MIRA INFORM REPORT

 

 

Report Date :

03.06.2013

 

IDENTIFICATION DETAILS

 

Name :

SNNC CO., LTD.

 

 

Registered Office :

878, Geumho-dong, Gwangyang-Si, Jeollanam-Do, Korea  545-090

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

18.05.2006

 

 

Com. Reg. No.:

416-81-52508

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Ferro-Alloys

 

 

No. of Employees :

242

 

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

SNNC CO., LTD.

(Korean Company Name : “()에스엔엔씨”)

Registered Address

878, Geumho-dong, Gwangyang-si, Jeollanam-do, Korea

Zip Code

545-090

Tel

+82-61-797-9114

Fax

+82-61-797-9191

E-mail

parkhd@snnc.co.kr

Website

www.snnc.co.kr

Trading Address

878, Geumho-dong, Gwangyang-si, Jeollanam-do, Korea

(New Address System : 2148-139, Jecheol-ro, Gwangyang-si, Jeollanam-do, Korea)

Tel

+82-61-797-9114

Fax

+82-61-797-9191

Type

Export/Import

Industry

Manufacture of Ferro-Alloys

  Main Business

Ferronickel

  Sub Business

 

Established (mm/dd/yyyy)

05/18/2006

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ferronickel

 

CEO’s

 

Name

Kim Hak-Dong

Address

Suite 6-101, 302, Geumho-ro, Gwangyang-si, Jeollanam-do, Korea

Date of Birth

05/27/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

185,000,000,000

Employees

242

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

A Company of POSCO Group

Bank Details

Woori Bank

Korea Development Bank

Corporate Registered No.

204611-0023415

Business Registered No.

416-81-52508

Permit & Licenses

N/A

Shareholder Position

Name

Shares

%

SOCIETE MINIERE DU SUD PACIFIQUE(SMSP : FRANCE)

18,870,000

51.00

POSCO(174611-0000741)

18,130,000

49.00

TOTAL

37,000,000

100.00

Company History

05/18/2006 Incorporated as the present name

06/28/2006 Registered as a Foreign Direct Investment Corporation

09/04/2006 Increased the authorized shares to 42,000,000 KRW from 2,400,000 KRW

11/15/2007 Increased capital to 185,000,000,000 KRW from 120,000,000,000 KRW

08/01/2008 Moved to the present HQ address from 700, Geumho-dong, Gwangyang-si, Jeollanam-do, Korea

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Hak-Dong

Male

Korean

03/25/2013

Director

Mr.

Kim Ki-Bong

Male

Korean

03/02/2009

Director

Mr.

Choi Tae-Ho

Male

Korean

03/19/2012

Director

Mr.

Andrei Danvengha

Male

French

02/26/2008

Director

Mr.

Marcel Thomas

Male

French

02/26/2008

Director

Mr.

Dominic Nazzi

Male

French

03/02/2010

Auditor

Mr.

Philip Feriviore

Male

French

09/04/2006

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

379,229,976,937

577,273,347,234

16,959,083,765

(*)2011

447,148,450,067

610,058,831,057

81,246,054,902

(*)2010

519,870,543,796

648,530,168,350

149,376,555,802

2009

368,348,636,617

505,055,034,008

85,685,888,345

2008

34,358,401,715

409,132,368,994

-47,958,883,951

2007

-

193,366,805,371

-)1,850,125,102

2006

-

38,583,523,183

-513,355,456

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

 

Financial Description

 

Authorized Capital(KRW)

210,000,000,000

Paid-Up Capital(KRW)

185,000,000,000

Total Issues Shares

37,000,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

577,273,347,234

610,058,831,057

648,530,168,350

Current Assets

302,310,778,591

348,116,165,655

350,991,198,050

Cash & Cash Equivalents

62,870,697,021

30,526,958,539

45,366,469,979

Trade Receivables

37,188,384,633

23,180,292,478

58,205,066,660

Other Finance Assets

142,908,709,371

250,164,238,850

181,789,431,673

Other Current Assets

967,388,439

1,554,116,206

685,140,010

Inventories

58,375,599,127

42,690,559,582

64,945,089,728

Non-Current Assets

274,962,568,643

261,942,665,402

297,538,970,300

Tangibles

270,195,290,685

259,616,376,070

294,884,334,401

Intangibles

1,496,266,055

2,274,453,313

2,600,197,896

Deferred Income Tax Credit

647,357,055

-

-

Marketable Financial Instruments

2,000,000

2,000,000

2,000,000

Other Non-Current Assets

52,702,035

47,836,019

52,438,003

Non-Current Finance Assets

2,568,952,813

2,000,000

 

Total Liabilities

261,780,528,344

269,318,376,103

305,485,294,087

Current Liabilities

109,989,137,421

87,518,523,629

92,503,289,752

Trade Payables

32,600,921,549

32,140,321,102

40,471,872,948

Other Current Financial Debts

42,378,913,066

12,339,020,594

14,318,837,911

Other Current Liabilities

87,888,762

100,769,431

144,606,033

Short-Term Borrowings

30,000,000,000

30,000,000,000

30,000,000,000

Deferred Income Tax Credit

2,844,320,432

10,764,507,244

6,161,849,683

Current Portion of Provisions

2,077,093,612

2,173,905,258

1,406,123,177

Non-Current Liabilities

151,791,390,923

181,799,852,474

212,982,004,335

Long-Term Borrowings

150,000,000,000

180,000,000,000

210,000,000,000

Other Non-Current Financial Debts

286,918,200

-

-

Deferred Income Tax Credit

-

326,645,111

175,766,025

Provision for Severance & Retirement

1,504,472,723

1,473,207,363

2,806,238,310

Capital Stock

185,000,000,000

185,000,000,000

185,000,000,000

Profit Surplus

130,492,818,890

155,740,454,954

158,044,874,263

Total Equity

315,492,818,890

340,740,454,954

343,044,874,263

Liab. & Shareholder’s Equity

577,273,347,234

610,058,831,057

648,530,168,350

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

379,229,976,937

447,148,450,067

519,870,543,796

Cost of Sold Goods

348,080,459,529

345,626,431,785

344,997,661,651

Gross Profit

31,149,517,408

101,522,018,282

174,872,882,145

Logistics

2,924,792,536

2,720,031,601

3,656,205,669

Admin. Expenses

9,459,876,295

11,767,173,741

11,026,899,388

Operating Income

18,764,848,577

87,034,812,940

160,494,180,890

Non-Operating Profits

383,333,037

9,627,096,708

 

Other Non-Operating Income

908,682,096

12,650,248,908

1,025,823,072

Other Non-Operating Expenses

525,349,059

3,023,152,200

721,419,270

Finance Profits

1,110,496,595

-1,888,448,420

-3,427,603,966

Finance Income

10,710,378,215

13,080,279,855

11,863,501,624

Finance Expenses

9,599,881,620

14,968,728,275

15,291,105,590

Income Before Taxes

20,258,678,209

94,773,461,228

157,066,576,924

Income Taxes Expenses

3,299,594,444

13,527,406,326

7,690,021,122

Net Income

16,959,083,765

81,246,054,902

149,376,555,802

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

25,840,588,309

165,015,203,044

161,986,210,142

Cash Flows from Operating

34,458,947,224

176,439,131,104

169,303,389,848

Net Income

16,959,083,765

81,246,054,902

149,376,555,802

Adjustment

51,496,803,514

59,395,159,251

53,988,349,269

Changes in Asset/ & Liability

-33,996,940,055

35,797,916,951

-34,061,515,223

Interests Received

8,460,672,590

7,104,460,133

3,663,741,298

Interests Paid

-5,859,250,249

-9,850,448,275

-9,767,299,666

Income Taxes

-11,219,781,256

-8,677,939,918

-1,213,621,338

Cash Flows from Investing

77,943,150,173

-66,630,730,849

-105,942,141,835

Cash Flows from Financing

-71,440,000,000

-113,250,000,000

-25,900,000,000

Increase/Decrease in Cash

32,343,738,482

-14,865,527,805

30,144,068,307

Cash at the Beginning of Year

30,526,958,539

45,366,469,979

15,146,597,067

Cash at the End of Year

62,870,697,021

30,526,958,539

45,366,469,979

 

Products, Technologies, Services Description

 

Main Products & Services

Ferronickel

 

Trade Partners & Competitors

 

Suppliers

NMC(NICKEL MINING COMPANY SAS : NEW CALEDONIA)

COAL & ALLIED OPERATIONS PTY LTD.(AUSTRALIA)

Customers

POSCO(174611-0000741)

Competitors

RISTEC-BIZ CO., LTD.

SAN 32, YOJA-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-279-6436  FAX:+82-54-279-6440

 

MECHEM KOREA CO., LTD.

9TH FL., ILJIN BLDG., 50-1, DOHWA-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-323-5193  FAX:+82-2-323-5195

 

KTC KOREA CO., LTD.

567-49, YEONNAM-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-3144-5052  FAX:+82-2-3141-5846

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

SAMJUNG PACKING AND ALUMINUM CO., LTD.(174611-0000866)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSCON(174611-0002242)

POSTEEL(110111-0344591)

POSCO SPECIALTY STEEL CO., LTD. (194211-0025248)

POSCO MACHINERY CO., LTD.(206411-0010175)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSMATE CO., LTD.(110111-0739841)

POSCO POWER CORPORATION(110111-1829576)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.

POSWITH CO., LTD.(171711-0075927)

P&R CO., LTD.

BASYS INDUSTRY CO. LTD.(110111-0954647)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

UI TRANS CO., LTD.(110111-3792309)

DAKOS(131110-0246297)

MAPO HIBROAD PARKING CO., LTD.(110111-4250140)

PURE GIMPO CO., LTD.(110111-4290394)

PLANT EST CO., LTD.(171711-0087592)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

METAPOLIS CO., LTD.(134811-0094475)

SEOUNG GWANG CO., LTD.(120111-0222844)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET CO., LTD.(161511-0097480)

DAEWOO ENGINEERING COMPANY CO., LTD.(110111-0203268)

Corporate Ownership

SOCIETE MINIERE DU SUD PACIFIQUE(SMSP : FRANCE)

Major Shareholders

SOCIETE MINIERE DU SUD PACIFIQUE(SMSP : FRANCE)

POSCO(174611-0000741)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO.,LTD.(10111-0095285)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD(110111-0005078)

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Australia and New Caledonia.

 

Court Action

 

No.

 

News Clipping

 

----

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.49

UK Pound

1

Rs.86.00

Euro

1

Rs.73.68

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.