MIRA INFORM REPORT

 

 

Report No. :

347467

Report Date :

28.10.2015

           

IDENTIFICATION DETAILS

 

Name :

ISU EXACHEM CO., LTD

 

 

Registered Office :

84, Sapyeong-Daero, Seocho-gu, Seoul, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

07.08.2001

 

 

Com. Reg. No.:

114-86-11339

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Wholesale of Industrial Basic Chemicals (Parasol, D-sol, TDM)

 

 

No. of Employees :

27

 

 

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 :

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

ISU EXACHEM CO., LTD

(Ex. Company Name : EXACHEM CO., LTD.)

Registered Address

84, Sapyeong-daero, Seocho-gu, Seoul, Korea

Building

-

Zip Code

06575

Tel

+82-2-590-6652

Fax

+82-2-590-6667

E-mail

ks503@isu.co.kr

Website

www.exachem.co.kr

Trading Address

84, Sapyeong-daero, Seocho-gu, Seoul, Korea

(Old Address System : 112-4, Banpo 4-dong, Seocho-gu, Seoul, Korea)

Tel

+82-2-590-6652

Fax

+82-2-590-6667

 

 

Type

Export/Import

Industry

Wholesale of Industrial Basic Chemicals

  Main Business

Parasol, D-sol, TDM

  Sub Business

 

 

 

Established (mm/dd/yyyy)

08/07/2001

The Subject occupies the premises of the registered address by leasing from ISU CHEMICAL CO., LTD.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Laundry products(47131811)

Sell

Compounds and mixtures(12350000)

 

 

CEO’s

 

Name

Lee Jong-Seok

Address

Suite 406-2204, 221, Seolleung-ro, Gangnam-gu, Seoul, Korea

Date of Birth

06/10/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,600,000,000

Employees

27

Formation

Co., Ltd by shares

A Company of ISU Group

Bank Details

Korea Exchange Bank-Banpo Dong Branch

Citi Bank, Korea

Kookmin Bank

Corporate Registered No.

110111-2303826

Business Registered No.

114-86-11339

Permit & Licenses

Int’l Trade No.: 11938879

Shareholder Position

Name

Shares

%

KIM SANG-BEOM

320,000

100.00

TOTAL

320,000

100.00

Company History

08/07/2001 Separated from ISU CHEMICAL CO., LTD and Incorporated as the present name

04/20/2005 Acquired IMS Co., Ltd at 11-8, Songnim-dong, Dong-gu, Incheon, Korea

11/29/2006 Awarded US$30 Million Export Top Prize

07/07/2009 Increased capital to 1,600,000,000 KRW from 600,000,000 KRW

03/29/2010 Increased the authorized shares to 6,000,000 shares from 320,000 shares

03/31/2015 Changed company name to ISU EXACHEM CO., LTD.

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Kim Sang-Beom

Male

Korean

03/30/2011

President & CEO

Mr.

Chae Yoon

Male

Korean

12/01/2014

Director

Mr.

Park Hee-Cheol

Male

Korean

01/01/2015

Auditor

Mr.

Je Kang-Ho

Male

Korean

01/01/2013

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2014

153,037,582,375

88,899,893,379

256,928,989

(*)2013

175,713,979,610

75,042,066,087

5,104,472,113

(*)2012

195,173,166,118

83,680,647,261

2,322,412,471

(*)2011

199,263,532,073

85,145,353,399

1,747,917,936

2010

196,326,211,664

89,903,880,017

-982,726,652

2009

130,776,684,480

91,720,068,139

2,638,000,410

2008

131,830,541,121

76,421,092,730

2,764,069,038

 

(*)Figures are based on the K-IFRS Accounting System.

 

 


Financial Description

 

Authorized Capital(KRW)

1,600,000,000

Paid-Up Capital(KRW)

1,600,000,000

Total Issued Shares

320,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

88,899,893,379

75,042,066,087

83,680,647,261

Current Assets

32,452,040,928

18,504,745,569

28,814,446,446

Cash & Cash Equivalents

436,604,026

1,139,586,749

321,427,094

Trade Receivables & Other Receivables

9,550,424,175

15,173,736,108

27,904,980,770

Inventories

2,401,817,035

1,609,889,499

117,819,751

Current Financial Instruments

20,024,206,027

576,480,000

464,307,999

Other Current Assets

38,989,665

5,053,213

5,910,832

Non-Current Assets

56,447,852,451

56,537,320,518

54,866,200,815

Long-Term Trade Receivables & Other Receivables

32,752,000

287,000,000

289,657,320

Tangibles

1,930,269,876

2,262,042,772

180,092,017

Intangibles

401,864,527

401,864,527

401,864,527

Investment_Subsidiaries

49,322,639,427

49,322,639,427

49,322,639,427

Investment_Related Companies

3,207,974,641

3,207,974,641

3,207,974,641

Deferred Income Tax Assets

1,547,511,980

1,050,959,151

1,279,132,883

Non-Current Financial Instruments

4,840,000

4,840,000

184,840,000

Total Liabilities

69,560,587,725

55,147,366,633

68,838,213,648

Current Liabilities

68,808,565,379

54,521,386,416

68,746,776,905

Trade Payables & Other Payables

55,871,744,578

45,383,795,882

57,925,638,670

Short-Term Borrowings

12,139,237,648

8,300,000,000

8,300,000,000

Deferred Income Tax Credit

228,071,352

306,479,987

1,711,263,716

Other Current Liabilities

569,511,801

531,110,547

809,874,519

Non-Current Liabilities

752,022,346

625,980,217

91,436,743

Confirmed Salaries

752,022,346

625,980,217

91,436,743

Capital Stock

1,600,000,000

1,600,000,000

1,600,000,000

Profit Surplus

17,739,305,654

18,294,699,454

13,242,433,613

Total Equity

19,339,305,654

19,894,699,454

14,842,433,613

Liab. & Shareholder’s Equity

88,899,893,379

75,042,066,087

83,680,647,261

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

153,037,582,375

175,713,979,610

195,173,166,118

Cost of Sold Goods

141,426,977,921

161,686,494,751

177,964,358,767

Gross Profit

11,610,604,454

14,027,484,859

17,208,807,351

Selling & Admin. Expenses

7,741,112,476

7,920,186,758

7,621,784,400

Operating Income

3,869,491,978

6,107,298,101

9,587,022,951

Other Income

1,600,475,554

3,588,886,875

2,099,383,575

Other Expenses

2,875,262,625

1,893,120,301

6,362,637,603

Finance Income

1,874,441,393

1,845,945,353

1,901,198,555

Finance Expenses

3,072,459,618

2,714,605,722

3,581,302,044

Income Before Taxes

1,396,686,682

6,934,404,306

3,643,665,434

Income Taxes Expenses

1,139,757,693

1,829,932,193

1,321,252,963

Net Income

256,928,989

5,104,472,113

2,322,412,471

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

18,299,394,489

-8,665,479,336

2,455,643,651

Net Income

256,928,989

5,104,472,113

2,322,412,471

Adjustment

4,678,070,245

1,727,112,180

8,538,635,257

Changes in Asset/ & Liability

13,279,973,716

-14,321,398,418

-9,972,002,991

Interests Received

1,840,793,243

1,816,152,133

1,884,318,945

Income Taxes

-1,756,371,704

-2,991,817,344

-317,720,031

Cash Flows from Investing

-19,176,690,794

12,246,359,138

-3,081,601,076

Cash Flows from Financing

174,767,877

-2,762,160,925

418,020,528

Increase/Decrease in Cash

-702,528,428

818,718,877

-207,936,897

Cash at the Beginning of Year

1,139,586,749

321,427,094

529,527,369

Cash at the End of Year

436,604,026

1,139,586,749

321,427,094

 

 

Products, Technologies, Services Description

 

Main Products & Services

D-SOL :

D-SOL has good solubility as contains low unsaturated contents and impurity.

D-SOL contain napthenic rich contents so it has better solubility than normal paraffin

D-SOL has low aromatic, sulfur contents so it has low odor and easily adopt to each process of industry

 

PARASOL :

Linear hydrocarbon as Paraffin(N-Paraffin) is obtained from Kerosene by Molex extraction method and etc. N-Paraffin is raw material of Linear Alkyl Benzene, Chloroparaffin, a-oleffin, and additive for lubricant, dry cleaning, anti-rusting oil, aerosol etc.

 

TDM :

-Chain Transfer agent in polymerization to produce ABS, SBR, SB-Latex.

-Extreme pressure additives for gear oils, greases, and metal working fluids.

-Corrosion inhibitor for lubrication oil.

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

ISU CHEMICAL CO., LTD

Customers

ISU CHEMICAL CO., LTD

ISU OIL & CHEMICAL CO, LTD.

MS CHEM

SAMHWA LUBE.CO., LTD.(141211-0006811)

BUHMWOO CHEMICAL. IND. CO. LTD.(120111-0003830)

Competitors

 

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

ISU CORPORATION(110111-2833451)

ISU CHEMICAL CO., LTD(110111-0008600)

ISUPETASYS CO., LTD(110111-0186638)

ISU SYSTEM CO., LTD.(110111-1304643)

ISU C&D CO., LTD.(110111-1151549)

EXA BOARD CO., LTD.(131411-0161035)

TODA ISU CORPORATION(141211-0043623)

ISU OIL CHEMICAL CO., LTD.(110111-0584436)

ISU ABXIS CO., LTD.(110111-2203951)

ISU ENGINEERING & CONSTRUCTION CO., LTD.(110111-0202202)

 

ISU VENTURE CAPITAL CO., LTD.(110111-1917636)

(38.46% held by the subject company)

Affiliates-Overseas

ISU PETASYS CORP.

ISU-SAUDI ENGINEERING AND CONSTRUCTION CO., LTD.

ISU BROWNSTONE CO., LTD

ISU CHEMICAL GERMANY GMBH

GREAT ORIENT CHEMICAL PTE. LTD.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

ISU CORPORATION(110111-2833451)

(67.45% held by the subject company)

 

ISU SYSTEM CO., LTD.(110111-1304643)

ISU CHEMICAL CO., LTD(110111-0008600)

SHANGHAI ISU CHANUM MANAGEMENT CO., LTD(CHINA)

IK PARTNERS CO., LTD.(KOREA)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to Japan and China.

 

 

Court Action

 

No.

 

 

News Clipping

 

---------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.96

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.