MIRA INFORM REPORT

 

 

Report Date :

28.05.2013

 

IDENTIFICATION DETAILS

 

Name :

SUNSTAR CO., LTD.

 

 

Registered Office :

178-212, Gajwa 1-dong, Seo-gu, Incheon, Korea 404-812

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

17.06.1974

 

 

Com. Reg. No.:

122-81-07995

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Other Industrial Machinery and Equipment

 

 

No. of Employees :

821

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but 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 – 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

SUNSTAR CO., LTD.

(Ex. Company Name : SUNSTAR MACHINERY CO., LTD.)

(Korean Company Name : “()썬스타”)

Registered Address

178-212, Gajwa 1-dong, Seo-gu, Incheon, Korea

Zip Code

404-812

Tel

+82-32-580-5600

Fax

+82-32-584-3020

E-mail

swflocal@sunstar.co.kr

Website

www.sunstar-machinery.co.kr

Trading Address

178-67, Gajwa 1-dong, Seo-gu, Incheon, Korea

Tel

+82-32-580-5600

Fax

+82-32-584-3020

Other Address-Branch

30-2, Dangsan-dong 2-ga, Yeongdeungpo-gu, Seoul, Korea

Other Address-Branch

602-22, Gajwa-dong, Seo-gu, Incheon, Korea

Other Address-Branch

617-23, Ganseok-dong, Namdong-gu, Incheon, Korea

Type

Export

Industry

Wholesale of Other Industrial Machinery and Equipment

  Main Business

Industrial Sewing Machines, Parts for Industrial Sewing Machine, Textile & Leather Machinery

Established (mm/dd/yyyy)

06/17/1974

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Motors(26101600)

Sell

Embroidery making machines(23121501)

Sell

Servomotors(26101606)

Sell

Motors(26101600)

Sell

Sewing machines(23121614)

Buy

Diodes(32111500)

Buy

Power supply transformers(39121002)

Buy

Signal converters(39121008)

Buy

Floppy drives(43201801)

Buy

Nuts(31161700)

Buy

Bolts(31161600)

Buy

Light emitting diodes LEDs(32111503)

Buy

Inverters(32121705)

Buy

Bare printed circuit boards(32131010)

Buy

Switches and controls and relays and accessories(39121500)

Buy

Random access memory RAM(32101601)

Buy

Resistors(32121600)

Buy

Integrated circuits(32101600)

Buy

Capacitors(32121500)

 

CEO’s

 

Name

Choi No-Rim

Address

Suite 107-701, 169, Seokchonhosu-ro, Songpa-gu, Seoul, Korea

Date of Birth

11/18/1957

Title

President & CEO / Trustee

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

2,504,560,000

Employees

821

Formation

Co., Ltd by shares

A Company of SUNSTAR Group

Bank Details

Industrial Bank of Korea-Euljiro Branch

Korea Development Bank

Hana Bank-Incheon Branch

Corporate Registered No.

120111-0005167

Business Registered No.

122-81-07995

Permit & Licenses

Int’l Trade No.: 974387

Shareholder Position

Name

Shares

%

KDB TURNAROUND PRIVATE EQUITY FUND(110113-0013671)

500,912

100.00

TOTAL

500,912

100.00

Company History

06/17/1974 Incorporated as HANKOOK MACHINE INDUSTRY CO., LTD.

03/01/2001 Changed company name to SUNSTAR MACHINERY CO., LTD.

10/05/2004 Increased the authorized shares to 100,000 shares from 10,000 shares

05/01/2005 Acquired SUNSTAR ELECTRIC CO., LTD.

11/30/2006 Awarded US$70 Million Export Top Prize

09/07/2009 Changed company name to the present name from SUNSTAR MACHINERY CO., LTD., after acquiring SUNSTART PRECISION CO., LTD. 120111-0060236)

09/07/2009 Increased the authorized shares to 2,000,000 shares from 100,000 KRW

09/07/2009 Increased capital to 2,084,250,000 KRW from 503,700,000 KRW

10/28/2009 Increased capital to 3,008,260,000 KRW from 2,084,250,000 KRW

11/20/2009 Increased capital to 2,504,560,000 KRW from 3,008,260,000 KRW

03/05/2013 Applied for Corporate Reviving Procedure to Incheon District Court

03/06/2013 Confirmed Property Preservation by Incheon District Court

04/08/2013 Started Corporate Reviving Procedure(2013HOIHAP9) by the approval from Incheon District Court

 

 


Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO / Trustee

Mr.

Choi No-Rim

Male

Korean

04/15/2013

Director

Mr.

Seo Hoon

Male

Korean

04/15/2013

Auditor

Mr.

Kim Woo-Ki

Male

Korean

03/12/2013

Supervisor of HQ Office

Mr.

Noh Hwan-Keun

Male

Korean

05/30/2004

Supervisor of HQ Office

Mr.

Hur Hwa-Kyung

Male

Korean

06/27/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

190,293,742,422

242,807,514,690

-54,193,350,443

2011

235,656,916,838

246,057,186,598

-10,374,917,073

2010

209,107,169,498

211,226,784,179

6,749,752,170

2009

112,669,250,008

 242,856,678,664

-60,350,487,964

2008

122,129,349,128

132,227,004,346

-54,228,361,249

2007

132,906,474,594

121,395,363,264

-5,222,420,742

2006

127,383,665,296

106,511,122,662

-21,439,499,276

2005

97,021,848,113

118,878,078,284

-4,437,484,244

2004

32,048,218,336

35,283,224,107

-4,188,934,296

2003

120,856,583,060

96,081,030,767

-51,908,511,704

 

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000

Paid-Up Capital(KRW)

2,504,560,000

Total Issues Shares

500,912(Common : 61,000 / Preferable : 439,912)

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

242,807,514,690

246,057,186,598

211,226,784,179  

Current Assets

141,559,651,758

136,503,900,077

96,683,604,974

-Quick Assets

124,438,490,740

116,092,433,893

79,826,232,828

-Inventories

17,121,161,018

20,411,466,184

16,857,372,146

Fixed Assets

101,247,862,932

109,553,286,521

114,543,179,205

-Investment

7,306,229,132

11,284,774,901

17,125,075,015

-Tangibles

67,546,101,132

68,757,298,097

69,803,148,360

-Intangibles

21,165,797,436

21,695,764,959

20,691,774,368

-Others

5,229,735,232

7,815,448,564

6,923,181,462

Total Liabilities

293,518,981,432

243,240,300,431

198,420,215,429

Current Liabilities

276,158,268,025

226,491,392,102

183,067,028,564

Fixed Liabilities

17,360,713,407

16,748,908,329

15,353,186,865

Capital Stock

2,504,560,000

2,504,560,000

2,504,560,000

Capital Surplus

2,208,874,786

2,208,874,786

2,208,874,786

Profit Surplus

-58,518,850,100

-3,625,164,903

6,749,752,170

Capital Adjustment

3,093,948,572

1,728,616,284

1,343,381,794

Total Equity

-50,711,466,742

2,816,886,167

12,806,568,750

Liab. & Shareholder’s Equity

242,807,514,690

246,057,186,598

211,226,784,179

 

Current Liabilities

276,158,268,025

226,491,392,102

183,067,028,564

Trade Payables

77,615,813,951

74,232,994,412

  54,020,738,917

Account Payables

15,140,849,073

15,905,895,324

  11,904,713,866

Advance Receipts

3,641,598,867

8,273,824,799

  19,635,823,891

Short-Term Borrowings

163,173,494,041

116,012,135,198

  86,976,530,423

Accrued Expenses

9,438,892,203

3,615,480,252

    2,764,719,354

Withholdings

6,586,577,306

7,630,405,516

    3,709,032,525

Guarantee Deposit Withhold

511,620,000

436,160,000

       429,240,000

Current Portion of Long-Term Debts

-

-

        31,050,000

Others

49,422,584

384,496,601

 3,595,179,588

Fixed Liabilities

17,360,713,407

16,748,908,329

15,353,186,865

Provision for Severance & Retirement

13,930,241,857

14,339,031,323

  11,903,356,154

Deferred Income Tax

7,244,760,218

6,141,742,528

   6,488,539,212

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

190,293,742,422

235,656,916,838

209,107,169,498

Cost of Sold Goods

158,572,423,674

191,930,431,973

170,398,675,208

Gross Profit

31,721,318,748

43,726,484,865

38,708,494,290

Selling & Admin. Expenses

57,261,650,465

36,731,914,018

19,695,678,271

Operating Income

-25,540,331,717

6,994,570,847

19,012,816,019

Non-Operating Income

6,383,032,077

11,358,394,228

17,272,449,311

Non-Operating Expenses

33,933,033,113

29,074,678,832

28,073,726,145

Income Before Taxes

-53,090,332,753

-10,721,713,757

8,211,539,185

Income Taxes Expenses

1,103,017,690

-346,796,684

1,461,787,015

Net Income

-54,193,350,443

-10,374,917,073

6,749,752,170

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-46,896,586,876

-23,490,974,017

4,444,315,791

-Net Income

-54,193,350,443

-10,374,917,073

6,749,752,170

-Exp. without Cash Outflow

52,396,806,520

22,829,230,845

14,274,448,598

-Revenue without Cash Inflows

-4,957,466,732

-5,947,794,896

-12,806,216,415

-Changes in Asset/ & Liability

-40,142,576,221

-29,997,492,893

-3,773,668,562

Cash Flows from Investing

-444,994,120

-8,346,725,536

16,474,875,499

-Cash Inflow from Investing

12,769,236,810

1,882,274,653

45,273,627,366

-Cash Outflows for Investing

-13,214,230,930

-10,229,000,189

-28,798,751,867

Cash Flows from Financing

47,161,358,843

29,004,554,775

-19,464,739,051

-Cash Inflows from Financing

66,346,649,744

40,294,689,354

12,469,636,814

-Cash Outflows from Financing

-19,185,290,901

-11,290,134,579

-31,934,375,865

Increase/Decrease in Cash

180,222,153

2,833,144,778

1,454,452,239

Cash at the Beginning of Year

527,702,103

3,360,846,881

1,906,394,642

Cash at the End of Year

347,479,950

527,702,103

3,360,846,881

(*)The Subject needs to be monitored because Net Income is (-)54,193,350,000 KRW, and Current Liabilities exceed Current Assets as much as 134,598,616,000KRW.

 

 

Products, Technologies, Services Description

 

Main Products & Services

Industrial Sewing Machines

 

 

Trade Partners & Competitors

 

Competitors

UNICORN INDUSTRIAL SEWING MACHINE CORP.

BROTHER BLDG., 233-8, YONGDAP-DONG, SEONGDONG-GU, SEOUL, KOREA

TEL:+82-2-3444-9289  FAX:+82-2-3446-2773

 

YANG JI INTERNATIONAL CO., LTD.

4TH FL., HACOM BLDG., 111, EULJIRO 4-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2285-4726  FAX:+82-2-2285-4729

 

JAE WOON CO., LTD.

RM. 702, SUNG-IN BLDG., 234-86, SUNGIN 2-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2265-8071  FAX:+82-2-2277-2174

 

 


Related Parties

 (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

SUNSTAR PRECISION CO., LTD.(120111-0060236)

(28.89% held by the subject company)

 

SUNSTAR R&C CO., LTD.(124611-0257954)

(100.0% held by the subject company)

 

JAE WOON CO., LTD.(110111-0216823)

(43.33% held by the subject company)

Affiliates-Overseas

SUNSTAR HONGKONG LTD.

(100.0% held by the subject company)

 

SUNSTAR MACHINERY SHANGHAI CO., LTD.(CHINA)

(100.0% held by the subject company)

 

SUNSTAR MACHINERY EUROPE GMBH

(100.0% held by the subject company)

 

SUNSTAR EUROPE INTERNATIONAL GMBH

(100.0% held by the subject company)

 

SUNSTAR USA INC

(100.0% held by the subject company)

 

SUNSTAR MACHINERY(SINGAPORE) PTE.LTD.

(100.0% held by the subject company)

 

BULSAN SHINSEDAL SPECIAL PRECISION CO., LTD.(CHINA : 불산신세달특수정밀유한공사)

(100.0% held by the subject company)

Subsidiary

BULSAN SHINSEDAL SPECIAL PRECISION CO., LTD.(CHINA : 불산신세달특수정밀유한공사)

SUNSTAR MACHINERY(SINGAPORE) PTE. LTD.

SUNSTAR USA. INC

SUNSTAR MACHINERY EUROPE GMBH

SUNSTAR MACHINERY SHANGHAI CO., LTD.(CHINA)

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD.(110111-0017586)

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

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

 

 

Sales by Region

 (Activity & Markets)

 

The Subject exports to China, USA, Asia, Middle East and Europe.

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.62

UK Pound

1

Rs.84.18

Euro

1

Rs.71.96

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.