MIRA INFORM REPORT

 

 

Report No. :

323850

Report Date :

25.05.2015

 

IDENTIFICATION DETAILS

 

Name :

KOS LIMITED

 

 

Registered Office :

43, Eosil-ro, Yangsan-si, Gyeongsangnam-do, Korea), 626-230

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

22.08.1969

 

 

Com. Reg. No.:

606-81-02902

 

 

Legal Form :

Co., Ltd By Shares

 

 

Line of Business :

Manufacture of Steel Wire

 

 

No. of Employees :

357

 

 

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

 

Company Name

KOS LIMITED

(Ex. Korean Company Name : “고려상사()”)

(Korean Company Name : “고려특수선재()”)

Registered Address

43, Eosil-ro, Yangsan-si, Gyeongsangnam-do, Korea)

(Old Address System : 131-1, Yusan-dong, Yangsan-si, Gyeongsangnam-do, Korea)

Building

 

Zip Code

626-230

Tel

+82-55-389-1050~6

Fax

+82-55-389-1057

E-mail

master@koswire.com;djyoo@koswire.com

Website

www.koswire.com

Trading Address

40-134, Hangangno 3-ga, Yongsan-gu, Seoul, Korea (P.O.BOX 863)

Tel

+82-2-3406-0114

Fax

+82-2-2273-6358

Other Address-Samrak Factory

121-6, Samnak-dong, Sasang-gu, Busan, Korea

Tel

+82-51-301-1617

Fax

+82-51-301-1619

Other Address-Gamjeon Factory

162-8, Gamjeon-dong, Sasang-gu, Busan, Korea

Tel

+82-51-312-1617

Fax

+82-51-312-1619

Other Address-Okmyeong Factory

567, Okmyeong-ri, Daesong-myeon, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel

+82-54-278-6083

Fax

+82-54-278-6086

Type

Export/Import

Industry

Manufacture of Steel Wire

  Main Business

Stainless Wire, Titan Wire, Heating Wire

  Sub Business

 

Established (mm/dd/yyyy)

08/22/1969

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Wire rope(31151505)

Sell

Yarns(11151700)

Sell

Heating wire(26121501)

Sell

Mechanical wire(31151800)

 


CEO’s

 

Name

Jung Chang-Sik

Address

Suite A-2404, 143, Yeouidong-ro, Yeongdeungpo-gu, Seoul, Korea

Date of Birth

03/25/1961

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,701,395,000

Employees

357

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Myung Dong Branch

Shinhan Bank

Citi Bank, Korea

Corporate Registered No.

180111-0025428

Business Registered No.

606-81-02902

Permit & Licenses

01/1996 ISO 9002

08/1996 ISO 9002

08/1997 JIS

 

Int’l Trade No.: 790877

Shareholder Position

Name

Shares

%

KOSWIRE CO., LTD.(180111-0285957)

340,279

100.00

TOTAL

340,279

100.00

Company History

08/22/1969 Incorporated as KOREA SANGSA CO., LTD., as a subsidiary of KISWIRE

09/01/2008 Acquired KOS FINE CO., LTD.(154211-0000652)

11/30/2008 Increased capital to 1,701,395,000 KRW from 4,950,000,000 KRW

11/30/2008 Decreased the authorized shares to 1,300,000 shares from 1,760,000 shares

12/01/2008 Established KOS DEVELOPMENT CO., LTD., after spin off the subject company

07/01/2012 Changed Korean Company Name to the present name

07/02/2012 Acquired KOS TECH CO., LTD.

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Jung Chang-Sik

Male

Korean

01/01/2015

Director

Mr.

Hong Wan-Pyo

Male

Korean

03/28/2000

Director

Mr.

Hong Ho-Jeong

Male

Korean

03/31/2001

Auditor

Mr.

Park Dae-Won

Male

Korean

03/30/1999

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

232,123,413,954

168,248,881,083

5,364,278,954

2013

213,873,815,903

171,968,859,411

2,904,030,610

2012

171,873,085,234

190,050,995,040

3,239,779,911

2011

143,520,159,166

169,176,144,403

3,639,817,952

2010

125,167,754,496

158,716,905,190

6,731,049,482

2009

96,110,544,155

141,895,881,849

1,281,405,398

2008

143,680,544,557

109,758,782,732

7,578,661,705

2007

138,689,576,729

128,641,897,315

7,828,184,033

2006

110,801,957,886

131,416,842,573

2,194,927,997

2005

96,403,931,015

133,311,424,258

1,520,845,001

2004

 96,687,154,560

 131,052,119,170

 3,854,632,870

2003

 98,503,929,743

 129,983,655,886

 2,096,507,509

 

 

Financial Description

 

Authorized Capital(KRW)

6,500,000,000

Paid-Up Capital(KRW)

1,701,395,000

Total Issues Shares

340,279

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

168,248,881,083

171,968,859,411

190,050,995,040

Current Assets

74,479,554,490

68,123,930,819

79,456,616,995

-Quick Assets

36,266,856,944

29,347,857,568

39,565,957,598

-Inventories

38,212,697,546

38,776,073,251

39,890,659,397

Fixed Assets

93,769,326,593

103,844,928,592

110,594,378,045

-Investment

10,527,862,598

12,236,677,035

13,378,192,823

-Tangibles

72,300,811,204

80,008,408,178

85,612,932,032

-Intangibles

4,009,378,596

4,302,747,761

4,596,116,926

-Others

6,931,274,195

7,297,095,618

7,007,136,264

Total Liabilities

71,363,459,190

79,953,723,225

100,896,321,452

Current Liabilities

60,843,655,636

75,377,368,291

93,338,874,910

Fixed Liabilities

10,519,803,554

4,576,354,934

7,557,446,542

Capital Stock

1,701,395,000

1,701,395,000

1,701,395,000

Capital Surplus

47,644,912,805

47,644,912,805

47,644,912,805

Profit Surplus

47,914,276,010

42,549,997,056

39,645,966,446

Capital Adjustment

-375,161,922

118,831,325

162,399,337

Total Equity

96,885,421,893

92,015,136,186

89,154,673,588

Liab. & Shareholder’s Equity

168,248,881,083

171,968,859,411

190,050,995,040

 

Current Liabilities

60,843,655,636

75,377,368,291

93,338,874,910

Trade Payables

12,460,063,442

11,138,594,363

10,059,593,046

Short-Term Borrowings

14,234,000,000

34,671,100,000

52,311,232,400

Short-Term Borrowings-Foreign Currency

26,347,481,716

20,537,198,683

24,704,804,381

Account Payables

1,298,602,848

1,476,136,731

1,390,627,969

Accrued Expenses

2,410,602,874

1,654,928,363

1,929,977,419

Advance Receipts

36,479,429

1,557,202,045

55,578,140

Withholdings

413,711,995

354,135,468

386,224,987

Guarantee Deposit Withhold

550,180,000

207,840,000

210,880,000

Accrued Income Tax

1,092,533,332

948,163,410

109,137,340

Current Portion of Long-Term Debts

2,000,000,000

2,832,069,228

2,180,819,228

Fixed Liabilities

10,519,803,554

4,576,354,934

7,557,446,542

Long-Term Borrowings

8,700,000,000

2,832,069,228

5,664,138,456

Provision for Severance & Retirement

13,320,497,368

11,558,978,974

10,252,365,928

Long-Term Account Payables

164,357,183

190,496,257

194,922,865

Deferred Income Tax Credit

27,026,334

-

 

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

232,123,413,954

213,873,815,903

171,873,085,234

Cost of Sold Goods

200,225,352,665

188,767,630,445

155,014,720,242

Gross Profit

31,898,061,289

25,106,185,458

16,858,364,992

Selling & Admin. Expenses

21,548,496,298

20,085,820,997

15,070,702,377

Operating Income

10,349,564,991

5,020,364,461

1,787,662,615

Non-Operating Income

6,164,404,961

4,965,667,958

5,945,739,947

Non-Operating Expenses

9,378,817,812

6,198,478,410

6,675,890,905

Income Before Taxes

7,135,152,140

3,787,554,009

1,057,511,657

Income Taxes Expenses

1,770,873,186

883,523,399

-2,182,268,254

Net Income

5,364,278,954

2,904,030,610

3,239,779,911

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

10,311,259,524

12,465,775,799

12,016,299,369

-Net Income

5,364,278,954

2,904,030,610

3,239,779,911

-Exp. without Cash Outflow

14,888,879,420

11,708,964,940

9,127,797,662

-Revenue without Cash Inflows

-2,027,956,590

-1,250,708,906

-1,897,756,008

-Changes in Asset/ & Liability

-7,913,942,260

-896,510,845

1,546,477,804

Cash Flows from Investing

-197,287,753

10,785,913,345

-11,098,797,644

-Cash Inflow from Investing

16,446,937,881

22,067,886,114

10,957,671,686

-Cash Outflows for Investing

-16,644,225,634

-11,281,972,769

-22,056,469,330

Cash Flows from Financing

-10,486,229,649

-23,393,902,730

63,259,803

-Cash Inflows from Financing

113,331,277,517

112,935,477,785

136,256,729,775

-Cash Outflows from Financing

-123,817,507,166

-136,329,380,515

-136,193,469,972

Increase/Decrease in Cash

372,257,878

142,213,586

980,761,528

Cash at the Beginning of Year

3,417,423,832

3,559,637,418

2,578,875,890

Cash at the End of Year

3,045,165,954

3,417,423,832

3,559,637,418

 

 

Products, Technologies, Services Description

 

Main Products & Services

Stainless Steel Wire

Stainless Wire Rope

Stainless Metal Fiber

Stainless Flat Wire

Nickel Coated High Carton Wire

Nickel Alloy Wire

Titan Wire

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

POSCO SPECIALTY STEEL CO., LTD.(194211-0025248)

Customers

 

Competitors

DSR CORP.

1551-1, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-979-0500  FAX:+82-51-979-0600

 

KOWEL SPECIAL STEEL WIRE CO., LTD.

327-1, SANMAK-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-383-1801~3 FAX:+82-55-383-1804

 

COSMO WIRE LTD.

4-10, GOYEON-RI, UNGCHON-MYEON, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-261-0478  FAX:+82-52-261-0480

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KOSWIRE CO., LTD.(180111-0285957)

KORYO MG CO., LTD.(110111-2713744)

KOS DEVELOPMENT CO., LTD.(110111-4009000)

KORYO MG CO., LTD.(110111-2713744)

JISAN MOTORS CO., LTD.(110111-3667297)

SUBARU KOREA CO.,LTD.(110111-4121896)

 

KOS DIES CO., LTD.(171711-0079119)

(100.0% held by the subject company)

 

EDM PUNGJUN CO., LTD.(1647110-005907)

(100.0% held by the subject company)

 

YEOUIJU CO., LTD.(1101110-114118)

(49.0% held by the subject company)

 

YIYA KOREA CO., LTD.(1101113-824392)

(20.0% held by the subject company)

 

KOSWIRE(S) PTE. LTD.

(100.0% held by the subject company)

 

KOS EUROPE GMBH

(100.0% held by the subject company)

 

KOS HK CO., LTD.

(100.0% held by the subject company)

 

BEROUN FOREST S.R.O.

(99.0% held by the subject company)

 

KOS TECH CO., LTD.(174611-0007797)

(100.00% held by the subject company)

 

KOS AMERICA INC.

KOSWIRE EUROPE S.R.O.

Overseas Office

 

Liaison Office

KOS LIMITED SHENZHEN REPRESENTATIVE OFFICE

Overseas Branch

KOS AMERICA INC.

KOS SHANGHAI

Joint Venture

 

Subsidiary

KOS EUROPE GMBH

(100.0% held by the subject company)

 

KOSWIRE(S) PTE. LTD.

(100.0% held by the subject company)

 

KOS JAPAN INC.

(100.0% held by the subject company)

Corporate Ownership

KOSWIRE CO., LTD.(180111-0285957)

Major Shareholders

KOSWIRE CO., LTD.(180111-0285957)

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to Germany, Japan and USA.

 

 

Court Action

 

No.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.67

Euro

1

Rs.70.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.