MIRA INFORM REPORT

 

 

Report Date :

22.11.2014

 

IDENTIFICATION DETAILS

 

Name :

EWHA CORPORATION

 

 

Formerly Known As :

EWHA MACHINE SHOP CORPORATION

 

 

Registered Office :

87-40, Seungga-ro, Gimpo-si, Gyeonggi-do, Korea, 415-070

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

10.01.1981

 

 

Com. Reg. No.:

136-81-01063

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :
  • Manufacture of Distilling Machinery, Heat exchange unit and Gas Generators like Heat Exchanger, Fan Blower, Fin Tube, Bearing Block, Portable Fan, Pressure Vessels
  • Manufacture of Ventilating Machines

 

 

No of Employees :

31

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

Company Name

EWHA CORPORATION

(Korean Company Name : “(주)이화”)

Registered Address

87-40, Seungga-ro, Gimpo-si, Gyeonggi-do, Korea

Building

 

Zip Code

415-070

Tel

+82-31-982-1568

Fax

+82-31-982-1569

E-mail

ewha82@kornet.net

Website

www.ewha.co.kr

Trading Address

87-40, Seungga-ro, Gimpo-si, Gyeonggi-do, Korea

(Old Address System : 683-5, Pungmu-dong, Gimpo-si, Gyeonggi-do, Korea)

Tel

+82-31-982-1568

Fax

+82-31-982-1569

Other Address-Ganghwa Factory

256-38, Yeondong-ro, Seonwon-myeon, Ganghwa-gun, Incheon, Korea

Tel

+82-32-934-1568

Fax

+82-32-934-1560

Type

Export

Industry

Manufacture of Distilling Machinery, Heat exchange unit and Gas Generators

  Main Business

Heat Exchanger, Fan Blower, Fin Tube, Bearing Block, Portable Fan, Pressure Vessels

  Sub Business

Manufacture of Ventilating Machines

Established (mm/dd/yyyy)

01/10/1981

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Heat exchangers(40101802)

Sell

Blowers(40101601)

Sell

Tube and tubing(31231300)

Sell

Air exhausters(40101502)

Buy

Iron(11101713)

Buy

Steel(11101704)

 

 

CEO’s

 

Name

Jung Soon-Hee

Address

Suite 914, 1322, Jungang-ro, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea

Date of Birth

03/07/1937

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

470,000,000

Employees

31

Formation

Co., Ltd by Shares

Bank Details

Woori Bank

Industrial Bank of Korea-Gimppo Branch

Corporate Registered No.

124411-0002387

Business Registered No.

136-81-01063

Permit & Licenses

12/26/1998 ISO 9002

04/2007 KS Mark

 

Int’l Trade No.: 21071535

Shareholder Position

Name

Shares

%

JUNG YOON-SIK & HIS FAMILY

30,277

64.42

OTHERS

16,723

35.58

TOTAL

47,000

100.00

Company History

08/01/1974 Established as EWHA Machine Shop Co.(Sole Proprietorship)

01/10/1981 Incorporated as EWHA Machine Shop Corporation

03/28/1995 Changed company name to the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Jung Soon-Hee

Male

Korean

03/28/2013

President & CEO

Mr.

Jung Yoon-Sik

Male

Korean

12/05/2012

Director

Mr.

Jung Sam-Sik

Male

Korean

03/28/2010

Auditor

M/S.

Kim Song-Ja

Female

Korean

03/28/2010

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

14,883,388,004

12,750,306,690

1,177,444,255

2012

15,017,661,096

11,673,215,920

1,218,146,260

2011

15,537,612,582

10,960,123,281

1,304,504,579

2010

12,191,000,000

9,173,000,000

2,696,000,000

2009

11,215,000,000

5,998,000,000

612,000,000

 

 

Financial Description

 

Authorized Capital(KRW)

2,500,000,000

Paid-Up Capital(KRW)

470,000,000

Total Issued Shares

47,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

12,750,306,690

11,673,215,920

10,960,123,281

Current Assets

3,404,623,125

4,207,521,178

4,816,111,888

-Quick Assets

2,983,800,889

3,760,399,260

4,325,727,837

-Inventories

420,822,236

447,121,918

490,384,051

Fixed Assets

9,345,683,565

7,465,694,742

6,144,011,393

-Investment

1,582,489,169

1,130,527,267

1,327,689,814

-Tangibles

7,718,446,396

6,287,547,475

4,395,940,479

-Intangibles

-

-

-

-Others

44,748,000

47,620,000

420,381,100

Total Liabilities

3,413,592,656

3,401,246,622

3,481,932,337

Current Liabilities

3,393,553,605

3,366,279,785

3,363,860,892

Fixed Liabilities

20,039,051

34,966,837

118,071,445

Capital Stock

470,000,000

470,000,000

470,000,000

Capital Surplus

-

-

-

Profit Surplus

9,068,442,569

7,990,998,314

7,008,190,944

Capital Adjustment

-201,728,535

-189,029,016

-

Total Equity

9,336,714,034

8,271,969,298

7,478,190,944

Liab. & Shareholder’s Equity

12,750,306,690

11,673,215,920

10,960,123,281

 

Current Liabilities

3,393,553,605

3,366,279,785

3,363,860,892

Short-Term Borrowings

1,000,000,000

1,000,000,000

1,600,000,000

Trade Payables

1,368,664,082

1,242,938,978

1,176,516,396

Withholdings

30,737,590

14,305,000

26,120,440

Advance Receipts

45,846,785

537,985,441

27,541,768

VAT Withhold

139,461,580

90,037,350

36,608,689

Account Payables

392,445,000

65,619,342

175,675,198

Accrued Expenses

407,079,819

283,322,267

112,943,373

Accrued Income Tax

9,318,749

132,071,407

208,455,028

Fixed Liabilities

20,039,051

34,966,837

118,071,445

Provision for Severance & Retirement

658,607,532

646,092,062

612,506,164

Guarantee Deposit Withhold

20,000,000

30,000,000

30,000,000

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

14,883,388,004

15,017,661,096

15,537,612,582

Cost of Sold Goods

10,776,708,081

10,332,619,633

11,300,448,109

Gross Profit

4,106,679,923

4,685,041,463

4,237,164,473

Selling & Admin. Expenses

2,780,338,199

3,190,704,669

2,579,864,021

Operating Income

1,326,341,724

1,494,336,794

1,657,300,452

Non-Operating Income

104,222,534

189,230,010

99,503,782

Non-Operating Expenses

110,431,324

172,888,877

65,446,385

Income Before Taxes

1,320,132,934

1,510,677,927

1,691,357,849

Income Taxes Expenses

142,688,679

292,531,667

386,853,270

Net Income

1,177,444,255

1,218,146,260

1,304,504,579

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

1,725,816,118

2,821,002,641

-2,433,583,277

-Net Income

1,177,444,255

1,218,146,260

2,695,873,809

-Exp. without Cash Outflow

188,787,422

79,396,057

96,508,631

-Revenue without Cash Inflows

-

-35,338,890

-4,627,368,188

-Changes in Asset/ & Liability

359,584,441

1,558,799,214

-598,597,529

Cash Flows from Investing

-2,069,373,377

-1,535,818,073

1,611,591,568

-Cash Inflow from Investing

28,452,387

609,664,401

4,888,157,960

-Cash Outflows for Investing

-2,097,825,764

-2,145,482,474

-3,276,566,392

Cash Flows from Financing

-100,000,000

-800,000,000

800,000,000

-Cash Inflows from Financing

-

-

1,000,000,000

-Cash Outflows from Financing

-100,000,000

-800,000,000

-200,000,000

Increase/Decrease in Cash

-443,557,259

485,184,568

-21,991,709

Cash at the Beginning of Year

513,704,203

28,519,635

50,511,344

Cash at the End of Year

70,146,944

513,704,203

28,519,635

 

 

Products, Technologies, Services Description

 

Main Products & Services

Heat Exchanger, Fan Blower, Fin Tube, Bearing Block, Portable Fan, Pressure Vessels

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Customers

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

SAMSUNG HEAVY INDUSTRIES CO., LTD.(110111-0168595)

HYUNDAI SAMHO HEAVY INDUSTRIES CO., LTD.(205411-0003915)

POSCO(174611-0000741)

EBRA BOILER CO., LTD.(JAPAN)

WORFIN HEAT EXCHANGER XO., LTD.(TAIWAN)

Competitors

TOKIMEC KOREA POWER CONTROL CO.,LTD.(110111-1617319)

PARKER KOREA LTD.(134511-0029395)

BOSCH REXROTH KOREA LTD.(180111-0299015)

MEDIPOST CO., LTD.( 110111-2007709)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SHIMYAMG EWHA OGUM MACHINERY CO., LTD.(CHINA)

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to USA, Japan and China.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.97.01

Euro

1

Rs.77.62                         

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

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.