MIRA INFORM REPORT

Report Date :

09.08.2014

IDENTIFICATION DETAILS

Name :	IL SUNG MACHINERY CO., LTD.

Registered Office :	58-27, 1gongdan-ro 7-gil, Gumi-si, Gyeongsangbuk-do 730-903

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	15.10.1987

Com. Reg. No.:	513-81-02895

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Industrial Machinery for Washing, Dyeing , Finishing and Processing Industrial Machinery of Fibres

No of Employees :	60

RATING & COMMENTS

MIRA’s Rating :

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

Source : CIA

Basic Information

Basic

Company Name	IL SUNG MACHINERY CO., LTD. (Korean Company Name : “일성기계공업(주)”)
Registered Address	58-27, 1gongdan-ro 7-gil, Gumi-si, Gyeongsangbuk-do, Korea
Building
Zip Code	730-903
Tel	+82-54-461-6600~5
Fax	+82-54-461-8636
E-mail	ilsungmc@hanmail.net
Website	www.ilsungmc.co.kr
Trading Address	58-27, 1gongdan-ro 7-gil, Gumi-si, Gyeongsangbuk-do, Korea (Old Address System : 194, Gongdan 2-dong, Gumi-si, Gyeongsangbuk-do, Korea)
Tel	+82-54-461-6600~5
Fax	+82-54-461-8636
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Industrial Machinery for Washing, Dyeing , Finishing and Processing Industrial Machinery of Fibres
Main Business	Warping Sizer Machine, Tenter, Shrink Dryer, Dry-Process Coating Machine, Rotary Washer, Gravure Printing Machine, Laminator
Sub Business
Established (mm/dd/yyyy)	10/15/1987

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Textile processing machinery and accessories(23121500)
Sell	Textile working machinery and equipment and accessories(23121600)
Sell	Dyeing machines(23121610)

CEO’s

Name	Kim Won-Muk
Address	58-13, Dongseong-ro 3-gil, Jung-gu, Daegu, Korea
Date of Birth	04/01/1926
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

970,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Gumi Branch

Corporate Registered No.

176011-0003547

Business Registered No.

513-81-02895

Permit & Licenses

Int’l Trade No.: 102489

Shareholder Position

Name	Shares	%
KIM WON-MUK	94,284	97.2
KIM JAE-YOUNG	2,134	2.2
KIM JOON-YOUNG	194	0.2
LEE KYUNG-JA	194	0.2
SHIN EUN-SOOK	97	0.1
KIM SUNG-HEE	97	0.1
TOTAL	97,000	100

Company History

10/15/1987 Incorporated as the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kim Won-Muk	Male	Korean	01/27/2010
Director	Mr.	Kim Jae-Young	Male	Korean	04/02/2014
Auditor	Mr.	Choi Hwang-Pyung	Male	Korean	03/19/2007

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	47,165,304,072	31,655,429,087	5,526,406,414
2012	47,910,664,508	30,809,602,226	4,500,139,691
2011	50,178,982,042	33,807,625,087	6,691,714,290
2010	54,495,311,073	31,563,659,059	7,425,266,572
2009	36,220,253,184	27,852,917,781	3,787,787,980
2008	26,979,995,264	24,460,166,511	2,256,635,188
2007	39,875,605,502	21,933,757,157	1,428,685,610
2006	43,612,209,702	21,183,365,956	209,559,216

Financial Description

Authorized Capital(KRW)	3,800,000,000
Paid-Up Capital(KRW)	970,000,000
Total Issues Shares	97,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	31,655,429,087	30,809,602,226	33,807,625,087
Current Assets	24,338,124,983	22,261,171,350	26,635,526,027
-Quick Assets	22,279,277,312	20,159,024,308	24,385,658,841
-Inventories	2,058,847,671	2,102,147,042	2,249,867,186
Fixed Assets	7,317,304,104	8,548,430,876	7,172,099,060
-Investment	3,500,000	64,176,688	64,176,688
-Tangibles	7,289,835,532	8,345,532,576	6,964,286,860
-Intangibles	22,400,172	27,153,212	32,077,112
-Others	1,568,400	111,568,400	111,558,400
Total Liabilities	5,679,638,061	5,025,217,614	7,188,380,166
Current Liabilities	5,344,727,001	4,828,991,211	7,117,488,157
Fixed Liabilities	334,911,060	196,226,403	70,892,009
Capital Stock	970,000,000	970,000,000	970,000,000
Capital Surplus	472,217	472,217	472,217
Profit Surplus	25,005,318,809	24,813,912,395	25,648,772,704
Capital Adjustment
Total Equity	25,975,791,026	25,784,384,612	26,619,244,921
Liab. & Shareholder’s Equity	31,655,429,087	30,809,602,226	33,807,625,087

Current Liabilities	5,344,727,001	4,828,991,211	7,117,488,157
Trade Payables	2,511,794,239	2,797,426,266	3,086,073,434
Account Payables	390,058,072	354,376,014	360,267,108
Advance Receipts	1,039,964,540	848,744,438	1,788,777,592
Withholdings	31,612,180	36,423,370	30,618,770
Accrued Expenses	457,737,836	507,842,333	612,005,269
Accrued Income Tax	913,560,134	284,178,790	1,239,745,984
Fixed Liabilities	334,911,060	196,226,403	70,892,009
Provision for Severance & Retirement	334,911,060	196,226,403	70,892,009

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	47,165,304,072	47,910,664,508	50,178,982,042
Cost of Sold Goods	36,411,959,085	37,380,544,634	37,779,312,230
Gross Profit	10,753,344,987	10,530,119,874	12,399,669,812
Selling & Admin. Expenses	4,577,793,857	5,563,506,536	4,942,063,967
Operating Income	6,175,551,130	4,966,613,338	7,457,605,845
Non-Operating Income	1,170,961,366	1,088,056,512	1,499,322,157
Non-Operating Expenses	440,506,498	586,596,009	667,721,408
Income Before Taxes	6,906,005,998	5,468,073,841	8,289,206,594
Income Taxes Expenses	1,379,599,584	967,934,150	1,597,492,304
Net Income	5,526,406,414	4,500,139,691	6,691,714,290

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	8,801,225,827	4,653,949,171	7,245,662,852
-Net Income	5,526,406,414	4,500,139,691	6,691,714,290
-Exp. without Cash Outflow	1,734,495,571	1,278,065,859	1,111,880,554
-Revenue without Cash Inflows	-58,773,169	-62,435,661	-79,121,416
-Changes in Asset/ & Liability	1,599,097,011	-1,061,820,718	-478,810,576
Cash Flows from Investing	59,805,070	-2,267,389,341	-718,341,768
-Cash Inflow from Investing	377,377,933	35,731,317	66,500,000
-Cash Outflows for Investing	-317,572,863	-2,303,120,658	-784,841,768
Cash Flows from Financing	-5,335,000,000	-5,335,000,000	-4,365,000,000
-Cash Inflows from Financing	-	-	-
-Cash Outflows from Financing	-5,335,000,000	-5,335,000,000	-4,365,000,000
Increase/Decrease in Cash	3,526,030,897	-2,948,440,170	2,162,321,084
Cash at the Beginning of Year	14,442,396,116	17,390,836,286	15,228,515,202
Cash at the End of Year	17,968,427,013	14,442,396,116	17,390,836,286

Products, Technologies, Services Description

Main Products & Services	Warping Sizer Machine, Tenter, Shrink Dryer, Dry-Process Coating Machine, Rotary Washer, Gravure Printing Machine, Laminator
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Competitors

EHWHA GLOTEC CO., LTD.

RM. 407, GYEONGGI TECHNO PARK, 1271-11, SA 3-DONG, SANGNOK-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-491-4191 FAX:+82-31-491-4194

A. M. S. CORPORATION

RM. 708, HYUNDAI TOWER, 7-28, SINCHEON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-3431-1692 FAX:+82-2-3431-1695

OKWON INDUSTRY CO., LTD.

100-58, GALSAN-DONG, DALSEO-GU, DAEGU, KOREA

TEL:+82-53-583-1722 FAX:+82-53-582-1724

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	SUN FUJII CO., LTD.(JAPAN) CHULWON MACHINERY INDUSTRY CO., LTD.(176011-0040862)
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary
Corporate Ownership
Major Shareholders
Cooperative Enterprise

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.55
UK Pound	1	Rs. 103.50
Euro	1	Rs. 82.41

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	DPT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.