MIRA INFORM REPORT

 

 

Report Date :

17.02.2014

 

IDENTIFICATION DETAILS

 

Name :

SOLVAY SILICA KOREA CO., LTD.

 

 

Formerly Known As :

RHODIA SILICA KOREA CO., LTD.

 

 

Registered Office :

267, Dokbae-ro, Nam-gu, Incheon, 402-865 

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

04.11.1975

 

 

Com. Reg. No.:

214-86-02130

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Other Basic Inorganic Chemicals

 

 

No of Employees :

71

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment, shortages of spare parts, and poor maintenance. Large-scale military spending draws off resources needed for investment and civilian consumption. Industrial and power output have stagnated for years at a fraction of pre-1990 levels. Frequent weather-related crop failures aggravated chronic food shortages caused by on-going systemic problems, including a lack of arable land, collective farming practices, poor soil quality, insufficient fertilization, and persistent shortages of tractors and fuel. Large-scale international food aid deliveries as well as aid from China has allowed the people of North Korea to escape widespread starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Since 2002, the government has allowed private "farmers' markets" to begin selling a wider range of goods. It also permitted some private farming - on an experimental basis - in an effort to boost agricultural output. In December 2009, North Korea carried out a redenomination of its currency, capping the amount of North Korean won that could be exchanged for the new notes, and limiting the exchange to a one-week window. A concurrent crackdown on markets and foreign currency use yielded severe shortages and inflation, forcing Pyongyang to ease the restrictions by February 2010. In response to the sinking of the South Korean destroyer Cheonan and the shelling of Yeonpyeong Island, South Korea's government cut off most aid, trade, and bilateral cooperation activities, with the exception of operations at the Kaesong Industrial Complex. In 2012, KIM Jong Un's first year of leadership, the North displayed increased focus on the economy by renewing its commitment to special economic zones with China, negotiating a new payment structure to settle its $11 billion Soviet-era debt to Russia, and purportedly proposing new agricultural and industrial policies to boost domestic production. The North Korean government often highlights its goal of becoming a "strong and prosperous" nation and attracting foreign investment, a key factor for improving the overall standard of living. Nevertheless, firm political control remains the government's overriding concern, which likely will inhibit fundamental reforms of North Korea's current economic system.

 

Source : CIA

 


 

Basic

 

Company Name

SOLVAY SILICA KOREA CO., LTD.

(Ex. Company Name : RHODIA SILICA KOREA CO., LTD.,)

Registered Address

267, Dokbae-ro, Nam-gu, Incheon, Korea

Zip Code

402-865

Tel

+82-32-870-6228

Fax

+82-32-870-6219

E-mail

hyog.ma@ap.rhodia.com

Website

www.rhodia.co.kr

Trading Address

267, Dokbae-ro, Nam-gu, Incheon, Korea

(Old Address System : 587-37, Hagik 1-dong, Nam-gu, Incheon, Korea)

Tel

+82-32-870-6228

Fax

+82-32-870-6219

Type

Export/Import

Industry

Manufacture of Other Basic Inorganic Chemicals

  Main Business

White Carbon, Sodium Silicate, Silica

Established (mm/dd/yyyy)

04/11/1975

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Inorganic metal salts(12352302)

Sell

Carbon C(12141908)

 

 

CEO’s

 

Name

Kim Jin-Chul

Address

Suite 905-302, 525, Baekhyeon-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

Date of Birth

04/28/1953

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

 

Capital (KRW)

12,989,050,000

Employees

71

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Korea Exchange Bank

Hana Bank

Citibank, Korea-Yeoksam Station Branch

Corporate Registered No.

110111-0179394

Business Registered No.

214-86-02130

Permit & Licenses

1994 ISO 9002 by DNV

 

Int’l Trade No.: 767257

Shareholder Position

Name

Shares

%

RHODIA SA(FRANCE)

2,597,810

100.00

TOTAL

2,597,810

100.00

Company History

04/11/1975 Incorporated as Hanbul Chemical Co., ltd.

12/15/1975 Registered as a Foreign Direct Investment Corporation

1978 Changed company name to Rhone- Poulenc Korea Co., Ltd.

03/1996 Changed company name to Ko Poulenc Co., Ltd.

04/1998 Changed company name to Rhodia Ko Poulenc Co., Ltd.

07/2000 Changed company name to RHODIA SILICA KOREA CO., LTD

06/18/2001 Moved to the present HQ address from 1321, Seocho-dong, Seocho-gu, Seoul, Korea

09/02/2013 Changed company name to the present name

 

 

 

 

Management

 

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Kim Jin-Chul

Male

Korean

10/22/2007

Co-President & CEO

Mr.

Li Hong-Sun

Male

Chinese

09/25/2009

Co-President & CEO

Mr.

Pyung Seok-Koo

Male

Korean

03/20/2011

Director

Mr.

Michael E. Bird

Male

French

03/27/2004

Director

Mr.

Philip Eve Marrero

Male

French

10/19/2010

Director

Mr.

Thomas Harold Banner

Male

USA

10/19/2010

Auditor

Mr.

Yian Edward Brown

Male

UK

09/10/2008

 

 

Financials

 

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

75,169,524,876

41,229,808,070

3,420,826,019

2011

90,923,528,113

48,242,085,737

5,678,033,410

2010

91,957,699,525

52,452,622,950

11,041,922,662

2009

78,069,032,056

50,822,077,159

8,769,530,776

2008

73,924,730,179

53,768,307,609

7,381,821,403

2007

59,649,674,850

48,831,008,984

(-)1,858,422,735

2006

57,041,727,893

53,014,605,830

(-)3,082,393,243

 

 

Financial Description

 

Authorized Capital(KRW)

75,000,000,000

Paid-Up Capital(KRW)

12,989,050,000

Total Issues Shares

2,597,810

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

41,229,808,070

48,242,085,737

52,452,622,950

Current Assets

10,385,549,863

15,900,042,607

19,463,084,833

-Quick Assets

7,945,052,967

13,041,798,967

15,458,901,329

-Inventories

2,440,496,896

2,858,243,640

4,004,183,504

Fixed Assets

30,844,258,207

32,342,043,130

32,989,538,117

-Investment

508,347,965

519,693,950

533,804,765

-Tangibles

30,273,030,242

30,939,469,180

31,562,853,352

-Intangibles

62,880,000

882,880,000

892,880,000

Total Liabilities

12,439,495,298

22,872,598,984

22,361,169,607

Current Liabilities

12,434,495,298

22,872,598,984

22,350,618,531

Fixed Liabilities

5,000,000

-

10,551,076

Capital Stock

12,989,050,000

12,989,050,000

12,989,050,000

Capital Surplus

3,387

3,387

3,387

Profit Surplus

15,801,259,385

12,380,433,366

17,102,399,956

Capital Adjustment

 

 

 

Total Equity

28,790,312,772

25,369,486,753

30,091,453,343

Liab. & Shareholder’s Equity

41,229,808,070

48,242,085,737

52,452,622,950

 

Current Liabilities

12,434,495,298

22,872,598,984

22,350,618,531

Trade Payables

5,363,202,064

8,402,137,435

10,199,774,314

Short-Term Borrowings

1,550,000,000

7,250,000,000

4,273,771,703

Account Payables

1,528,577,779

1,851,156,875

1,629,649,763

Advance Receipts

92,281,224

26,980,919

13,101,895

Withholdings

239,612,343

219,671,984

278,804,666

Accrued Expenses

3,368,702,899

4,516,553,758

3,806,236,278

Accrued Income Tax

279,590,213

583,636,004

2,123,709,115

Derivatives

12,528,776

22,462,009

25,570,797

Fixed Liabilities

5,000,000

-

10,551,076

Provision for Severance & Retirement

5,000,000

-

10,551,076

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

75,169,524,876

90,923,528,113

91,957,699,525

Cost of Sold Goods

56,660,081,506

66,477,798,669

62,469,289,634

Gross Profit

18,509,443,370

24,445,729,444

29,488,409,891

Selling & Admin. Expenses

14,241,003,727

16,347,563,183

15,046,156,731

Operating Income

4,268,439,643

8,098,166,261

14,442,253,160

Non-Operating Income

1,805,374,383

3,028,782,862

3,801,644,182

Non-Operating Expenses

2,017,701,974

3,728,256,778

3,832,996,630

Income Before Taxes

4,056,112,052

7,398,692,345

14,410,900,712

Income Taxes Expenses

635,286,033

1,720,658,935

3,368,978,050

Net Income

3,420,826,019

5,678,033,410

11,041,922,662

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

6,920,100,100

9,839,449,318

12,429,091,541

-Net Income

3,420,826,019

5,678,033,410

11,041,922,662

-Exp. without Cash Outflow

3,780,389,832

3,979,063,120

4,201,063,650

-Revenue without Cash Inflows

-268,351,805

-172,470,815

-1,217,717,791

-Changes in Asset/ & Liability

-12,763,946

354,823,603

-1,596,176,980

Cash Flows from Investing

-1,219,942,444

-2,376,670,620

-2,015,207,953

-Cash Inflow from Investing

957,947,985

117,572,704

1,307,755,088

-Cash Outflows for Investing

-2,177,890,429

-2,494,243,324

-3,322,963,041

Cash Flows from Financing

-5,700,000,000

-7,423,771,703

-10,413,883,588

-Cash Inflows from Financing

1,550,000,000

2,976,228,297

4,186,116,412

-Cash Outflows from Financing

-7,250,000,000

-10,400,000,000

-14,600,000,000

Increase/Decrease in Cash

157,656

39,006,995

-

Cash at the Beginning of Year

39,006,995

-

-

Cash at the End of Year

39,164,651

39,006,995

-

 

 

Products, Technologies, Services Description

 

 

Main Products & Services

White Carbon, Sodium Silicate, Silica

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

 

Competitors

EVONIK CARBON BLACK KOREA CO., LTD.

350, WOLNAE-DONG, YEOSU-SI, JEOLLANAM-DO, KOREA

TEL:+82-61-690-5114  FAX:+82-61-690-5280

 

OCI CO., LTD.

50, SOGONG-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-727-9500  FAX:+82-2-773-0615

 

KYUNGWOO CORPORATION

RM. 910, WOOLIM E-BIZ CENTER 2-CHA, 16, YANGPYEONG-DONG 3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2164-8380  FAX:+82-2-2164-8384

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

 

Affiliates

RHODIA KOREA LTD.(110111-0661193)

RHODIA POLYAMIDE CO., LTD.(110111-1643059)

RHODIA ENERGY ASIA PACIFIC CO., LTD.(110111-3300128 EX. RHODIA ENERGY KOREA CO., LTD.)

SOLVAY KOREA CO., LTD.( 230111-0114139)

DAEHAN SOLVAY SPECIALTY CHEMICALS CO., LTD.(161411-0000822)

SOLVAY SPECIALTY POLYMERS KOREA COMPANY LTD.(110111-1176802)

Corporate Ownership

RHODIA SA(FRANCE)

Major Shareholders

RHODIA SA(FRANCE)

Cooperative Enterprise

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

 

-License Agreement

RHODIA OPERATIONS(FRANCE)

 

The Subject deals with the companies in China, France, Japan, Malaysia, Philippines and Vietnam.

 

 

News Clipping

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.27

UK Pound

1

Rs. 103.66

Euro

1

Rs. 85.17

 

 

INFORMATION DETAILS

 

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.