEVELOPMENT CO., LTD(110111-2394263)

DAEHONG COMMUNICATIONS INC.(110111-0249981)

FRL KOREA CO., LTD.(110111-3133298)

LOTTE CAPITAL CO., LTD.(110111-1217416)

LOTTE CARD CO., LTD.(110111-0641434)

CHEONGNA ENERGY CO., LTD.(110111-3256818)

LOTTE MILK CO., LTD.(110111-3650838)

LOTTE STATION BUILDING CO., LTD.(110111-0505903)

LOTTE SHOPPING CO., LTD.(110111-0000086)

CANON KOREA BUSINESS SOLUTIONS INC.(130111-0007666)

LOTTE ENGINEERING & CONSTRUCTION CO., LTD(110111-0014764)

SEETECH CO., LTD.

Affiliates-Overseas

LOTTE CHINA FOODS CO., LTD.

ZAO LOTTE RUS, LOTTE INDIA CO., LTD.

LOTTE TRADING NEW YORK CORPORATION

LOTTE QINGDAO FOODS CO., LTD.

HAEMUNGYO SEONGANRYUN CO., LTD.

LOTTE PHILIPPINES CO., LTD.

VIETNAM LOTTERIA CO., LTD.

LOTTE VIETNAM CO., LTD.

KP CHEMICAL (H.K.)LIMITED

LOTTE TAIWAN CO., LTD.

LOTTE SHOPPING RUS LTD.

LOTTEAODELI BEVERAGE CO.LTD.

LOTTE CONSTRUCTION CO., LTD.

ZAO L&S, HOSEOK CHEMICAL TRADE CO., LTD.

LOTTE SHANGHAI FOODS. CO., LTD.

GAHEUNG HOSEOK GONGJEONG SORYO CO., LTD.

LOTTE FOOD HOLDING CO.,LIMITED

LOTTE PACKAGE CO., LTD.

LOTTE INVESTMENT CO., LTD.

HONAM OVERSEAS HOLDINGS LIMITED

LOTTE CONFECTIONERY RUS LLC, LH FOODS CO., LIMITED

SOGLASIE-LOTTE HOTEL DUTY FREE LTD.

OPERATOR-LOTTE-DUTY FREE LTD.

UNITED NCRI-LOTTE CONSTRUCTION CORPORATION

LOTTE ENGINEERING AND CONSTRUCTION INDIA PVT. LTD.

LOTTE HUABANG CO., LTD.

LOTTE QINGDAO FOODS CO., LTD.

WEIFANG YASING GROUP CO., LTD.

Joint Venture

DAESAN MMA CORPORATION

(50.0% held by the subject Company)

 

SEETECH CO., LTD.

(50.0% held by the subject Company)

Subsidiary

HONAM OVERSEAS HOLDINGS LIMITED(HONG KONG)

(100.0% held by the subject Company)

 

GAHEUNG HOSEOK PETROCHEMICAL CO., LTD.-CHINA

(100.0% held by the subject Company)

 

HONAM PETROCHEMICAL TRAING(SHANGHAI) CO.,LTD.-CHINA

(40.0% held by the subject Company)

 

KP CHEMICAL CORP(230111-0082112)

KP CHEMTECH CO., LTD.(230111-0100443)

SAMBARK LFT CO., LTD.(161511-0034466)

DACC Aerospace Co., LTD.(210111-0061897)

HOWTECH CORPORATION(110111-2110114)

SAMBARK CO., LTD.(161511-0043665)

 

TITAN CHEMICALS CORP.BHD.

HONAM OVERSEAS HOLDINGS LIMITED

LOTTE PAKISTAN PTA LIMITED

LOTTE CHEMICAL UK LIMITED

HPM ALABAMA CORP.

HEFEI HONAM ENGINEERING PLASTICS CO., LTD.

Cooperative Enterprise

-Insured Company

LIG INSURANCE CO., LTD(110111-0017859)

 

-Technical Support

SAMJUNG PETROCHEMCIAL CO., LTD(JAPAN)

UNION CARBIDE CORPORATION

 

-Sales Agent Agreement

KP CHEMICAL CORP.(230111-0082112)

 

 


Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in China, Indonesia and Japan.

 

 

Court Action

 

No.

 

 

News Clipping

 

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FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.36

UK Pound

1

Rs.89.69

Euro

1

Rs.77.99

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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

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NB

New Business

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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.