MIRA INFORM REPORT

 

 

Report No. :

339192

Report Date :

28.08.2015

 

IDENTIFICATION DETAILS

 

Name :

SHINSEGAE L&B CO., LTD.

 

 

Registered Office :

2, Namdaemunsijang 10-gil, Jung-gu, Seoul, Korea, 04529, 16FL, Mesa Bldg.

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

18.12.2008

 

 

Com. Reg. No.:

104-86-18747

 

 

Legal Form :

Co., Ltd By Shares

 

 

Line of Business :

Wholesale of Alcoholic Beverages

 

 

No. of Employees :

174

 

 

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

SHINSEGAE L&B CO., LTD.

(Ex. Company Name : SHINSEGAE WINE CO., LTD.)

(Korean Company Name : “()신세계엘앤비”)

Registered Address

2, Namdaemunsijang 10-gil, Jung-gu, Seoul, Korea

Building

16FL, Mesa Bldg.

Zip Code

04529

Tel

+82-2-727-1685

Fax

+82-2-727-1979

E-mail

 

Website

 

Trading Address

16FL, Mesa Bldg., 2, Namdaemunsijang 10-gil, Jung-gu, Seoul, Korea

(Old Address System : 16FL, Mesa Bldg., 204, Hoehyeondong 1-ga, Jung-gu, Seoul, Korea)

Tel

+82-2-727-1972

Fax

+82-2-727-1979

Other Address

 

Tel

 

Fax

 

Type

Import

Industry

Wholesale of Alcoholic Beverages

  Main Business

Wine

  Sub Business

 

Established (mm/dd/yyyy)

12/18/2008

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Alcoholic beverages(50202200)

Sell

Spirits or liquors(50202206)

Sell

Wine(50202203)

 

 

CEO’s

 

Name

Kim Woon-A

Address

Suite 502-1605, 76, Donggureung-ro 85beon-gil, Guri-si, Gyeonggi-do, Korea

Date of Birth

03/21/1964

Title

President & CEO

Sex

Male

Nationality

Korean

Profiles

 

Capital (KRW)

12,000,000,000

Employees

174

Formation

Co., Ltd by shares

A Company of SHINSEGAE GROUP

Bank Details

Hana Bank

Corporate Registered No.

110111-4015338

Business Registered No.

104-86-18747

Permit & Licenses

N/A

Shareholder Position

Name

Shares

%

E-MART INC.(110111-4594952)

2,400,000

100.00

TOTAL

2,400,000

100.00

Company History

12/18/2008 Incorporated as SHINSEGAE WINE CO., LTD.

02/04/2009 Increased the authorized shares to 2,000,000 shares from 400,000 shares

02/05/2009 Increased capital to 6,000,000,000 KRW from 500,000,000 KRW

03/20/2009 Changed company name to the present name

02/06/2014 Moved to the present HQ address from Rm. 1401, Mesa Bldg., 204, Hoehyeondong 1-ga, Jung-gu, Seoul, Korea

03/14/2014 Increased the authorized shares to 9,000,000 shares from 2,000,000 shares

08/08/2014 Increased capital to 12,000,000,000 KRW from 6,000,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Woon-A

Male

Korean

03/15/2013

Director

Mr.

Kang Young-Tae

Male

Korean

12/31/2011

Director

Mr.

Kim Nak-Ho

Male

Korean

12/31/2011

Auditor

Mr.

Jeon Sang-Jin

Male

Korean

03/15/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2014

34,615,703,471

15,382,019,927

303,227,422

(*)2013

26,534,821,742

12,145,897,780

-183,002,605

2012

19,610,000,000

8,540,000,000

-774,000,000

2011

14,301,000,000

6,613,000,000

-1,420,000,000

2010

11,029,000,000

6,439,000,000

181,000,000

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

Financial Description

 

Authorized Capital(KRW)

45,000,000,000

Paid-Up Capital(KRW)

12,000,000,000

Total Issued Shares

2,400,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

 

Total Assets

15,382,019,927

12,145,897,780

 

Current Assets

14,924,845,312

11,913,558,984

 

Cash & Cash Equivalents

187,159,610

34,254,971

 

Trade Receivables & Other Receivables

2,228,600,126

2,033,366,449

 

Inventories

9,259,564,274

7,191,870,788

 

Other Current Assets

3,249,521,302

2,654,066,776

 

Non-Current Assets

457,174,615

232,338,796

 

Tangibles

176,602,465

34,904,409

 

Intangibles

94,931,690

98,774,797

 

Non-Current Financial Instruments

185,640,460

98,659,590

 

Total Liabilities

7,464,303,096

10,553,626,446

 

Current Liabilities

5,738,510,247

9,223,327,864

 

Trade Payables & Other Payables

5,722,784,692

3,758,738,839

 

Short-Term Borrowings

-

5,450,000,000

 

Other Current Financial Debts

15,725,555

14,589,025

 

Non-Current Liabilities

1,725,792,849

1,330,298,582

 

Confirmed Salaries

1,657,928,429

1,330,298,582

 

Other Non-Current Liabilities

67,864,420

-

 

Capital Stock

12,000,000,000

6,000,000,000

 

Capital Surplus

-120,138,000

-89,566,000

 

Profit Surplus

-3,962,145,169

-4,318,162,666

 

Total Equity

7,917,716,831

1,592,271,334

 

Liab. & Shareholder’s Equity

15,382,019,927

12,145,897,780

 

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

 

Sales

34,615,703,471

26,534,821,742

 

Cost of Sold Goods

20,311,239,334

15,531,073,287

 

Gross Profit

14,304,464,137

11,003,748,455

 

Selling & Admin. Expenses

14,003,788,531

10,997,133,229

 

Operating Income

300,675,606

6,615,226

 

Other Income

292,558,672

189,680,658

 

Other Expenses

58,794,633

37,674,869

 

Finance Income

118,109,639

71,360,769

 

Finance Expenses

349,321,862

412,984,389

 

Income Before Taxes

303,227,422

-183,002,605

 

Income Taxes Expenses

-

-

 

Net Income

303,227,422

-183,002,605

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

 

Operating Activities Cash Flows

-69,919,391

-3,095,545,263

 

Cash Flows from Operating

213,593,098

-2,800,037,475

 

Interests Paid

-283,658,526

-295,639,035

 

Interests Received

146,037

131,247

 

Cash Flows from Investing

-296,603,970

-72,832,349

 

Cash Flows from Financing

519,428,000

3,180,000,000

 

Increase/Decrease in Cash

152,904,639

11,622,388

 

Cash at the Beginning of Year

34,254,971

22,632,583

 

Cash at the End of Year

187,159,610

34,254,971

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Wine

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

SHINSEGAE CO., LTD.(110111-0028848)

THE WESTIN CHOSUN SEOUL(110111-0003999)

E-MART INC.(110111-4594952)

Competitors

TWIN WINE CO., LTD.

GOMAS BLDG., 123, HANNAM-DONG, YONGSAN-GU, SEOUL, KOREA

TEL:+82-2-3773-5137 FAX:+82-2-3773-5836

 

LOTTE-ASAHI LIQUOR CO., LTD.(110111-0530033)

11FL., DAEKAK BLDG., 1322-1, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-525-6263 FAX:+82-2-525-6454

 

DONGWON WINEPLUS CO., LTD.(131111-0090371)

4TH FL., DONGWON INDUSTRIES CO. BLDG., 275, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-589-3354  FAX:+82-2-589-3234

 

LES VINS DE MAEIL CO., LTD.(131111-0068980)

6FL., SAMHWAN BLDG., 98-5, UNNI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-2127-9864  FAX:+82-2-3675-6296

 

NARA FOOD CO., LTD.(110111-1407182)

62, MUNJEONG 1-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-405-4300  FAX:+82-2-405-4302

 

SHINDONG WINE CO., LTD.(110111-0744072)

2ND FL., SINDONG BLDG., 726-164, HANNAM-DONG, YONGSAN-GU, SEOUL, KOREA

TEL:+82-2-794-4531  FAX:+82-2-794-4674

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SHINSEGAE CO., LTD.(110111-0028848)

E-MART INC.(110111-4594952)

SHINSEGAE UIJEONGBU STATION DEVELOPMENT CO., LTD.(110111-2670548)

SHINSEGAE SVN CO., LTD.(161511-0069091)

SHINSEGAE SIMON INC.(110111-3239228)

HANAM UNION SQUARE CO., LTD.(135711-0074452)

SHINSEGAE TOMBOY CO., LTD.(110111-0219497)

TOMBOY PLUS CO,. LTD.(110111-4682830)

CENTRAL CITY CO., LTD.(110111-0087612)

CENTRAL TOURIST DEVELOPMENT CO., LTD.( 110111-0652150)

CENTRAL CONSTRUCTION CO., LTD.(110111-1306607)

SHINSEGAE INVESTMENT DEVELOPMENT CO., LTD.(110111-5027671)

SEOUL EXPRESS BUS TERMINAL CO., LTD.(110111-0187644)

VIDI VICI COSMETIC CO., LTD.(110111-2759889)

SHINSEGAE DONGDAEGU CTC CO., LTD.(170111-0459570)

EVERYDAY RETAIL CO., LTD.(110111-0167498)

SM CO., LTD.(115611-0015973)

SHINSEGAE RESORT CO., LTD.(141311-0010513)

SHINSEGAE PAYMENTS CO., LTD.(110111-5209196)

SHINSEGAE PROPERTY INC.(110111-5284198)

WITHME FS CO., LTD.(110111-3419515)

Corporate Ownership

 

Major Shareholders

E-MART INC.(110111-4594952)

Cooperative Enterprise

 

 


Sales by Region (Activity & Markets)

 

The Subject imports from Australia, New Zealand, South Africa, Belgium, Chile and France.

 

 

Court Action

 

No.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.06

UK Pound

1

Rs.102.35

Euro

1

Rs.74.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.