MIRA INFORM REPORT

 

 

Report Date :

15.05.2013

 

IDENTIFICATION DETAILS

 

Name :

KYUNGIN SYNTHETIC CORPORATION

 

 

Registered Office :

223-52, Seongnam-dong, Seo-gu, Incheon, Koream, Zip Code 404-220

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

14.10.1977

 

 

Com. Reg. No.:

137-81-00562

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents

 

 

No. of Employees :

367

 

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

A2

A2

 

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

 

Company Name

KYUNGIN SYNTHETIC CORPORATION

(Trade Name: KISCO)

(Korean Company Name : “()경인양행”)

Registered Address

223-52, Seongnam-dong, Seo-gu, Incheon, Korea

Zip Code

404-220

Tel

+82-32-571-7498

Fax

+82-32-571-7497

E-mail

kisco@kyungin.co.kr

Website

www.kyungin.co.kr

Trading Address

112-31, Yeomchang-dong, Gangseo-gu, Seoul, Korea

Tel

+82-2-3665-4001

Fax

+82-2-3660-8539

Other Address-Siheung Factory

1Ra-706, Sihwa Industrial Complex, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-499-4020

Fax

+82-31-499-2155

Other Address-Ansan Factory

785-7, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-491-0111

Fax

+82-31-495-3521

Type

Export/Import

Industry

Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents

  Main Business

Reactive Dyestuffs, Disperse Dyestuffs, Acid Dyestuffs, Direct Dyestuffs, Fluorescent Dyestuffs, Solvent Dyestuffs

  Sub Business

Food, Food Additives, Ginseng Products

Established (mm/dd/yyyy)

10/14/1977

 

The Subject owns the premises of registered address/ Factory(4,826.0), Siheung Factory(6,694) and Ansan Factory (5,600).

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Dyes(12171500)

-Colorants

Sell

Reactives (Bifunctional, Vinylsulfone)

Sell

Disperse(Synolon Dyes, Papilion Dyes)

Sell

Direct(Fast yellow, Black)

Sell

Acid(Syno Acid Dyestuffs)

Sell

For Leather(Brown, Black, Others)

Sell

OBA (Cotton & Rayon, Nylon, Pulp & Paper, Detergent, Polyester)

Sell

Solvent Dyes

Buy

P-Base

Buy

H-ACID

CEO’s

 

Name

Cho Sung-Yong

Address

-

Date of Birth

11/04/1968

Title

Vice President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

18,750,000,000

Employees

367

Formation

Listed Company (Korea Stock Exchange : 012610 ) as of 10/05/1995

Foreign Direct Investment Corporation

Bank Details

Industrial Bank of Korea-Youngdungpo Branch

Citibank, Korea-Youngdungpo Branch

Shinhan Bank

Corporate Registered No.

120111-0005703

Business Registered No.

137-81-00562

Permit & Licenses

05/31/1995 ISO 9002

11/30/1997 ISO 14001

 

Int’l Trade No.: 860477

Shareholder Position

Name

Shares

%

KIM HEUNG-JOON

8,008,260

21.36

SUMITOMO CORP(JAPAN)

7,159,180

19.09

KIM DONG-KIL

2,052,801

5.47

KIM SEOK-IM

984,580

2.63

KIM SUNG-YEON

1,190,340

3.17

TREASURY STOCK

405,580

1.08

OTHERS

17,699,259

47.20

TOTAL

37,500,000

100.00

Company History

10/1971 Established Syno Chemical Industrial Co., Ltd.

08/1976 Founded Samjung Industrial Co., Ltd.

10/1976 Renamed Syno Chemical Industrial Co., Ltd. to Kyung-In Chemical Co., Ltd.

10/1977 Changed Kyung-In Chemical Co., Ltd. to Kyung-In Synthetic Corporation (KISCO)

01/1978 Changed Samjung Industrial Co., Ltd. to Kyung-In Synthetic Co., Ltd. (KISC)

01/1978 Kim Dong-Gil inaugurated as chairman of the board of directors

06/1980 Dedicated KISCO's Seoul office building and the Dyestuff Research and Development Institute

03/1983 KISCO installed a spray dryer for the first time in Korea.

08/1984 KISCO designated as an outstanding small and medium-sized industrial firm by Korea Industrial Research Institute

09/1984 Dedicated the Ansan Factory of KISC

11/1987 KISCO awarded US$5 Million Export Tower from the government and the Prime Minister Award

12/1987 KISCO presented the Best Industry Award (at the award ceremony of the first National Science Award)

02/1988 Dedicated the expanded Ansan Factory of KISC

04/1988 KISC signed a technical cooperation agreement with Showa Kako Corporation of Japan.

10/1988 KISCO'S Dyestuff Institute designated by the government as a research institute whose workers are exempted from the active military service

11/1988 KISCO received the US$10 Million Export Tower

12/1988 KISCO's new chemical product registered with Japanese government according to Japan'schemical substance control law.

08/1989 KISCO acquired Samwon Chemical Industrial Co., Ltd.

10/1989 KISCO dedicated low-cost apartments for the employees in Inchon; KISC built low-cost apartments for the employees in Ansan

11/1989 KISC received the US$5 Million Export Tower

12/1989 Dedicated the expanded Seoul office of KISCO

08/1992 KISC acquired equity of Rachada Chemicals Co., Ltd. based in Thailand

11/1992 Founded Eastwell Co., Ltd.

12/1994 KISCO received the 12th Venture Business Award

05/1995 KISCO acquired ISO 9002 Quality Assurance Certificate from Lloyd's Register Q.A. of the United  Kingdom

07/1995 KISCO awarded the Korea Textile Grand Prize in the Dyestuff and Pigment Division

10/1995 KISCO stocks listed on the Korea Stock Exchange (Paid-in capital: 6.5 billion won)

04/1996 KISCO acquired equity of Namo Interactive Inc.

06/1996 KISCO won Textile Industry Grand Award in Dyestuff and Pigment Division

03/1997 KISCO received a citation from the West Inchon Tax Office on Taxation Day.

05/1997 KISCO received a citation from the Prime Minister on Labor Day.

05/1997 KISCO established Turkey joint ventures Kimsoy Chemical Industries, Inc. and Kimsoy Exim, Inc.

05/1997 KISCO established United States joint-venture KISCO USA, Inc.

06/1997 KISCO signed a Strategic Alliance Agreement with Sumitomo Chemical Co., Ltd. of Japan for  overall cooperation in dyestuff technology and production

06/1997 KISCO established Joint Ventures PAPITECH.CO., Ltd.

11/1997 KISCO received Bronze Tower Medal on Export Award Day.

12/1997 KISCO received ISO 14001 (KSA QA)

08/1998 KISCO signed the sale contract for Disperse dyestuffs with Ciba-Geigy of Switzerland.

12/1998 KISC merged into KISCO.

07/1999 KISCO was admitted to the membership of ETAD

07/1999 KISCO launched in an environmental business (Green Systems Engineering Services)

05/2000 KISCO made the investment into YangWoo corporation

01/23/2013 Acquired EASTWELL CO., Ltd.(110111-0900525)


Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education & Career

Chairman

Mr.

Kim Heung-Joon

Korean

1967.06.14

Hanyang University, Korea

Honored Chairman

Mr.

Kim Dong-Kil

Korean

1938.03.03

Seoul National University, Korea

President

Mr.

Huh Dadvid Jeong-Sun

Korean

1965.11.02

Dowling College MBA

Vice President & CEO

Mr.

Cho Sung-Yong

Korean

1968.11.04

Seoul National University, Korea

Outside Director

Mr.

Chang Sang-Jae

Korean

1936.10.10

Seoul National University, Korea

Outside Director

Mr.

Kim Jeong-Hong

Korean

1937.08.08

Seoul National University, Korea

Auditor

Mr.

Sung Nak-Gwan

Korean

1936.01.03

Seoul National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

141,304,458,809

241,045,607,999

4,475,440,855

(*)2011

128,707,611,144

245,825,939,561

2,788,642,280

(*)2010

149,007,815,759

250,809,033,564

3,367,162,134

2009

129,006,385,709

218,551,978,762

11,569,545,044

2008

125,462,289,226

163,333,430,906

12,873,680,246

2007

93,016,593,682

120,854,546,914

4,246,011,551

2006

84,978,240,253

95,503,927,506

883,371,290

2005

88,050,292,316

100,565,451,354

2,533,411,044

2004

95,832,343,219

92,524,130,882

4,301,525,438

2003

129,006,385,709

218,551,978,762

11,569,545,044

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

 

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

18,750,000,000

Total Issues Shares

37,500,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

241,045,607,999

245,825,939,561

250,809,033,564

Current Assets

94,723,926,543

99,039,936,815

104,532,345,363

Cash & Cash Equivalents

5,366,236,825

1,889,398,488

2,315,063,261

Current Financial Instruments

86,839,759

86,839,759

86,839,759

Trade Receivables & Other Receivables

48,074,570,425

43,619,403,706

47,788,947,007

Inventories

38,724,208,144

51,423,188,073

51,843,016,885

Other Current Financial Instruments

702,509,901

550,768,276

263,380,326

Other Current Non-Financial Instruments

1,769,561,489

1,470,338,513

2,235,098,125

Non-Current Assets

146,321,681,456

146,786,002,746

146,276,688,201

Trade Receivables

2,908,467,584

0

0

Non-Current Financial Instruments

53,920,793

105,395,514

53,729,740

Marketable Financial Instruments

836,927,002

917,448,292

1,047,816,821

Held-to-Maturity Financial Assets

 

25,420,000

25,420,000

Investment_Related Companies

65,887,314,380

67,519,815,173

67,519,815,173

Tangibles

67,259,638,296

69,431,560,262

68,435,611,169

Investment_Real Estates

2,264,253,629

1,673,379,773

2,049,469,938

Intangibles

1,290,847,222

968,875,032

971,634,660

Other Non-Current Financial Instruments

5,820,312,550

6,144,108,700

6,173,190,700

Total Liabilities

78,932,782,614

86,943,666,685

93,123,885,144

Current Liabilities

70,551,007,697

64,682,273,575

71,223,637,582

Trade Payables & Other Payables

10,625,838,134

11,456,888,957

14,240,067,764

Short-Term Borrowings

46,608,295,685

46,049,234,377

51,789,283,871

Current Portion of Long-Term Debts

9,559,375,000

3,712,900,000

1,746,350,000

Other Current Financial Debts

2,610,279,868

2,890,756,758

2,457,515,919

Accrued Income Tax

908,701,610

90,765,335

81,814,178

Other Current Liabilities

238,517,400

481,728,148

908,605,850

Non-Current Liabilities

8,381,774,917

22,261,393,110

21,900,247,562

Long-Term Borrowings

 

13,856,450,000

13,492,700,000

Deferred Income Tax Credit

8,381,774,917

8,404,943,110

8,407,547,562

Capital Stock

18,750,000,000

18,750,000,000

18,750,000,000

Capital Surplus

27,926,478,099

27,926,478,099

27,926,478,099

Others

-1,325,335,014

-1,735,533,275

-2,022,273,816

Installments

-99,040,253

-288,953,646

-255,695,281

Profit Surplus

116,860,722,553

114,230,281,698

113,286,639,418

Total Equity

162,112,825,385

158,882,272,876

157,685,148,420

Liab. & Shareholder’s Equity

241,045,607,999

245,825,939,561

250,809,033,564

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

141,304,458,809

128,707,611,144

149,007,815,759

Cost of Sold Goods

120,613,769,195

109,831,812,699

129,714,311,973

Gross Profit

20,690,689,614

18,875,798,445

19,293,503,786

Selling & Admin. Expenses

17,683,855,960

16,999,541,036

18,592,720,171

Operating Income

3,006,833,654

1,876,257,409

700,783,615

Finance Income

1,271,703,544

2,352,691,278

3,668,907,914

Finance Expenses

2,492,660,097

2,415,785,356

1,923,689,286

Non-Operating Income

6,354,232,378

3,945,518,464

4,550,066,415

Non-Operating Expenses

2,800,522,824

2,829,726,858

3,657,771,000

Income Before Taxes

5,339,586,655

2,928,954,937

3,338,297,658

Income Taxes Expenses

864,145,800

140,312,657

-28,864,476

Net Income

4,475,440,855

2,788,642,280

3,367,162,134

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

14,914,670,469

10,022,891,410

-12,213,959,377

Net Income

4,475,440,855

2,788,642,280

3,367,162,134

Adjustment

11,562,555,890

7,604,414,312

-17,665,904,135

Interests Received

46,356,869

55,025,011

317,602,795

Dividends Received

1,069,966,142

2,114,591,858

3,376,094,248

Interests Paid

-2,116,706,252

-2,415,196,663

-1,810,850,027

Income Taxes

-122,943,035

-124,585,388

201,935,608

Cash Flows from Investing

-2,384,504,900

-4,871,099,509

-6,741,432,509

Cash Flows from Financing

-8,998,838,692

-5,585,049,494

18,815,730,941

Increase/Decrease in Cash

3,531,326,877

-433,257,593

-139,660,945

Cash at the Beginning of Year

1,889,398,488

2,315,063,261

2,472,795,074

Cash at the End of Year

5,366,236,825

1,889,398,488

2,315,063,261

 

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturer of Reactive dyes for cotton, rayon & wool, Disperse dyes for polyester, acetate, triacetate & micro fiber, O.B.A. for paper, pulp, cotton, polyester, nylon, acrylic & detergent, Acid dyes for nylon, silk, wool & leather, Direct dyes for paper, leather & cotton, Solvent dyes for polyester fiber, plastic, resin, master batch, Ink for color ink jet printer."

 

Brand Name : Synozol

 

Trade Partners & Competitors

 

Customers

CIBA SPECIALTY CHEMICALS INC

EASTWELL CO., LTD.(110111-0900525)

YANGWOO CO., LTD.(115911-0018773)

Competitors

OH YOUNG INDUSTRIAL CO., LTD.(115611-0001071)

RIFA INDUSTRIAL CO., LTD.(110111-0018138)

M.DOHMENKOREA, LTD.(110111-2189953)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JMC CO., LTD.(124611-0284494)

(83.50% held by the subject company)

 

YANGWOO CO., LTD.(115911-0018773)

(60.00% held by the subject company)

 

EASTWELL CO., LTD.(110111-0900525)

(38.96% held by the subject company)

 

DAITO-KISCO CORPORTION(120111-0368466)

(50.00% held by the subject company)

 

KISCO SHANGHAI(CHINA)

(100.00% held by the subject company)

 

LIANYUNGANG KISCO(CHINA)

(100.00% held by the subject company)

 

KISCO USA(USA)

(35.00% held by the subject company)

 

KIMSOY CHEMICAL(TURKEY)

(50.00% held by the subject company)

 

KIMSOY EXIM(TURKEY)

(50.00% held by the subject company)

 

RACHADA CHEMICAL(THAILAND)

(14.00% held by the subject company)

 

NAMO  IT(THAILAND)

(49.00% held by the subject company)

 

DAITO KISCO

(50% held by the Subject Company)

Subsidiary

JMC CO., LTD.(124611-0284494)

(83.50% held by the subject company)

 

YANGWOO CO., LTD.(115911-0018773)

(60.00% held by the subject company)

 

EASTWELL CO., LTD.(110111-0900525)

(38.96% held by the subject company)

 

LIANYUNGANG KISCO CHEMICAL CO., LTD.

(100% held by the Subject Company)

 

KISCO SHANGHAI

(100.0% held by the Subject Company)

Cooperative Enterprise

SUMITOMO CHEMICAL-JAPAN

T.H INT-USA

 

-Insured Company

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

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit : KRW

03/2010

2009

2008

Export

22,637,000,000

81,251,470,091

81,456,569,665

Domestic

11,916,000,000

47,754,915,618

44,005,719,561

Total

34,553,000,000

129,006,385,709

125,462,289,226

The subject deals with the companies in Pakistan, USA, Asian Countries and European Countries.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.83.67

Euro

1

Rs.71.02

 

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

----

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.