MIRA INFORM REPORT

 

 

Report Date :

19.09.2013

 

IDENTIFICATION DETAILS

 

Name :

KOS LIMITED

 

 

Registered Office :

131-1, Yusan-dong, Yangsan-si, Gyeongsangnam-do

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

22.08.1969

 

 

Com. Reg. No.:

606-81-02902

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Stainless Wire, Titan Wire, Heating Wire.

 

 

No. of Employees :

302

 

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


Company name and address

 

Company Name

KOS LIMITED

Registered Address

131-1, Yusan-dong, Yangsan-si, Gyeongsangnam-do, Korea

(New Address System : 43, Eosil-ro, Yangsan-si, Gyeongsangnam-do, Korea)

Building

 

Zip Code

626-230

Tel

+82-55-389-1050~6

Fax

+82-55-389-1057

E-mail

master@koswire.com;djyoo@koswire.com

Website

www.koswire.com

Trading Address

40-134, Hangangno 3-ga, Yongsan-gu, Seoul, Korea (P.O.BOX 863)

Tel

+82-2-3406-0114

Fax

+82-2-2273-6358

Other Address-Samrak Factory

121-6, Samnak-dong, Sasang-gu, Busan, Korea

Tel

+82-51-301-1617

Fax

+82-51-301-1619

Other Address-Gamjeon Factory

162-8, Gamjeon-dong, Sasang-gu, Busan, Korea

Tel

+82-51-312-1617

Fax

+82-51-312-1619

Other Address-Okmyeong Factory

567, Okmyeong-ri, Daesong-myeon, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel

+82-54-278-6083

Fax

+82-54-278-6086

Type

Export/Import

Industry

Manufacture of Steel Wire

  Main Business

Stainless Wire, Titan Wire, Heating Wire

Established (mm/dd/yyyy)

08/22/1969

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Wire rope(31151505)

Sell

Yarns(11151700)

Sell

Heating wire(26121501)

Sell

Mechanical wire(31151800)

 


 

CEO’s

 

Name

Hong Sung-Pyo

Address

Suite 85-702, 458, Apgujeong-dong, Gangnam-gu, Seoul, Korea

Date of Birth

12/21/1968

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,701,395,000

Employees

302

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Myung Dong Branch

Shinhan Bank

Citi Bank, Korea

Corporate Registered No.

180111-0025428

Business Registered No.

606-81-02902

Permit & Licenses

01/1996 ISO 9002

08/1996 ISO 9002

08/1997 JIS

 

Int’l Trade No.: 790877

Shareholder Position

Name

Shares

%

KOSWIRE CO., LTD.(180111-0285957)

340,279

100.00

TOTAL

340,279

100.00

Company History

08/22/1969 Incorporated as KOREA SANGSA CO., LTD., as a subsidiary of KISWIRE

09/01/2008 Acquired KOS FINE CO., LTD.(154211-0000652)

11/30/2008 Increased capital to 1,701,395,000 KRW from 4,950,000,000 KRW

11/30/2008 Decreased the authorized shares to 1,300,000 shares from 1,760,000 shares

12/01/2008 Established KOS DEVELOPMENT CO., LTD., after spin off the subject company

07/01/2012 Changed Korean Company Name to the present name

07/02/2012 Acquired KOS TECH CO., LTD.

 

 


 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Hong Sung-Pyo

Male

Korean

01/02/2006

Co-President & CEO

Mr.

Shin Dong-Sung

Male

Korean

03/31/2010

Director

Mr.

Hong Wan-Pyo

Male

Korean

03/28/2000

Director

Mr.

Hong Ho-Jeong

Male

Korean

03/31/2001

Director

Mr.

Lee Sun-Jong

Male

Korean

03/28/2003

Director

Mr.

Jung Yong-Kwon

Male

Korean

03/29/2004

Director

Mr.

Lee Yoo-Woon

Male

Korean

03/31/2013

Director

Mr.

Kwak Jae-Hyun

Male

Korean

03/31/2013

Auditor

Mr.

Park Dae-Won

Male

Korean

03/30/1999

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

171,873,085,234

190,050,995,040

3,239,779,911

2011

143,520,159,166

169,176,144,403

3,639,817,952

2010

125,167,754,496

158,716,905,190

6,731,049,482

2009

96,110,544,155

141,895,881,849

1,281,405,398

2008

143,680,544,557

109,758,782,732

7,578,661,705

2007

138,689,576,729

128,641,897,315

7,828,184,033

2006

110,801,957,886

131,416,842,573

2,194,927,997

2005

96,403,931,015

133,311,424,258

1,520,845,001

2004

 96,687,154,560

 131,052,119,170

 3,854,632,870

2003

 98,503,929,743

 129,983,655,886

 2,096,507,509

 

 

Financial Description

 

Authorized Capital(KRW)

6,500,000,000

Paid-Up Capital(KRW)

1,701,395,000

Total Issues Shares

340,279

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

190,050,995,040

169,176,144,403

158,716,905,190

Current Assets

79,456,616,995

48,739,337,748

48,648,933,627

-Quick Assets

39,565,957,598

19,427,084,329

17,750,417,143

-Inventories

39,890,659,397

29,312,253,419

30,898,516,484

Fixed Assets

110,594,378,045

120,436,806,655

110,067,971,563

-Investment

13,378,192,823

43,107,759,622

38,244,792,963

-Tangibles

85,612,932,032

67,690,383,842

61,960,896,244

-Intangibles

4,596,116,926

4,889,486,091

5,182,855,256

-Others

7,007,136,264

4,749,177,100

4,679,427,100

Total Liabilities

100,896,321,452

83,210,152,787

77,551,913,978

Current Liabilities

93,338,874,910

76,848,840,117

72,186,879,085

Fixed Liabilities

7,557,446,542

6,361,312,670

5,365,034,893

Capital Stock

1,701,395,000

1,701,395,000

1,701,395,000

Capital Surplus

47,644,912,805

43,203,151,979

43,203,151,979

Profit Surplus

39,645,966,446

36,406,186,535

31,623,737,458

Capital Adjustment

162,399,337

4,655,258,102

4,636,706,775

Total Equity

89,154,673,588

85,965,991,616

81,164,991,212

Liab. & Shareholder’s Equity

190,050,995,040

169,176,144,403

158,716,905,190

 

Current Liabilities

93,338,874,910

76,848,840,117

72,186,879,085

Trade Payables

10,059,593,046

4,723,386,339

8,916,125,358

Short-Term Borrowings

52,311,232,400

42,544,300,000

42,792,200,000

Short-Term Borrowings-Foreign Currency

24,704,804,381

26,285,600,300

17,244,140,596

Account Payables

1,390,627,969

604,047,580

713,046,367

Accrued Expenses

1,929,977,419

935,037,895

758,585,884

Advance Receipts

55,578,140

95,094,180

22,624,928

Withholdings

386,224,987

304,437,592

269,554,189

Guarantee Deposit Withhold

210,880,000

223,000,000

243,000,000

Accrued Income Tax

109,137,340

20,401,615

878,851,763

Current Portion of Long-Term Debts

2,180,819,228

1,113,534,616

348,750,000

Fixed Liabilities

7,557,446,542

6,361,312,670

5,365,034,893

Long-Term Borrowings

5,664,138,456

2,844,957,684

2,202,342,633

Provision for Severance & Retirement

10,252,365,928

6,641,890,073

5,872,741,236

Deferred Income Tax Credit

-

2,249,334,871

2,118,256,711

Long-Term Account Payables

194,922,865

319,627,935

246,789,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

171,873,085,234

143,520,159,166

125,167,754,496

Cost of Sold Goods

155,014,720,242

127,381,347,899

106,907,181,582

Gross Profit

16,858,364,992

16,138,811,267

18,260,572,914

Selling & Admin. Expenses

15,070,702,377

13,786,020,349

13,669,724,839

Operating Income

1,787,662,615

2,352,790,918

4,590,848,075

Non-Operating Income

5,945,739,947

7,904,362,583

7,472,068,793

Non-Operating Expenses

6,675,890,905

6,234,184,011

4,511,917,591

Income Before Taxes

1,057,511,657

4,022,969,490

7,550,999,277

Income Taxes Expenses

-2,182,268,254

383,151,538

819,949,795

Net Income

3,239,779,911

3,639,817,952

6,731,049,482

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

12,016,299,369

-587,752,747

3,473,562,888

-Net Income

3,239,779,911

3,639,817,952

6,731,049,482

-Exp. without Cash Outflow

9,127,797,662

7,065,292,369

5,590,110,903

-Revenue without Cash Inflows

-1,897,756,008

-3,800,912,670

-2,733,618,681

-Changes in Asset/ & Liability

1,546,477,804

-7,491,950,398

-6,113,978,816

Cash Flows from Investing

-11,098,797,644

-10,249,788,785

-11,552,082,478

-Cash Inflow from Investing

10,957,671,686

1,291,805,550

3,212,762,465

-Cash Outflows for Investing

-22,056,469,330

-11,541,594,335

-14,764,844,943

Cash Flows from Financing

63,259,803

9,559,000,692

9,010,957,434

-Cash Inflows from Financing

136,256,729,775

117,539,638,398

114,779,673,582

-Cash Outflows from Financing

-136,193,469,972

-107,980,637,706

-105,768,716,148

Increase/Decrease in Cash

980,761,528

-1,278,540,840

932,437,844

Cash at the Beginning of Year

2,578,875,890

3,857,416,730

2,924,978,886

Cash at the End of Year

3,559,637,418

2,578,875,890

3,857,416,730

 

 

Products, Technologies, Services Description

 

Main Products & Services

Stainless Steel Wire

Stainless Wire Rope

Stainless Metal Fiber

Stainless Flat Wire

Nickel Coated High Carton Wire

Nickel Alloy Wire

Titan Wire

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

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

Customers

 

Competitors

DSR CORP.

1551-1, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-979-0500  FAX:+82-51-979-0600

 

KOWEL SPECIAL STEEL WIRE CO., LTD.

327-1, SANMAK-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-383-1801~3 FAX:+82-55-383-1804

 

COSMO WIRE LTD.

4-10, GOYEON-RI, UNGCHON-MYEON, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-261-0478  FAX:+82-52-261-0480

 


 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOSWIRE CO., LTD.(180111-0285957)

KORYO MG CO., LTD.(110111-2713744)

KOS DEVELOPMENT CO., LTD.(110111-4009000)

KORYO MG CO., LTD.(110111-2713744)

JISAN MOTORS CO., LTD.(110111-3667297)

SUBARU KOREA CO.,LTD.(110111-4121896)

 

KOS DIES CO., LTD.(171711-0079119)

(100.0% held by the subject company)

 

EDM PUNGJUN CO., LTD.(1647110-005907)

(100.0% held by the subject company)

 

YEOUIJU CO., LTD.(1101110-114118)

(49.0% held by the subject company)

 

YIYA KOREA CO., LTD.(1101113-824392)

(20.0% held by the subject company)

 

KOSWIRE(S) PTE. LTD.

(100.0% held by the subject company)

 

KOS EUROPE GMBH

(100.0% held by the subject company)

 

KOS HK CO., LTD.

(100.0% held by the subject company)

 

BEROUN FOREST S.R.O.

(99.0% held by the subject company)

 

KOS AMERICA INC.

KOSWIRE EUROPE S.R.O.

Overseas Office

 

Liaison Office

KOS LIMITED SHENZHEN REPRESENTATIVE OFFICE

Overseas Branch

KOS AMERICA INC.

KOS SHANGHAI

Joint Venture

 

Subsidiary

KOS TECH CO., LTD.(174611-0007797)

(100.00% held by the subject company)

 

KOS JAPAN INC.

(100.0% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2012

2011

2010

Export

 

 

 

Domestic

 

 

 

Total

 

 

 

 

The Subject exports to Germany, Japan and USA.

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No.

 

News Clipping

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.14

UK Pound

1

Rs.100.48

Euro

1

Rs.84.37

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.