MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ESAB SEAH CORPORATION

 

 

Formerly Known As :

KOREA ALLOY RODS CORP.

 

 

Registered Office :

56, Jeongdong-ro 62beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

19.12.1985

 

 

Com. Reg. No.:

609-81-24701

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Other Fabricated and Processed Metal Products n. e. c

 

 

No. of Employees :

240

 

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

 

Company Name

ESAB SEAH CORPORATION

(Korean Company Name : “(주)세아에삽”)

Registered Address

56, Jeongdong-ro 62beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Zip Code

641-120

Tel

+82-55-289-8111

Fax

+82-55-289-8864

E-mail

inohwang@esab.co.kr

Website

www.esab.co.kr

Trading Address

56, Jeongdong-ro 62beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

(Old Address System : 51, Seongju-dong, Changwon-si, Gyeongsangnam-do, Korea)

Tel

+82-55-289-8111

Fax

+82-55-289-8399

Other Address-Seoul Office

23-2, Mullae-dong 5-ga, Yeongdeungpo-gu, Seoul, Korea

Tel

+82-2-803-9244()

Type

Export/Import

Industry

Manufacture of Other Fabricated and Processed Metal Products n.e.c

  Main Business

Flux Cared Wire, Submerged ARC Welding

Established (mm/dd/yyyy)

12/19/1985

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welding wire(23171510)

Sell

Welding rods(23171512)

Sell

Plasma welding machinery(23171518)

Sell

Welders(23171508)

Sell

Welding tools(23171511)

Buy

Extension cord(26121536)

Buy

Pressure gauge(23151820)

Buy

Base Metals(11101700)

Buy

Bare printed circuit boards(32131010)

Buy

Shells and casings(31261600)

 

 

CEO’s

 

Name

Yoo Deok-Sang

Address

Suite 107-1401, 253, Daeam-ro, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Date of Birth

06/18/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

4,456,000,000

Employees

240

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

A Company of SeAH Group

Bank Details

Hana Bank-Changwon Branch

Kookmin Bank

Corporate Registered No.

180111-0059047

Business Registered No.

609-81-24701

Permit & Licenses

09/1989 JIS

05/1991 KS Mark

06/1994 ISO 9002

07/1999 Single PPM by SMBA, Korea

06/2003 ISO 9001 by UKAS

05/2006 KS Mark

 

Int’l Trade No.: 427827

Shareholder Position

Name

Shares

%

SEAH HOLDINGS CORP(110111-2276809)

222,800

50.00

EXELVIA HOLDINGS B.V.

222,800

50.00

TOTAL

445,600

100.00

Company History

12/19/1985 Incorporated as KOREA ALLOY RODS CORP., as a JV between SEAH STEEL CORPORATION(110111-0118996) and ALLOY RODS GLOBAL INC.(USA)

07/07/1986 Registered as Foreign Direct Investment Corporation

05/01/1998 Changed company name to the present name

11/2008 Awarded US$50 Million Export Top Prize

12/29/2012 Increased capital to 4,456,000,000 KRW from 3,840,000,000 KRW

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

You Deok-Sang

Male

Korean

03/05/2009

Director

Mr.

Daniel Alexis Prier

Male

USA

02/03/2012

Director

Mr.

Yang Hong-Nam

Male

Korean

03/21/2011

Director

Mr.

Lee Tae-Sung

Male

Korean

09/10/2012

Director

Mr.

Chu Myu Chiae

Male

Singapore

11/19/2012

Director

Mr.

Kenneth Daniel Konopa

Male

USA

11/11/2013

Auditor

Mr.

Lee Ju-Sung

Male

Korean

01/02/2014

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2013

153,665,499,448

114,783,851,191

12,178,045,687

(*)2012

201,598,188,961

114,653,563,633

13,984,322,428

(*)2011

205,328,337,471

104,459,955,431

16,509,495,690

2010

181,257,737,731

94,479,092,506

14,942,892,357

2009

174,220,555,380

91,660,881,466

14,812,624,682

2008

155,026,821,850

93,514,765,370

12,064,960,849

2007

112,068,194,353

76,972,036,761

6,065,200,174

2006

108,277,707,035

68,672,078,971

9,039,482,758

2005

92,682,365,771

59,736,664,595

6,331,903,835

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

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

4,456,000,000

Total Issued Shares

445,600

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

114,783,851,191

114,653,563,633

104,459,955,431

Current Assets

79,362,891,899

78,322,125,810

79,073,296,732

Cash & Cash Equivalents

25,115,806,600

10,487,102,281

17,819,934,357

Trade Receivables & Other Receivables

38,035,679,973

46,416,190,850

42,343,164,134

Current Financial Instruments

3,328,328,880

3,340,000,000

-

Other Current Assets

110,822,849

274,137,565

311,258,946

Inventories

12,772,253,597

17,804,695,114

18,598,939,295

Non-Current Assets

35,420,959,292

36,331,437,823

25,386,658,699

Trade Payables & Other Payables

1,458,468,000

1,802,136,000

 

Tangibles

22,688,900,613

23,397,862,424

22,551,567,132

Intangibles

487,903,907

487,903,907

487,903,907

Non-Current Financial Instruments

595,277,578

453,126,298

432,760,660

Other Non-Current Assets

 

 

1,914,427,000

Investment_Subsidiaries

10,190,409,194

10,190,409,194

-

Total Liabilities

30,560,446,514

31,348,757,006

38,299,475,985

Current Liabilities

29,042,407,806

29,680,012,516

36,556,442,903

Trade Payables & Other Payables

26,315,076,606

27,763,749,817

33,198,522,561

Accrued Income Tax

1,999,230,449

803,636,746

3,030,585,574

Other Current Liabilities

728,100,751

1,112,625,953

327,334,768

Non-Current Liabilities

1,518,038,708

1,668,744,490

1,743,033,082

Other Non-Current Financial Debts

60,000,000

45,000,000

45,000,000

Confirmed Salaries

295,024,450

511,912,846

1,372,289,231

Deferred Income Tax Credit

1,163,014,258

1,111,831,644

325,743,851

Capital Stock

4,456,000,000

4,456,000,000

3,840,000,000

Capital Surplus

5,591,909,553

5,591,909,553

47,904,800

Profit Surplus

74,175,495,124

73,256,897,074

62,272,574,646

Total Equity

84,223,404,677

83,304,806,627

66,160,479,446

Liab. & Shareholder’s Equity

114,783,851,191

114,653,563,633

104,459,955,431

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

153,665,499,448

201,598,188,961

205,328,337,471

Cost of Sold Goods

128,039,947,672

172,316,876,080

174,393,406,452

Gross Profit

25,625,551,776

29,281,312,881

30,934,931,019

Selling & Admin. Expenses

10,234,927,030

10,763,450,898

10,269,282,346

Operating Income

15,390,624,746

18,517,861,983

20,665,648,673

Other Income

146,361,203

163,375,764

225,077,702

Other Expenses

59,317,279

87,323,164

133,356,874

Finance Income

2,221,164,009

1,075,177,662

1,796,858,123

Finance Expenses

2,330,053,378

1,763,049,053

954,588,896

Income Before Taxes

15,368,779,301

17,906,043,192

21,599,638,728

Income Taxes Expenses

3,190,733,614

3,921,720,764

5,090,143,038

Net Income

12,178,045,687

13,984,322,428

16,509,495,690

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

23,482,394,932

12,679,610,961

21,215,743,853

Net Income

12,178,045,687

13,984,322,428

 

Adjustment

5,707,650,348

7,051,820,656

 

Changes in Asset/ & Liability

7,170,955,995

-3,550,854,073

 

Interests Received

578,573,942

556,903,749

573,670,948

Interests Paid

 

 

-2,888,154

Income Taxes

-2,152,831,040

-5,362,581,799

-5,205,138,109

Cash Flows from Investing

-2,987,578,788

-16,491,064,091

-1,928,592,344

Cash Flows from Financing

-5,840,000,000

-3,000,000,000

-11,272,990,000

Increase/Decrease in Cash

14,654,816,144

-6,811,453,130

8,014,161,509

Cash at the Beginning of Year

10,487,102,281

17,819,934,357

9,806,395,320

Cash at the End of Year

25,115,806,600

10,487,102,281

17,819,934,357

 

 

Products, Technologies, Services Description

 

Main Products & Services

Flux Cared Wire, Submerged ARC Welding

 

 

Trade Partners & Competitors

 

Competitors

KISWEL CO., LTD.

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

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

 

CHEGIM WELDING CO., LTD.

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

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

 

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

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

SEAH HOLDINGS CORP(110111-2276809)

SEAH STEEL CORPORATION(110111-0118996)

SEAH METAL CO., LTD.(194311-0003292)

SEAH SPECIAL STEEL CO., LTD.(174611-0005478)

SEAH BESTEEL CORPORATION(110111-0035794)

KANG NAM CITY GAS CO., LTD.(110111-0385199)

KOREA BUNDY CORP.(134711-0001266)

ESAB SEAH CORP.(180111-0059047)

SEAH LOGISTICS CORP.(151111-0000847)

SEAH ENT CO., LTD(110111-0740707)

SEAH INVESTMENT DEVELOPMENT CO., LTD(120111-0039489)

SEAH COMMUNICATIONS CO., LTD.(110111-0862519)

SEAH INFORMATION SYSTEM CO., LTD.(110111-0613855)

DREAMLINE CORPORATION(110111-1447021)

SEAH TECHNICS CO., LTD.(110111-1243875)

SEAH SOLAR SYSTEMS CO., LTD.(110111-3788655)

HAIDUK CORPORATION(110111-0038011)

HAIDUK STEEL CO.,LTD(110111-2121145)

HOYEON TOURIST LEISURE INDUSTRY CO., LTD(131411-0176612)

SEAHBNK CO.,LTD.(135111-0084924)

OSAN PRECISION CORP.(131311-0029293)

Affiliates-Overseas

ESAB ASIA PACIFIC PTE.

ESAB WELDING & CUTTING PRODUCTS

ESAB MIDDLE EAST FZE

ESAB INDUSTRIA E COMERCIO LTA

ESAB CHILE S.A

ESAB INDIA LIMITED

ESAB GMBH

ESAB AFRICA WELDING AND CUTTING (PTY) LTD

SIAM ESAB WELDING AND CUTTING LTD

ESAB K.K.

CONARCO ALAMBRES Y SOLDADURAS S.A.

ESAB (MALAYSIA) SDN BHD

PT. ESABINDO PRATAMA

ESAB GROUP, INC.

ESAB WELDING PRODUCTS (JIANGSU) CO.

Overseas Office

OSAKA, JAPAN OFFICE

SEAH JAPAN CORP.

SHINOSAKA-EKIMAE-SUEHIRO BLDG 701, 7-6-12, NISHINAKAJIMA, YODOGAWAKU, OSAKA, JAPAN 532-0011

TEL:+81-6-6838-8782~3 FAX:+81-6-6838-8784

Subsidiary

ESAB SEAH WELDING PRODUCT YANTAI CO., LTD.(CHINA)

(100.0% held by the subject company)

Corporate Ownership

CHARTER INTERNATIONAL PLC.

EXELVIA HOLDINGS B.V.

Major Shareholders

SEAH HOLDINGS CORP(110111-2276809)

EXELVIA HOLDINGS B.V.

Cooperative Enterprise

-Insured Company

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

ACE AMERICAN FIRE & MARINE INSURANCE CO., LTD.(110181-0007423)

LIG INSURANCE CO., LTD.(110111-0017859)

 

-Technical support(Flux Cored Welding Wires) from

ALLOY RODS GLOBAL INCORPORATION

 

-Welding Rods Processing Agreement with

MIJU CO., LTD.(180111-0272277)

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

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 :

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.