MIRA INFORM REPORT

 

 

Report No. :

354129

Report Date :

08.12.2015

 

IDENTIFICATION DETAILS

 

Name :

ACE VALVE COMPANY LIMITED

 

 

Registered Office :

1-12, Somang-Gil, Juchon-Myeon, Gimhae-Si, Gyeongsangnam-Do, Korea 50969

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

20.04.2000

 

 

Com. Reg. No.:

615-81-13140

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Taps, Valves and Similar Products.

(Ball Valve, Butterfly Valve, Globe Valve, Gate Valve, Check Valve, Air Vacuum Relief Valve, Dismantling Joint, Damper Valve, Valve Remote Control System)

 

 

No. of Employees :

259

 

 

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

ACE VALVE COMPANY LIMITED

Registered Address

1-12, Somang-gil, Juchon-myeon, Gimhae-si, Gyeongsangnam-do, Korea

(Old Address System : 278-4, Mangdeok-ri, Juchon-myeon, Gimhae-si, Gyeongsangnam-do, Korea)

Building

 

Zip Code

50969

Tel

+82-55-310-8000  +82-55-329-0651

Fax

+82-55-329-0656~8

E-mail

acemoon@acevalve.co.kr

Website

www.acevalve.co.kr

Trading Address

Rm.302, Daesan Bldg., 8, Daeheung-ro 6-gil, Mapo-gu, Seoul, Korea

(Old Address System : Rm.302, Daesan Bldg., 494-85, Yonggang-dong, Mapo-gu, Seoul, Korea)

Tel

+82-2-3273-3344

Fax

+82-2-3273-3347

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Taps, Valves and Similar Products

  Main Business

Ball Valve, Butterfly Valve, Globe Valve, Gate Valve, Check Valve, Air Vacuum Relief Valve, Dismantling Joint, Damper Valve, Valve Remote Control System

  Sub Business

 

Established (mm/dd/yyyy)

04/20/2000

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Ball valves(40141607)

Sell

Valves(40141600)

Sell

Gate valves(40141613)

Sell

Globe valves(40141611)

 

 

CEO’s

 

Name

Koo Youn-Hoi

Address

Suite 18-502, 79, Danggam-ro, Busanjin-gu, Busan, Korea

Date of Birth

01/19/1949

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,000,000,000

Employees

259

Formation

Co., Ltd by Shares

Bank Details

Woori Bank

Kookmin Bank

Busan Bank

KEB Hana Bank

Korea Development Bank

Corporate Registered No.

184611-0039508

Business Registered No.

615-81-13140

Permit & Licenses

01/22/2014 KS Mark

01/11/2011 ISO 14001

08/31/2000 ISO 9001

 

Int’l Trade No.: 24025526

Shareholder Position

Name

Shares

%

KOO YOUN-HOI & HIS FAMILY

166,890

55.63

OTHERS

133,110

44.37

TOTAL

300,000

100.00

Company History

04/20/2000 Incorporated as the present name

12/31/2009 Increased capital to 3,000,000,000 KRW from 2,000,000,000 KRW

03/26/2014 Increased the authorized shares to 2,000,000 shares from 500,000 shares

07/29/2014 Designated as an INNO-BIZ Company

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Koo Youn-Hoi

Male

Korean

03/24/2009

Director

M/S.

Ko Ye-Young

Female

Korean

03/24/2009

Director

Mr.

Koo Ja-Won

Male

Korean

03/24/2012

Director

Mr.

Woo Dae-Gap

Male

Korean

03/24/2015

Director

Mr.

Koo Ja-Myung

Male

Korean

03/24/2015

Auditor

Mr.

Kim Seung-Sik

Male

Korean

03/24/2015

Supervisor

Mr.

Yoon Bo-Sub

Male

Korean

11/18/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

76,846,875,529

98,309,843,075

-36,480,503

2013

86,193,273,309

91,476,739,118

547,865,348

2012

118,798,185,135

85,484,984,952

3,143,638,388

2011

83,170,480,663

75,822,895,695

3,638,489,613

2010

62,419,489,273

48,854,394,389

3,488,320,089

 

 

Financial Description

 

Authorized Capital(KRW)

5,000,000,000

Paid-Up Capital(KRW)

3,000,000,000

Total Issued Shares

300,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

98,309,843,075

91,476,739,118

85,484,984,952

Current Assets

71,574,142,002

65,816,757,713

59,603,442,954

-Quick Assets

50,012,380,881

50,120,570,624

43,574,922,820

-Inventories

21,561,761,121

15,696,187,089

16,028,520,134

Fixed Assets

26,735,701,073

25,659,981,405

25,881,541,998

-Investment

949,739,334

488,872,784

571,380,112

-Tangibles

24,386,874,038

23,932,948,620

24,102,595,218

-Intangibles

236,047,701

34,620,001

10,476,668

-Others

1,163,040,000

1,203,540,000

1,197,090,000

Total Liabilities

76,020,241,111

69,150,656,651

63,406,767,833

Current Liabilities

64,637,597,011

43,282,723,888

38,383,077,436

Fixed Liabilities

11,382,644,100

25,867,932,763

25,023,690,397

Capital Stock

3,000,000,000

3,000,000,000

3,000,000,000

Capital Surplus

 

 

 

Profit Surplus

19,289,601,964

19,326,082,467

19,078,217,119

Capital Adjustment

 

 

 

Total Equity

22,289,601,964

22,326,082,467

22,078,217,119

Liab. & Shareholder’s Equity

98,309,843,075

91,476,739,118

85,484,984,952

 

Current Liabilities

64,637,597,011

43,282,723,888

38,383,077,436

Trade Payables

11,458,981,205

4,439,798,892

6,943,672,037

Account Payables

2,529,477,233

2,481,636,273

2,645,817,722

Withholdings

292,289,280

156,787,795

210,312,095

VAT Withhold

33,080,315

-

 

Advance Receipts

378,123,605

897,245,391

1,377,091,773

Short-Term Borrowings

32,231,982,155

31,720,596,209

25,000,000,000

Short-Term Borrowings to Shareholders/ Executives/ Employees

800,000,000

-

478,376,180

Accrued Expenses

1,241,561,954

1,386,659,328

1,667,807,629

Deferred Income Tax Credit

32,571,280

-

 

Current Portion of Debentures

-

2,000,000,000

-

Current Portion of Long-Term Debts

15,639,529,984

200,000,000

60,000,000

Fixed Liabilities

11,382,644,100

25,867,932,763

25,023,690,397

Long-Term Borrowings

378,054,461

16,546,160,926

19,564,511,133

Debentures

6,400,000,000

5,000,000,000

2,000,000,000

Provision for Severance & Retirement

4,554,272,682

4,308,271,837

3,445,679,264

Long-Term Account Payables

50,316,957

13,500,000

13,500,000

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

76,846,875,529

86,193,273,309

118,798,185,135

Cost of Sold Goods

65,541,358,694

77,143,540,815

105,505,553,151

Gross Profit

11,305,516,835

9,049,732,494

13,292,631,984

Selling & Admin. Expenses

7,018,905,774

9,892,514,100

8,836,600,042

Operating Income

4,286,611,061

-842,781,606

4,456,031,942

Non-Operating Income

1,459,395,078

4,506,343,842

3,665,132,200

Non-Operating Expenses

5,495,912,312

3,046,201,978

4,139,532,774

Income Before Taxes

250,093,827

617,360,258

3,981,631,368

Income Taxes Expenses

286,574,330

69,494,910

837,992,980

Net Income

-36,480,503

547,865,348

3,143,638,388

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

1,499,504,773

-10,708,358,035

-9,312,711,862

-Net Income

-36,480,503

547,865,348

3,143,638,388

-Exp. without Cash Outflow

5,393,703,594

3,215,524,815

3,825,132,930

-Revenue without Cash Inflows

-1,083,907,041

-3,088,142,736

-2,679,366,788

-Changes in Asset/ & Liability

-2,773,811,277

-11,383,605,462

-13,602,116,392

Cash Flows from Investing

-2,416,419,609

-459,809,593

-3,712,282,630

-Cash Inflow from Investing

614,228,570

1,037,335,436

1,665,100,130

-Cash Outflows for Investing

-3,030,648,179

-1,497,145,029

-5,377,382,760

Cash Flows from Financing

965,743,041

11,260,596,209

12,593,500,000

-Cash Inflows from Financing

3,188,202,903

11,720,596,209

13,013,500,000

-Cash Outflows from Financing

-2,222,459,862

-460,000,000

-420,000,000

Increase/Decrease in Cash

48,828,205

92,428,581

-431,494,492

Cash at the Beginning of Year

135,117,224

42,688,643

474,183,135

Cash at the End of Year

183,945,429

135,117,224

42,688,643

 

 

Products, Technologies, Services Description

 

Main Products & Services

Ball Valve, Butterfly Valve, Globe Valve, Gate Valve, Check Valve, Air Vacuum Relief Valve, Dismantling Joint, Damper Valve, Valve Remote Control System

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

KUMKANG VALVE MFG., CO., LTD.

79, DALSEONG2CHA 1-RO, GUJI-MYEON, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-581-4500~3  FAX:+82-53-581-4505

 

ALL MET CO., LTD.(135511-0129780)

2MA-507-1, SIHWA INDUSTRIAL COMPLEX, 2092-13, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-496-9611  FAX:+82-31-496-9612

 

S&S VALVE CO., LTD.

30, WONSI-RO, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-491-1747  FAX:+82-31-491-0618

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

 

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

KB INSURANCE CO., LTD.(110111-0017859)

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to Middle East, Europe, Asia and Africa.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----------

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.63

UK Pound

1

Rs.100.65

Euro

1

Rs.72.40

KRW

1

Rs.0.057

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

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.