MIRA INFORM REPORT

 

 

Report No. :

335309

Report Date :

06.08.2015

 

IDENTIFICATION DETAILS

 

Name :

ADS RAIL CO., LTD.

 

 

Registered Office :

85, Chunhwa-ro, Bubuk-myeon, Miryang-si, Gyeongsangnam-do, Korea, 627-852

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

08.07.1991

 

 

Com. Reg. No.:

615-81-05975

 

 

Legal Form :

Co., Ltd by Shares

A Company of Hankuk Fiber Group

 

 

Line of Business :

Manufacture of Locomotives Parts and Related Equipment, Synthetic Resin, Construction Works

 

 

No. of Employees :

63

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 


Basic Information

 

Company Name

ADS RAIL CO., LTD.

(Korean Company Name : “()에이디에스레일”)

Registered Address

85, Chunhwa-ro, Bubuk-myeon, Miryang-si, Gyeongsangnam-do, Korea

Building

 

Zip Code

627-852

Tel

+82-55-359-2052

Fax

+82-55-353-4924

E-mail

limb@kfiber-x.com

Website

 

Trading Address

85, Chunhwa-ro, Bubuk-myeon, Miryang-si, Gyeongsangnam-do, Korea

(Old Address System : 181-1, Yongji-ri, Bubuk-myeon, Miryang-si, Gyeongsangnam-do, Korea)

Tel

+82-55-359-2052

Fax

+82-55-353-4924

Other Address-2nd Factory

693, Sangnam-ro, Sangnam-myeon, Miryang-si, Gyeongsangnam-do, Korea

(Old Address System : 377-8, Yeon-geum-ri, Sangnam-myeon, Miryang-si, Gyeongsangnam-do, Korea)

Tel

 

Fax

 

Other Address-Uiwang Factory

Rm.303, Daeyoung Valley, 257, Gyeongsu-daero, Uiwang-si, Gyeonggi-do, Korea

(Old Address System : Rm.303, Daeyoung Valley, 290-2, Gocheon-dong, Uiwang-si, Gyeonggi-do, Korea)

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Locomotives Parts and Related Equipment, Synthetic Resin, Construction Works

  Main Business

Train Door Panel, Door Engine, Interior Panel, Locomotives Door System, HVAC, Steel Structure, Synthetic Resin, Glass Fiber

  Sub Business

 

Established (mm/dd/yyyy)

07/08/1991

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Doors(30171500)

Sell

Panels or panelling(30161505)

Sell

Glass fibers(11151512)

 

 

CEO’s

 

Name

Cho Gye-Chan

Address

85, Chunhwa-ro, Bubuk-myeon, Miryang-si, Gyeongsangnam-do, Korea

Date of Birth

04/21/1970

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

4,572,030,000

Employees

63

Formation

Co., Ltd by Shares

A Company of Hankuk Fiber Group

Bank Details

Korea Exchange Bank

Gyungnam Bank

Corporate Registered No.

180111-0116350

Business Registered No.

615-81-05975

Permit & Licenses

08/2005 ISO 9001

 

Int’l Trade No.: 901408

Shareholder Position

Name

Shares

%

CHO GYE-CHAN

914,406

100.00

TOTAL

914,406

100.00

Company History

07/08/1991 Incorporated as ACM Corporation

06/20/2002 Changed company name to ACM CO., LTD.

05/28/2003 Moved to the present HQ address from 384, Yeon-geum-ri, Sangnam-myeon, Miryang-si, Gyeongsangnam-do, Korea

06/20/2003 Changed company name to the present name

11/07/2008 Increased the authorized shares to 2,000,000 shares from 1,000,000 shares

09/11/2013 Split off and established YOUNG-NAM ALPS ICE VALLEY CABLE CAR CO., LTD.(191311-0022245)

12/30/2014 Increased capital to 4,572,030,000 KRW from 2,572,030,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Cho Gye-Chan

Male

Korean

01/19/2004

Director

M/S.

Park Kyung-Ae

Female

Korean

03/27/2015

Director

Mr.

Shin Jin-Ho

Male

Korean

03/27/2015

Auditor

Mr.

Park Jang-Ho

Male

Korean

03/30/2012

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

13,493,438,618

11,479,676,805

-5,668,479,971

2013

9,199,668,666

13,088,102,386

-1,809,616,817

2012

15,303,321,229

29,458,538,309

-102,289,067

2011

16,048,487,553

25,712,922,870

-526,576,436

2010

15,924,885,043

16,271,547,803

981,709,440

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

4,572,030,000

Total Issued Shares

914,406

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

11,479,676,805

13,088,102,386

29,458,538,309

Current Assets

8,803,930,423

10,715,620,201

9,909,327,311

-Quick Assets

4,481,639,601

7,041,583,179

7,273,235,038

-Inventories

4,322,290,822

3,674,037,022

2,636,092,273

Fixed Assets

2,675,746,382

2,372,482,185

19,549,210,998

-Investment

621,609,920

621,389,920

503,564,920

-Tangibles

1,391,360,692

931,038,463

18,129,470,966

-Intangibles

282,775,770

440,053,802

536,175,112

-Others

380,000,000

380,000,000

380,000,000

Total Liabilities

11,361,763,059

9,301,708,669

20,964,974,796

Current Liabilities

6,872,186,378

8,601,932,246

14,804,922,040

Fixed Liabilities

4,489,576,681

699,776,423

6,160,052,756

Capital Stock

4,572,030,000

2,572,030,000

4,200,000,000

Capital Surplus

 

 

 

Profit Surplus

-3,184,533,275

2,483,946,696

4,293,563,513

Capital Adjustment

-1,269,582,979

-1,269,582,979

-

Total Equity

117,913,746

3,786,393,717

8,493,563,513

Liab. & Shareholder’s Equity

11,479,676,805

13,088,102,386

29,458,538,309

 

Current Liabilities

6,872,186,378

8,601,932,246

14,804,922,040

Trade Payables

2,505,346,993

1,839,250,462

1,580,074,618

Short-Term Borrowings

-

5,000,000,000

8,300,000,000

Account Payables

894,189,033

998,347,881

2,104,032,383

Advance Receipts

2,510,813,886

190,476,857

810,229,020

Withholdings

184,456,397

204,570,287

238,067,767

Accrued Expenses

402,380,069

369,286,759

472,511,252

Current Portion of Long-Term Debts

375,000,000

-

1,300,007,000

Fixed Liabilities

4,489,576,681

699,776,423

6,160,052,756

Long-Term Borrowings

1,625,000,000

-

5,449,993,000

Leasehold Deposit Received

40,000,000

40,000,000

50,000,000

Provisions

2,168,000,000

-

 

Provision for Severance & Retirement

656,576,681

659,776,423

660,059,756

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

13,493,438,618

9,199,668,666

15,303,321,229

Cost of Sold Goods

12,998,815,122

9,682,188,992

14,334,639,631

Gross Profit

494,623,496

-482,520,326

968,681,598

Selling & Admin. Expenses

5,725,624,304

863,695,520

649,920,120

Operating Income

-5,231,000,808

-1,346,215,846

318,761,478

Non-Operating Income

151,311,163

248,307,386

173,739,204

Non-Operating Expenses

588,790,326

711,708,357

789,667,539

Income Before Taxes

-5,668,479,971

-1,809,616,817

-297,166,857

Income Taxes Expenses

-

-

-194,877,790

Net Income

-5,668,479,971

-1,809,616,817

-102,289,067

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

1,314,791,066

-1,695,924,924

1,178,223,696

-Net Income

-5,668,479,971

-1,809,616,817

-102,289,067

-Exp. without Cash Outflow

4,225,696,061

1,305,804,462

713,644,143

-Changes in Asset/ & Liability

2,757,574,976

-1,192,112,569

566,868,620

Cash Flows from Investing

-244,247,706

-2,447,221,881

-7,598,856,570

-Cash Inflow from Investing

979,780,118

1,444,938,955

814,927,160

-Cash Outflows for Investing

-1,224,027,824

-3,892,160,836

-8,413,783,730

Cash Flows from Financing

-1,104,158,848

3,862,251,678

5,888,108,213

-Cash Inflows from Financing

16,257,064,810

13,289,042,659

27,238,306,684

-Cash Outflows from Financing

-17,361,223,658

-9,426,790,981

-21,350,198,471

Increase/Decrease in Cash

33,615,488

280,895,127

-532,524,661

Cash at the Beginning of Year

271,341,176

552,236,303

1,084,760,964

Cash at the End of Year

237,725,688

271,341,176

552,236,303

 

 

Products, Technologies, Services Description

 

Main Products & Services

Train Door Panel, Door Engine, Interior Panel, Locomotives Door System, HVAC, Steel Structure, Synthetic Resin, Glass Fiber

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

HANKUK CARBON CO., LTD.(180111-0054691)

Customers

HANKUK FIBER GLASS CO., LTD.(180111-0027359)

TAELIM CO., LTD.(191311-0017535)

YOUNG-NAM ALPS ICE VALLEY CABLE CAR CO., LTD.(191311-0022245)

Competitors

PLAKOR CO., LTD.

536, BUGYANG-DONG, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-369-8400  FAX:+82-31-355-7039

 

KWANG WON I & D CO., LTD.

45, SACHANG-RI, YANGGAM-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-353-3245  FAX:+82-31-353-4146

 

DONG YANG CO., LTD.

858-1, EOGOK-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-367-2311  FAX:+82-55-367-2316

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HANKUK CARBON CO., LTD.(180111-0054691)

HANKUK FIBER GLASS CO., LTD.(180111-0027359)

HANKUK ADVANCED MATERIALS CO., LTD.(191311-0000564)

WORLD CO., LTD.(191311-0001075)

ILSAN CARBON CO., LTD.(115611-0021110)

TAELIM CO., LTD.(191311-0017535)

YOUNG-NAM ALPS ICE VALLEY CABLE CAR CO., LTD.(191311-0022245)

Major Shareholders

 

Cooperative Enterprise

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

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

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

Court Action

 

No.

 

 

News Clipping

 

-------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.99.15

Euro

1

Rs.69.31

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.