MIRA INFORM REPORT

 

 

Report Date :

28.06.2014

 

IDENTIFICATION DETAILS

 

Name :

KISCO

 

 

Registered Office :

12, Gongdan-ro 103beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.09.2008

 

 

Com. Reg. No.:

609-81-84470

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

 

 

No. of Employees :

546

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

KOREA (SOUTH) - 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

KISCO

Registered Address

12, Gongdan-ro 103beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

(Old Address System : 70, Sinchon-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea)

Zip Code

642-370

Tel

+82-55-260-0500

Fax

+82-55-283-3429

E-mail

june04@kisco.co.kr

Website

www.kisco.co.kr

Trading Address

9th Fl., Dabo Bldg., 20, Mapo-daero, Mapo-gu, Seoul, Korea

(Old Address System : 9th Fl., Dabo Bldg., 140, Mapo-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-718-4551

Fax

+82-2-718-4551

Other Address-Jeungpyeong Factory(Energy)

1044, Miam-ri, Jeungpyeong-eup, Jeungpyeong-gun, Chungcheongbuk-do, Korea

Tel

+82-43-820-9000

Type

Export

Industry

Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Steel Bar, Round Bar, Steel Pipe, Billet, Ingot, Industrial Gas, Thin Film Solar Cell, Module

Established (mm/dd/yyyy)

09/01/2008

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Carbon steel pipe(40142101)

Sell

Iron bars(30101603)

Sell

Forgings(31130000)

Sell

Steel tubing(31231310)

Sell

Billets(30103300)

Sell

Ingots(30103400)

Sell

Steel(11101704)

Buy

Refining metal services(73121509)

Buy

Furnaces(40101805)

Buy

Tube and tubing(31231300)

Buy

Metal scrap(11191600)

Buy

Ferrous alloy(11101712)

Buy

Iron(11101713)

Buy

Non ferrous alloy(11101711)

Buy

Hydraulic presses(27121500)

Buy

Coke(15101604)

 

CEO’s

 

Name

Chang Sang-Don

Date of Birth

10/01/1937

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

46,050,000,000

Employees

546

Formation

Listed Company(Korea Stock Exchange : 104700) as of 09/29/2008

A Company of KISCO HOLDINGS CORP. (190111-0001872)

Bank Details

Korea Development Bank

Corporate Registered No.

194211-0094318

Business Registered No.

609-81-84470

Permit & Licenses

09/2009 UL Mark

06/2010 ISO 14001

06/2010 OHSAS 18001

06/2010 KOSHA 18001

Shareholder Position

Name

Shares

%

KISCO HOLDINGS CORP. (190111-0001872)

3,758,785

40.81

CHANG SANG-DON

1,080,578

11.73

CHANG SE-HYUN

316,263

3.43

KOREA STEEL SHAPES CO., LTD.(180111-0015362)

215,667

2.34

OTHERS

3,838,707

41.68

TOTAL

9,210,000

100.00

Company History

09/01/2008 Incorporated as the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Chang Sang-Don

Korean

1937.10.01

Dongkuk University, Korea

President & CEO

Mr.

Chang Se-Hong

Korean

1966.10.01

California University, USA

President & CEO

Mr.

Cho Wan-Je

Korean

1950.11

Korea University, Korea

Vice President

Mr.

Jung Chan-Hyun

Korean

1946.03.02

Busan Commercial High

Sr. Executive Director

Mr.

Moon Jong-In

Korean

1953.05.20

Kyungnam University, Korea

Director

Mr.

Jung Cheol-Ki

Korean

1955.08.18

Korea University, Korea

Director

Mr.

Lee Byung-Je

Korean

1959.07.29

Kyungnam University, Korea

Director

Mr.

Lee Soo-Ha

Korean

1961.01.25

Busan National University, Korea

Outside Director

Mr.

Kim Jo-Il

Korean

1944.11.10

Masan High School

Outside Director

Mr.

Jeon Kyung-Doo

Korean

1947.03

-

Outside Director

Mr.

Jung Moon-Ho

Korean

1952.06

-

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2014

171,288,024,735

905,639,280,510

-2,440,541,295

(*)2013

821,095,616,823

907,187,123,195

9,397,639,339

(*)2012

987,039,948,435

936,810,385,294

18,485,336,818

(*)2011

1,020,601,374,388

1,015,150,137,441

-33,510,227,388

2010

879,924,338,630

947,286,728,297

15,461,258,461

2009

911,503,171,887

972,821,670,640

46,053,565,383

2008

316,051,876,212

904,562,483,962

49,290,877,098

(*)Figures are based on the K-IFRS Accounting System.

 

Financial Description

 

Authorized Capital(KRW)

150,000,000,000

Paid-Up Capital(KRW)

46,050,000,000

Total Issued Shares

9,210,000

 

Balance Sheet

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

905,639,280,510

907,187,123,195

936,810,385,294

Current Assets

435,383,475,740

428,296,694,089

460,604,367,248

Cash & Cash Equivalents

42,098,004,739

36,342,795,753

79,683,117,304

Current Financial Instruments

98,424,150,541

93,020,478,773

62,647,276,853

Trade Receivables

150,117,561,325

159,523,595,003

187,457,153,055

Other Receivables

2,012,010,312

1,219,246,378

1,810,730,596

Other Finance Assets

773,550,000

773,550,000

48,120,000

Inventories

141,307,026,915

136,242,845,316

128,162,060,860

Other Assets

523,082,738

474,818,886

299,636,800

Deferred Income Tax Assets

128,089,170

699,363,980

496,271,780

Non-Current Assets

470,255,804,770

478,890,429,106

476,206,018,046

Non-Current Financial Instruments

9,009,141,234

11,268,141,234

8,209,641,234

Other Receivables

767,697,332

767,697,332

770,697,332

Other Financial Assets

22,694,771,250

23,921,528,100

21,023,646,000

Tangibles

424,950,617,547

433,661,810,900

443,092,458,126

Investment_Real Estates

9,860,673,831

6,341,147,551

 

Intangibles

916,906,928

916,906,928

1,215,116,928

Investment_Related Companies

2,055,996,648

2,013,197,061

1,894,458,426

Total Liabilities

230,585,303,723

220,469,676,851

255,990,254,603

Current Liabilities

207,704,017,374

197,595,091,124

229,638,716,231

Trade Payables

147,681,459,209

160,849,078,531

165,933,645,261

Other Payables

31,332,253,953

27,691,651,143

30,964,339,319

Short-Term Borrowings

24,514,808,347

3,909,125,739

26,069,961,963

Other Current Liabilities

4,175,495,865

5,145,235,711

6,670,769,688

Non-Current Liabilities

22,881,286,349

22,874,585,727

26,351,538,372

Provision for Severance & Retirement

1,585,982,770

1,546,809,820

2,563,118,866

Confirmed Salaries

12,642,450,449

11,922,545,145

16,893,735,052

Deferred Income Tax Credit

7,952,853,130

8,905,230,762

4,627,484,454

Other Payables

700,000,000

500,000,000

2,267,200,000

Capital Stock

46,050,000,000

46,050,000,000

46,050,000,000

Capital Surplus

552,548,163,966

552,548,163,966

552,548,163,966

Profit Surplus

66,286,243,385

77,012,928,080

73,953,223,426

Installments

10,331,123,881

11,267,908,743

8,430,297,744

Others

-161,554,445

-161,554,445

-161,554,445

Total Equity

675,053,976,787

686,717,446,344

680,820,130,691

Liab. & Shareholder’s Equity

905,639,280,510

907,187,123,195

936,810,385,294

 

Income Statement

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

171,288,024,735

821,095,616,823

987,039,948,435

Cost of Sold Goods

167,339,495,417

780,399,023,117

921,998,113,436

Gross Profit

3,948,529,318

40,696,593,706

65,041,834,999

Selling & Admin. Expenses

8,497,566,994

39,353,979,190

50,545,003,908

Operating Income

-4,549,037,676

1,342,614,516

14,496,831,091

Other Income

608,950,383

6,746,867,525

19,311,364,189

Other Expenses

93,138,295

908,177,641

17,719,493,345

Equity Method Profits

17,048,970

152,207,915

92,737,984

Finance Income

1,206,730,354

6,705,815,615

10,894,688,996

Finance Expenses

319,251,292

1,713,788,870

3,089,698,052

Income Before Taxes

-3,128,697,556

12,325,539,060

23,986,430,863

Income Taxes Expenses

-688,156,261

2,927,899,721

5,501,094,045

Net Income

-2,440,541,295

9,397,639,339

18,485,336,818

 

Cash Flows

Unit : Korean Won

01/01/2014~03/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

-12,013,010,408

52,477,428,570

83,212,251,331

Cash Flows from Operating

-13,537,796,029

47,798,170,067

79,586,113,169

Interests Received

923,598,984

5,173,332,141

4,818,474,375

Interests Paid

-7,552,173

-290,981,438

-992,812,843

Dividends Received

37,464,000

 

 

Income Taxes

571,274,810

-203,092,200

-199,523,370

Cash Flows from Investing

-2,797,697,304

-65,585,382,583

-20,956,127,780

Cash Flows from Financing

20,568,349,810

-30,232,367,538

-39,164,739,938

Increase/Decrease in Cash

5,755,208,986

-43,340,321,551

23,086,992,417

Cash at the Beginning of Year

36,342,795,753

79,683,117,304

56,596,124,887

Cash at the End of Year

42,098,004,739

36,342,795,753

79,683,117,304

 

Products, Technologies, Services Description

 

Main Products & Services

Steel Products

Energy Business

 

Brand Name : GET WATT

 

Trade Partners & Competitors

 

Customers

PUBLIC PROCUREMENT SERVICE, KOREA

Competitors

DONGKUK STEEL MILL CO., LTD.(110111-0031338)

HYUNDAI STEEL COMPANY(120111-0001743)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KISCO HOLDINGS CORP. (190111-0001872)

KOREA STEEL SHAPES CO., LTD.(180111-0015362)

YOUNG HEUNG IRON & STEEL CO., LTD.(194211-0000191)

HWAN YOUNG STEEL IND.CO., LTD.(180111-0028026)

DAE HEUNG INDUSTRIAL CO., LTD.(194311-0000660)

SEORYUNG CO., LTD.(KOREA)

DAE YU CORE CO., LTD.(110111-2224759)

SEHWA EXPRESS CO., LTD.(190111-0001468)

MASAN PORT 5 OPERATION CO., LTD.(190111-0035433)

LABO CO., LTD.(145211-0002047)

PYUNGRI MATERIAL CO., LTD.(190111-0063781)

 

YOUNGHUNG(TAECHANG) KANGSASUNG CO., LTD.(CHINA)

YOUNGWIRE VINA

 

LABO JAPAN

(14.0%% held by the subject company)

 

JINIL INTERNATIONAL

(41.0% held by the subject company)

Cooperative Enterprise

-Insured Company

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

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2014

2013

2012

Export

4,626

14,675

45,770

Domestic

166,662

806,421

941,270

Total

171,288

821,096

987,040

The Subject exports to Australia, China, Japan and Russia.

 

 

News Clipping

 

Not Available

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NNA

 

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.