MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

CLEAN & SCIENCE CO., LTD.

 

 

Registered Office :

159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea, 903-1, Korea Trade Tower 135-729

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

31.12.1979

 

 

Com. Reg. No.:

404-81-00477

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Paper and Paperboard

 

 

No. of Employees :

156

 

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 :

Usually 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

(31.03.2012)

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

 

Company Name

CLEAN & SCIENCE CO., LTD.

(Korean Company Name : “()크린앤사이언스”)

Registered Address

159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Building

903-1, Korea Trade Tower

Zip Code

135-729

Tel

+82-2-551-0221~4

Fax

+82-2-551-0225

E-mail

mjchun@cands.co.kr;dsseo@cands.co.kr;krlee@cands.co.kr

Website

www.cands.co.kr

Trading Address

903-1, Korea Trade Tower, 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-551-0221~4

Fax

+82-2-551-0225

Other Address-Jeongeup Factory

15B, Jeongeup Industrial Complex, 934, Taegok-ri, Buk-myeon, Jeongeup-si, Jeollabuk-do, Korea

Tel

+82-63-535-7881

Fax

+82-63-535-7885

Other Address-Hanam Factory

301-15, Deokpung 3-dong, Hanam-si, Gyeonggi-do, Korea

Tel

+82-31-794-0221

Fax

+82-31-794-0225

Type

Export/Import

Industry

Manufacture of Other Paper and Paperboard

  Main Business

Air Filter, Oil Filter, Fuel Filter, Carbon Filter, Cabin Filter, Industrial Filter

  Sub Business

 

Established (mm/dd/yyyy)

12/31/1979

The Subject owns the premises of Jeongeup Factory(33,771.1).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Filter papers(40161803)

Sell

Fuel filters(40161513)

Sell

Nonwoven fabrics(11162200)

Buy

Polypropylene PP(13102022)

Buy

Wood pulp(11121607)

 

 

CEO’s

 

Name

Kwag Gyu-Beom

Date of Birth

09/10/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

3,650,000,000

Employees

156

Formation

Listed Company (KOSDAQ : 045520) as of 12/02/2000

Bank Details

Shinhan Bank-Cheonho-Dong Branch

Corporate Registered No.

211211-0000553

Business Registered No.

404-81-00477

Permit & Licenses

12/1996 ISO 9002

12/2000 QS 9000

 

Int’l Trade No.: 894199

Shareholder Position

Name

Shares

%

CHOI JAE-HO

1,500,000

23.08

CHOI JAE-WON

1,100,000

16.92

KWAG GYU-BEOM

8,527

0.13

OTHERS

3,891,473

59.87

TOTAL

6,500,000

100.00

Company History

03/1973 Established as Jeonil Engineering Co.

12/31/1979 Incorporated as JEONIL FILTER PAPER LTD.

07/01/2000 Changed company name to the present name

11/2003 Awarded US$5 Million Export Top Prize

11/2005 Awarded US$10 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Kwag Gyu-Beom

Korean

1959.09.10

Wonkwang University

Director

Mr.

Choi Jae-Ho

Korean

1969.07.13

Yonsei University

Director

Mr.

Choi Jae-Won

Korean

1972.06.18

Sungsil University

Auditor

Mr.

Song Byung-Ki

Korean

1950.09.26

Dongwon Paper Mfg., Co., Ltd.

Outside Director

Mr.

Kim Yoon-Shin

USA

1949. 10.

Texas University, USA

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

46,929,231,882

38,657,011,834

1,032,717,389

(*)2011

44,770,108,721

41,024,264,481

1,087,950,441

(*)2010

39,541,440,207

40,773,150,706

-869,562,853

2009

34,217,363,898

40,637,280,465

2,021,765,348

2008

31,305,324,736

41,301,724,270

273,932,862

2007

30,264,443,534

35,744,271,618

11,868,075

2006

27,590,485,421

36,148,628,087

706,175,052

2005

26,738,986,904

35,998,394,305

1,617,193,947

2004

28,268,919,374

24,995,562,130

2,126,418,199

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

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

3,650,000,000

Total Issues Shares

6,500,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

38,657,011,834

41,024,264,481

40,773,150,706

Current Assets

22,921,242,949

24,033,989,735

25,411,875,548

Cash & Cash Equivalents

3,518,481,647

3,122,496,126

1,289,221,610

Current Financial Instruments

1,319,983,456

3,058,997,379

7,015,000,000

Trade Receivables

10,535,574,168

10,158,951,228

9,287,279,487

Other Receivables

198,481,547

193,481,107

484,445,419

Other Current Assets

593,127,347

527,134,115

679,000,238

Inventories

6,755,594,784

6,972,929,780

6,656,928,794

Non-Current Assets

15,735,768,885

16,990,274,746

15,361,275,158

Non-Current Financial Instruments

48,118,266

164,950,212

25,346,474

Marketable Financial Instruments

449,875,000

434,000,000

434,000,000

Investment_Subsidiaries

75,695,400

151,390,800

-

Tangibles

10,896,211,987

12,115,474,222

11,591,727,778

Intangibles

649,283,668

613,876,595

126,792,361

Other Non-Current Assets

2,683,548,404

2,680,339,819

2,649,217,320

Deferred Income Tax Assets

933,036,160

830,243,098

534,191,225

Total Liabilities

20,827,233,803

24,041,564,543

24,041,272,703

Current Liabilities

18,618,199,457

21,017,627,337

17,679,434,442

Trade Payables

5,829,084,919

6,389,551,322

5,773,514,018

Short-Term Borrowings

9,202,550,898

8,534,840,912

6,705,517,645

Other Payables

2,245,385,010

2,105,949,957

1,969,285,846

National Subsidies

4,349,189

779,050,545

845,232,417

Other Current Liabilities

201,326,258

109,234,601

286,884,516

Current Portion of Long-Term Debts

849,000,000

3,099,000,000

99,000,000

Provisions

286,503,183

-

2,000,000,000

Non-Current Liabilities

2,209,034,346

3,023,937,206

6,361,838,261

Long-Term Borrowings

2,049,500,000

2,898,500,000

6,247,500,000

Provision for Severance & Retirement

159,534,346

125,437,206

114,338,261

Capital Stock

3,650,000,000

3,650,000,000

3,650,000,000

Capital Surplus

3,435,811,759

3,435,811,759

3,435,811,759

Others

3,020,330,577

3,020,330,577

3,020,330,577

Profit Surplus

7,723,635,695

6,876,557,602

6,625,735,667

Total Equity

17,829,778,031

16,982,699,938

16,731,878,003

Liab. & Shareholder’s Equity

38,657,011,834

41,024,264,481

40,773,150,706

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

46,929,231,882

44,770,108,721

39,541,440,207

Cost of Sold Goods

37,158,548,131

36,340,616,467

32,295,796,764

Gross Profit

9,770,683,751

8,429,492,254

7,245,643,443

Selling & Admin. Expenses

7,890,475,490

7,413,279,256

7,209,524,122

Operating Income

1,880,208,261

1,016,212,998

-266,044,146

Other Operating Income

436,569,973

274,503,624

119,446,488

Other Operating Expenses

439,360,150

83,820,355

421,609,955

Finance Income

755,931,702

940,630,021

1,192,779,751

Finance Expenses

1,690,889,014

1,399,762,456

1,588,285,323

Income Before Taxes

942,460,772

747,763,832

-661,549,718

Income Taxes Expenses

-90,256,617

-340,186,609

208,013,135

Net Income

1,032,717,389

1,087,950,441

-869,562,853

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

2,438,390,417

2,161,039,544

2,102,198,734

Cash Flows from Operating

2,949,687,872

2,636,212,165

2,537,490,927

Net Income

1,032,717,389

1,087,950,441

-869,562,853

Adjustment

3,357,696,531

1,949,946,934

2,492,162,213

Changes in Asset/ & Liability

-1,440,726,048

-401,685,210

914,891,567

Interests Received

288,763,572

368,016,321

493,155,269

Interests Paid

-789,807,866

-808,519,592

-913,629,293

Income Taxes

-10,253,161

-34,669,350

-14,818,169

Cash Flows from Investing

-1,099,652,250

923,643,635

112,183,844

Cash Inflow from Investing

3,407,648,772

8,650,832,081

 

Cash Outflows for Investing

-4,507,301,022

-7,727,188,446

 

Cash Flows from Financing

-942,752,646

-1,251,408,663

-3,385,070,582

Cash Inflows from Financing

7,385,822,655

9,245,810,380

 

Cash Outflows from Financing

-8,328,575,301

-10,497,219,043

 

Increase/Decrease in Cash

395,985,521

1,833,274,516

-1,170,688,004

Cash at the Beginning of Year

3,122,496,126

1,289,221,610

2,459,909,614

Cash at the End of Year

3,518,481,647

3,122,496,126

1,289,221,610

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacture of below items;

 

Auto Filter Paper

Industrial Filter Paper

Air Conditioning Non-Woven Fabric

Synthetic Paper including Filter Paper & Non-Woven Fabric

Non-Woven Fabric for Auto Air-Filters

Membrane System for Wastewater Treatment

 

Brand Name : JAF, QA, HPFT

Detailed Products Spec.

Item

2010

2009

2008

Filter Paper

9,125

7,925

7,856

M.B

694

657

751

Total

9,819

8,582

8,608

 

Trade Partners & Competitors

 

Customers

HYUNDAI MOTOR CO.(110111-0085450)

Competitors

AHLSTROM KOREA CO., LTD.(174111-0002531)

7, GEUM-RI, YUGA-MYEON, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-611-0491  FAX:+82-53-611-0493

 

MOTONIC CORPORATION

8TH FL., SEOHEUNG BLDG., 68-5, GYEONJI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-730-8711  FAX:+82-2-720-9292

 

MAHLE DONGHYUN FILTER SYSTEMS CO., LTD.

433-1, BUGYANG-DONG, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-831-3300  FAX:+82-31-831-3301

 

CARLFREUDENBURG

3M

BBA

DUPONT

KIMBERLY-CLARK

CAMBRIDGE

AAF KOREA

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Subsidiary

CLEAN AND SCIENCE USA CO., LTD.

(100.0% held by the subject company)

Cooperative Enterprise

-Technical Support from

AAF INTERNATIONAL(USA)

 

-Insured Company

LIG INSURANCE CO., LTD.(110111-0017859)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

16,962

22,768

18,733

Domestic

17,645

22,002

20,808

Total

34,607

44,770

39,541

The Subject exports to China, Indonesia, Japan, Malaysia, Pakistan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.38

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

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%)

 

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.