MIRA INFORM REPORT

 

 

Report Date :

25.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ILJIN STEEL CORPORATION

 

 

Registered Office :

1746, Hoguk-ro, Imsil-eup, Imsil-gun, Jeollabuk-do, Korea

(Old Address System : 962, Ido-ri, Imsil-eup, Imsil-gun, Jeonbuk, Korea), 566-805

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.1973

 

 

Date of Incorporation :

16.05.1973

 

 

Com. Reg. No.:

138-81-05333

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

 

 

No. of Employees :

528

 

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)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

Basic Information

 

Basic

 

Company Name

ILJIN STEEL CORPORATION

(Ex. Company Name : ILJIN LIGHT METAL CO., LTD., “일진경금속()”)

(Korean Company Name : “일진제강()”)

Registered Address

1746, Hoguk-ro, Imsil-eup, Imsil-gun, Jeollabuk-do, Korea

(Old Address System : 962, Ido-ri, Imsil-eup, Imsil-gun, Jeonbuk, Korea)

Zip Code

566-805

Tel

+82-63-730-4584~5

Fax

+82-63-714-2029

E-mail

dukyou.lee@iljin.co.kr

Website

www.iljinsteel.com

Trading Address

906-1, Hogye 2-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

Tel

+82-31-452-4930~1

Fax

+82-31-452-9660

Other Address-Suwon Factory

446-1, Gwaerang-ri, Jeongnam-myeon, Hwaseong-si, Gyeonggi-do, Korea

Tel

+82-31-220-6900

Fax

+82-31-220-6906

Type

Export

Industry

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Cold Drawn Steel Tubes, Division for Special Shaped Bars, Bobbin, Seamless Tube

  Sub Business

Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

Established (mm/dd/yyyy)

05/16/1973

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Pipe(40142100)

Sell

Bobbins or bobbin holders(53141606)

Sell

Mechanical wire(31151800)

 

CEO’s

 

Name

Kim Young-Chan

Address

Suite 411-1702, 9, Sinbong 3-ro 12beon-gil, Suji-gu, Yongin-si, Gyeonggi-do, Korea

Date of Birth

07/02/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

1,938,000,000

Employees

528

Formation

Co., Ltd by Shares

A Company of ILJIN GROUP

Bank Details

Shinhan Bank-Mapo Branch

Korea Exchange Bank

Industrial Bank of Korea

Corporate Registered No.

134111-0008412

Business Registered No.

138-81-05333

Permit & Licenses

Int’l Trade No.: 520195

Shareholder Position

Name

Shares

%

HUR JIN-KYU

179,942

46.42

ILJIN MATERIALS CO., LTD.(214911-0003625)

75,126

19.38

HUR JAE-MYUNG

53,599

13.83

CHEOIN LEISURE CO., LTD.(131311-0074735)

26,714

6.89

OTHERS

52,219

13.47

TOTAL

387,600

100.00

Company History

05/16/1973 Incorporated as ILJIN LIGHT METAL CO., LTD.

06/23/2002 Decreased capital to 1,938,000,000 KRW from 2,000,000,000 KRW

08/01/2010 Changed company name to the present name

03/30/2012 Moved to the present HQ address from 906-1, Hogye 2-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Young-Chan

Male

Korean

07/31/2014

Director

Mr.

Hwang Nam-Yeon

Male

Korean

03/29/2006

Director

Mr.

Jung Hee-Won

Male

Korean

07/31/2014

Auditor

Mr.

Sung Kyung-Hyun

Male

Korean

03/25/2011

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

260,534,568,954

361,903,968,994

10,119,787,572

2012

165,003,599,722

338,187,958,587

16,358,338,465

2011

210,216,712,623

244,105,479,767

21,172,955,730

2010

157,320,594,497

178,230,980,207

11,321,538,821

2009

77,901,361,320

124,536,466,648

1,787,889,322

2008

102,480,933,756

98,168,646,257

820,133,335

2007

101,219,830,962

95,067,371,798

3,674,411,004

2006

71,114,507,984

80,304,714,989

4,641,915,738

 

Financial Description

 

Authorized Capital(KRW)

8,000,000,000

Paid-Up Capital(KRW)

1,938,000,000

Total Issues Shares

387,600

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

361,903,968,994

338,187,958,587

244,105,479,767

Current Assets

95,368,575,266

58,332,919,568

76,496,082,280

-Quick Assets

46,261,849,044

30,199,130,846

62,673,831,515

-Inventories

49,106,726,222

28,133,788,722

13,822,250,765

Fixed Assets

266,535,393,728

279,855,039,019

167,609,397,487

-Investment

68,862,590,352

80,167,522,699

43,909,084,617

-Tangibles

196,159,532,328

197,932,815,367

121,521,861,237

-Intangibles

705,873,694

604,943,599

968,823,339

-Others

807,397,354

1,149,757,354

1,209,628,294

Total Liabilities

201,144,182,712

178,656,157,758

122,416,462,830

Current Liabilities

150,262,078,875

116,561,708,514

104,146,601,971

Fixed Liabilities

50,882,103,837

62,094,449,244

18,269,860,859

Capital Stock

1,938,000,000

1,938,000,000

1,938,000,000

Capital Surplus

9,671,714,708

9,671,714,708

9,671,714,708

Profit Surplus

88,575,017,517

79,036,629,945

63,457,014,987

Capital Adjustment

60,575,054,057

68,885,456,176

46,622,287,242

Total Equity

160,759,786,282

159,531,800,829

121,689,016,937

Liab. & Shareholder’s Equity

361,903,968,994

338,187,958,587

244,105,479,767

 

Current Liabilities

150,262,078,875

116,561,708,514

104,146,601,971

Trade Payables

36,653,778,310

28,353,104,429

29,620,715,302

Short-Term Borrowings

54,362,591,063

50,170,633,823

5,431,655,727

Account Payables

26,135,520,390

24,068,560,107

47,312,188,890

Finance Lease Debts

599,059,032

562,611,775

-

Withholdings

228,957,501

516,721,189

202,568,570

Accrued Expenses

2,162,036,159

2,242,487,097

3,391,923,470

Advance Receipts

279,311,432

643,377,011

226,645,319

Advance Receipts-R&D

 

 

391,419,776

Accrued Income Tax

1,216,242,302

771,463,083

5,663,704,597

Current Portion of Long-Term Debts

28,624,582,686

9,232,750,000

9,976,450,000

Derivatives

 

 

1,929,330,320

Fixed Liabilities

50,882,103,837

62,094,449,244

18,269,860,859

Long-Term Borrowings

23,380,350,000

30,404,914,882

253,350,000

Long-Term Account Payables

1,555,768,000

1,067,306,000

387,684,000

Finance Lease Debts

5,919,992,693

6,519,051,725

-

Leasehold Deposit Received

145,000,000

130,000,000

130,000,000

Provision for Severance & Retirement

5,442,905,267

4,060,961,401

3,187,818,800

Deferred Income Tax Credit

14,550,380,948

20,028,954,012

14,475,322,684

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

260,534,568,954

165,003,599,722

210,216,712,623

Cost of Sold Goods

228,087,593,840

139,213,087,059

165,535,290,830

Gross Profit

32,446,975,114

25,790,512,663

44,681,421,793

Selling & Admin. Expenses

22,047,706,558

14,345,733,204

14,457,500,703

Operating Income

10,399,268,556

11,444,779,459

30,223,921,090

Non-Operating Income

14,878,461,682

11,456,920,270

7,143,349,041

Non-Operating Expenses

13,567,907,908

7,712,936,644

9,090,246,790

Income Before Taxes

11,709,822,330

15,188,763,085

28,277,023,341

Income Taxes Expenses

1,590,034,758

-1,169,575,380

7,104,067,611

Net Income

10,119,787,572

16,358,338,465

21,172,955,730

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

-1,522,561,518

2,069,986,569

35,361,324,508

-Net Income

10,119,787,572

16,358,338,465

21,172,955,730

-Exp. without Cash Outflow

17,313,430,047

10,423,213,420

8,584,216,113

-Revenue without Cash Inflows

-7,367,869,016

-3,603,758,496

-1,305,009,884

-Changes in Asset/ & Liability

-21,587,910,121

-21,107,806,820

6,909,162,549

Cash Flows from Investing

-16,126,667,957

-79,673,719,293

-38,653,827,181

-Cash Inflow from Investing

2,662,540,000

61,744,588,000

24,120,172,550

-Cash Outflows for Investing

-18,789,207,957

-141,418,307,293

-62,773,999,731

Cash Flows from Financing

17,149,222,154

76,212,367,063

754,257,600

-Cash Inflows from Financing

373,363,835,627

147,967,167,063

5,323,807,600

-Cash Outflows from Financing

-356,214,613,473

-71,754,800,000

-4,569,550,000

Increase/Decrease in Cash

500,007,321

1,391,365,661

2,538,245,073

Cash at the Beginning of Year

3,539,408,421

4,930,774,082

7,469,019,155

Cash at the End of Year

3,039,401,100

3,539,408,421

4,930,774,082

 

Products, Technologies, Services Description

 

Main Products & Services

Cold Drawn Steel Tubes, Division for Special Shaped Bars, Bobbin, ASWire, Seamless Tube

 

Trade Partners & Competitors

 

Suppliers

POSCO SPECIALTY STEEL CO., LTD.(194211-0025248)

HUSTEEL CO., LTD.(110111-0077283)

Customers

SEAH STEEL CORPORATION(110111-0118996)

MANDO CORPORATION(131311-0030042)

HYVA MECHANICS (YANGZHOU) CO., LTD.

LUMPI-BERNDORF DRAHT-UND SEILWERK GMBH.

VOLVO GROUP KOREA CO., LTD.(194211-0030164)

ILJIN ELECTRIC CO., LTD(134811-0159279)

Competitors

BNGSTEEL CO.,LTD(110111-0065395)

HYUNDAI STEEL COMPANY(120111-0001743)

TAIHAN ELECTRIC WIRE CO.,LTD(110111-0035835)

POONGSAN CORPORATION(120111-0018110)

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

ILJIN HOLDINGS CO., LTD.(120111-0011990)

ILJIN DIAMOND CO., LTD.(154511-0029242)

ILJIN ELECTRIC CO., LTD(134811-0159279)

ILJIN DISPLAY CO., LTD.(154511-0006076)

ILJIN COPPERFOIL CO., LTD.(214911-0003625)

ILJIN STEEL CORP.(134111-0008412)

ILJIN UNISCO CORP.(110111-0356455)

JEONJO TELEVISION CO., LTD.(210111-0018260)

ILJIN CAPITAL.CO., LTD(110111-0711279)

ITEK INVESTMENT CO., LTD.(110111-1877658)

SID CO., LTD(164811-0012679)

ILJIN MOTOR COMPANY(110111-1267031)

ILJIN PISA CO., LTD.(110111-1346489)

ILJIN C2C, LTD(110111-2587660)

ILJIN NETWORKS CO., LTD.(110111-2771677)

MAGMA TOOL CO., LTD.(210111-0028889)

ILJIN DSP CO., LTD.(131311-0074735)

BTIH(110111-2977126)

INITUS CO., LTD.(110111-1544687)

BIMED SYSTEM CO., LTD.(170111-0331190)

ILJIN DEVELOPMENT COMPANY CO., LTD(110111-3929077)

 

ILJIN LIFESCIENCE CO., LTD.(110111-4444727)

(72.99% held by the subject company)

 

NUB INTERNATIONAL CO., LTD.(110111-2957425)

(40.32% held by the subject company)

Affiliates-Overseas

HANAKA ILJIN JSC

ILJIN GLOBAL LTD.

ILJIN EUROPA S.R.L

ILJIN NETWORKS CO., LTD.(110111-2771677)

 

ILJIN STEEL AMERICA INC

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

HEUNGKUK FIRE & MARINE INSURANCE CO., LTD.(110111-0016728)

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.99.99

Euro

1

Rs.78.37

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

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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.