MIRA INFORM REPORT

 

 

Report Date :

01.04.2014

 

IDENTIFICATION DETAILS

 

Name :

SEHWA MACHINERY CO., LTD.

 

 

Registered Office :

151-11, Munsangongdan-gil, Oedong-eup, Gyeongju-si, Gyeongsangbuk-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

19.12.1996

 

 

Com. Reg. No.:

505-81-12558

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Internal Combustion Piston Engines

 

 

No. of Employees :

60

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP

 

Source : CIA

 

 

 

 


Basic Information

 

Basic

 

Company Name

SEHWA MACHINERY CO., LTD.

(Korean Company Name : “세화기계()’)

Registered Address

151-11, Munsangongdan-gil, Oedong-eup, Gyeongju-si, Gyeongsangbuk-do, Korea

Building

 

Zip Code

780-820

Tel

+82-54-773-8121~3

Fax

+82-54-773-8124

E-mail

leereo34@hanmail.net

Website

 

Trading Address

151-11, Munsangongdan-gil, Oedong-eup, Gyeongju-si, Gyeongsangbuk-do, Korea

(Old Address System : 813, Munsan-ri, Oedong-eup, Gyeongju-si, Gyeongsangbuk-do, Korea)

Tel

+82-54-773-8121~3

Fax

+82-54-773-8124

Other Address-2nd Factory

473-1, Munsan-ri, Oedong-eup, Gyeongju-si, Gyeongsangbuk-do, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Internal Combustion Piston Engines

  Main Business

Ship Engine Components

  Sub Business

 

Established (mm/dd/yyyy)

12/09/1996

The Subject owns the premises of registered HQ address and 2nd Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Engine components and accessories(26101700)

 

CEO’s

 

Name

Lee Chang-Ho

Address

Suite 102-2602, 1868, Sinjeong-dong, Nam-gu, Ulsan, Korea

Date of Birth

02/20/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

300,000,000

Employees

60

Formation

Co., Ltd by shares

Bank Details

Gyeongnam Bank

Korea Development Bank

Corporate Registered No.

171211-0014511

Business Registered No.

505-81-12558

Permit & Licenses

11/1998 ISO 9002 by ABS

Shareholder Position

Name

Shares

%

LEE CHANG-HO

13,500

45.00

KIM KYUNG-AE

7,500

25.00

KIM JONG-HWA

7,500

25.00

NAM SUNG-KWON

1,500

5.00

TOTAL

30,000

100.00

Company History

04/1995 Established as SEHWA MACHINERY CO.(Sole Proprietorship)

12/09/1996 Incorporated as SEHWA MACHINERY INDUSTRIES CO., LTD.

09/27/1997 Changed company name to the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee Chang-Ho

Male

Korean

03/21/2006

Director

M/S.

Kim Kyung-Ae

Female

Korean

03/31/2003

Auditor

Mr.

Lee Won-Hyuck

Male

Korean

12/02/2011

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

 

 

 

2012

15,403,419,113

13,275,528,341

54,567,946

2011

13,870,853,915

14,880,992,881

184,147,383

2010

12,360,427,580

14,254,586,312

869,769,737

2009

13,205,064,640

14,084,703,027

781,183,712

2008

11,088,706,450

16,315,788,574

237,141,233

2007

8,462,984,240

13,320,195,540

345,695,100

2006

8,628,000,000

6,897,000,000

427,000,000

 


 

Financial Description

 

Authorized Capital(KRW)

400,000,000

Paid-Up Capital(KRW)

300,000,000

Total Issued Shares

30,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

13,275,528,341

14,880,992,881

14,254,586,312

Current Assets

3,085,342,211

3,556,301,924

2,100,054,357

-Quick Assets

1,952,133,600

2,064,849,030

1,384,159,547

-Inventories

1,133,208,611

1,491,452,894

715,894,810

Fixed Assets

10,190,186,130

11,324,690,957

12,154,531,955

-Investment

469,348,311

511,483,507

581,924,515

-Tangibles

9,579,714,279

10,672,083,910

11,418,483,900

-Intangibles

141,123,540

141,123,540

154,123,540

Total Liabilities

8,562,358,029

10,222,390,515

9,780,131,329

Current Liabilities

5,412,284,445

7,000,064,615

6,489,939,450

Fixed Liabilities

3,150,073,584

3,222,325,900

3,290,191,879

Capital Stock

300,000,000

300,000,000

300,000,000

Capital Surplus

 

 

 

Profit Surplus

4,413,170,312

4,358,602,366

4,174,454,983

Capital Adjustment

 

 

 

Total Equity

4,713,170,312

4,658,602,366

4,474,454,983

Liab. & Shareholder’s Equity

13,275,528,341

14,880,992,881

14,254,586,312

 

Current Liabilities

5,412,284,445

7,000,064,615

6,489,939,450

Trade Payables

1,066,370,915

1,542,797,109

1,050,713,067

Short-Term Borrowings

1,720,000,000

2,920,000,000

2,870,000,000

Account Payables

942,653,872

1,155,096,167

988,267,087

Accrued Expenses

11,323,609

13,553,029

18,554,439

Advance Receipts

138,686,716

47,626,236

-

Withholdings

13,944,569

24,924,740

4,892,920

Accrued Income Tax

18,673,270

-

86,103,890

Short-Term Borrowings to Shareholders/ Executives/ Employees

132,631,494

155,078,134

155,078,134

Current Portion of Long-Term Debts

1,368,000,000

1,140,989,200

1,316,329,913

Fixed Liabilities

3,150,073,584

3,222,325,900

3,290,191,879

Long-Term Borrowings

1,752,100,000

2,299,054,960

2,393,102,080

Provision for Severance & Retirement

1,727,527,634

1,031,041,678

924,564,894

 


 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

15,403,419,113

13,870,853,915

12,360,427,580

Cost of Sold Goods

13,077,322,988

12,040,770,667

9,581,125,939

Gross Profit

2,326,096,125

1,830,083,248

2,779,301,641

Selling & Admin. Expenses

2,008,999,271

1,346,283,363

1,355,506,612

Operating Income

317,096,854

483,799,885

1,423,795,029

Non-Operating Income

71,759,780

45,077,405

54,494,108

Non-Operating Expenses

262,681,218

324,274,027

521,446,387

Income Before Taxes

126,175,416

204,603,263

956,842,750

Income Taxes Expenses

71,607,470

20,455,880

87,073,013

Net Income

54,567,946

184,147,383

869,769,737

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

1,561,493,378

1,662,944,396

2,741,248,621

-Net Income

54,567,946

184,147,383

869,769,737

-Exp. without Cash Outflow

2,081,177,018

1,645,151,692

2,027,049,155

-Revenue without Cash Inflows

-1,290,155

-6,713,169

-40,295,252

-Changes in Asset/ & Liability

-572,961,431

-159,641,510

-115,275,019

Cash Flows from Investing

-859,074,731

-533,583,642

-1,176,757,058

-Cash Inflow from Investing

3,220,737,281

535,583,291

212,151,319

-Cash Outflows for Investing

-4,079,812,012

-1,069,166,933

-1,388,908,377

Cash Flows from Financing

-1,542,390,800

-216,717,913

-1,243,429,102

-Cash Inflows from Financing

4,207,665,040

2,665,929,913

623,075,481

-Cash Outflows from Financing

-5,750,055,840

-2,882,647,826

-1,866,504,583

Increase/Decrease in Cash

-839,972,153

912,642,841

321,062,461

Cash at the Beginning of Year

1,269,816,569

357,173,728

36,111,267

Cash at the End of Year

429,844,416

1,269,816,569

357,173,728

 

Products, Technologies, Services Description

 

Main Products & Services

Ship Engine Components

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

Competitors

KOREA MARINE ENGINEERING CO., LTD.

983-4, DONGSAM 2-DONG, YEONGDO-GU, BUSAN, KOREA

TEL:+82-51-415-1449  FAX:+82-51-415-2005

 

PYUNG HWA DIESEL CO., LTD.

23-3, DAEPYEONGDONG 1-GA, YEONGDO-GU, BUSAN, KOREA

TEL:+82-51-417-4666  FAX:+82-51-417-4667

 

COMACO INTERNATIONAL CO., LTD.

141-74, NAMHANGDONG 3-GA, YEONGDO-GU, BUSAN, KOREA

TEL:+82-51-414-9868~9  FAX:+82-51-414-9870

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

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

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

 

Sales by Region (Activity & Markets)

 

Not Available.

 

Court Action

 

No.

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.99.85

Euro

1

Rs.82.58

 

 

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.