MIRA INFORM REPORT

 

 

Report Date :

20.05.2014

 

IDENTIFICATION DETAILS

 

Name :

BSE CO., LTD.

 

 

Formerly Known As :

BOSUNG ELECTRONICS CO., LTD.

 

 

Registered Office :

193, Namdongseo-ro, Namdong-gu, Incheon, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

05.08.1987

 

 

Com. Reg. No.:

130-81-19449

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Other Sound Equipment

 

 

No of Employees :

248

 

 

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

(30.09.2013)

Current Rating

(01.12.2013)

South Korea

A1

A1

 

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

BSE CO., LTD.

(English Company Name : BEST SOUND ELECTRONICS CO., LTD.)

(Korean Company Name : “()비에스이”)

Registered Address

193, Namdongseo-ro, Namdong-gu, Incheon, Korea

Building

58B-4L, Namdong Industrial Complex

Zip Code

405-817

Tel

+82-32-500-1700~7

Fax

+82-32-554-6205~6

E-mail

bse@bsecm.com

Website

www.bsecm.com

Trading Address

58B-4L, Namdong Industrial Complex, 193, Namdongseo-ro, Namdong-gu, Incheon, Korea

(Old Address System : 58B-4L, Namdong Industrial Complex, 626-3, Gojan-dong, Namdong-gu, Incheon, Korea)

Tel

+82-32-500-1700~7

Fax

+82-32-554-6205~6

Type

Export/Import

Industry

Manufacture of Other Sound Equipment

  Main Business

Condenser Microphone

  Sub Business

 

Established (mm/dd/yyyy)

08/05/1987

 

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Microphones(52161520)

 

 

CEO’s

 

Name

Park Jin-Soo

Address

F-4104, 467-17, Dogok-dong, Gangnam-gu, Seoul, Korea

Date of Birth

07/08/1940

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,000,000,000

Employees

248

Formation

Co., Ltd by shares

A Company of BSE HOLDINGS CO., LTD.(110111-0944622)

Bank Details

Hana Bank

Woori Bank

Corporate Registered No.

124311-0019847

Business Registered No.

130-81-19449

Permit & Licenses

N/A

Shareholder Position

Name

Shares

%

BSE HOLDINGS CO., LTD.(110111-0944622)

6,000,000

100.00

TOTAL

6,000,000

100.00

Company History

08/05/1987 Incorporated as BOSUNG ELECTRONICS CO., LTD.

1993 Acquired C-MIC Patent

03/16/2000 Changed company name to the present name

 

 

 

 


Detailed Information

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Park Jin-Soo

Male

Korean

04/14/2000

Director

Mr.

Park Hyo-Maeng

Male

Korean

12/31/2004

Director

Mr.

Cho Sung-Koo

Male

Korean

03/27/2012

Auditor

Mr.

Jeon Gye-Ik

Male

Korean

03/27/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

174,493,108,090

222,761,182,861

-2,990,247,834

2012

127,358,787,034

206,035,982,861

7,674,352,858

2011

124,205,881,571

185,902,728,219

-1,691,373,748

2010

146,793,014,667

185,395,458,274

3,421,774,605

2009

169,777,527,197

215,418,635,448

6,668,032,274

2008

165,779,651,529

239,508,354,679

-47,052,907,483

2007

144,045,776,021

169,423,143,787

4,645,283,057

2006

155,175,310,545

143,630,053,085

10,651,238,483

2005

165,696,432,371

135,792,548,857

9,280,240,047

2004

138,361,534,541

113,948,253,632

19,135,950,533

 

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

3,000,000,000

Total Issued Shares

6,000,000

 

 


Balance Sheet

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

222,761,182,861

206,035,982,861

185,902,728,219

Current Assets

139,976,300,434

131,278,696,533

117,764,456,134

Cash & Cash Equivalents

2,643,176,619

1,321,631,580

2,450,556,766

Current Financial Instruments

27,661,838,550

36,778,555,550

40,839,931,326

Trade Receivables & Other Receivables

84,485,092,623

82,424,447,668

63,723,707,186

Inventories

25,078,220,842

10,558,634,685

10,581,861,226

Deferred Income Tax Assets

107,971,800

195,427,050

168,399,630

Non-Current Assets

82,784,882,427

74,757,286,328

68,138,272,085

Investment_Related Companies

40,334,487,573

34,979,911,494

31,042,473,370

Non-Current Financial Instruments

7,751,021,049

7,588,547,926

4,116,871,131

Investment_Real Estates

1,186,504,825

3,070,432,513

-

Tangibles

31,956,909,030

27,417,024,132

31,129,050,272

Intangibles

1,429,433,691

1,701,370,263

1,849,877,312

Other Non-Current Assets

126,526,259

-

-

Total Liabilities

129,857,600,092

110,404,092,998

97,648,092,033

Current Liabilities

115,591,385,231

104,150,311,483

95,270,430,295

Other Current Liabilities

115,375,744,779

103,903,827,172

94,878,810,181

Held-to-Maturity Financial Liabilities

-

-

6,507,493,899

Trade Payables

30,841,026,518

31,388,223,318

21,579,000,289

Account Payables

2,147,095,379

5,000,763,975

4,476,693,155

Accrued Expenses

1,228,155,598

1,034,008,853

948,070,475

Short-Term Borrowings

80,686,284,821

66,127,967,734

44,407,280,016

Current Portion of Long-Term Debts

-

-

1,108,609,624

Advance Receipts

72,464,434

4,120,693

15,721,297,113

Withholdings

400,718,029

348,742,599

130,365,610

Current Portion of Provisions

215,640,452

246,484,311

391,620,114

Provision for Severance & Retirement

193,672,850

175,453,480

287,681,770

Provision for Refund

21,967,602

71,030,831

103,938,344

Non-Current Liabilities

14,266,214,861

6,253,781,515

2,377,661,738

Confirmed Salaries

3,155,264,861

2,975,281,515

2,210,661,738

Other Non-Current Financial Debts

11,110,950,000

3,278,500,000

167,000,000

Long-Term Borrowings

10,847,950,000

3,000,000,000

-

Leasehold Deposit Received

263,000,000

278,500,000

167,000,000

Capital Stock

3,000,000,000

3,000,000,000

3,000,000,000

Capital Surplus

89,903,582,769

92,631,889,863

85,311,838,186

Others

-

-

-57,202,000

Total Equity

92,903,582,769

95,631,889,863

88,254,636,186

Liab. & Shareholder’s Equity

222,761,182,861

206,035,982,861

185,902,728,219

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

174,493,108,090

127,358,787,034

124,205,881,571

Cost of Sold Goods

154,543,340,294

107,454,211,569

115,365,826,918

Gross Profit

19,949,767,796

19,904,575,465

8,840,054,653

Selling & Admin. Expenses

20,638,373,912

18,655,470,516

16,072,448,226

Operating Income

-688,606,116

1,249,104,949

-7,232,393,573

Profits from Investment on Related Companies

-

-50,000,000

277,380,177

Non-Operating Income

5,056,212,734

16,771,533,693

10,378,111,836

Non-Operating Expenses

5,543,988,901

10,483,594,980

4,984,392,941

Finance Income

1,716,565,954

2,707,308,579

1,731,053,030

Finance Expenses

3,530,431,505

2,519,999,383

1,861,132,277

Income Before Taxes

-2,990,247,834

7,674,352,858

-1,691,373,748

Income Taxes Expenses

-

-

-

Net Income

-2,990,247,834

7,674,352,858

-1,691,373,748

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-18,726,526,529

-8,288,263,686

13,380,711,678

Cash Flows from Operating

-16,855,400,238

-7,704,471,776

13,404,804,079

Net Income

-2,990,247,834

7,674,352,858

-1,691,373,748

-Exp. without Cash Outflow

11,126,820,276

14,690,571,948

6,612,538,779

-Revenue without Cash Inflows

-2,297,512,462

-7,389,593,288

-8,364,243,837

-Changes in Asset/ & Liability

-22,694,460,218

-22,679,803,294

16,847,882,885

Interests Received

1,319,085,040

1,787,598,286

1,600,633,034

Interests Paid

-3,277,666,581

-2,344,362,776

-1,891,205,805

Dividends Received

 

 

434,880,000

Income Taxes

87,455,250

-27,027,420

-168,399,630

Cash Flows from Investing

-2,491,903,760

-17,364,357,764

-13,970,163,124

Cash Inflow from Investing

46,826,588,450

7,405,653,686

36,550,808,207

Cash Outflows for Investing

-49,318,492,210

-24,770,011,450

-50,520,971,331

Cash Flows from Financing

22,547,116,271

24,524,900,792

-879,070,500

Cash Inflows from Financing

43,764,563,478

25,633,510,416

17,400,000,000

Cash Outflows from Financing

-21,217,447,207

-1,108,609,624

-18,279,070,500

Increase/Decrease in Cash

1,328,685,982

-1,127,720,658

-1,468,521,946

Cash at the Beginning of Year

1,321,631,580

2,450,556,766

3,923,162,484

Cash at the End of Year

2,643,176,619

1,321,631,580

2,450,556,766

 

 

Products, Technologies, Services Description

 

Main Products & Services

Electronic Condenser Microphone (ECM)

Wireless Microphone

Mobile Energy

Speaker

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides the vehicle leasing services to the subject company.

Customers

SAMSUNG ELECTRONICS CO., LTD.(130111-0006246)

LG ELECTRONICS INC. 110111-2487050)

MOTOROLA

NOKIA

Competitors

DIABELL CO., LTD.

198, ANYANG 7-DONG, MANAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-380-4300  FAX:+82-31-380-4370

 

COSMO SOUND TECHLOLOGY CO., LTD.

86-1, YEONGCHEON-RI, DONGTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-376-8611~2  FAX:+82-31-376-8610

 

ACE COMPONET TECHNOLOGY

RM. 7309, DONG-IL TECHNO TOWN 7-CHA, 823, GWANYANG 2-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-423-9950  FAX:+82-31-423-9951

 

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KEUK DONG PRECISION MATERIALS CO., LTD.(120111-0569684)

(100.0% held by the subject company)

 

BSE DISPLAY CO., LTD.(161511-0122237)

(100.0% held by the subject company)

 

BSE CENSUS CO., LTD.(120111-0536261)

(100.0% held by the subject company)

 

DONGGUAN BOSUNG ELECTRONICS CO., LTD.(CHINA)

(100.0% held by the subject company)

 

TENJIN BOSUNG ELECTRONICS CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HONGKONG BSE ELECTRONICS CO., LTD.(HONGKONG)

(100.0% held by the subject company)

 

YOUNGSUNG BOSUNG ELECTRONICS CO., LTD.(CHINA)

(100.0% held by the subject company)

 

BSE VIETNAM CO., LTD.(VIETNAM)

(100.0% held by the subject company)

 

VIETNAM BSE ELECTRONICS CORPORATION(VIETNAM)

(100.0% held by the subject company)

 

BSE USA, INC.

(50.0% held by the subject company)

 

ITSWELL CO., LTD.(161511-0023089)

Joint Venture

 

Subsidiary

KEUK DONG PRECISION MATERIALS CO., LTD.(120111-0569684)

(100.0% held by the subject company)

 

BSE DISPLAY CO., LTD.(161511-0122237)

(100.0% held by the subject company)

 

BSE CENSUS CO., LTD.(120111-0536261)

(100.0% held by the subject company)

 

DONGGUAN BOSUNG ELECTRONICS CO., LTD.(CHINA)

(100.0% held by the subject company)

 

TENJIN BOSUNG ELECTRONICS CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HONGKONG BSE ELECTRONICS CO., LTD.

(100.0% held by the subject company)

 

YOUNGSUNG BOSUNG ELECTRONICS CO., LTD.(CHINA)

(100.0% held by the subject company)

 

BSE VIETNAM CO., LTD.

(100.0% held by the subject company)

 

VIETNAM BSE ELECTRONICS CORPORATION

(100.0% held by the subject company)

Corporate Ownership

BSE HOLDINGS CO., LTD.(110111-0944622)

Major Shareholders

BSE HOLDINGS CO., LTD.(110111-0944622)

Cooperative Enterprise

-Insured Company

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

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

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in USA, China and Europe.

 

 

Court Action

 

No.

 

News Clipping

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.42

UK Pound

1

Rs.96.28

Euro

1

Rs.80.12

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SHG

 

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.