MIRA INFORM REPORT

 

 

Report Date :

21.04.2012

 

IDENTIFICATION DETAILS

 

Name :

DAENONG CORPORATION

 

 

Registered Office :

1, Dowon-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea 363-933

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

15.04.1955

 

 

Com. Reg. No.:

105-81-33940

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

 

 

No. of Employees :

260

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 information

 

Company Name

DAENONG CORPORATION

(Korean Company Name : “(주)대농”)

Registered Address

1, Dowon-ri, Naesu-eup, Cheongwon-gun, Chungcheongbuk-do, Korea

Zip Code

363-933

Tel

+82-2-2009-4500

Fax

+82-2-2009-4554

E-mail

trade1@daenong21.com

Website

www.daenong21.com

Trading Address

12th FI., Rich Tower, 141-33, Samseong 2-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-2009-4500

Fax

+82-2-2009-4554

Type

Export/Import

Industry

Cotton of Spinning

  Main Business

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

  Sub Business

 

Established (mm/dd/yyyy)

04/15/1955

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Fabrics and leather materials(11160000)

Sell

Fibers(11151500)

Sell

Threads(11151600)

Sell

Bedclothes(52121500)

Sell

Cotton yarn(11151702)

 

 

CEO’s

 

Name

Jung Chun-Bo

Address

Suite 301, 23, Dosan-daero, Gangnam-gu, Seoul, Korea

Date of Birth

07/06/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

8,931,010,000

Employees

260

Formation

Co., Ltd by Shares

Bank Details

Shinhan Bank-Sales 1 Dept.

Corporate Registered No.

110111-0138572

Business Registered No.

105-81-33940

Permit & Licenses

Int’l Trade No.: 670296

Shareholder Position

Name

Shares

%

SHINYOUNG CO., LTD.(110111-0618178)

1,571,000

87.95

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

174000

9.74

OTHERS

41,202

2.31

TOTAL

1,786,202

100.00

Company History

04/15/1955 Incorporated as Daehan Nongsan Co., Ltd.

07/01/1973 Changed company name to the present name

01/14/1991 Listed at Korea Stock Exchange

12/30/1997 Started Corporate Clearing Procedure

09/04/1998 Approved of Corporate Clearing Plan

04/27/2002 Delisted from Korea Stock Exchange

05/02/2005 Moved to the present HQ address from 33-1, Mapo-dong, Mapo-gu, Seoul, Korea

12/28/2005 Split off the subject company, and established Shinyoung Daenong Co., Ltd.

04/15/2009 Decreased capital to 8,931,010,000 KRW from 89,310,100,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

President & CEO

Mr.

Jung Chun-Bo

Male

Korean

1955.07.06

Director

Mr.

Choi Kwang-Cheol

Male

Korean

1971.12.23

Director

Mr.

Park Gye-Sung

Male

Korean

1961.08.20

Director

Mr.

Park Sang-Hyup

Male

Korean

1961.07.01

Auditor

Mr.

Kim Sung-Hwan

Male

Korean

1964.06.08

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

179,409,519,388

147,686,854,132

-14,881,325,661

2010

145,590,969,744

135,837,973,786

2,361,105,555

2009

119,478,390,050

118,518,768,622

13,336,702,823

2008

89,014,415,794

205,124,523,433

14,740,918,689

 

 

Financial Description

 

Authorized Capital(KRW)

125,000,000,000

Paid-Up Capital(KRW)

8,931,010,000

Total Issued Shares

1,786,202

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

147,686,854,132

135,837,973,786

118,518,768,622

Current Assets

75,145,414,365

64,901,510,682

48,839,367,114

-Quick Assets

34,591,308,456

44,443,396,247

36,885,831,881

-Inventories

40,554,105,909

20,458,114,435

11,953,535,233

Fixed Assets

72,541,439,767

70,936,463,104

69,679,401,508

-Investment

43,289,955,782

39,388,800,316

37,271,981,116

-Tangibles

28,225,723,244

30,616,076,339

32,194,556,683

-Intangibles

70,976,665

18,139,469

13,980,813

-Others

954,784,076

913,446,980

198,882,896

Total Liabilities

61,283,667,260

36,418,813,819

22,253,325,242

Current Liabilities

53,543,145,203

28,559,316,069

13,909,678,006

Fixed Liabilities

7,740,522,057

7,859,497,750

8,343,647,236

Capital Stock

8,931,010,000

8,931,010,000

8,931,010,000

Capital Surplus

9,950,145,226

9,950,145,226

9,950,145,226

Profit Surplus

61,540,954,892

76,422,280,553

106,843,324,948

Capital Adjustment

5,981,076,754

4,115,724,188

-29,459,036,794

Total Equity

86,403,186,872

99,419,159,967

96,265,443,380

Liab. & Shareholder’s Equity

147,686,854,132

135,837,973,786

118,518,768,622

 

Current Liabilities

53,543,145,203

28,559,316,069

13,909,678,006

Trade Payables

9,516,791,841

8,111,987,389

5,329,027,744

Short-Term Borrowings

39,553,190,223

17,192,258,757

7,256,326,563

Account Payables

2,111,038,891

1,829,635,311

929,807,604

Advance Receipts

139,362,961

231,606,169

33,840,521

Withholdings

36,752,810

44,067,365

36,656,005

Accrued Expenses

519,341,813

382,359,234

324,019,569

Accrued Income Tax

-

350,735,170

-

Current Portion of Long-Term Debts

1,666,666,664

416,666,674

-

Fixed Liabilities

7,740,522,057

7,859,497,750

8,343,647,236

Long-Term Borrowings

2,916,666,662

4,583,333,326

5,000,000,000

Leasehold Deposit Received

274,200,000

274,200,000

2,200,000

Provision for Severance & Retirement

3,957,669,260

3,212,086,450

2,830,930,310

Deferred Income Tax Credit

803,976,325

-

710,647,452

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

179,409,519,388

145,590,969,744

119,478,390,050

Cost of Sold Goods

171,312,468,812

132,568,613,896

109,845,164,441

Gross Profit

8,097,050,576

13,022,355,848

9,633,225,609

Selling & Admin. Expenses

11,609,119,086

6,626,032,948

4,003,387,441

Operating Income

-3,512,068,510

6,396,322,900

5,629,838,168

Non-Operating Income

5,570,207,886

4,825,164,643

11,811,020,030

Non-Operating Expenses

17,950,139,904

9,109,722,225

4,680,978,263

Income Before Taxes

-15,892,000,528

2,111,765,318

12,759,879,935

Income Taxes Expenses

-1,010,674,867

-249,340,237

-576,822,888

Net Income

-14,881,325,661

2,361,105,555

13,336,702,823

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-21,866,522,948

-3,147,126,810

14,675,348,648

-Net Income

-14,881,325,661

2,361,105,555

13,336,702,823

-Exp. without Cash Outflow

17,163,872,180

9,397,458,162

4,477,550,114

-Revenue without Cash Inflows

-786,000,446

-828,142,412

-3,772,182,117

-Changes in Asset/ & Liability

-23,363,069,021

-14,077,548,115

633,277,828

Cash Flows from Investing

-8,833,884,708

-8,402,154,723

95,151,459,109

-Cash Inflow from Investing

6,633,828,330

5,873,806,154

152,938,578,033

-Cash Outflows for Investing

-15,467,713,038

-14,275,960,877

-57,787,118,924

Cash Flows from Financing

20,693,239,636

10,295,158,049

-100,058,333,121

-Cash Inflows from Financing

80,054,831,596

27,487,416,806

14,446,159,225

-Cash Outflows from Financing

-59,361,591,960

-17,192,258,757

-114,504,492,346

Increase/Decrease in Cash

10,007,168,020

1,254,123,484

9,768,474,636

Cash at the Beginning of Year

17,314,933,225

18,569,056,709

8,800,582,073

Cash at the End of Year

7,307,765,205

17,314,933,225

18,569,056,709

 

 

Products, Technologies, Services Description

 

Main Products & Services

Melange Yarn, Cotton Yarn, Linen Blended Yarn, Polynosic, Linen, Stretch, Cotton

 

 

Trade Partners & Competitors

 

Competitors

TAE KWANG INDUSTRIAL CO., LTD.(110111-0185276)

ILSHIN SPINNING CO.,LTD.(110111-0041717)

CHONBANG CO.,LTD.(110111-0005664)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAENONG TEXTILE CO., LTD.(110111-3878266)

(80.0% held by the subject company)

Overseas Office

PT. GISTEX POPULAR INDONESIA

(60.0% held by the subject company)

 

PT. DAENONG GLOBAL

(99.0% held by the subject company)

Subsidiary

QINGDAO DAENONG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HWANHAE DAENONG TEXTILE CO., LTD.(CHINA)

(100.0% held by the subject company)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

2011

2010

2009

Export

160,031

132,989

106,886

Domestic

19,378

12,601

12,592

Total

179,409

145,590

119,478

Not Available.

 

 

Court Action

 

No.

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.00

UK Pound

1

Rs.83.54

Euro

1

Rs.68.40

 

 

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.