MIRA INFORM REPORT

 

 

Report No. :

323650

Report Date :

21.05.2015

 

IDENTIFICATION DETAILS

 

Name :

KISWEL CO., LTD.

 

 

Registered Office :

70, Saebyeok-ro 63beon-gil, Sasang-gu, Busan

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

10.09.1964

 

 

Com. Reg. No.:

180111-0011261

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Subject is manufacture of other fabricated and processed metal products

 

 

No. of Employee :

314

 

 

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 – 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

 

Basic

 

Company Name

KISWEL CO., LTD.

Registered Address

70, Saebyeok-ro 63beon-gil, Sasang-gu, Busan, Korea

(Old Address System : 721-3, Hakjang-dong, Sasang-gu, Busan, Korea)

Building

 

Zip Code

617-843

Tel

+82-51-317-3131~40

Fax

+82-51-325-3627

E-mail

master@kiswel.com

Website

www.kiswel.com

Trading Address

7FL., Heungkook Bldg., 43-1, Juja-dong, Jung-gu, Seoul, Korea (P.O.BOX 8641)

Tel

+82-2-2270-9400  +82-2-2270-9468

Fax

+82-2-2272-7233~4  +82-2-2275-2826

Other Address-Changwon Factory

58-2, Seongju-dong, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-269-7200

Fax

+82-55-285-1655

Other Address-Busan Office

667-1, Buam-dong, Busanjin-gu, Busan, Korea

Tel

+82-51-806-3133

Fax

 

Type

Export/Import

Industry

Manufacture of Other Fabricated and Processed Metal Products

  Main Business

Welding Electrode, Flux Cored Wire

  Sub Business

 

Established (mm/dd/yyyy)

09/10/1964

The Subject owns the premises of registered HQ address and Changwon Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welding rods(23171512)

Sell

Welding wire(23171510)

 

 

CEO’s

 

Name

Hong Min-Chul

Address

8Ho, 330-356, Seongbuk-dong, Seongbuk-gu, Seoul, Korea

Date of Birth

06/11/1951

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

990,000,000

Employees

314

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Woori Bank-Myung-Dong Branch

Corporate Registered No.

180111-0011261

Business Registered No.

606-81-03615

Permit & Licenses

10/29/1998 KS Mark

09/1999 QS 9000

09/22/1999 ISO 14001 by UKAS

02/2005 ISO/TS 16949

 

Int’l Trade No.: 741455

Shareholder Position

Name

Shares

%

HONG MIN-CHUL

134,640

68.00

OTHERS

63,360

32.00

TOTAL

198,000

100.00

Company History

09/10/1964 Incorporated as the present name

12/13/1970 Moved to the present HQ address from 21, Sogong-dong, Jung-gu, Seoul, Korea

11/26/1996 Awarded US$50 Million Export Top Prize

12/2008 Awarded US$100 Million Export Top Prize

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Hong Min-Chul

Male

Korean

03/23/2001

Co-President & CEO

Mr.

Kim Hyun-Duck

Male

Korean

05/26/2014

Director

Mr.

Lee Young-Rang

Male

Korean

03/24/2012

Auditor

Mr.

Hur Young-Woong

Male

Korean

03/30/2015

 

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

227,789,630,167

401,396,367,498

7,286,371,954

2013

243,815,323,572

405,099,882,572

7,522,742,423

2012

297,116,394,664

402,203,225,827

14,039,279,877

2011

300,194,852,055

376,994,963,747

25,781,894,273

2010

232,608,544,974

325,256,195,932

35,610,480,538

2009

184,429,273,509

269,645,098,846

14,984,567,033

2008

240,267,484,538

260,596,073,245

29,403,304,006

2007

174,914,805,175

223,452,404,785

16,114,847,319

2006

162,174,931,673

199,120,057,270

12,149,157,022

2005

154,726,415,344

192,528,196,778

20,680,651,387

2004

143,137,784,279

169,976,489,352

11,874,881,749

 

 

Financial Description

 

Authorized Capital(KRW)

1,500,000,000

Paid-Up Capital(KRW)

990,000,000

Total Issued Shares

198,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

401,396,367,498

405,099,882,572

402,203,225,827

Current Assets

162,400,322,158

165,247,522,919

169,016,681,630

-Quick Assets

124,650,984,503

129,304,964,418

131,447,328,942

-Inventories

37,749,337,655

35,942,558,501

37,569,352,688

Fixed Assets

238,996,045,340

239,852,359,653

233,186,544,197

-Investment

165,938,433,663

172,106,861,450

170,299,419,508

-Tangibles

67,864,556,208

63,280,986,904

57,986,321,365

-Intangibles

 

 

 

-Others

5,193,055,469

4,464,511,299

4,900,803,324

Total Liabilities

44,795,658,980

47,928,742,594

41,974,480,725

Current Liabilities

28,425,399,986

28,947,189,611

20,437,791,059

Fixed Liabilities

16,370,258,994

18,981,552,983

21,536,689,666

Capital Stock

990,000,000

990,000,000

990,000,000

Capital Surplus

44,965,971,981

44,965,971,981

44,965,971,981

Profit Surplus

285,209,417,564

277,923,045,610

270,400,303,187

Capital Adjustment

25,435,318,973

33,292,122,387

43,872,469,934

Total Equity

356,600,708,518

357,171,139,978

360,228,745,102

Liab. & Shareholder’s Equity

401,396,367,498

405,099,882,572

402,203,225,827

 

Current Liabilities

28,425,399,986

28,947,189,611

20,437,791,059

Trade Payables

17,510,165,024

21,173,361,634

14,949,664,467

Account Payables

7,209,575,007

5,519,433,722

4,723,155,570

Advance Receipts

1,384,518,207

1,052,714,419

505,707,276

Withholdings

87,695,278

94,403,850

153,858,315

Accrued Income Tax

2,233,446,470

964,407,914

-

Deferred Income Tax Credit

-

142,868,072

105,405,431

Fixed Liabilities

16,370,258,994

18,981,552,983

21,536,689,666

Provision for Severance & Retirement

12,679,854,900

12,479,864,000

11,594,814,500

Guarantee Deposit Withhold

325,000,000

325,000,000

325,000,000

Deferred Income Tax Credit

14,928,180,314

17,356,175,871

19,187,397,319

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

227,789,630,167

243,815,323,572

297,116,394,664

Cost of Sold Goods

195,737,433,363

210,374,306,334

258,990,774,455

Gross Profit

32,052,196,804

33,441,017,238

38,125,620,209

Selling & Admin. Expenses

29,726,822,511

25,459,149,310

26,329,430,135

Operating Income

2,325,374,293

7,981,867,928

11,796,190,074

Non-Operating Income

17,854,381,516

14,372,298,376

11,701,825,845

Non-Operating Expenses

8,854,435,404

12,377,645,232

6,701,964,523

Income Before Taxes

11,325,320,405

9,976,521,072

16,796,051,396

Income Taxes Expenses

4,038,948,451

2,453,778,649

2,756,771,519

Net Income

7,286,371,954

7,522,742,423

14,039,279,877

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

14,445,605,638

19,287,522,515

12,451,465,558

-Net Income

7,286,371,954

7,522,742,423

14,039,279,877

-Exp. without Cash Outflow

16,573,960,938

15,535,865,068

10,774,978,438

-Revenue without Cash Inflows

-11,382,497,081

-7,642,224,323

-5,698,141,182

-Changes in Asset/ & Liability

1,967,769,827

3,871,139,347

-6,664,651,575

Cash Flows from Investing

-10,839,872,785

-11,454,681,249

-17,351,228,637

-Cash Inflow from Investing

91,478,834,807

104,679,921,752

91,694,483,571

-Cash Outflows for Investing

-102,318,707,592

-116,134,603,001

-109,045,712,208

Cash Flows from Financing

81,300,000

17,000,000

28,000,000

-Cash Inflows from Financing

81,300,000

17,000,000

28,000,000

-Cash Outflows from Financing

-

-

-

Increase/Decrease in Cash

3,687,032,853

7,849,841,266

-4,871,763,079

Cash at the Beginning of Year

27,338,920,676

19,489,079,410

24,360,842,489

Cash at the End of Year

31,025,953,529

27,338,920,676

19,489,079,410

 

 

Products, Technologies, Services Description

 

Main Products & Services

Welding Electrode, Flux Cored Wire

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

SAMHWA STEEL CO., LTD.(180111-0085373)

Competitors

HYUNDAI WELDING CO., LTD.

16TH FL., ILSONG BLDG., 157-37, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-6230-6010  FAX:+82-2-598-6928

 

CHOSUN WELDING CO., LTD.

865, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-8221  FAX:+82-54-285-8543

 

PYUNGSAN METALS CO., LTD.

5-4, MULLAE-DONG 5-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2635-5454  FAX:+82-2-2635-5453

 

 


Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOREA HEAT TREATMENT CO., LTD.(180111-0025014)

(46.56% held by the subject company)

 

KOREA OMEGA INVESTMENT ADVISORY CO., LTD.(110111-1551955)

(38.23% held by the subject company)

 

POS WELDING CO., LTD.(171711-0101079)

(50.0% held by the subject company)

 

KISWEL SINGAPORE PTE. LTD.

(80.0% held by the subject company)

 

KISWEL DALIAN TRADING

(100.0% HELD BY THE SUBJECT COMPANY)

 

KISWEL INC

HEUNG KOOK LEISURE.CO., LTD.(110111-0101058)

SYS HOLDINGS CO., LTD.(110111-2275679)

SYS RETAIL CO., LTD.(110111-0012669)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

KISWEL SDN BHD

(100.0% HELD BY THE SUBJECT COMPANY)

 

KISWEL JAPAN

(100.0% HELD BY THE SUBJECT COMPANY)

 

KISWEL USA

(100.0% HELD BY THE SUBJECT COMPANY)

 

KISWEL DALIAN

(100.0% HELD BY THE SUBJECT COMPANY)

Corporate Ownership

HONG MIN-CHUL

Major Shareholders

HONG MIN-CHUL

Cooperative Enterprise

-Insured Company

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

 

 


Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2014

2013

2012

Export

 

 

 

Domestic

 

 

 

Total

 

 

 

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

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No.

 

News Clipping

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.87

UK Pound

1

Rs.98.89

Euro

1

Rs.70.73

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.