3decades

MIRA INFORM REPORT

Report No. :	503902
Report Date :	13.04.2018

IDENTIFICATION DETAILS

Name :	STACO CO., LTD.

Registered Office :	1591-7, Songjeong-dong, Gangseo-gu, Busan, Korea, 46753

Country :	South Korea

Financials (as on) :	31.12.2017

Date of Incorporation :	16.01.1992

Com. Reg. No.:	603-81-18652

Legal Form :	Co., Ltd by shares

Line of Business :	Export Manufacture of Sections for Ships, Ship Panel, Cabin Door

No. of Employees :	167

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Moderate

Payment Behaviour :	Slow

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

SOUTH KOREA - ECONOMIC OVERVIEW

After emerging from the 1950-53 war with North Korea, South Korea emerged as one of the 20th century’s most remarkable economic success stories, becoming a developed, globally connected, high-technology society within decades. In the 1960s, GDP per capita was comparable with levels in the poorest countries in the world. In 2004, South Korea joined the trillion-dollar club of world economies.

Beginning in the 1960s under President PARK Chung-hee, the government promoted the import of raw materials and technology, encouraged saving and investment over consumption, kept wages low, and directed resources to export-oriented industries that remain important to the economy to this day. Growth surged under these policies, and frequently reached double-digits in the 1960s and 1970s. Growth gradually moderated in the 1990s as the economy matured, but remained strong enough to propel South Korea into the ranks of the advanced economies of the OECD by 1997. These policies also led to the emergence of family-owned chaebol conglomerates such as Daewoo, Hyundai, and Samsung, which retained their dominant positions even as the government loosened its grip on the economy amid the political changes of the 1980s and 1990s.

The Asian financial crisis of 1997-98 hit South Korea’s companies hard because of their excessive reliance on short-term borrowing, and GDP ultimately plunged by 7% in 1998. South Korea tackled difficult economic reforms following the crisis, including restructuring some chaebols, increasing labor market flexibility, and opening up to more foreign investment and imports. These steps lead to a relatively rapid economic recovery. South Korea also began expanding its network of free trade agreements to help bolster exports, and has since implemented 16 free trade agreements covering 58 countries—including the United State and China—that collectively cover more than three-quarters of global GDP.

In 2017, the election of President MOON Jae-in brought a surge in consumer confidence, in part, because of his successful efforts to increase wages and government spending. These factors combined with an uptick in export growth to drive real GDP growth to more than 3%, despite disruptions in South Korea’s trade with China over the deployment of a US missile defense system in South Korea.

In 2018 and beyond, South Korea will contend with gradually slowing economic growth - in the 2-3% range - not uncommon for advanced economies. This could be partially offset by efforts to address challenges arising from its rapidly aging population, inflexible labor market, continued dominance of the chaebols, and heavy reliance on exports rather than domestic consumption. Socioeconomic problems also persist, and include rising inequality, poverty among the elderly, high youth unemployment, long working hours, low worker productivity, and corruption.

Source : CIA

Detailed Information

Management

Job Description	Name	Nationality	Date of Birth	Inauguration Date
Chairman & CEO	Lee Dong-Hyung	Korean	07/05/1946	01/16/2001
President & CEO	Lee Jong-Ho	Korean	03/15/1975	01/05/2018
Director	Moon Sang-Hoon	Korean	02/10/1971	03/28/2008
Auditor	Lee Hyung-Hwan	Korean	12/01/1976	01/27/2016

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2017	66,604,987,035	47,853,737,054	-30,523,139,080
2016	123,074,251,842	98,303,037,560	-26,619,259,196
2015	143,052,673,968	129,463,472,058	2,972,449,895
2014	144,625,127,357	123,953,161,296	1,620,109,225
2013	130,930,797,918	107,673,538,396	-1,083,149,310
2012	136,994,417,146	111,250,547,927	96,032,609
2011	166,232,901,807	124,250,988,334	839,864,252
2010	149,636,458,668	102,858,138,549	7,665,390,950
2009	146,131,255,770	81,001,876,891	11,838,761,494
2008	117,760,038,970	64,149,973,488	2,014,138,221
2007	86,697,399,849	39,449,791,480	841,995,936
2006	60,080,932,603	34,213,489,229	1,584,269,177
2005	47,128,042,826	22,778,843,658	1,299,179,811
2004	33,912,974,865	20,880,844,100	1,064,876,928
2003	29,281,817,779	17,477,115,909	619,334,592

Financial Description

Authorized Capital(KRW)	25,000,000,000
Paid-Up Capital(KRW)	5,800,000,000
Total Issues Shares	9,341,667

Balance Sheet
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Total Assets	47,853,737,054	98,303,037,560	129,463,472,058
Current Assets	16,804,565,562	42,456,379,438	75,966,533,035
-Quick Assets	14,496,031,594	36,411,704,546	63,387,686,507
-Inventories	2,308,533,968	6,044,674,892	12,578,846,528
Fixed Assets	31,049,171,492	55,846,658,122	53,496,939,023
-Investment	7,276,156,218	15,874,584,133	17,571,668,267
-Tangibles	20,663,546,931	37,326,316,690	34,495,871,218
-Intangibles	1,315,657,066	1,609,254,843	197,017,082
-Others	1,793,811,277	1,036,502,456	1,232,382,456
Total Liabilities	79,424,685,015	90,627,158,797	95,222,686,320
Current Liabilities	31,855,754,239	76,182,160,569	72,646,444,257
Fixed Liabilities	47,568,930,776	14,444,998,228	22,576,242,063
Capital Stock	5,800,000,000	5,800,000,000	5,800,000,000
Capital Surplus	7,485,437,400	7,485,437,400	7,485,437,400
Profit Surplus	-47,960,281,280	-17,130,755,515	9,796,652,394
Capital Adjustment	3,103,895,919	11,521,196,878	11,158,695,944
Total Equity	-31,570,947,961	7,675,878,763	34,240,785,738
Liab. & Shareholder’s Equity	47,853,737,054	98,303,037,560	129,463,472,058

Current Liabilities	31,855,754,239	76,182,160,569	72,646,444,257
Trade Payables	22,282,611,702	22,542,314,020	21,510,515,190
Short-Term Borrowings	2,347,956,116	39,771,448,346	45,728,486,022
Account Payables	2,242,812,318	2,124,853,297	1,725,020,844
Advance Receipts	1,035,135,159	7,805,115	33,824,639
Withholdings	233,787,118	233,773,998	406,161,518
Accrued Expenses	2,140,624,926	1,175,046,793	1,094,599,229
Accrued Income Tax			321,087,815
Current Portion of Long-Term Debts	1,572,826,900	10,326,919,000	1,826,749,000
Fixed Liabilities	47,568,930,776	14,444,998,228	22,576,242,063
Debentures	5,600,000,000	-	5,600,000,000
Long-Term Borrowings	41,066,596,805	10,105,698,391	12,316,620,659
Leasehold Deposit Received	250,000,000	255,000,000	255,000,000
Provision for Severance & Retirement	652,333,971	2,349,664,837	2,265,973,404
Deferred Income Tax Credit	-	1,734,635,000	2,138,648,000

Income Statement
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Sales	66,604,987,035	123,074,251,842	143,052,673,968
Cost of Sold Goods	71,578,858,745	122,526,475,477	122,563,745,772
Gross Profit	-4,973,871,710	547,776,365	20,488,928,196
Selling & Admin. Expenses	21,037,782,419	20,212,038,799	14,113,294,898
Operating Income	-26,011,654,129	-19,664,262,434	6,375,633,298
Non-Operating Income	12,156,916,374	632,553,001	4,413,665,129
Non-Operating Expenses	17,647,405,915	8,807,611,168	5,565,182,957
Income Before Taxes	-31,502,143,670	-27,839,320,601	5,224,115,470
Income Taxes Expenses	-979,004,590	-1,220,061,405	2,251,665,575
Net Income	-30,523,139,080	-26,619,259,196	2,972,449,895

Cash Flows
Unit : Korean Won	As of 12/31/2017	As of 12/31/2016	As of 12/31/2015
Cash Flows from Operating	-4,685,638,964	9,124,351,004	7,011,840,479
-Net Income	-30,523,139,080	-26,619,259,196	2,972,449,895
-Exp. without Cash Outflow	27,147,505,055	15,804,881,653	4,532,455,736
-Revenue without Cash Inflows	-11,487,123,655	-20,899,000	-261,191,884
-Changes in Asset/ & Liability	10,177,118,716	19,959,627,547	-231,873,268
Cash Flows from Investing	11,008,178,897	-2,395,916,448	-7,267,673,067
-Cash Inflow from Investing	18,545,432,230	5,014,537,525	6,003,430,050
-Cash Outflows for Investing	-7,537,253,333	-7,410,453,973	-13,271,103,117
Cash Flows from Financing	-6,934,232,788	-5,981,939,944	174,472,573
-Cash Inflows from Financing	20,859,009,921	23,615,252,920	26,238,813,603
-Cash Outflows from Financing	-27,793,242,709	-29,597,192,864	-26,064,341,030
Increase/Decrease in Cash	-611,692,855	746,494,612	-81,360,015
Cash at the Beginning of Year	882,414,520	135,919,908	217,279,923
Cash at the End of Year	270,721,665	882,414,520	135,919,908

(*)The Subject needs to be monitored because Net Income is (-)30,523,000,000 KRW in 2017, Current Liabilities exceed Current Assets as much as 15,051,000,000 KRW as of 12/31/2017.

Products, Technologies, Services Description

Main Products & Services

Ship Panel, Cabin Door

Wall Panel

Ceiling Panel

Cabins

Unit Toilet

Cabin Door

Interior Furnishing

Marine Engineering

Installation

Detailed Products Spec.

Cabin Door

45 mm thick mineral wool core

Available in 0.4 and 0.6 mm steel plate. Galvanized steel also available.

Face sheets are totally supported by rigid mineral wool for increased impact resistance.

Superior insulating characteristics.

Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

SHINSUNG INTERIOR TECHNOLOGY CO., LTD.

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

Competitors

SHINHAN MACHINERY CO., LTD.

117, UBONG-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-240-5000~1 FAX:+82-52-240-5041

SAMGONG CO., LTD.

5B-1L, NOKSAN INDUSTRIAL COMPLEX, 1464-2, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-200-3040 FAX:+82-51-200-3046

ILJIN MACHINERY CO., LTD.

725-2, HWANGSEONG-DONG, NAM-GU, ULSAN, KOREA

TEL:+82-52-259-8800 FAX:+82-52-257-5525

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	SMACO ENG CO., LTD (180111-0521872) D&S KOREA CO., LTD.(KOREA) STA INTECH CO., LTD.(180111-0520022) D LINE KOREA CO., LTD.(110111-3896507) ECOLOO CO., LTD.(180111-0859025)
Overseas Office	CHINA HEAD OFFICE (FACTORY) #1 CHENG DUN RD., GANGKOU STREET, FENGHUANG TOWN, ZHANGJIAGANG CITY, JIANGSU PROVINCE, CHINA TEL :+ 82 512 56987000 FAX :+86 512 56987001 SHANGHAI BRANCH OFFICE RM.2707, #2077, YANAN RD. (WEST), CHANGNING, DISTRICT, SHANGHAI, CHINA TEL :+86 21 6270387 62703872 FAX:+86 21 62703797 STACO INDIA BRANCH OFFICE C/612, LEGEND APT., SANTACRUZ (EAST), MUMBAI, INDIA 400055 TEL/FAX :+ 91 22 2665 3899 MOBILE:+ 91 932 331 7008
Liaison Office
Overseas Branch
Joint Venture	STACO CHALMERS CO., LTD.(180111-0747072) (50.0% held by the subject company)
Subsidiary	STAR CONSTRUCTION CO., LTD.(Ex. STAPREVILLE CO., LTD.(110111-4164581)) (66.7% held by the subject company) STACO NEW TECH (ZHANGJIAGANG) LTD.(CHINA) (92.0% held by the subject company) CHENGDUN RD.1, CANGKOU ST, FENGHUANG TN, JIANG JIAGANG CITY, JIANGSU PROVINCE, CHINA STACO NEW TECH (DALIAN) LTD.(CHINA) (77.5% held by the subject company) STACO CHALMERS CO., LTD.(180111-0747072) (50.0% held by the subject company) STA VINA CO., LTD. (100.0% held by the subject company) GREENFIELD CO., LTD.(KOREA)
Corporate Ownership
Major Shareholders
Cooperative Enterprise	LIVART FURNITURE CO., LTD. 54-10, BUK-RI, NAMSA-MYEON, CHEOIN-GU, YONGIN-SI, GYEONGGI-DO 449-884 KOREA TEL:+82-31-331-7921 FAX:+82-31-332-7656 INDUSTRY: MANUFACTURE OF OTHER WOOD FURNITURE SIGONG TECH CO., LTD. SIGONG BLDG., 107-7, SAMSEONG 1-DONG, GANGNAM-GU, SEOUL 135-873 KOREA TEL:+82-2-3438-0077 FAX:+82-2-3438-0088 INDUSTRY: ARCHITECTURAL SERVICES NAGASAKI SENBAKU SOBI (NSS)(WWW.NSSJPN.CO.JP) LOCATION: NAGASAKI, JAPAN (OEM CONTRACT IN JAPAN) B&B ITALIA SPA(WWW.BEBITALIA.IT) LOCATION: MILAN, ITALY S.A.SVENDSEN OY(WWW.SASVENDSEN.COM) KINIEMENTIE 3 B, FIN-00210 HELSINKI, FINLAND TEL:+358 9 681 1170 FAX:+358 9 681 11 768 -Insured Company SAMSUNG FIRE & MARINE INSURANCE CO.,LTD(110111-0005078) MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328) DONGBU INSURANCE CO.,LTD.(110111-0095285)

Sales by Region (Activity & Markets)

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

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (KRW)	Status
		OWOL ARCHITECTURE OFFICE CO., LTD.(110111-3704750)	The Subject Company	provisional seizure	223,950,000	Proceeding
		GYEYOUNG PLANNERS CO., LTD.(110111-3932088)	The Subject Company	non-fulfillment of a contract	211,365,000	Proceeding

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.35
UK Pound	1	INR 92.70
Euro	1	INR 80.80
KRW	1	INR 0.061

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.

Company Name	STACO CO., LTD.
Registered Address	1591-7, Songjeong-dong, Gangseo-gu, Busan, Korea
Building
Zip Code	46753
Tel	+82-51-831-7000
Fax	+82-51-831-7007
E-mail	business@staco.co.kr;trade@staco.co.kr
Website	www.staco.co.kr
Trading Address	25, Noksansandan 289-ro, Gangseo-gu, Busan, Korea (Old Address System : 1591-7, Songjeong-dong, Gangseo-gu, Busan, Korea)
Tel	+82-51-831-7000
Fax	+82-51-970-0518
Other Address	4FL., 567, Seolleung-ro, Gangnam-gu, Seoul, Korea
Tel	+82-2-569-6898
Fax	+82-2-566-0403
Other Address-Daebul Factory	1697-12, Nanjeon-Ri, Samho-Myeon, Yeongam-Gun, Jeonnam-Do 526-892 Korea
Tel	+82-61-464-5331
Fax
Other Address-Shinhangman Factory	6, Sinhang 7-ro, Jinhae-gu, Changwon-si, Gyeongsangnam-do, Korea (Old Address System : 1189-2, Nammun-dong, Jinhae-gu, Changwon-si, Gyeongsangnam-do, Korea)
Tel
Fax
Type	Export
Industry	Manufacture of Sections for Ships
Main Business	Ship Panel, Cabin Door
Sub Business
Established (mm/dd/yyyy)	01/16/1992

Activity	Detailed Products (UNSPSC)
Sell	Interior design or decorating(72101901)
Sell	Marine craft systems and subassemblies(25111900)
Sell	Graphic design(82140000)
Buy	Marine craft systems and subassemblies(25111900)
Buy	Sinks(30181504)
Buy	Faucets(40141702)
Buy	Curtains(52131501)
Buy	Doors(30171500)
Buy	Beds(56101515)
Buy	Panels or panelling(30161505)
Buy	Steel plate(30102204)
Buy	Bathtubs(30181501)
Buy	Shower heads(40141703)

MIRA INFORM REPORT

COMPANY Information

Detailed Information

Financials

Unit