MIRA INFORM REPORT

 

 

Report No. :

322780

Report Date :

19.05.2015

 

IDENTIFICATION DETAILS

 

Name :

BIP INDUSTRIES CO., LTD.

 

 

Registered Office :

1817, Jungang-Daero, Geumjeong-Gu, Busan, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

06.09.1978

 

 

Com. Reg. No.:

621-81-02240

 

 

Legal Form :

Company Limited By Shares

 

 

Line of Business :

Manufacture of Section For Ships.

 

 

No. of Employees :

172

 

 

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 :

Exist

 

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 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, and is currently the world's 12th largest economy. 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 sluggish growth because of external market slowdowns. 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.

 

Source : CIA


Basic Information

 

Company Name

BIP INDUSTRIES CO., LTD.

(Korean Company Name : “비아이피()”)

Registered Address

1817, Jungang-daero, Geumjeong-gu, Busan, Korea

(Old Address System : 84-18, Guseo 1-dong, Geumjeong-gu, Busan, Korea)

Building

BN Bldg.

Zip Code

609-854

Tel

+82-51-519-2000

Fax

+82-51-582-7175

E-mail

bip@bn-bip.com

Website

www.bn-bip.com

Trading Address

BN Bldg., 84-18, Guseo 1-dong, Geumjeong-gu, Busan, Korea

Tel

+82-51-519-2000

Fax

+82-51-582-7175

Other Address-Seochang Factory

35, Soju-dong, Yangsan-si, Gyeongsangnam-do, Korea

Tel

+82-55-380-5000

Fax

+82-55-389-2010

Other Address-Gosung Factory

67, Baedungongdan-gil Hoehwa-myeon, Goseong-gun, Gyeongsangnam-do, Korea

Tel

+82-55-650-8800

Fax

++82-55-650-8810

Type

Export/Import

Industry

Manufacture of Sections for Ships

  Main Business

Wall Panel, Ceiling Panel, Bathroom Unit, Cabin Unit, Marine Door, Ship Design, Ship Interior

  Sub Business

 

Established (mm/dd/yyyy)

09/06/1978

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Doors(30171500)

Sell

Cabins(30201603)

Sell

Panels or panelling(30161505)

Sell

Chairs(56101504)

Sell

Beds(56101515)

Sell

Portable toilettes(30201706)

Sell

Marine craft systems and subassemblies(25111900)

 

 

CEO’s

 

Name

Cho Eui-Je

Address

Suite 102-403, 261, Geumsaem-ro, Geumjeong-gu, Busan, Korea

Date of Birth

03/14/2013

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,116,135,000

Employees

172

Formation

Co., Ltd by shares

Bank Details

Citibank, Korea-Busan Branch

Busan Bank

Shinhan Bank

Kookmin Bank

Korea Development Bank

Corporate Registered No.

180111-0031326

Business Registered No.

621-81-02240

Permit & Licenses

11/1996 ISO 9002 by LRQA

05/1999 CE Mark

11/2003 ISO 14001 LRQA

 

Int’l Trade No.: 865616

Shareholder Position

Name

Shares

%

CHO SUNG-JAE & OTHERS(3)

12,232,270

100.00

TOTAL

12,232,270

100.00

Company History

09/06/1978 Incorporated as BUIL INDUSTRIES CO., LTD.

09/07/2001 Changed company name to the present name

11/1992 Awarded US$ 10 Million Export Top Prize

11/2001 Awarded US$ 20 Million Export Top Prize

06/05/2002 Spin off the par value to 500 KRW from 5,000 KRW

03/26/2002 Increased the authorized shares to 10,000,000 shares from 5,000,000 shares

05/03/2002 Increased capital to 50,000,000 shares from 10,000,000 shares

11/2004 Awarded US$ 30 Million Export Top Prize

08/29/2008 Acquired Units for Ships Business from S&B CO., LTD.

09/04/2008 Acquired BIP Tech Co., Ltd.

09/04/2009 Increased capital to 6,116,135,000 KRW from 5,941,135,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Cho Eui-Je

Male

Korean

03/14/2013

President & CEO

Mr.

You Young-Ho

Male

Korean

03/14/2013

Director

Mr.

Cho Sung-Jae

Male

Korean

03/03/2000

Auditor

Mr.

Cho Young-Je

Male

Korean

03/28/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

81,126,137,045

112,788,735,169

4,867,721,590

2013

80,495,146,351

94,462,547,237

4,087,142,809

2012

76,063,778,291

96,012,350,697

1,728,919,250

2011

92,737,316,316

99,619,343,166

-5,084,539,356

2010

83,238,992,783

58,204,993,045

2,011,859,460

2009

90,367,684,006

54,358,921,775

7,442,454,163

2008

72,074,016,588

52,981,064,734

4,837,130,593

2007

48,644,813,982

32,594,309,742

2,224,764,404

2006

50,772,090,922

31,555,962,768

215,109,596

2005

60,307,918,701

36,008,804,489

-2,279,804,427

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

6,116,135,000

Total Issued Shares

12,232,270

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

112,788,735,169

94,462,547,237

96,012,350,697

Current Assets

21,070,281,023

18,317,523,629

20,265,470,627

-Quick Assets

16,715,932,802

12,775,884,932

14,879,933,352

-Inventories

4,354,348,221

5,541,638,697

5,385,537,275

Fixed Assets

91,718,454,146

76,145,023,608

75,746,880,070

-Investment

48,700,648,100

49,950,373,720

49,855,173,543

-Tangibles

40,912,215,281

24,081,646,223

22,040,195,548

-Intangibles

 

 

 

-Others

2,105,590,765

2,113,003,665

3,851,510,979

Total Liabilities

73,783,994,589

60,257,945,011

65,965,695,983

Current Liabilities

29,955,243,373

17,366,623,232

60,092,504,540

Fixed Liabilities

43,828,751,216

42,891,321,779

5,873,191,443

Capital Stock

6,116,135,000

6,116,135,000

6,116,135,000

Capital Surplus

1,620,054,356

1,620,054,356

1,620,054,356

Profit Surplus

31,399,110,529

26,531,388,939

22,444,246,130

Capital Adjustment

-130,559,305

-62,976,069

-133,780,772

Total Equity

39,004,740,580

34,204,602,226

30,046,654,714

Liab. & Shareholder’s Equity

112,788,735,169

94,462,547,237

96,012,350,697

 

Current Liabilities

29,955,243,373

17,366,623,232

60,092,504,540

Trade Payables

5,683,471,185

3,745,401,249

3,632,205,677

Short-Term Borrowings

16,980,910,000

6,530,290,000

8,108,750,000

Account Payables

547,970,036

514,563,532

397,099,289

Advance Receipts

547,170,104

1,513,869,809

1,404,661,246

Withholdings

34,628,550

29,636,030

22,777,650

Accrued Expenses

902,686,224

870,647,733

969,778,879

Leasehold Deposit Received

5,000,000

5,000,000

-

Accrued Income Tax

953,407,274

817,214,879

554,849,249

Finance Lease Debts

 

 

2,382,550

Current Portion of Long-Term Debts

4,300,000,000

3,340,000,000

45,000,000,000

Fixed Liabilities

43,828,751,216

42,891,321,779

5,873,191,443

Long-Term Borrowings

42,640,000,000

41,660,000,000

5,000,000,000

Long-Term Account Payables

278,315,927

173,537,244

-

Deferred Income Tax Credit

711,788,951

830,599,728

671,761,038

Provision for Severance & Retirement

1,823,235,430

1,417,590,405

1,077,645,515

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

81,126,137,045

80,495,146,351

76,063,778,291

Cost of Sold Goods

65,767,891,138

65,833,543,090

64,005,068,650

Gross Profit

15,358,245,907

14,661,603,261

12,058,709,641

Selling & Admin. Expenses

6,751,566,303

7,955,545,674

7,611,278,350

Operating Income

8,606,679,604

6,706,057,587

4,447,431,291

Non-Operating Income

1,624,688,453

2,649,210,010

2,957,209,080

Non-Operating Expenses

4,029,817,518

4,103,408,850

4,963,504,515

Income Before Taxes

6,201,550,539

5,251,858,747

2,441,135,856

Income Taxes Expenses

1,333,828,949

1,164,715,938

712,216,606

Net Income

4,867,721,590

4,087,142,809

1,728,919,250

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

4,618,806,454

3,960,401,259

5,085,988,767

-Net Income

4,867,721,590

4,087,142,809

1,728,919,250

-Exp. without Cash Outflow

2,622,620,444

2,985,859,710

2,700,491,656

-Revenue without Cash Inflows

-865,133,162

-2,189,103,045

-2,263,686,567

-Changes in Asset/ & Liability

-2,006,402,418

-923,498,215

2,920,264,428

Cash Flows from Investing

-19,467,500,965

1,786,219,394

-8,805,699,638

-Cash Inflow from Investing

556,317,149

5,230,557,087

4,031,717,273

-Cash Outflows for Investing

-20,023,818,114

-3,444,337,693

-12,837,416,911

Cash Flows from Financing

13,124,588,930

-5,172,148,484

762,893,594

-Cash Inflows from Financing

32,715,450,002

3,397,543,713

28,239,478,891

-Cash Outflows from Financing

-19,590,861,072

-8,569,692,197

-27,476,585,297

Increase/Decrease in Cash

-1,724,105,581

574,472,169

-2,956,817,277

Cash at the Beginning of Year

3,153,016,800

2,578,544,631

5,535,361,908

Cash at the End of Year

1,428,911,219

3,153,016,800

2,578,544,631

 

 

Products, Technologies, Services Description

 

Main Products & Services

Wall Panel, Ceiling Panel, Bathroom Unit, Cabin Unit, Marine Door, Ship Design, Ship Interior

 

Brand Name : BIP

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

BUIL BANGHWA PANNEL CO., LTD.(WIEHAE, CHINA)

B& STEEL CO., LTD.(184511-0012910)

COSMO CO., LTD.(KOREA)

Customers

DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD.(110111-2095837)

Competitors

SUNG IL CO., LTD.(SIM)

1587-4, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-831-8800  FAX:+82-51-831-5959

 

SEONGHWA INDUSTRIAL CO., LTD.

77-1, CHEONGOK-RI, JINSEONG-MYEON, JINJU-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-790-0100  FAX:+82-55-758-2944

 

DONG BANG SHIP MACHINERY CO., LTD.

414-2, JUKGOK-DONG, JINHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-545-0882  FAX:+82-55-545-0883

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAESUN JUJO CO., LTD.( 180111-0004894)

(27.50% held by the subject company)

 

B& STEEL CO., LTD.(184511-0012910)

(9.70% held by the subject company)

 

COSMO CO., LTD.(KOREA)

(15.0% held by the subject company)

 

BK INVESTMENT CO., LTD.(134811-0173609)

(7.14% held by the subject company)

 

BIP CO., LTD.

BN STEELA CO., LTD.(180111-0654954)

BIPEX CO., LTD.(180111-0557752)

BN CHEMICAL CO., LTD.(180111-0743799)

BAUM CREATIVE CO., LTD.(180111-0772508)

BISCO CO., LTD.(180111-0398255)

BIP INTERNATIONAL, INC

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

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

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Japan, Europe and North America.

 

 

Court Action

 

There is 1 arbitration case on Receivables amounting 1,112,110,000 KRW.

 

 

News Clipping

 

--------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.55

UK Pound

1

Rs.99.86

Euro

1

Rs.72.67

 

 

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.