MIRA INFORM REPORT

 

 

Report No. :

307026

Report Date :

09.02.2015

 

IDENTIFICATION DETAILS

 

Name :

LS METAL CO., LTD.

 

 

Registered Office :

159, Samseong 1-dong, Gangnam-gu, Seoul, Rm. 3802, Asem Tower, Zip Code 135-525

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

06.04.2010

 

 

Com. Reg. No.:

120-87-52157

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Engaged in Metal and Non-Ferrous Metal business from Copper Tube, Stainless Steel Pipe, Large Diameter & Heavy Wall Thickness, Alloy Pipe to Copper Alloy Plate

 

 

No of Employees :

303

 

 

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 :

Exists

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 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

 

Company Name

LS METAL CO., LTD.

(Korean Company Name : “엘에스메탈()”)

Registered Address

159, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Building

Rm. 3802, ASEM Tower

Zip Code

135-525

Tel

+82-2-6942-6114

Fax

+82-2-6942-6112

E-mail

kangss@lsmetal.biz

Website

www.lsmetal.biz

Trading Address

Rm. 3802, ASEM Tower, 159, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-6942-6114

Fax

+82-2-6942-6112

Type

Export/Import

  Main Business

Engaged in Metal and Non-Ferrous Metal business from Copper Tube, Stainless Steel Pipe, Large Diameter & Heavy Wall Thickness, Alloy Pipe to Copper Alloy Plate

Established (mm/dd/yyyy)

04/06/2010

 

The Subject Company occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Non ferrous alloy tubing(31231317)

Sell

Copper tubing(31231302)

 

 

CEO’s

 

Name

Han Jai-Hoon

Address

Suite 3-406, 66, Daechi-dong, Gangnam-gu, Seoul, Korea

Date of Birth

09/17/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

30,000,000,000

Employees

303

Formation

Co., Ltd by Shares

A company of LS Group

Bank Details

Woori Bank

Corporate Registered No.

110111-4321602

Business Registered No.

120-87-52157

Permit & Licenses

Int’l Trade No.: 45405488

Shareholder Position

Name

Shares

%

LS INDUSTRIAL SYSTEMS CO., LTD.(110111-0520076)

6,000,000

100.00

TOTAL

6,000,000

100.00

Company History

04/06/2010 Incorporated as the present name after spin off from LS INDUSTRIAL SYSTEMS CO., LTD.(110111-0520076)

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Han Jai-Hoon

Male

Korean

04/06/2010

Director

Mr.

Koo Cha-Kyun

Male

Korean

03/22/2013

Director

Mr.

Jung Choong-Hyun

Male

Korean

03/21/2014

Auditor

Mr.

Do Seok-Koo

Male

Korean

04/06/2010

Supervisor of HQ Office

Mr.

Park Dae-Kyu

Male

Korean

04/06/2010

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

397,462,023,179

293,772,943,742

2,080,282,046

2012

409,071,430,747

303,330,874,833

10,259,194,321

2011

478,796,954,764

283,812,133,308

8,007,025,946

2010

276,154,619,521

283,863,226,726

2,806,526,257

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

30,000,000,000

Total Issues Shares

6,000,000

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

293,772,943,742

303,330,874,833

283,812,133,308

Current Assets

166,631,997,317

174,947,428,587

160,024,287,068

Cash & Cash Equivalents

47,705,545,600

3,213,300,180

21,609,877,758

Derivatives

495,396,899

2,173,767,616

1,067,086,561

Trade Receivables

64,742,270,141

91,537,659,160

79,597,571,595

Other Receivables

1,320,042,149

2,358,539,022

910,276,774

Inventories

50,550,213,007

73,198,503,657

55,208,147,787

Other Current Assets

1,818,529,521

2,465,658,952

1,631,326,593

Non-Current Assets

127,140,946,425

128,383,446,246

123,787,846,240

Non-Current Financial Instruments

11,000,000

11,000,000

11,000,000

Marketable Financial Instruments

20,000,000

20,000,000

20,000,000

Other Financial Assets

2,097,893,600

2,080,956,780

2,049,646,700

Tangibles

123,720,069,026

125,259,339,634

119,697,657,679

Intangibles

816,406,226

817,159,896

817,913,566

Deferred Income Tax Assets

371,874,278

63,121,526

997,061,335

Other Non-Current Assets

103,703,295

131,868,410

194,566,960

Total Liabilities

35,745,909,275

47,134,829,560

38,112,265,316

Current Liabilities

34,907,385,543

46,323,458,053

36,818,358,234

Trade Payables

26,431,473,560

34,339,475,766

19,490,817,987

Other Payables

6,500,647,558

9,105,096,412

8,468,660,495

Short-Term Borrowings

1,270,745,225

908,010,501

3,588,754,068

Deferred Income Tax Credit

15,156,972

1,501,340,614

2,806,337,634

Provisions

183,583,514

110,760,721

101,000,000

Derivatives

257,116,455

93,962,884

2,181,223,486

Other Current Liabilities

248,662,259

264,811,155

181,564,564

Non-Current Liabilities

838,523,732

811,371,507

1,293,907,082

Provision for Severance & Retirement

838,523,732

811,371,507

1,293,907,082

Capital Stock

30,000,000,000

30,000,000,000

30,000,000,000

Capital Surplus

205,031,141,680

205,031,141,680

205,031,141,680

Others

-84,345,168

39,278,759

-9,278,341

Profit Surplus

23,080,237,955

21,125,624,834

10,678,004,653

Total Equity

258,027,034,467

256,196,045,273

245,699,867,992

Liab. & Shareholder’s Equity

293,772,943,742

303,330,874,833

283,812,133,308

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

397,462,023,179

409,071,430,747

478,796,954,764

Cost of Sold Goods

-381,410,568,105

-390,677,124,564

-457,015,415,320

Gross Profit

16,051,455,074

18,394,306,183

21,781,539,444

Selling & Admin. Expenses

-14,586,416,523

-12,646,745,542

-11,839,286,440

Operating Income

1,465,038,551

5,747,560,641

9,942,253,004

Finance Income

597,014,691

488,161,438

422,784,739

Finance Expenses

-49,433,237

-29,223,809

-103,715,829

Other Income

8,172,792,647

14,580,276,844

13,933,071,633

Other Expenses

-7,571,440,997

-7,823,383,714

-13,814,343,455

Non-Operating Expenses

-2,700,000

-1,700,000

-1,900,000

Income Before Taxes

2,611,271,655

12,961,691,400

10,378,150,092

Income Taxes Expenses

-530,989,609

-2,702,497,079

-2,371,124,146

Net Income

2,080,282,046

10,259,194,321

8,007,025,946

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

50,825,630,018

-7,321,759,729

8,193,490,344

Net Income

2,080,282,046

10,259,194,321

8,007,025,946

Adjustment

10,952,314,267

3,950,870,403

8,691,427,861

Changes in Asset/ & Liability

39,581,367,787

-18,876,045,366

-7,959,516,647

Interests Received

516,711,789

505,002,219

408,254,853

Interests Paid

-49,433,237

-20,385,669

103,715,829

Income Taxes

-2,255,612,634

-3,140,395,637

849,985,840

Cash Flows from Investing

-6,699,736,033

-8,401,027,794

-3,459,700,271

Cash Inflow from Investing

4,435,490,127

4,464,135,310

11,058,608,762

Cash Outflows for Investing

-11,135,226,160

-12,865,163,104

-14,518,309,033

Cash Flows from Financing

366,676,322

-2,673,781,102

-1,525,390,839

Cash Inflows from Financing

1,274,686,823

908,010,501

3,588,754,068

Cash Outflows from Financing

-908,010,501

-3,581,791,603

-5,114,144,907

Increase/Decrease in Cash

44,492,570,307

-18,396,568,625

3,208,399,234

Cash at the Beginning of Year

3,213,300,180

21,609,877,758

18,388,111,237

Cash at the End of Year

47,705,545,600

3,213,300,180

21,609,877,758

 

Trade Partners & Competitors

 

Competitors

POONGSAN CORPORATION

680-1, NAEGI-RI, POSEUNG-EUP, PYEONGTAEK-SI, GYEONGGI-DO, KOREA

TEL:+82-31-650-7500  FAX:+82-31-650-7511

 

KOREA TRADING & INDUSTRIES CO., LTD.

1503-8, DADAE 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-264-0024  FAX:+82-51-264-0027

 

WON IL CO., LTD.

4TH FL., WONIL BLDG., 231-4, NONHYEON 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2631-1242~4  FAX:+82-2-2631-1245

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

LS CORP.(110111-0003965)

LS CABLE LTD(134111-0168357)

LS MTRON LTD.(134111-0168349)

LS-NIKKO COPPER INC.(230111-0058436)

GAON CABLE CO., LTD(134111-0000567)

E1 CORPORATION(110111-0381387)

YESCO CO., LTD(110111-0290778)

LS NETWORKS CORPORATION LIMITED(180111-0044717)

POUNTEK LTD.(151111-0022867)

GLOBAL CABLE INC.(130111-0008797)

ALUTEK LTD.(110111-1479909)

JS CABLE CO., LTD(124311-0004327)

YESCO SERVICE CO., LTD(110111-1030082)

KOSPACE CO., LTD.(134411-0012243)

CARBONIX, INC(171711-0036242)

E&R INC.(164411-0005052)

DAEHAN GM CORPORATION(110111-0613045)

CASCO CO.,LTD(210111-0047938)

LS GLOBAL INCORPORATED., LTD.(110111-3359985)

LS ASSET MANAGEMENT CO., LTD.(110111-1896137)

E1 CONTAINER TERMINAL CO., LTD.(120111-0432039)

E1 LOGISTICS CORPORATION(124611-0257243)

KJ MOTORRAD(110111-3740499)

DONGBANG CITY GAS INDUSTRY CO., LTD.(141111-0011979)

GRM CO., LTD(154611-0008012)

OD CAMP CO., LTD.(110111-2839417)

DAESUNG ELECTRIC CO., LTD.(110111-01415590

DELTECH CO., LTD.(134911-0010809)

ACE R&A CO., LTD. (135111-0047493)

TORECOM CORPORATION(135011-0054119)

PLANET SYSTEM CO., LTD.(110111-1619745)

RECYTECHKOREA CO., LTD.(161511-0044861)

Affiliates-Overseas

LS KONGJO(SHANDONG) CO., LTD-CHINA

LS JEONRAM(MUSEOK) CO., LTD-CHINA

LS MACHINERY(MUSEOK) CO., LTD-CHINA

LS-VINA

LS CABLE MALAYSIA

LS CABLE(TENJIN) CO., LTD-CHINA

LS CABLE AMERICA INC

LS SANGMOO(SHANGHAI) CO., LTD-CHINA

LS CABLE VIETNAM CO. LTD.

LS ELECTRONIC-DEVICES QINGDAO CO. LTD.

LEADING SOLUTION CABLE INDIA PVT LTD.

LS CABLE UK LTD.

LS AGRICULTURAL EQUIPMENT(QINGDAO)CO.LTD

CYPRUS INVESTMENTS, INC.

SUPERIOR ESEEX INC.

LS INDUSTRIAL SYSTEMS(DAIRIAN) CO., LTD.-CHINA

LS VINA I.S

LS INDUSTRIAL SYSTEM ELECTRIC(SHANGHAI) CO., LTD-CHINA

LS INDUSTRIAL SYSTEMS(MUSEOK) CO., LTD.-CHINA

LS I.S(MIDDLE EAST) FZE

CASCO DALIAN

PT E1-PERTAGAS

Corporate Ownership

LS CORP.(110111-0003965)

LS INDUSTRIAL SYSTEMS CO., LTD.(110111-0520076)

Major Shareholders

LS INDUSTRIAL SYSTEMS CO., LTD.(110111-0520076)

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in China, Japan, USA and Europe.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

---

---

-

The Subject Company

-

8,000,000

Proceeding

----

---

The Subject Company

-

-

50,000,000

Proceeding

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.74

UK Pound

1

Rs.94.65

Euro

1

Rs.70.79

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.