MIRA INFORM REPORT

 

 

Report Date :           

04.04.2012

 

IDENTIFICATION DETAILS

 

Name :

GOLDENDEW CO., LTD.

 

 

Formerly Known As :

Hwa Dong Yangheng Co., Ltd.

 

 

Registered Office :

1466-14, Seocho 3-dong, Seocho-gu, Seoul, Korea, 1st Fl., Hwadong Bldg., Zip Code 137-867

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

27.05.1982

 

 

Com. Reg. No.:

214-81-88356

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Precious Metals and Related Articles

 

 

No. of Employees :

219

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

South Korea

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Basic

 

Company Name

GOLDENDEW CO., LTD.

(Korean Company Name : “(주)골든듀”)

Registered Address

1466-14, Seocho 3-dong, Seocho-gu, Seoul, Korea

Building

1st Fl., Hwadong Bldg.

Zip Code

137-867

Tel

+82-2-3415-5700

Fax

+82-2-3471-1455

E-mail

goldendew@goldendew.com

Website

www.goldendew.com

Trading Address

1st Fl., Hwadong Bldg., 1466-14, Seocho 3-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-3415-5700

Fax

+82-2-3471-1455

Other Address-Cheongdam Shop

100-4, Cheongdam-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-511-1250

Other Address-Apgujeong Branch

429, Apgujeong-dong, Gangnam-gu, Seoul, Korea

Other Address-Samseong-dong Branch

159-7, Samseong-dong, Gangnam-gu, Seoul, Korea

Other Address-Sogong Branch

1, Sogong-dong, Jung-gu, Seoul, Korea

Other Address-Jamsil Branch

40-1, Jamsil-dong, Songpa-gu, Seoul, Korea

Type

Export/Import

Industry

Manufacture of Precious Metals and Related Articles

  Main Business

Diamond Accessories

Established (mm/dd/yyyy)

05/27/1982

The Subject Company occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Body jewelry(54101605)

Sell

Fine body jewelry(54101505)

Sell

Souvenirs(49101602)

Sell

Fine jewelry bracelets(54101506)

Sell

Fine jewelry necklaces(54101502)

Sell

Earrings(54101604)

Buy

Garnets(11101520)

Buy

Gold(11101801)

Buy

Platinum(11101803)

Buy

Packaging boxes(24121503)

Buy

Semi precious stones(54121600)

Buy

Precious stones(54121500)

Buy

Emerald gemstones(54121502)

Buy

Cultured pearls(54121701)

Buy

Sapphire gemstones(54121504)

Buy

Ruby gemstones(54121503)

Buy

Diamond gemstones(54121501)

 

 

CEO’s

 

Name

Lee Kun-Kap

Address

Suite 104-503, 52, Garak-dong, Songpa-gu, Seoul, Korea

Date of Birth

02/07/1951

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

3,000,000,000

Employees

219

Formation

Co., Ltd by shares

Bank Details

Korea Exchange Bank

Shinhan Bank-Gangnam Central Branch

SC First Bank of Korea

Corporate Registered No.

110111-0319445

Business Registered No.

214-81-88356

Permit & Licenses

Int’l Trade No.: 852722

Shareholder Position

Name

Shares

%

LEE KUN-IL & OTHERS(8)

481,110

80.19

HONG WOONG-SUN

20,010

3.34

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

21,000

3.50

KIM YEON-SUNG

18,400

3.07

HAN DONG-CHEOL

10,000

1.67

OTHERS

49,480

8.25

TOTAL

600,000

100.00

Company History

05/27/1982 Incorporated as Hwa Dong Yangheng Co., Ltd.

04/06/2000 Increased the authorized shares to 2,000,000 shares from 600,000 shares

04/22/2000 Increased capital to 3,000,000,000 KRW from 2,484,000,000 KRW

12/24/2003 Changed company name to the present name

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Lee Kun-Kap

Male

Korean

11/15/1994

Co-President & CEO

Mr.

Lee Kun-Il

Male

Korean

05/27/1992

Director & Supervisor of HQ Office

Mr.

Kim Woong-Ki

Male

Korean

03/28/2006

Director

Mr.

Lee Phil-Sung

Male

Korean

03/28/2006

Auditor

Mr.

Jung Won-Ik

Male

Korean

03/28/2007

Supervisor

Mr.

Kim Woong-Ki

Male

Korean

11/19/2007

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2010

64,113,744,672

37,701,034,724

1,438,800,532

2009

56,175,515,417

35,553,312,643

1,834,028,704

2008

46,701,712,299

30,399,003,869

582,168,284

2007

40,035,417,801

26,170,413,400

1,128,234,046

2006

 38,753,571,566

 25,349,938,477

 54,576,125

2005

37,508,487,533

24,771,407,881

1,218,484,011

2004

48,962,480,852

19,778,522,138

1,713,533,513

 

 

Financial Description

 

Authorized Capital(KRW)

10,000,000,000

Paid-Up Capital(KRW)

3,000,000,000

Total Issued Shares

600,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

37,701,034,724

35,553,312,643

30,399,003,869

Current Assets

32,146,505,995

30,619,854,916

25,250,039,456

-Quick Assets

7,213,886,288

6,906,245,156

5,938,567,022

-Inventories

24,932,619,707

23,713,609,760

19,311,472,434

Fixed Assets

5,554,528,729

4,933,457,727

5,148,964,413

-Investment

2,183,537,540

2,096,707,154

2,081,073,188

-Tangibles

1,939,120,462

1,401,803,933

1,588,813,638

-Intangibles

10,437,627

8,615,540

12,424,487

-Others

1,421,433,100

1,426,331,100

1,466,653,100

Total Liabilities

24,397,063,023

23,597,178,474

20,152,185,404

Current Liabilities

19,558,359,349

19,039,777,208

18,345,024,509

Fixed Liabilities

4,838,703,674

4,557,401,266

1,807,160,895

Capital Stock

3,000,000,000

3,000,000,000

3,000,000,000

Capital Surplus

1,203,323,050

1,203,323,050

1,203,323,050

Profit Surplus

9,100,648,651

7,752,811,119

6,043,495,415

Capital Adjustment

　

　

　

Total Equity

13,303,971,701

11,956,134,169

10,246,818,465

Liab. & Shareholder’s Equity

37,701,034,724

35,553,312,643

30,399,003,869

 

Current Liabilities

19,558,359,349

19,039,777,208

18,345,024,509

Trade Payables

710,764,082

606,535,633

718,000,774

Short-Term Borrowings

14,242,604,528

14,662,785,289

14,925,356,963

Account Payables

2,237,754,629

1,562,768,623

1,164,467,070

Withholdings

111,784,780

56,200,379

53,022,740

Advance Receipts

2,147,365,492

1,724,029,579

1,435,524,503

Accrued Expenses

44,110,261

28,573,727

48,652,459

Accrued Income Tax

63,975,577

398,883,978

-

Fixed Liabilities

4,838,703,674

4,557,401,266

1,807,160,895

Debentures

2,500,000,000

2,500,000,000

-

Guarantee Deposit Received

2,100,000,000

1,865,000,000

1,580,000,000

Long-Term Account Payables

　

　

6,744,787

Provision for Severance & Retirement

848,318,440

739,086,806

656,722,433

Other Provisions

2,377,934

14,089,206

7,240,572

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

64,113,744,672

56,175,515,417

46,701,712,299

Cost of Sold Goods

28,977,373,399

28,036,856,971

22,495,925,168

Gross Profit

35,136,371,273

28,138,658,446

24,205,787,131

Selling & Admin. Expenses

32,458,254,612

25,692,399,949

22,011,636,037

Operating Income

2,678,116,661

2,446,258,497

2,194,151,094

Non-Operating Income

395,339,431

1,161,771,290

1,033,538,746

Non-Operating Expenses

1,382,536,713

1,355,906,455

2,578,866,679

Income Before Taxes

1,690,919,379

2,252,123,332

648,823,161

Income Taxes Expenses

252,118,847

418,094,628

66,654,877

Net Income

1,438,800,532

1,834,028,704

582,168,284

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

1,766,791,894

-1,005,669,502

-1,798,708,597

-Net Income

1,438,800,532

1,834,028,704

582,168,284

-Exp. without Cash Outflow

1,977,680,621

1,414,286,980

1,909,773,032

-Revenue without Cash Inflows

-41,526,615

-65,226,052

-548,588,730

-Changes in Asset/ & Liability

-1,608,162,644

-4,188,759,134

-3,742,061,183

Cash Flows from Investing

-1,254,878,687

-1,184,416,584

-1,003,337,738

-Cash Inflow from Investing

962,898,000

98,781,818

595,069,795

-Cash Outflows for Investing

-2,217,776,687

-1,283,198,402

-1,598,407,533

Cash Flows from Financing

-521,524,785

2,116,749,351

3,025,635,713

-Cash Inflows from Financing

29,522,815,495

37,810,507,635

30,999,739,177

-Cash Outflows from Financing

-30,044,340,280

-35,693,758,284

-27,974,103,464

Increase/Decrease in Cash

-9,611,578

-73,336,735

223,589,378

Cash at the Beginning of Year

178,313,233

251,649,968

28,060,590

Cash at the End of Year

168,701,655

178,313,233

251,649,968

 

 

Products, Technologies, Services Description

 

Main Products & Services

Diamond, Jewelry

 

 

Trade Partners & Competitors

 

Competitors

GP DIAMONDS CO., LTD.

2ND FL., HANMI COMPLEX, 64-1, MYO-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-766-4880  FAX:+82-2-745-4880

 

GEMOPIA JEWELRY CO., LTD.

E-201, BUNDANG TECHNO PARK, 151, YATAP-DONG, BUNDANG-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-708-2005  FAX:+82-31-707-7534

 

GEMCO JEWELRY CO., LTD.

6TH FL., GANGBUK UNION BLDG., 239, BEON 3-DONG, GANGBUK-GU, SEOUL, KOREA

TEL:+82-2-981-7400  FAX:+82-2-989-5216

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KGTC CO., LTD.(110111-2239790)

(30.04% held by the subject company)

 

HWA DONG YANGHENG CO., LTD.(110111-2929549)

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in Hong Kong, India, Japan and USA

 

 

Court Action

 

No.

 

 

News Clipping

 

--

DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.56

UK Pound

1

Rs.81.05

Euro

1

Rs.67.49

 

 

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.