MIRA INFORM REPORT

 

 

Report Date :

17.02.2012

 

IDENTIFICATION DETAILS

 

Name :

DAEWON STEEL CO., LTD.

 

 

Registered Office :

2Na-705, Sihwa Industrial Complex 1259-5, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea 429-922

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

21.09.1995

 

 

Com. Reg. No.:

133-81-28122

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

 

 

No. of Employees :

68

 

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 30, 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 Information

 

Company Name

DAEWON STEEL CO., LTD.

(Korean Company Name : “대원스틸()”)

Registered Address

1259-5, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Building

2Na-705, Sihwa Industrial Complex

Zip Code

429-922

Tel

+82-31-432-6521

Fax

+82-31-497-5684

E-mail

dwsteel@dwsteel.co.kr

Website

www.dwsteel.co.kr

Trading Address

2Na-705, Sihwa Industrial Complex, 1259-5, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-432-6521

Fax

+82-31-497-5684

Other Address-Overseas Sales Dept.

92, Da-dong, Jung-gu, Seoul, Korea

Tel

+82-2-316-7675

Fax

+82-2-7770-5028

Type

Export

Industry

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Cold Rolled, Carbon Steel

Established (mm/dd/yyyy)

09/21/1995

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel(11101704)

 

 

CEO’s

 

Name

Lee On-Young

Address

Suite 108-904, 944, Yongho-dong, Nam-gu, Busan, Korea

Date of Birth

10/22/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

26,319,000,000

Employees

68

Formation

Co., Ltd by shares

A Company of DONGKUK INDUSTRIES COMPANY

Bank Details

Shinhan Bank

Busan Bank

Kookmin Bank

Corporate Registered No.

120111-0123711

Business Registered No.

133-81-28122

Permit & Licenses

06/10/1999 ISO 9001

12/2007 ISO/TS 16949

 

Int’l Trade No.: 14030518

Shareholder Position

Name

Shares

%

DONGKUK INDUSTRIES COMPANY(110111-0085583)

10,000,000

38.00

DONGKUK STRUCTURES & CONSTRUCTION COMPANY LIMITED.(110111-2276784)

10,000,000

38.00

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

5,003,050

19.01

BULYIWON FOUNDATION(114222-0005772)

1,315,950

5.00

TOTAL

26,319,000

100.00

Company History

09/21/1995 Incorporated as SHINWHA SPECIAL STEEL CO., LTD.

09/06/2000 Started Corporate Clearing Procedure by the approval from Suwon District Court

11/22001 Awarded US$5 Million Export Top Prize

02/10/2004 Completed Corporate Clearing Procedure by the approval from Suwon District Court

02/11/2004 Changed company name to the present name

05/08/2006 Spin off par value to 1,000 KRW from 5,000 KRW

09/2007 Designated as a Promising SME Company

10/26/2007 Increased the authorized shares to 100,000,000 shares from 20,000,000 shares

11/06/2007 Increased capital to 26,319,000,000 KRW from 10,000,000,000 KRW

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee On-Young

Male

Korean

04/01/2010

Director

Mr.

Yim Soon-Myung

Male

Korean

09/01/2004

Director

Mr.

Jang Se-Hee

Male

Korean

12/24/2003

Director

Mr.

Jung Hak-Geun

Male

Korean

12/24/2009

Auditor

Mr.

Jeon Kyung-Doo

Male

Korean

03/28/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2010

78,674,930,195

90,389,659,135

6,146,924,767

2009

51,660,088,200

70,795,998,500

-7,257,291,878

2008

78,701,618,515

78,427,868,787

3,581,193,135

2007

44,957,945,842

62,630,787,260

210,953,451

2006

 37,948,193,835

 39,840,921,789

 213,434,341

2005

36,161,998,184

37,809,286,101

1,614,451,564

2004

30,285,823,833

30,160,313,162

2,643,966,850

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

26,319,000,000

Total Issued Shares

26,319,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

90,389,659,135

70,795,998,500

78,427,868,787

Current Assets

38,097,874,428

29,244,242,353

33,219,750,683

-Quick Assets

18,402,849,897

19,729,496,557

8,549,003,572

-Inventories

19,695,024,531

9,514,745,796

24,670,747,111

Fixed Assets

52,291,784,707

41,551,756,147

45,208,118,104

-Investment

23,042,684,044

11,694,347,090

26,751,576,608

-Tangibles

29,206,028,091

29,814,981,067

17,951,206,209

-Intangibles

20,912,572

20,867,990

101,074,614

-Others

22,160,000

21,560,000

404,260,673

Total Liabilities

34,152,724,252

20,523,230,549

31,301,346,075

Current Liabilities

25,740,406,551

19,407,362,147

23,776,417,153

Fixed Liabilities

8,412,317,701

1,115,868,402

7,524,928,922

Capital Stock

26,319,000,000

26,319,000,000

26,319,000,000

Capital Surplus

13,981,895,487

13,981,895,487

13,981,895,487

Profit Surplus

7,507,687,541

1,360,762,774

8,618,054,652

Capital Adjustment

8,428,351,855

8,611,109,690

-1,792,427,427

Total Equity

56,236,934,883

50,272,767,951

47,126,522,712

Liab. & Shareholder’s Equity

90,389,659,135

70,795,998,500

78,427,868,787

 

Current Liabilities

25,740,406,551

19,407,362,147

23,776,417,153

Trade Payables

12,505,620,069

8,836,551,986

6,069,984,665

Short-Term Borrowings

11,000,000,000

2,500,000,000

16,000,000,000

Account Payables

996,062,422

729,672,118

597,416,125

Advance Receipts

106,057,133

39,077,484

56,361,977

Withholdings

28,989,193

27,364,891

43,348,950

Accrued Expenses

415,623,711

236,429,588

204,626,505

Accrued Income Tax

636,814,599

-

482,046,854

Guarantee Deposit Withhold

18,904,880

27,666,080

27,666,080

Derivatives

15,626,838

-

294,965,997

Current Portion of Deferred Income Tax Credit

10,600,000

7,010,600,000

-

Other Current Liabilities

6,107,706

-

-

Fixed Liabilities

8,412,317,701

1,115,868,402

7,524,928,922

Long-Term Borrowings

7,084,800,000

95,400,000

7,106,000,000

Long-Term Account Payables

48,000,000

24,000,000

-

Leasehold Deposit Received

90,000,000

75,000,000

-

Provision for Severance & Retirement

372,922,630

354,009,964

418,928,922

Deferred Income Tax Credit

1,050,113,696

567,458,438

-

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

78,674,930,195

51,660,088,200

78,701,618,515

Cost of Sold Goods

66,484,789,375

52,672,449,095

68,360,836,167

Gross Profit

12,190,140,820

-1,012,360,895

10,340,782,348

Selling & Admin. Expenses

4,392,327,063

3,421,356,002

3,637,548,395

Operating Income

7,797,813,757

-4,433,716,897

6,703,233,953

Non-Operating Income

2,431,681,985

5,982,184,579

2,481,307,533

Non-Operating Expenses

2,121,570,590

11,317,409,741

4,724,623,340

Income Before Taxes

8,107,925,152

-9,768,942,059

4,459,918,146

Income Taxes Expenses

1,961,000,385

-2,511,650,181

878,725,011

Net Income

6,146,924,767

-7,257,291,878

3,581,193,135

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

-1,618,773,991

8,945,345,068

-5,704,419,988

-Net Income

6,146,924,767

-7,257,291,878

3,581,193,135

-Exp. without Cash Outflow

2,136,430,504

10,831,019,666

5,527,278,295

-Revenue without Cash Inflows

-1,757,230,045

-4,898,485,549

-1,103,174,603

-Changes in Asset/ & Liability

-8,144,899,217

10,270,102,829

-13,709,716,815

Cash Flows from Investing

-12,354,914,072

10,543,777,571

-30,084,979,242

-Cash Inflow from Investing

3,685,178,983

14,067,138,363

348,906,067

-Cash Outflows for Investing

-16,040,093,055

-3,523,360,792

-30,433,885,309

Cash Flows from Financing

8,504,400,000

-13,425,000,000

13,660,000,000

-Cash Inflows from Financing

41,790,000,000

40,916,000,000

37,010,000,000

-Cash Outflows from Financing

-33,285,600,000

-54,341,000,000

-23,350,000,000

Increase/Decrease in Cash

-5,469,288,063

6,064,122,639

-22,129,399,230

Cash at the Beginning of Year

8,053,472,755

1,989,350,116

24,118,749,346

Cash at the End of Year

2,584,184,692

8,053,472,755

1,989,350,116

 

 

Products, Technologies, Services Description

 

Main Products & Services

Cold Rolled Tool Steel Strip

Cold Rolled Carbon Steel Strip

Cold Rolled Alloy Steel Strip

Cold Rolled Steel Strip

Cold Rolled Spring Steel

 

 

Trade Partners & Competitors

 

Competitors

TS METAL CO., LTD.

2B-23L, BANWOL INDUSTRIAL COMPLEX, 391, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-508-0740  FAX:+82-31-508-0743

 

DAEHAN STEEL CO., LTD.

370-16, SINPYEONG 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-220-3300  FAX:+82-51-220-3398

 

KOREA STEEL SHAPES CO., LTD.

727-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-323-2611  FAX:+82-51-325-5713

 


Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGKUK INDUSTRIES COMPANY(110111-0085583)

(3.1% held by the subject company)

 

DK DONGSHIN CO., LTD.(110111-3850959)

(33.33% held by the subject company)

 

DONGKUK STRUCTURES & CONSTRUCTION COMPANY LIMITED.(110111-2276784)

CHOSUN STEELWIRE CO., LTD.(110111-0008486)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER GENERATION CO., LTD.(201111-0023666)

KODUCK WIND POWER GENERATION CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNG SEOK DEVELOPMENT CO., LTD.(115611-0003879)

KUMHWA STEEL CO., LTD.(110111-0230386)

DK WIND POWER GENERATION CO., LTD.(234111-0045158)

NAMWON SOLAR POWER GENERATION CO., LTD.(211311-0005428)

 

DK AMERICA., INC.

Corporate Ownership

DONGKUK INDUSTRIES COMPANY(110111-0085583)

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD.(110111-0017586)

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to China, Japan, Asia and Europe.

 

 

Court Action

 

No.

 

 

News Clipping

 

---


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.25

UK Pound

1

Rs.77.45

Euro

1

Rs.64.89

 

 

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.