MIRA INFORM REPORT

 

 

Report Date :

23rd February, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

KODICOM (KOREA DIGITAL COMMUNICATIONS) CO., LTD.

 

 

Registered Office :

345-9, Gasan-dong, Geumcheon-gu, Seoul, Korea

 

 

Country :

Korea

 

 

Financials (as on) :

30.09.2006

 

 

Date of Incorporation :

11.10.1996

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Television and Radio Receivers, Sound or Video Recording or Reproducing Apparatuses, and Related Goods

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

Basic Information

 

Company Name

KODICOM (Korea Digital Communications) CO., LTD.

Address

345-9, Gasan-dong, Geumcheon-gu, SEOUL, KOREA

Building

5th Fl., A-dong, SK Twin Tech Tower

Zip Code

153-773

Tel

+82-2-529-5768

Fax

+82-2-579-8419

E-mail

sales@kodicom.com

Website

www.kodicom.com

Sales Division/Seoul Office

13Fl., J-Tower, 538, Sinsa-dong, Gangnam-gu, Seoul 135-889 Korea

Type

Export/Import

Industry

Manufacture of Television and Radio Receivers, Sound or Video Recording or Reproducing Apparatuses, and Related Goods

Main Business

Digital Video Recorder, CCTV, Telecommunication Corperation

Sub Business

 

Established

10/11/1996

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Surveillance and detection equipment(46171600)

Sell

Digital camcorders or video cameras(45121516)

Sell

Security cameras(46171610)

Sell

Digital video recorders(52161545)

 

 

Others

 

Name

Lee Yong-Jun

Address

-

Date of Birth

05/10/1964

Title

President & CEO

Sex

Male

Nationality

Korean

Capital

7,903,598,000 KRW

Employees

106

Formation

Listed Company (KOSDAQ : 041800 ), Venture Business

The subject deals with the companies in China, UK and USA.

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Inauguration Day

President & CEO

Mr.

Lee Yong-Jun

Korean

64.05.10

Kyushu University(Japan)

CEO

Mr.

Kim Chang-Soo

Korean

66.06.10

Busan National University

Director

Mr.

Han Sang-Jin

Korean

69.11.27

University of California Santa Barnara(U.S.A)

Director

Mr.

Moon Young-Ki

Korean

50.10.21

Seoul National University

Outside Director

Mr.

Song Min-Suck

Korean

59.12.02

Hankuk University of Foreign Studies

Outside Director

Mr.

Kim Se-Joon

Korean

55.11.05

U.S.C

Auditor

Mr.

Shin Chul-Min

Korean

67.01.18

Seoul National University

 

 

Financials                                                

Unit: KRW

Year

Sales

Assets

Net income

2005

28,109,077,217

37,213,470,941

(-)4,569,877,983

2004

33,215,109,358

31,117,028,042

(-)2,831,073,378

2003

31,371,160,399

33,678,053,438

5,634,129,773

 

Financial Description                       

 

Unit: KRW

Authorized Capital

20,000,000,000

Paid-Up Capital

7,903,598,000

Total Issues Shares

15,807,196

 

Balance Sheet                           Unit : Korean Won

 

As of 09/30/2006

As of 12/31/2005

As of 12/31/2004

Total Assets

38,269,748,954

37,213,470,941

31,117,028,042

Current Assets

26,116,190,769

24,605,158,944

21,547,923,371

-Quick Assets

20,078,135,433

19,375,088,539

14,996,778,413

-Inventories

6,038,055,336

5,230,070,405

6,551,144,958

Fixed Assets

12,153,558,185

12,608,311,997

9,569,104,671

-Investment

5,182,764,098

5,375,735,190

715,809,299

-Tangibles

3,324,840,629

3,716,053,680

3,453,405,704

-Intangibles

3,645,953,458

3,516,523,127

5,399,889,668

Total Liabilities

6,960,044,998

6,980,582,505

7,803,975,314

Current Liabilities

6,351,523,179

6,325,582,161

7,483,975,314

Fixed Liabilities

608,521,819

655,000,344

320,000,000

Capital Stock

7,903,598,000

7,903,598,000

4,000,000,000

Capital Surplus

19,179,354,277

19,179,354,277

13,961,706,342

Profit Surplus

6,916,893,995

5,835,758,816

10,405,636,799

Capital Adjustment

(-)2,690,142,316

(-)2,685,822,657

(-)5,054,290,413

Total Equity

31,309,703,956

30,232,888,436

23,313,052,728

Liab. & Shareholder’s Equity

38,269,748,954

37,213,470,941

31,117,028,042

 

    Income Statement                       Unit : Korean Won

 

As of 09/30/2006

As of 12/31/2005

As of 12/31/2004

Sales

24,391,339,224

28,109,077,217

33,215,109,358

Cost of Sold Goods

14,701,644,037

18,846,581,298

19,089,645,859

Gross Profit

9,689,695,187

9,262,495,919

14,125,463,499

Selling & Admin. Expenses

8,508,680,478

14,032,802,207

10,983,863,963

Operating Income

1,181,014,709

(-)4,770,306,288

3,141,599,536

Non-Operating Income

1,211,982,638

425,309,762

245,866,071

Non-Operating expenses

901,934,131

2,613,628,580

2,810,955,559

Ordinary Income

1,491,063,216

(-)6,958,625,106

576,510,048

Special Loss

-

-

4,789,555,000

Income Before Taxes

1,491,063,216

(-)6,958,625;106

(-)4,213,044,952

Income Taxes Expenses

317,777,283

(-)2,388,747,123

(-)1,381,971,574

Net Income

1,173,285,933

(-)4,569,877,983

(-)2,831,073,378

Bank Details

Citi Bank, Korea

Guri Branch

Corporate Registered No.

110111-1329112

Business Registered No.

213-86-27711

Permit & Licenses

06/18/1999 CE

06/18/1999 FCC by Certificate of EMC Compliance

09/1999 ISO 9001

12/26/2002 GQ

11/28/2003 ISO 9001

Shareholder Position

Name

Shares

%

Samyang Optics Co., Ltd.

4,070,232

25.75%

Others

11,736,964

74.25%

Total

15,807,196

100.00%

Company History

03/2006 CEO & President : Lee Young Jun, Calvin S Kim

03/2005 Samyang Optics Co.,Ltd. was registered as the affiliate

03/2005 SEIKOU OPTICAL LTD. was registered as the affiliate

03/2004 2003 Asia Pacific Technology Fast 500 (Deloitte Touche Tohmatsu) selection

12/2004 World's Top 50 Security Companies selection (Ranking 34th)

02/2003 Obtained China Compulsory Product Certification

05/2003 KODICOM CS Co., Ltd. was registered as the affiliate

11/2003 Ten Million Dollar Export Award in the 40th Trade Day (Korea International Trade Association)

11/2003 Official Commendation from the Minister of Commerce, Industry and Energy in the 40th Trade Day

01/2002 Achieve first place of Digital Innovation Award "Best Award / Award for small medium Enterprise"

03/2002 Moved to Ga-San dong. Located at A-dong 5th floor, SK Twin Tower 345-9, Ga-San dong, Keum Chun Gu, Seoul Korea 

05/2002 Developed the first of its kind high-speed DVR (480 pictures/sec recording, 16CH Audio) 

06/2002 Increased capital to W4,000,000,000 

08/2002 Together with Jong-Kyoon Ahn, Chan-Ho Park became another CEO for Kodicom. 

09/2002 Opened Kodicom Europe Ltd. in London, UK 

10/2002 Won "2002 Venture" of the Prime Minister Award

11/2002 Won "Enterprise of Digital Information System" of the Minister Award 

12/2002 Obtained Good Quality Products Mark Certification

06/2001 Obtained certificate of safety for providing military Selected as a Superior Technology Company by Korea Technology Credit Guarantee Fund 

11/2001 Award the best Digital innovation of 100 selection 

11/2001 A top award for 38th Trade Day for exporting $5,000,000.(Korea International Trade Association) 

11/2001 Korean World-class Product Award 2001(Product for next generation in IT)

- Ministry of Commerce, Industry and Energy 

11/2001 2001 Award "Best Product" for Security Exhibition of Russia 

12/2001 Designated as guaranteed product company, acquired Q mark (Korea Electric Testing Institue) 

12/2001 Registered by Kosdaq 

12/2001 Joined Business Ethics Members (Korea Business Ethics Institute) 

01/2000  Completed DVR-4000 (DN4000) 

03/2000 Face-value share in 500 won each 

05/2000 Capital increased to U$ 3.5 million

06/2000 R&D Dept. was registered as governmental supported IT Institute

06/2000 Moved to Kodicom Bldg. Located at Samsung-dong, Kang Nam-Ku, Seoul

10/2000 Selected as a Promising Small & Medium Enterprise by Kook Min Bank 

11/2000 A top export award for 7th Trade Day $ 1,000,000 (Korea International Trade Association)

06/1999  Completed DVR-2000 (DN2000) 

06/1999 Obtained three official certificates Certificate of EMC Compliance (No. S45990100), FCC Vertication Certificate (No. 99KESBMC-II-0141), EMI Registration (No. 99-KES-3369) 

07/1999 Award issued by Korea Technology Credit Guarantee Fund for excellent technology Development 

08/1999 Registered as a Venture Corporation with financing privilege 

09/1999 Obtained ISO 9001 Certification 

10/1999 Completed DN1000 (Mini type DVR) 

10/1999 Completed DN3000 (Real time monitoring DVR)

10/1998 Obtained trade business

01/1997 Registered factory 

05/1997 Completed Compression Storing DVR system

06/1997 Registered DVR program (Registration No.97-01-15-2827)

06/1997 Registered Electronic Communication business 

09/1997 Completed image transmission, data transmission and remote control system over PSTN 

12/1997 Registered in Korea Electronic Industries ssociation 

10/1996  Founded KODICOM Co., Ltd.

 

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Brand Name : DigiNet

 

DVR Set

DVR Board

Production Capacity

Product

2005 / Unit

2004 / Unit

PC TYPE SET

16,701

13,800

SR TYPE

8,385

19,596

BOARD

166,493

132,480

Technologies Acquired

 

 

 

Organization Structure

 

Customers

ITA VIDEO SERVICE(Japan)

SVPM (USA)

CBC Co., Ltd.(Japan)

ZICOM ELECTRONIC SECURITY SYSTEMS LTD (India)

Frank Street (South Africa)

Samsung Electronics

Competitors

IDIS

Adventech Technologies Co., Ltd.

Picaso Info Communication Co., Ltd.

Posdata

 

ADT

AXIS

Bosch Security Systems

CBC

Elbex

Pelco

Plettac

 

The subject accounts for 31% of domestic market share as the leading company.

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Subsidiary

KODICOM EUROPE LTD(UK)

KODICOM CS

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2005

2004

2003

Export

14,719

18,631

15,783

Domestic

13,390

14,584

15,588

Total

28,109

33,215

31,371

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Thousand Won)

Status

 

Seoul Nambu District Court

Hong Sung-Jae

The subject

Apply for promissory note amount

280,995

Pending

 

Seoul Nambu District Court

Kyungnam Bank

The subject

Apply for promissory note amount

2,832,500

Pending

 

Seoul Bukbu District Court

Korea Exchange Bank

The subject

Apply for promissory note amount

495,000

Pending

 

Seoul Bukbu District Court

Daegu Bank

The subject

Apply for promissory note amount

484,000

Pending

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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