MIRA INFORM REPORT

 

 

Report No. :

336053

Report Date :

10.08.2015

 

IDENTIFICATION DETAILS

 

Name :

ILSHIN SPINNING CO., LTD.

 

 

Registered Office :

11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Ilshin Bldg., Korea 07237

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

03.11.1951

 

 

Com. Reg. No.:

116-81-40780

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Export and Import of Cotton spun yarn, P/C blended spun yarn, P/C blended fabric, Combed Cotton Yarns, Melange Yarns, Core Spun Yarns, Blended Yarns, OE Yarns, Dyed Yarns, Dyed Fabrics, Cotton Fabrics, Knitted Fabrics, Modal Yarn.

 

 

No. of Employees :

1,100

 

 

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 – 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

ILSHIN SPINNING CO., LTD.

Registered Address

11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Korea

Building

Ilshin Bldg.

Zip Code

07237

Tel

+82-2-3774-0114

Fax

+82-2-786-5891~4

E-mail

grchoi@ilshin.co.kr;cwlee@ilshin.co.kr;donghkim@ilshin.co.kr

Website

www.ilshin.co.kr

Trading Address

11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Korea

(Old Address System : 15-15, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea(C.P.O.BOX 91))

Tel

+82-2-3774-0114

Fax

+82-2-786-5891~4

Other Address-Gwangju Factory

100, Im-dong, Buk-gu, Gwangju, Korea

Tel

+82-62-510-5111

Fax

+82-62-570-5105

Other Address-Gwangju Factory II

879-4, Ok-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-62-600-5300

Fax

+82-62-600-5305

Other Address-Cheongwon Factory

231-1, Seongsan-ri, Ochang-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-219-3114

Fax

+82-43-219-3119

Other Address-Banwol Factory

644-1, Choji-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-489-4604~5

Fax

+82-31-489-4600

Type

Export/Import

Industry

Cotton Spinning

  Main Business

Cotton spun yarn, P/C blended spun yarn, P/C blended fabric, Combed Cotton Yarns, Melange Yarns, Core Spun Yarns, Blended Yarns, OE Yarns, Dyed Yarns, Dyed Fabrics, Cotton Fabrics, Knitted Fabrics, Modal Yarn

  Sub Business

 

Established (mm/dd/yyyy)

11/03/1951

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Yarns(11151700)

-Garment Use Yarns spun with raw cotton & top dyed fibre.

Sell

Cotton fabrics(11161700)

Sell

Knit synthetic fabrics(11161804)

Sell

Dyeing or printing or finishing services(73141706)

Sell

Threads(11151600)

Sell

Synthetic fabrics(11161800)

Buy

Cotton(11121802)

 

 

CEO’s

 

Name

Kim Young-Ho

Address

 

Date of Birth

03/09/1944

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

12,000,000,000

Employees

1,100

Formation

Listed Company (Korea Stock Exchange : 003200 ) as of 03/1999

A company of ILSHIN SPINNING CO., LTD.

Bank Details

Citi Bank, Korea-Seo Yoido Branch

Shinhan Bank

Corporate Registered No.

110111-0041717

Business Registered No.

116-81-40780

Permit & Licenses

01/2000 ISO 9002

 

Int’l Trade No.: 672139

Shareholder Position

Name

Shares

%

KIM YOUNG-HO

495,141

20.63

KB ASSET MANAGEMENT CO., LTD.(110111-0572556)

274,819

11.45

SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)

205,591

8.57

NATIONAL PENSION SERVICE(110171-0007134)

221,013

9.21

KIM JUNG-SOO

132,339

5.51

ILSHIN CULTURE FOUNDATION(111222-0005624)

120,000

5.00

TREASURY STOCK

55,748

2.32

OTHERS

895,349

37.31

TOTAL

2,400,000

100.00

Company History

11/03/1951 Incorporated as the present name

03/1995 Awarded The Presidential Prize on the Tax Day

04/2004 Awarded The Commissioner Prize of National Tax Office on the Tax Day

 

 


 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Kim Young-Ho

Korean

1944-03-09

New York Pratt Institute, USA

President & CEO

Mr.

Kim Jung-Soo

Korean

1963-06-15

University of Biola, USA

Executive Director

Mr.

Kim Jung-Kil

Korean

1959-09.

Seoul National University, Korea

Director

Mr.

Ko Jeong-Seock

Korean

1957-05-22

Seoul National University, Korea

Outside Director

Mr.

Shin Young-Moo

Korean

1944-03-02

Seoul National University, Korea

Outside Director

Mr.

Song Ja

Korean

1936-12-02

Yonsei University, Korea

Auditor

Mr.

Jeong Young-Sik

Korean

1959-09-16

Seogang University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

80,483,501,549

561,503,615,727

2,996,527,789

(*)2014

310,813,495,944

562,635,014,940

5,966,073,468

(*)2013

311,084,146,123

554,797,863,642

16,321,684,923

(*)2012

326,933,867,026

533,630,133,141

-12,191,133,858

2011

380,131,312,496

570,909,115,439

1,101,455,649

2010

374,483,214,849

601,433,022,867

46,626,986,390

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

 

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

12,000,000,000

Total Issued Shares

2,400,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

561,503,615,727

562,635,014,940

554,797,863,642

Current Assets

172,540,946,939

172,296,338,600

176,829,033,519

Cash & Cash Equivalents

4,501,241,883

6,672,968,901

6,697,725,843

Trade Receivables & Other Receivables

43,906,615,091

43,759,120,962

39,574,164,113

Inventories

65,093,323,012

61,974,809,476

59,149,383,330

Current Financial Instruments

58,513,438,277

59,344,182,330

70,112,069,753

Other Current Assets

526,328,676

545,256,931

1,295,690,480

Non-Current Assets

388,962,668,788

390,338,676,340

377,968,830,123

Investment_Subsidiaries

127,590,539,670

127,590,539,670

112,847,645,207

Other Investment

9,899,640,080

9,899,640,080

0

Tangibles

152,589,672,518

153,055,805,938

156,884,485,036

Investment_Real Estates

82,379,860,083

82,697,717,914

85,631,758,474

Intangibles

801,013,046

803,815,696

835,626,295

Non-Current Financial Instruments

15,043,400,664

15,632,614,315

21,037,949,384

Other Non-Current Assets

658,542,727

658,542,727

731,365,727

Total Liabilities

79,030,201,938

78,590,476,338

71,738,208,107

Current Liabilities

53,666,945,652

50,792,700,705

42,147,951,772

Short-Term Borrowings

24,568,249,429

23,843,828,252

19,628,206,942

Trade Payables & Other Payables

27,493,917,852

25,835,253,666

20,613,982,840

Accrued Income Tax

1,604,778,371

1,113,618,787

1,905,761,990

Non-Current Liabilities

25,363,256,286

27,797,775,633

29,590,256,335

Long-Term Trade Payables & Other Long-Term Payables

8,934,387,242

8,912,602,273

9,087,171,575

Long-Term Borrowings

4,359,403,531

6,535,841,304

7,324,264,028

Deferred Income Tax Credit

12,069,465,513

12,349,332,056

13,178,820,732

Capital Stock

12,000,000,000

12,000,000,000

12,000,000,000

Capital Surplus

1,757,000,000

1,757,000,000

1,757,000,000

Others

12,091,365,564

12,556,570,166

12,844,836,567

Profit Surplus

456,625,048,225

457,730,968,436

456,457,818,968

Total Equity

482,473,413,789

484,044,538,602

483,059,655,535

Liab. & Shareholder’s Equity

561,503,615,727

562,635,014,940

554,797,863,642

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

80,483,501,549

310,813,495,944

311,084,146,123

Cost of Sold Goods

75,696,950,891

296,648,191,655

283,409,064,089

Gross Profit

4,786,550,658

14,165,304,289

27,675,082,034

Selling & Admin. Expenses

2,848,578,180

10,731,702,077

10,902,229,397

Operating Income

1,937,972,478

3,433,602,212

16,772,852,637

Finance Income

2,204,476,127

5,240,090,027

5,226,746,107

Finance Expenses

337,094,399

1,945,015,717

1,160,226,154

Other Income

304,503,771

2,770,188,570

2,276,462,108

Other Expenses

263,304,056

1,879,227,078

2,608,994,742

Income Before Taxes

3,846,553,921

7,619,638,014

20,506,839,956

Income Taxes Expenses

850,026,132

1,653,564,546

4,185,155,033

Net Income

2,996,527,789

5,966,073,468

16,321,684,923

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

3,718,997,737

13,944,507,401

21,474,781,785

Net Income

2,996,527,789

5,966,073,468

16,321,684,923

Adjustment

-673,670,621

7,766,463,264

2,520,582,393

Interests Received

430,569,729

2,150,472,825

1,737,491,920

Interests Paid

-51,699,750

-161,372,623

-224,748,271

Dividends Received

1,524,977,900

1,523,977,900

1,908,977,900

Income Taxes

-507,707,310

-3,301,107,433

-789,207,080

Cash Flows from Investing

-249,665,475

-11,352,304,709

-25,080,344,689

Cash Flows from Financing

-5,641,051,704

-2,617,102,463

6,270,311,409

Increase/Decrease in Cash

-2,171,727,018

-24,756,942

2,665,348,035

Cash at the Beginning of Year

6,672,968,901

6,697,725,843

4,032,377,808

Cash at the End of Year

4,501,241,883

6,672,968,901

6,697,725,843

 

 

Products, Technologies, Services Description

 

Main Products & Services

Combed yarns are The Subject Company's main products. The Subject Company is biggest combed cotton yarn spinning mill in Korea which has production capacity of 2,500 tons per month.

 

Brand Name : THREE STAR

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

TAE KWANG INDUSTRIAL CO., LTD.(110111-0185276)

DAENONG CORPORATION(110111-0138572)

CHONBANG CO.,LTD.(110111-0005664)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HIGEN MOTOR CO., LTD.(194211-0088197)

(26.53% held by the subject company)

 

ILSHIN INVESTMENT CO., LTD. (200111-0020308)

(85.5% held by the subject company)

 

ILSHIN INDUSTRY DEVELOPMENT CO., LTD.(110111-0790877)

(100.00% held by the subject company)

 

SHIN DONG COROPERATION(110111-0006159)

(100.00% held by the subject company)

 

SHIN DONG WINE CO., LTD.(110111-0744072)

(100.00% held by SHIN DONG COROPERATION(110111-0006159))

 

BSK CORPORATION(110111-1358616)

(10.1% held by the subject company)

 

ILSHIN VIETNAM CO.,LTD.(VIETNAM)

(100.00% held by the subject company)

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to USA, Asia and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

---------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.81

UK Pound

1

Rs.98.93

Euro

1

Rs.69.66

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

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.