3decades

MIRA INFORM REPORT

Report No. :	485642
Report Date :	11.01.2018

IDENTIFICATION DETAILS

Name :	SUNGLIM TEXTILE CO., LTD

Registered Office :	225, Chungnyeol-ro, Yangsan-si, Gyeongsangnam-do, Korea, 50592

Country :	South Korea

Financials (as on) :	31.12.2016

Date of Incorporation :	18.03.1993

Com. Reg. No.:	621-81-08749

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture and Sales of Twisted Threads and Processing of Threads, and Textile, Worsted Yarn, Textile, Fabrics

No. of Employees :	32

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

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

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 2016, the economy experienced slow growth – 2%-3% per year - due to sluggish domestic consumption, a drop in foreign demand for South Korean exports, increased competition from regional rivals such as China and Japan, and declining investment. The administration in 2016 faced the challenge of balancing heavy reliance on exports with domestic restructuring efforts in the country’s shipbuilding and shipping industries.

The South Korean economy's short-term challenges include a potential loss of consumer confidence due to issues with its mobile phone industry, as well as uncertainty stemming from a tumultuous domestic political situation. In the long-term, South Korea must deal with a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and the heavy reliance on exports, which comprise more than 40% of GDP. South Korea’s low overall unemployment rate masks problems with high youth unemployment, low worker productivity, high labor underutilization, and low female participation in the workforce. The government has tried to implement structural reforms, but continues to face significant headwind from vested interests. Finally, the country could eventually face an unprecedented financial burden in the event the unification of the Korean Peninsula were to occur.

Source : CIA

Basic Information

Company Name	SUNGLIM TEXTILE CO., LTD.
Registered Address	225, Chungnyeol-ro, Yangsan-si, Gyeongsangnam-do, Korea
Building
Zip Code	50592
Tel	+82-55-372-4001
Fax	+82-55-372-4005
E-mail	info@sunglimtex.com
Website	www.sunglimtex.com
Trading Address	225, Chungnyeol-ro, Yangsan-si, Gyeongsangnam-do, Korea (Old Address System : 160-64, Yusan-dong, Yangsan-si, Gyeongsangnam-do, Korea)
Tel	+82-55-372-4001
Fax	+82-55-372-4005
Type	Export/Import
Industry	Manufacture and Sales of Twisted Threads and Processing of Threads, and Textile
Main Business	Worsted Yarn, Textile, Fabrics
Sub Business
Established (mm/dd/yyyy)	03/18/1993

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Synthetic yarn(11151709)
Sell	Threads(11151600)
Sell	Cotton yarn(11151702)

CEO’s

Name	Byun Sang-Ki
Date of Birth	08/12/1977
Title	President & CEO
Nationality	Korean

Profiles

Capital (KRW)

2,614,730,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Busan Bank

Corporate Registered No.

184511-0009454

Business Registered No.

621-81-08749

Permit & Licenses

N/A

Shareholder Position

Name	Shares	%
BYUN KYU-HAK	56,973	21.79
BYUN SANG-KI	201,500	77.06
OTHERS	3,000	1.15
TOTAL	261,473	100.00

Company History

03/18/1993 Incorporated as the present name

Detailed Information

Management

Job Description	Name	Nationality	Date of Birth	Inauguration Date
President & CEO	Byun Sang-Ki	Korean	08/12/1977	05/19/2016
Director	Byun Kyu-Hak	Korean	09/22/1943	03/29/1999
Director	Jeon Seok-Soon	Korean	03/04/1954	03/29/1999
Auditor	Byun Sang-Ho	Korean	05/05/1980	03/30/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2016	3,153,772,179	14,529,399,198	455,652,231
2015	2,616,773,947	14,022,467,889	612,573,107
2014	2,957,243,190	13,984,024,267	-390,852,164
2013	2,885,687,210	14,419,943,891	32,142,177
2012	3,507,660,037	14,703,645,120	274,394,006

Financial Description

Authorized Capital(KRW)	10,450,000,000
Paid-Up Capital(KRW)	2,614,730,000
Total Issued Shares	261,473

Balance Sheet
Unit : Korean Won	As of 12/31/2016	As of 12/31/2015	As of 12/31/2014
Total Assets	14,529,399,198	14,022,467,889	13,984,024,267
Current Assets	1,116,891,208	890,020,788	1,180,887,742
-Quick Assets	771,128,391	535,906,604	1,021,472,559
-Inventories	345,762,817	354,114,184	159,415,183
Fixed Assets	13,412,507,990	13,132,447,101	12,803,136,525
-Investment	10,085,143,230	9,737,443,952	9,315,873,386
-Tangibles	3,253,229,760	3,320,868,149	3,413,128,139
-Intangibles
-Others	74,135,000	74,135,000	74,135,000
Total Liabilities	4,964,524,187	4,913,245,109	5,487,374,594
Current Liabilities	3,982,299,506	4,592,368,420	4,174,138,258
Fixed Liabilities	982,224,681	320,876,689	1,313,236,336
Capital Stock	2,614,730,000	2,614,730,000	2,614,730,000
Capital Surplus
Profit Surplus	6,950,145,011	6,494,492,780	5,881,919,673
Capital Adjustment
Total Equity	9,564,875,011	9,109,222,780	8,496,649,673
Liab. & Shareholder’s Equity	14,529,399,198	14,022,467,889	13,984,024,267

Current Liabilities	3,982,299,506	4,592,368,420	4,174,138,258
Trade Payables	388,606,912	182,456,149	415,108,283
Short-Term Borrowings	1,277,548,477	2,856,184,709	3,032,595,289
Account Payables	37,483,748	86,420,248	57,078,099
Withholdings	9,056,810	9,574,560	6,782,180
VAT Withhold	49,011,399	20,917,024	56,287,957
Accrued Expenses	68,992,160	75,215,730	56,286,450
Current Portion of Long-Term Debts	2,151,600,000	1,361,600,000	550,000,000
Fixed Liabilities	982,224,681	320,876,689	1,313,236,336
Long-Term Borrowings	627,800,000	17,400,000	1,034,600,000
Leasehold Deposit Received	70,000,000	70,000,000	70,000,000
Provision for Severance & Retirement	284,424,681	233,476,689	208,636,336

Income Statement
Unit : Korean Won	As of 12/31/2016	As of 12/31/2015	As of 12/31/2014
Sales	3,153,772,179	2,616,773,947	2,957,243,190
Cost of Sold Goods	2,864,391,657	2,233,944,773	2,641,232,789
Gross Profit	289,380,522	382,829,174	316,010,401
Selling & Admin. Expenses	250,918,298	175,074,490	143,134,581
Operating Income	38,462,224	207,754,684	172,875,820
Non-Operating Income	500,922,305	495,091,878	167,155,766
Non-Operating Expenses	83,732,298	90,273,455	730,883,750
Income Before Taxes	455,652,231	612,573,107	-390,852,164
Income Taxes Expenses	-	-	-
Net Income	455,652,231	612,573,107	-390,852,164

Cash Flows
Unit : Korean Won	As of 12/31/2016	As of 12/31/2015	As of 12/31/2014
Cash Flows from Operating	161,531,286	507,545,234	178,486,477
-Net Income	455,652,231	612,573,107	-390,852,164
-Exp. without Cash Outflow	194,733,977	158,147,166	800,206,588
-Revenue without Cash Inflows	-403,334,642	-389,764,616	-31,523,162
-Changes in Asset/ & Liability	-85,520,280	126,589,577	-199,344,785
Cash Flows from Investing	-11,231,156	-55,585,273	50,623,736
-Cash Inflow from Investing	91,636,364	10,209,737	122,318,182
-Cash Outflows for Investing	-102,867,520	-65,795,010	-71,694,446
Cash Flows from Financing	-178,236,232	-382,010,580	-222,664,520
-Cash Inflows from Financing	427,400,000	576,070,470	605,000,000
-Cash Outflows from Financing	-605,636,232	-958,081,050	-827,664,520
Increase/Decrease in Cash	-27,936,102	69,949,381	6,445,693
Cash at the Beginning of Year	135,466,459	65,517,078	59,071,385
Cash at the End of Year	107,530,357	135,466,459	65,517,078

Products, Technologies, Services Description

Main Products & Services

Worsted Yarn, Textile, Fabrics

Trade Partners & Competitors

Competitors

N & T GLOBAL INC.

RM. 2109, RENAISSNACE TOWER BLDG., 456, GONGDEOK-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-704-6401 FAX:+82-2-704-6403

GLOBAL KOREA TRADING CO., LTD.

RM. 304, SEOKTOP OFFICETEL, 1588-7, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3472-3751 FAX:+82-2-3472-3752

GATE TRADING CO., LTD.

RM. 302-1, SEONGU BLDG., YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-556-3153 FAX:+82-2-555-7633

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

KINGTEX CO., LTD.(110111-0221369)

(36.41% held by the subject company)

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.83
UK Pound	1	INR 86.28
Euro	1	INR 76.14
KRW	1	INR 0.059

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

INFORMATION DETAILS

Analysis Done by :	NIS

Report Prepared by :	SYL

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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.