|
Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
EHWA
DIAMOND INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
374, Nambu-daero, Osan-si, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
22.01.1975 |
|
|
|
|
Com. Reg. No.: |
124-81-32942 |
|
|
|
|
Legal Form : |
Co., Ltd by Shares |
|
|
|
|
Line of Business : |
Manufacture of Saws, Saw Blades and Interchangeable Tools |
|
|
|
|
No. of Employees : |
706 |
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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Korea (South) |
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 |
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 |
|
Company
Name |
EHWA
DIAMOND INDUSTRIAL CO., LTD. (Korean Company Name : “이화다이아몬드공업(주)”) |
|
Registered Address |
374, Nambu-daero, Osan-si, Gyeonggi-do,
Korea |
|
Zip Code |
447-804 |
|
Tel |
+82-31-370-9000 |
|
Fax |
+82-31-370-9229 |
|
E-mail |
semi@ehwadia.co.kr;it@ehwadia.co.kr;tools@ehwadia.co.kr |
|
Website |
www.ehwadia.co.kr |
|
Trading Address |
374, Nambu-daero, Osan-si, Gyeonggi-do,
Korea (Old Address System : 520-2, Won-dong,
Osan-si, Gyeonggi-do, Korea) |
|
Tel |
+82-31-370-9290 |
|
Fax |
+82-31-372-2336 |
|
Other Address-Hwaseong Factory |
633-5, Song-ri, Dongtan-myeon, Hwaseong-si,
Gyeonggi-do, Korea |
|
Tel |
+82-31-370-9000 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Saws, Saw Blades and Interchangeable Tools |
|
Main Business |
Diamond Saw, Resin Bonded Wheel, Metal Bonded Wheel, Electroplated
Tools |
|
Established (mm/dd/yyyy) |
01/22/1975 |
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Saws(27111508) |
|
Sell |
Power drills(27112703) |
|
Sell |
Abrasive pads(31191505) |
|
Sell |
Cutting and crimping and punching tools(27111500) |
|
Sell |
Forming tools(27111600) |
|
Buy |
Industrial diamonds(54121801) |
|
Buy |
Graphite(11101507) |
|
Buy |
Paints and primers(31211500) |
|
Buy |
Abrasive stones(31191510) |
|
Buy |
Chemistry reagents or solutions(41116105) |
|
Buy |
Anti seize or anti stain compounds(15121515) |
|
Buy |
Drills(23153301) |
|
Buy |
Non ferrous alloy(11101711) |
CEO’s
|
Name |
Kim Soo-Kwang |
|
Address |
Suite 6-1307, Seobinggo-ro, Yongsan-gu,
Seoul, Korea |
|
Date of Birth |
04/14/1940 |
|
Title |
Chairman & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
Profiles
|
Capital (KRW) |
7,000,000,000 |
|||||||||||||||
|
Employees |
706 |
|||||||||||||||
|
Formation |
Co., Ltd by Shares |
|||||||||||||||
|
Bank Details |
Hana Bank Shinhan Bank Citibank, Korea |
|||||||||||||||
|
Corporate Registered No. |
134811-0003624 |
|||||||||||||||
|
Business Registered No. |
124-81-32942 |
|||||||||||||||
|
Permit & Licenses |
Int’l Trade No.: 864930 |
|||||||||||||||
|
Shareholder Position |
|
|||||||||||||||
|
Company History |
01/22/1975 Incorporated as the present name 05/06/2008 Acquired IDT CO., LTD. |
|||||||||||||||
|
|
|
Management
|
Job Description |
Title |
Name |
Sex |
Nationality |
Inauguration Date |
|
Chairman & CEO |
Mr. |
Kim Soo-Kwang |
Male |
Korean |
03/14/2014 |
|
President & CEO |
M/S. |
Kim Jae-Hee Christine |
Female |
USA |
06/04/2010 |
|
Director |
Mr. |
Choi Sung-Kook |
Male |
Korean |
03/15/2002 |
|
Director |
Mr. |
Hong Jae-Hyun |
Male |
Korean |
03/11/2005 |
|
Director |
Mr. |
Lee Se-Kwang |
Male |
Korean |
03/15/2010 |
|
Auditor |
Mr. |
Oh Sung-Yeon |
Male |
Korean |
03/22/2013 |
|
Supervisor |
Mr. |
Kang Dae-Shik |
Male |
Korean |
03/15/2010 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
2013 |
215,288,506,405 |
238,885,769,207 |
7,641,569,308 |
|
2012 |
209,588,928,786 |
250,528,237,982 |
8,924,481,826 |
|
2011 |
210,392,702,192 |
231,005,809,760 |
721,392,100 |
|
2010 |
193,022,383,724 |
189,379,304,691 |
7,636,474,236 |
|
2009 |
154,724,850,415 |
174,631,772,893 |
888,931,577 |
Financial
Description
|
Authorized Capital(KRW) |
12,000,000,000 |
|
Paid-Up Capital(KRW) |
7,000,000,000 |
|
Total Issued Shares |
1,400,000 |
|
Unit : Korean Won |
As of 12/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Total Assets |
238,885,769,207 |
250,528,237,982 |
231,005,809,760 |
|
Current Assets |
99,590,721,849 |
96,526,243,962 |
87,337,084,891 |
|
-Quick Assets |
72,871,848,978 |
70,955,669,329 |
62,070,875,014 |
|
-Inventories |
26,718,872,871 |
25,570,574,633 |
25,266,209,877 |
|
Fixed Assets |
139,295,047,358 |
154,001,994,020 |
143,668,724,869 |
|
-Investment |
56,804,954,815 |
62,850,346,031 |
62,400,096,386 |
|
-Tangibles |
81,253,013,465 |
89,560,274,361 |
79,438,209,955 |
|
-Intangibles |
428,980,625 |
522,163,125 |
615,345,625 |
|
-Others |
808,098,453 |
1,069,210,503 |
1,215,072,903 |
|
Total Liabilities |
124,758,365,893 |
139,780,284,654 |
128,528,204,836 |
|
Current Liabilities |
64,644,727,230 |
106,377,078,542 |
83,175,838,598 |
|
Fixed Liabilities |
60,113,638,663 |
33,403,206,112 |
45,352,366,238 |
|
Capital Stock |
7,000,000,000 |
7,000,000,000 |
7,000,000,000 |
|
Capital Surplus |
2,464,019,667 |
2,463,280,884 |
2,460,661,563 |
|
Profit Surplus |
99,730,160,516 |
92,438,591,208 |
84,554,395,675 |
|
Capital Adjustment |
4,933,223,131 |
8,846,081,236 |
8,462,547,686 |
|
Total Equity |
114,127,403,314 |
110,747,953,328 |
102,477,604,924 |
|
Liab. & Shareholder’s Equity |
238,885,769,207 |
250,528,237,982 |
231,005,809,760 |
|
Current
Liabilities |
64,644,727,230 |
106,377,078,542 |
83,175,838,598 |
|
Trade Payables |
16,899,596,427 |
12,515,245,858 |
17,532,951,125 |
|
Short-Term Borrowings |
25,784,150,925 |
53,283,480,000 |
43,598,739,300 |
|
Account Payables |
6,998,060,609 |
7,855,036,088 |
8,383,854,572 |
|
Advance Receipts |
509,658,313 |
7,804,863,521 |
392,961,135 |
|
Withholdings |
445,169,300 |
383,821,920 |
341,371,640 |
|
VAT Withhold |
2,580,582 |
2,318,537 |
347,334 |
|
Accrued Expenses |
758,842,560 |
783,999,546 |
8,649,196 |
|
Accrued Income Tax |
1,120,104,674 |
156,188,792 |
18,814,330 |
|
Current Portion of Long-Term
Debts |
12,008,563,840 |
23,477,124,280 |
12,760,158,719 |
|
Guarantee Deposit Withhold |
118,000,000 |
115,000,000 |
100,000,000 |
|
Derivatives |
|
|
37,991,247 |
|
Fixed
Liabilities |
60,113,638,663 |
33,403,206,112 |
45,352,366,238 |
|
Long-Term Borrowings |
52,720,831,720 |
25,837,305,720 |
40,643,230,000 |
|
Provision for Severance &
Retirement |
15,926,997,958 |
13,940,721,515 |
12,265,802,537 |
|
Deferred Income Tax Credit |
3,671,565,025 |
4,336,360,238 |
1,426,383,082 |
|
Long-Term Account Payables |
901,173,751 |
588,522,967 |
258,057,244 |
|
Unit : Korean Won |
As of 12/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Sales |
215,288,506,405 |
209,588,928,786 |
210,392,702,192 |
|
Cost of Sold Goods |
175,095,122,281 |
173,924,110,320 |
171,993,325,772 |
|
Gross Profit |
40,193,384,124 |
35,664,818,466 |
38,399,376,420 |
|
Selling & Admin. Expenses |
29,550,010,463 |
29,888,379,383 |
31,704,111,529 |
|
Operating Income |
10,643,373,661 |
5,776,439,083 |
6,695,264,891 |
|
Non-Operating Income |
8,312,101,490 |
21,135,090,806 |
7,980,834,837 |
|
Non-Operating Expenses |
9,712,303,153 |
12,306,024,866 |
13,463,367,630 |
|
Income Before Taxes |
9,243,171,998 |
14,605,505,023 |
1,212,732,098 |
|
Income Taxes Expenses |
1,601,602,690 |
5,681,023,197 |
491,339,998 |
|
Net Income |
7,641,569,308 |
8,924,481,826 |
721,392,100 |
|
Unit : Korean Won |
As of 12/31/2013 |
As of 12/31/2012 |
As of 12/31/2011 |
|
Cash Flows from Operating |
11,152,808,661 |
-2,458,299,556 |
2,158,972,049 |
|
-Net Income |
7,641,569,308 |
8,924,481,826 |
721,392,100 |
|
-Exp. without Cash Outflow |
14,237,955,226 |
14,803,330,013 |
15,574,680,737 |
|
-Revenue without Cash Inflows |
-2,817,744,906 |
-16,598,842,616 |
-1,875,226,863 |
|
-Changes in Asset/ & Liability |
-7,908,970,967 |
-9,587,268,779 |
-12,261,873,925 |
|
Cash Flows from Investing |
3,373,870,840 |
-4,118,461,359 |
-39,906,733,310 |
|
-Cash Inflow from Investing |
11,864,757,429 |
19,773,811,355 |
2,918,076,450 |
|
-Cash Outflows for Investing |
-8,490,886,589 |
-23,892,272,714 |
-42,824,809,760 |
|
Cash Flows from Financing |
-12,242,391,155 |
5,871,561,981 |
38,099,170,637 |
|
-Cash Inflows from Financing |
308,638,636,300 |
112,338,327,050 |
82,267,230,520 |
|
-Cash Outflows from Financing |
-320,881,027,455 |
-106,466,765,069 |
-44,168,059,883 |
|
Increase/Decrease in Cash |
2,284,288,346 |
-705,198,934 |
351,409,376 |
|
Cash at the Beginning of Year |
499,915,474 |
1,205,114,408 |
853,705,032 |
|
Cash at the End of Year |
2,784,203,820 |
499,915,474 |
1,205,114,408 |
Products,
Technologies, Services Description
|
Main Products & Services |
Diamond Saw, Resin Bonded Wheel, Metal Bonded Wheel, Electroplated
Tools |
Trade Partners
& Competitors
|
Customers |
ELIM CI CO.,
LTD.(135811-0134006) |
|
Competitors |
HWACHEON MACHINERY WORKS CO., LTD. 1022-7, BANGBAE 3-DONG, SEOCHO-GU, SEOUL,
KOREA TEL:+82-2-523-7766 FAX:+82-2-523-7767 DAEHWA INDUSTRIAL MACHINERY CO., LTD. 676-1,
NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA TEL:+82-54-979-3000 FAX:+82-54-979-3030 FUSO INDUSTRIAL MACHINERY CO., LTD. 385-3, DEOKPO 2-DONG, SASANG-GU, BUSAN,
KOREA TEL:+82-51-302-1771 FAX:+82-51-302-3112 |
Related Parties
(Subsidiaries, Joint-Venture & Affiliates)
|
Affiliates |
PYUNGTAIK INDUSTRIAL CO.,
LTD.(134711-0016158 ) (100.00% held by the subject company) SEOCHUN INDUSTRIAL CO., LTD.(KOREA) (100.00% held by the subject company) FUJIAN EHWA DIAMOND TOOLS CO., LTD. (100.00% held by the subject company) SHANGHAI EHWA MECHANICAL CO., LTD. (100.00% held by the subject company) EHWA DIAMOND (JAPAN) CO., LTD. (100.00% held by the subject company) EHWA EUROPE GMBH (100.00% held by the subject company) SIAM EHWA DIAMOND TOOLS CO., LTD. (49.00% held by the subject company) PT EHWA INDONESIA (99.00% held by the subject company) EHWA DIAMOND INDIA (100.00% held by the subject company) |
|
Subsidiary |
EHWADIAMOND TOOLS CO., LTD.(154311-0001525) (100.00% held by the subject company) WEIHAI XIANGGUANG MECHANICAL CO., LTD. (100.00% held by the subject company) |
|
Cooperative Enterprise |
-Insured Company SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078) MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328) DONGBU INSURANCE CO., LTD.(110111-0095285) |
Sales by Region (Activity & Markets)
The Subject deals with
the companies in Germany, USA, Italy, Japan, China and France.
Court Action
No.
--
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.82 |
|
|
1 |
Rs.98.14 |
|
Euro |
1 |
Rs.78.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.