MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

CHOSUN WELDING CO., LTD.

 

 

Registered Office :

34-13, Hwasan 2-gil, Onsan-eup, Ulju-gun, Ulsan, Korea 689-896

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

08.01.2010

 

 

Com. Reg. No.:

610-86-00965

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of other general- purpose machinery

Such as Welding Rod, Welding Machines

 

 

No. of Employees :

115

 

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 :

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 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

 

Basic

 

Company Name

CHOSUN WELDING CO., LTD.

(Korean Company Name : “조선선재온산()”)

Registered Address

34-13, Hwasan 2-gil, Onsan-eup, Ulju-gun, Ulsan, Korea

(Old Address System : 321, Hwasan-ri, Onsan-eup, Ulju-gun, Ulsan, Korea)

Building

 

Zip Code

689-896

Tel

+82-52-231-3400

Fax

+82-52-237-3311

E-mail

csadmin@chosunwelding.com

Website

www.chosunwelding.com

Trading Address

90, Dangsandong 4-ga, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-3459-9376

Fax

+82-2-553-6116

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Other General- Purpose Machinery n.e.c.

  Main Business

Welding Rod, Welding Machines

  Sub Business

 

Established (mm/dd/yyyy)

01/08/2010

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welders(23171508)

Sell

Welding rods(23171512)

Sell

Welding wire(23171510)

 

CEO’s

 

Name

Chang Won-Young

Address

Suite 501, 30, Donggwang-ro 32-gil, Seocho-gu, Seoul, Korea

Date of Birth

08/26/1975

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

3,000,000,000

Employees

115

Formation

Co., Ltd by shares

A Company of DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

Bank Details

Citibank, Korea-Ulsan Sales Dept.

Corporate Registered No.

230111-0161677

Business Registered No.

610-86-00965

Permit & Licenses

Int’l Trade No.: 30663325

Shareholder Position

Name

Shares

%

CS HOLDINGS CO., LTD.(110111-0008486)

600,000

100.00

TOTAL

600,000

100.00

Company History

01/01/2010 Ex. CHOSUN WELDING CO., LTD., has spin off into 3 companies as below;

CS HOLDINGS CO., LTD.(110111-0008486 Existing company),

the subject company, CHOSUN WELDING POHANG CO., LTD.(171711-1186312, Newly established company) which took welding materials business division,

and CHOSUN WELDING ONSAN CO., LTD.(230111-0161677 Newly established company) which took FCW Welding material Business Division

01/08/2010 Incorporated as the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Chang Won-Young

Male

Korean

01/08/2010

Director

Mr.

Cho Sung-Eun

Male

Korean

06/30/2011

Director

Mr.

Chang Joon-Young

Male

Korean

09/09/2010

Director

Mr.

Seo Ok-Seok

Male

Korean

03/21/2014

Auditor

Mr.

Jung Jae-Ho

Male

Korean

03/22/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

81,152,270,618

102,208,884,354

3,075,815,660

2012

81,140,552,367

97,225,079,875

1,385,082,540

2011

86,527,250,956

98,685,455,451

4,603,832,892

2010

78,846,202,118

94,473,652,415

3,045,081,056

 


 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

3,000,000,000

Total Issued Shares

600,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

102,208,884,354

97,225,079,875

98,685,455,451

Current Assets

35,460,659,767

30,603,015,045

30,696,165,532

Cash & Cash Equivalents

11,241,011,092

8,746,584,904

9,406,536,025

Trade Receivables

10,331,418,967

8,728,012,022

8,713,316,567

Other Receivables

238,453,222

739,960,399

1,580,051,891

Other Current Assets

300,125,199

19,627,830

30,975,972

Inventories

13,349,651,287

12,158,154,364

10,965,285,077

Deferred Income Tax Assets

-

210,675,526

-

Non-Current Assets

66,748,224,587

66,622,064,830

67,989,289,919

Other Receivables

293,323,000

293,203,000

284,342,886

Non-Current Financial Instruments

676,880,000

564,824,000

478,781,000

Investment_Subsidiaries

266,078,000

266,078,000

266,078,000

Tangibles

57,114,818,717

57,425,017,071

58,817,309,088

Intangibles

64,794,337

53,978,120

53,978,120

Investment_Real Estates

8,332,330,533

8,018,964,639

8,088,800,825

Total Liabilities

11,900,251,614

9,955,376,544

12,825,297,946

Current Liabilities

10,857,232,417

9,452,239,320

11,400,440,944

Trade Payables

7,831,585,207

7,543,897,508

8,366,934,877

Short-Term Borrowings

 

 

511,108,884

Other Payables

2,535,417,891

1,853,398,937

1,643,883,626

Other Current Liabilities

85,662,238

54,942,875

175,961,658

Accrued Income Tax

404,567,081

-

702,551,899

Non-Current Liabilities

1,043,019,197

503,137,224

1,424,857,002

Confirmed Salaries

753,577,815

261,605,425

1,045,704,292

Other Payables

190,623,652

204,336,521

196,667,618

Deferred Income Tax Credit

98,817,730

37,195,278

182,485,092

Capital Stock

3,000,000,000

3,000,000,000

3,000,000,000

Capital Surplus

75,862,024,685

75,862,024,685

75,862,024,685

Others

152,190,926

64,787,246

-2,326,294

Profit Surplus

11,294,417,129

8,342,891,400

7,000,459,114

Total Equity

90,308,632,740

87,269,703,331

85,860,157,505

Liab. & Shareholder’s Equity

102,208,884,354

97,225,079,875

98,685,455,451

 


 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

81,152,270,618

81,140,552,367

86,527,250,956

Cost of Sold Goods

69,459,901,886

72,153,282,240

75,719,808,495

Gross Profit

11,692,368,732

8,987,270,127

10,807,442,461

Selling & Admin. Expenses

6,417,646,470

6,271,976,560

5,793,619,825

Operating Income

5,274,722,262

2,715,293,567

5,013,822,636

Finance Income

1,114,542,149

424,298,418

996,355,210

Finance Expenses

2,611,414,612

1,499,864,732

435,229,265

Other Income

242,695,196

84,049,071

181,583,830

Other Expenses

273,750,111

356,685,968

109,655,556

Income Before Taxes

3,746,794,884

1,367,090,356

5,646,876,855

Income Taxes Expenses

670,979,224

-17,992,184

1,043,043,963

Net Income

3,075,815,660

1,385,082,540

4,603,832,892

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

3,903,778,711

-149,778,426

5,220,890,619

Cash Flows from Operating

3,828,515,331

824,319,145

5,664,336,750

Net Income

3,075,815,660

1,385,082,540

4,603,832,892

Adjustment

2,587,267,844

2,176,571,091

2,519,263,876

Changes in Asset/ & Liability

-1,834,568,173

-2,737,334,486

-1,458,760,018

Interests Received

46,675,643

81,770,366

91,672,887

Interests Paid

-908,513

-8,442,981

-50,912,948

Dividends Received

13,206,600

-

 

Income Taxes

16,289,650

-1,047,424,956

-484,206,070

Cash Flows from Investing

-1,409,352,523

936,189

-2,926,270,842

Cash Flows from Financing

-

-511,108,884

-10,574,413

Increase/Decrease in Cash

2,494,426,188

-659,951,121

2,284,045,364

Cash at the Beginning of Year

8,746,584,904

9,406,536,025

7,122,490,661

Cash at the End of Year

11,241,011,092

8,746,584,904

9,406,536,025

 

Products, Technologies, Services Description

 

Main Products & Services

Welding Rod, Welding Machines

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

KISWEL CO., LTD.

721-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-317-3131~40  FAX:+82-51-325-3627

 

HYUNDAI WELDING CO., LTD.

16TH FL., ILSONG BLDG., 157-37, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-6230-6010~2  FAX:+82-2-598-6928

 

CHEGIM WELDING CO., LTD.

42-499, IHYEON-DONG, SEO-GU, DAEGU, KOREA

TEL:+82-53-250-0600  FAX:+82-53-256-8117

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

CS HOLDINGS CO., LTD.(110111-0008486)

CHOSUN WELDING POHANG CO., LTD.(171711-1186312)

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

DONGKUK R&S CO., LTD.( 195511-0069249)

DONGYAN METAL CO., LTD.(KOREA)

SEYOUNG SYSTEME CO., LTD.(230111-0130838)

DONGKUK S&C(110111-2276784)

DAEWON STEEL CO., LTD.(120111-0123711)

DONGKUK REFRACTORIES CO., LTD.(195511-0069249)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER CO., LTD.(201111-0023666)

GO DEOK WIND POWER CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNGSEOK DEVELOPMENT CO., LTD.

DK AMERICA, INC.

KUMHWA METAL CO., LTD.

DK WIND POWER CO., LTD.(234111-0045158)

NAMWON WIND POWER CO., LTD.(211311-0005428)

DK DONGSHIN CO., LTD.(110111-3850959)

Affiliates-Overseas

CHOSUN VINA CO., LTD.

CHOSUN WELDING JAPAN CO., LTD.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

CHOSUN WELDING JAPAN CO., LTD.

(100.0% held by the subject company)

Corporate Ownership

CS HOLDINGS CO., LTD.(110111-0008486)

Major Shareholders

CS HOLDINGS CO., LTD.(110111-0008486)

Cooperative Enterprise

-Insured Company

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

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Canada, China, Japan, Middle East, South America and South East Asia.

 

 

 

Court Action

 

No.

 

 

News Clipping

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.