MIRA INFORM REPORT

 

 

Report Date :

24.08.2012

 

IDENTIFICATION DETAILS

 

Name :

DOOSAN ENGINE CO., LTD.

 

 

Formerly Known As :

HSD ENGINE CO., LTD.

 

 

Registered Office :

69-3, Sinchon-dong, Changwon-si, Gyeongsangnam-do, Korea, Zip Code 641-370

 

 

Country :

South korea

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

30.12.1999

 

 

Com. Reg. No.:

609-81-40128

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacturer of Internal Combustion Piston Engines

 

 

No. of Employees :

1,272 employees

 

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 :

No Complaints

Litigation :

Exists

 

 

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

 

Company Name

DOOSAN ENGINE CO., LTD.

(Korean Company Name : “두산엔진()”)

Registered Address

69-3, Sinchon-dong, Changwon-si, Gyeongsangnam-do, Korea

Zip Code

641-370

Tel

+82-55-260-6000

Fax

+82-55-282-0588

E-mail

wookyu.kim@doosan.com;humjin.baek@doosan.com

Website

www.doosanengine.com

Trading Address

69-3, Sinchon-dong, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-260-6000

Fax

+82-55-282-0588

Other Address-Geoje Office

1, Aju-dong ,Geoje-si, Gyeongsangnam-do, Korea

Tel

+82-55-682-2261

Fax

+82-55-681-7427

Other Address-Busan Office

29, Bongnae-dong 5-ga ,Yeongdo-gu, Busan, Korea

Tel

+82-51-417-1388

Fax

+82-51-410-8621

Type

Export

Industry

Manufacture of Internal Combustion Piston Engines

  Main Business

Diesel Engine

Established (mm/dd/yyyy)

12/30/1999

The Subject owns the premises of Registered Address/Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Engines(26101500)

Sell

Diesel power plants(26131501)

Sell

Crankshaft

Sell

Turbocharger

 

 

CEO’s

 

Name

Kim Dong-Cheol

Date of Birth

06/27/1952

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

69,500,000,000

Employees

1,272

Formation

Listed Company (Korea Stock Exchange : 082740) as of 01/05/2011

A Company of DOOSAN GROUP

Bank Details

Korea Exchange Bank-Changwon Branch

Corporate Registered No.

194211-0038423

Business Registered No.

609-81-40128

Permit & Licenses

Int’l Trade No.: 24023803

Shareholder Position

Name

Shares

%

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

29,650,000

42.66

SAMSUNG HEAVY INDUSTRIES CO.,LTD(110111-0168595)

9,815,000

14.12

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

5,600,000

8.06

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

2,951,563

4.25

OTHERS

21,483,437

30.91

TOTAL

69,500,000

100.00

Company History

The engine business of Doosan Heavy Industries & Construction (former Hanjung), launched in 1983 and that of Samsung Heavy Industries, launched in 1994 were merged. In the merging process, Daewoo Shipbuilding & Marine Engineering joined this new company as a major shareholder. On January 1, 2000, Doosan Engine was officially set up under the banner of Doosan with the first initial letters of these three companies(HSD ENGINE CO., LTD.)

 

12/30/1999 Incorporated as HSD ENGINE CO., LTD.

03/2005 Changed company name to the present name

11/2005 Awarded US$500 Million Export Top Prize

11/2007 Awarded 1Billion Export Top Prize

12/29/2009 Increased capital to 62,500,000,000 KRW from 30,000,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Kim Dong-Cheol

Korean

1952.06.27

-

Sr. Executive Director

Mr.

Cho Nam-Seok

Korean

1959.10.05

Korea University, Korea

Executive Director

Mr.

Nam Sang-Min

Korean

1955.04.01

-

Executive Director

Mr.

Kim Jeong-Kwon

Korean

1955.06.30

Youngnam University, Korea

Vice President & CFO

Mr.

Jang Myung-Ho

Korean

1964.02.07

-

Outside Director

Mr.

Oh Se-Jong

Korean

1943.06.08

UC Berkley, USA

Outside Director

Mr.

Jung Koo-Young

Korean

1938.11.12

Yonsei University, Korea

Outside Director

Mr.

Song Kyung-Soon

Korean

1951.01.14

George Washington University, USA

Outside Director

Mr.

Yoon Dong-Min

Korean

1945.04.04

Washington University, USA

Outside Director

Mr.

Hwang Byung-Ki

Korean

1949.01.23

-

Outside Director

Mr.

Joo Jong-Nam

Korean

1956.08.17

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2012

364,498,950,295

2,070,513,360,325

22,412,984,013

(*)2011

2,003,793,072,593

2,051,480,611,768

209,636,479,757

(*)2010

1,831,615,390,618

2,229,611,103,972

266,059,737,115

2009

1,772,597,107,485

2,464,900,272,093

-249,695,256,019

2008

1,734,836,578,853

3,138,764,982,205

-512,779,968,953

2007

1,221,957,444,340

1,857,689,988,086

103,001,092,083

2006

1,016,816,117,889

 934,211,090,107

52,418,002,030

2005

756,782,214,023

737,005,633,136

21,111,237,395

2004

588,395,875,988

637,788,986,998

3,111,534,708

2003

468,249,817,815

336,826,737,075

11,783,531,830

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

120,000,000,000

Paid-Up Capital(KRW)

69,500,000,000

Total Issues Shares

69,500,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

2,070,513,360,325

2,051,480,611,768

2,229,611,103,972

Current Assets

1,002,598,218,447

982,127,630,841

1,066,128,436,674

Cash & Cash Equivalents

425,078,137,050

320,469,576,651

336,877,478,529

Trade Receivables & Other Receivables

140,776,316,624

171,702,355,734

139,049,982,451

Current Financial Instruments

97,095,444,449

147,862,076,202

150,958,650,000

Derivatives

9,241,417,881

8,153,605,085

36,255,228,375

Confirmed Contracts

41,898,125,902

66,708,349,474

84,638,958,348

Inventories

267,419,028,467

247,231,575,247

296,560,703,196

Current Non-Financial Instruments

21,089,748,074

20,000,092,448

21,787,435,775

Non-Current Assets

1,067,915,141,878

1,069,352,980,927

1,163,482,667,298

Long-Term Trade Receivables & Other Receivables

16,219,573,154

11,952,731,636

52,219,175,528

Equity Method Investment

365,024,719,731

365,024,719,731

367,796,243,437

Tangibles

584,364,264,195

551,384,215,311

561,120,529,590

Investment_Real Estates

 

36,130,101,804

17,902,709,338

Intangibles

14,424,554,326

14,536,132,373

4,975,669,763

Non-Current Financial Instruments

18,682,256,998

11,613,959,581

17,382,361,342

Non-Current Derivatives

4,791,898,133

3,752,006,943

16,352,413,066

Non-Current Confirmed Contracts

64,407,875,341

74,959,113,548

105,356,456,705

Total Liabilities

1,457,549,442,063

1,461,182,444,094

1,847,539,981,391

Current Liabilities

1,163,375,996,601

1,207,088,087,624

1,487,026,897,149

Trade Payables & Other Payables

907,289,147,149

950,376,799,288

1,280,539,619,214

Advance Receipt Construction

36,414,034,834

34,079,376,921

19,705,746,669

Short-Term Borrowings

24,861,686,637

23,306,698,323

33,450,569,261

Current Portion of Long-Term Debts

68,268,000,000

69,198,000,000

68,334,000,000

Income Taxes

16,381,138,328

6,426,973,157

 

Current Derivatives

17,380,587,788

33,080,119,987

12,715,460,127

Current Confirmed Contracts

8,320,697,119

6,933,180,782

18,238,751,601

Other Current Non-Financial Debts

4,468,438,956

3,741,394,564

4,054,291,242

Current Portion of Debentures

79,992,265,790

79,945,544,602

49,988,459,035

Non-Current Liabilities

294,173,445,462

254,094,356,470

360,513,084,242

Long-Term Borrowings

186,536,000,000

138,396,000,000

205,002,000,000

Long-Term Account Payables

2,424,017,705

2,332,156,206

 

Provision for Severance & Retirement

27,734,308,912

26,590,315,593

18,961,166,192

Non-Current Derivatives

12,039,776,525

17,936,849,494

8,861,426,127

Non-Current Confirmed Contracts

6,908,652,326

5,002,643,700

15,312,351,611

Finance Guarantee

303,518,529

349,001,248

16,151,120,082

Provision for Repairing

18,599,325,989

20,507,108,230

16,459,728,802

Deferred Income Tax Credit

39,627,845,476

42,980,281,999

 

Capital Stock

69,500,000,000

69,500,000,000

69,500,000,000

Others

367,269,123,650

367,016,357,075

365,129,157,101

Profit Surplus

176,194,794,612

153,781,810,599

-52,558,034,520

Total Equity

612,963,918,262

590,298,167,674

382,071,122,581

Liab. & Shareholder’s Equity

2,070,513,360,325

2,051,480,611,768

2,229,611,103,972

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

364,498,950,295

2,003,793,072,593

1,831,615,390,618

Cost of Sold Goods

321,452,509,677

1,643,634,050,361

1,520,653,152,505

Gross Profit

43,046,440,618

360,159,022,232

310,962,238,113

Selling & Admin. Expenses

16,284,835,691

66,268,170,849

57,880,182,826

Other Operating Income

9,731,120,119

8,141,335,156

34,907,778,859

Other Operating Expenses

6,309,037,967

23,244,862,628

12,174,327,896

Operating Income

30,183,687,079

278,787,323,911

275,815,506,250

Finance Income

34,753,140,360

82,712,678,543

88,135,156,732

Finance Expenses

35,401,074,730

76,290,640,093

116,701,361,725

Other Income

- 

-2,771,523,706

90,211,813,127

Income Before Taxes

29,535,752,709

282,437,838,655

337,461,114,384

Income Taxes Expenses

7,122,768,696

72,801,358,898

71,401,377,269

Net Income

22,412,984,013

209,636,479,757

266,059,737,115

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

18,007,088,605

147,081,537,595

279,203,898,039

Net Income

22,412,984,013

209,636,479,757

266,059,737,115

Adjustment

-5,514,235,492

-67,050,110,900

40,724,860,814

Interests Received

4,309,130,937

17,768,136,595

7,494,367,384

Interests Paid

-2,679,750,805

-12,619,715,213

-35,142,027,438

Dividends Received

 

137,155,040

473,664,750

Income Taxes

-521,040,048

-790,407,684

-406,704,586

Cash Flows from Investing

36,219,991,351

-34,920,081,023

155,424,902,619

Cash Flows from Financing

51,554,988,314

-128,477,870,938

-295,534,165,927

Increase/Decrease in Cash

104,608,560,399

-16,407,901,878

139,088,960,314

Cash at the Beginning of Year

320,469,576,651

336,877,478,529

197,788,518,215

Cash at the End of Year

425,078,137,050

320,469,576,651

336,877,478,529

 

 

Products, Technologies, Services Description

 

Main Products & Services

The Subject Company, an integrated engine manufacturer, is a business enterprise specializing in producing diesel engine for large vessels, called the heart of the sea and power generation.

 

Diesel Engine for Large Vessels

Marine Diesel Engine

Diesel Power Plant

Annual Production Capacity

(Unit: Thousand H/P)

Item

2010

2009

2008

Diesel Engine

14,000

14,000

14,000

 

 

Trade Partners & Competitors

 

Customers

SAMSUNG HEAVY INDUSTRIES CO.,LTD(110111-0168595)

HANJIN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD (180111-0602507)

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

DALIAN SHIPBUILDING INDUSTRY CO., LTD.

SINOPACIFIC

Competitors

HYUNDAI HEAVY INDUSTRIES CO.,LTD(181211-0000386)

STX ENGINE CO,.LTD(194211-0066763)

 

 


Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DOOSAN CORPORATION(110111-0013774)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

DOOSAN INFRACORE CO., LTD.(120111-0234469)

(6.03% held by the subject company)

 

DOOSAN ENGINE CO., LTD(194211-0038423)

DOOSAN MECATEC CO., LTD.(110111-0126022)

N.SHAPER CO., LTD .(110111-1943574)

ORICOM INC(110111-0176986)

DOOSAN DONG-A CO., LTD.(110111-3977117)

DOOSAN CO., LTD.(110111-0013774)

SRS KOREA CO., LTD.(110111-3139733)

DOOSAN FEED & LIVESTOCK CO., LTD.(110111-3809138)

DOOSAN WINE SALES CO., LTD.(110111-3942582)

SAMHWA CROWN & CLOSURE CO., LTD.(134111-0003462)

DOOSAN MOTTROL CO., LTD.(194211-0000274)

DOOSAN CONSTRUCTION & ENGINEERING CO., LTD.(110111-0194277)

NEO TRANS CO., LTD.(131111-0141801)

DOOSAN TOWER CO., LTD.(110111-1722499)

DOOSAN MOTORS CORP.(110111-3008293)

DONG HYUN ENGINEERING CO., LTD.(110111-0508329)

NEOPLUX CO., LTD.(110111-1927841)

DOOSAN CAPITAL CO., LTD.(110111-1220336) 19.99%

BIG & GOOD SECURITIES BROKERAGE.CO., LTD.(110111-1965560)

REXCON CO., LTD.(110111-3586273)

DOOSAN CUVEX CO., LTD(140111-00325709)

DOOSAN BEARS INC(110111-0346919)

DOOSAN MOTTROL HOLDINGS CO., LTD.(110111-3892505)

DIP HOLDINGS CO., LTD.(110111-4103076)

CASCO CO., LTD.(210111-0047938)

(16.21% held by the subject company)

Affiliates-Overseas

DOOSAN MARINE INDUSTRY (DALIAN) CO., LTD.

DAGUSHAN NANGANG INDUSTRY PARK, DEVELOPMENT ZONE, DALIAN, P.R. CHINA

TEL :+86 411 8751 7957 FAX :+86 411 8751 7956

 

DALIAN SAMYOUNG DOOSAN METAL PRODUCT CO., LTD.

(20.66% held by the subject company)

 

DOOSAN HOLDINGS EUROPE LTD.

(21.73% held by the subject company)

 

DOOSAN INFRACORE INTERNATIONAL, INC.

(20.93% held by the subject company)

Overseas Office

EUROPE BRANCH

HEIDENKAMPSWEG, 100, 8. OG 20097 HAMBURG, GERMANY

TEL:+49-40-2533-5656 FAX:+49-40-2533-5661

 

SINGAPORE BRANCH

78, SHENTON WAY, #16-04, SINGAPORE 079120

TEL:+65-6222-5515 FAX:+65-6222-5525

 

SHANGHAI BRANCH

828, HUA DU MANSION 14F 1200M E, ZHANG YANG ROAD, PUDONG, SHANGHAI, CHINA

TEL: 22-6875-0876 FAX: 22-6875-0864

 

DALIAN HANJUNG-DMD INDUSTRY CO., LTD. (CHINA)

Subsidiary

DOOSAN MARINE INDUSTRY (DALIAN) CO., LTD.

(100.0% held by the subject company)

Cooperative Enterprise

-Technical Support from

MAN DIESEL A/S

WARTSILA

MAN DIESEL SE

SEMT PIELSTICK

MITSUBISHI HEAVY INDUSTRIES

ABB TURBO SYSTEM

MAN DIESEL & TURBO FRANCE SAS

DAIHATSU DIESEL MFG.

 

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit : KRW

2010

2009

2008

Export

1,662,011,000,000

1,662,960,876,756

1,668,434,187,027

Domestic

68,057,000,000

109,636,230,729

66,402,391,826

Total

1,730,068,000,000

1,772,597,107,485

1,734,836,578,853

 

The Subject exports to China and Europe.

 

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Seoul Nambu District Court

JINDO CO., LTD.(110111-3411024)

The Subject Company

-

3,000,000,000

1st round is proceeding

 

Changwon District Court

C&HEAVY INDUSTRIES CO.,LTD.( 110111-0302440)

The Subject Company

Promissory Notes

56,700,000

Proceeding

 

Court in Greece

GAEI

The Subject Company

Related to Chios Diesel Power Plant

Euro3,059,635

Proceeding

 

 

News Clipping

 

--

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.19

UK Pound

1

Rs.87.65

Euro

1

Rs.69.16

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.