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Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
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Correct Name : |
DAVIS DIAMOND CO. LTD |
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Formerly Known As : |
SION DIAMOND CO., LTD. |
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Registered Office : |
127, Bongik-dong, Jongno-gu, Seoul, Korea, 6th Fl., Geumgang Bldg., Zip Code 110-390 |
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Country : |
South Korea |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
21.02.2002 |
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Com. Reg. No.: |
101-81-80077 |
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Legal Form : |
Co., Ltd by shares |
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Line of Business : |
Wholesaler of Watches and Jewelry |
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No. of Employees : |
13 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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South Korea |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
South Korea ECONOMIC OVERVIEW
South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.
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Source : CIA |
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Company
Name |
DAVIS DIAMOND CO. LTD. (Korean Company Name : “(주)다비스다이아몬드”) |
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Registered Address |
127, Bongik-dong, Jongno-gu, Seoul, Korea |
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Building |
6th Fl., Geumgang Bldg. |
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Zip Code |
110-390 |
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Tel |
+82-2-747-1802 |
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Fax |
+82-2- 747-1807 |
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E-mail |
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Website |
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Trading Address |
6th Fl., Geumgang Bldg., 127, Bongik-dong,
Jongno-gu, Seoul, Korea |
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Tel |
+82-2-747-1802 |
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Fax |
+82-2-3676-8837 |
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Other Address-Jongro Btanch |
Rm.101, Sungcahng Bladg., 97-1, Bongik-dong,
Jongno-gu, Seoul, Korea |
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Tel |
+82-2-747-1805 |
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Type |
Import |
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Industry |
Wholesale of Watches and Jewelry |
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Main Business |
Diamond |
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Established (mm/dd/yyyy) |
02/21/2002 |
The Subject Company
occupies the premises of registered HQ address by leasing base.
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Activity |
Detailed Products (UNSPSC) |
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Sell |
Diamond gemstones(54121501) |
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Sell |
Fine jewelry necklaces(54101502) |
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Name |
Hong Yeun-Ho |
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Address |
Suite 1001-1002, 728, Naebalsan-dong,
Gangseo-gu, Seoul 157-280 Korea |
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Date of Birth |
07/24/1962 |
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Title |
President & CEO |
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Sex |
Male |
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Nationality |
Korean |
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Capital (KRW) |
300,000,000 |
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Employees |
13 |
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Formation |
Co., Ltd by shares |
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Bank Details |
Industrial Bank of Korea-Jongro Branch Sc First Bank of Korea |
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Corporate Registered No. |
110111-2451526 |
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Business Registered No. |
101-81-80077 |
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Permit & Licenses |
Int’l Trade No.: 45012398 |
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Shareholder Position |
N/A |
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Company History |
02/21/2002 Incorporated as SION DIAMOND
CO., LTD. 02/22/2002 Changed company name to the
present name 11/18/2006 Increased capital to 300,000,000
KRW from 100,000,000 KRW 06/04/2009 Moved to the present HQ address
from Rm. 401, Seongsang Bldg., 97-1, Bongik-dong, Jongno-gu, Seoul, Korea |
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Job Description |
Title |
Name |
Sex |
Nationality |
Inauguration Date |
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President & CEO |
Mr. |
Hong Yeun-Ho |
Male |
Korean |
03/18/2002 |
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Director |
M/s. |
Kim Young-Mi |
Female |
Korean |
03/28/2005 |
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Director |
Mr. |
Chang Ki-Ho |
Male |
Korean |
11/17/2006 |
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Auditor |
M/s. |
Kim Myung-Soon |
Female |
Korean |
03/28/2005 |
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Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
2008 |
5,644,000,000 |
3,624,000,000 |
-311,000,000 |
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2007 |
3,705,000,000 |
2,279,000,000 |
57,000,000 |
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2006 |
2,661,000,000 |
1,995,000,000 |
51,000,000 |
The latest
financials are not available, and the Subject Company does not have any
obligations to release its financials to the public.
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Authorized Capital(KRW) |
400,000,000 |
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Paid-Up Capital(KRW) |
300,000,000 |
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Total Issues Shares |
60,000 |
Balance
Sheet
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Unit : Korean Won |
As of 12/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
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Total Assets |
3,624,000,000 |
2,279,000,000 |
1,995,000,000 |
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Total Liabilities |
3,395,000,000 |
1,739,000,000 |
1,511,000,000 |
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Total Equity |
229,000,000 |
540,000,000 |
484,000,000 |
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Liab. & Shareholder’s Equity |
3,624,000,000 |
2,279,000,000 |
1,995,000,000 |
Income
Statement
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|||
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Unit : Korean Won |
As of 12/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
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Sales |
5,644,000,000 |
3,705,000,000 |
2,661,000,000 |
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Net Income |
-311,000,000 |
57,000,000 |
51,000,000 |
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Main Products & Services |
Diamond, Jewelry |
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Competitors |
GP DIAMONDS LTD. 2ND FL., HANMI JEWELRY COMPLEX, 64-1,
MYO-DONG, JONGNO-GU, SEOUL, KOREA TEL:+82-2-766-4880 FAX:+82-2-745-4880 GOLDENDEW CO.,
LTD.(110111-0319445) 1ST FL., HWADONG BLDG., 1466-14, SEOCHO 3-DONG,
SEOCHO-GU, SEOUL, KOREA TEL:+82-2-3415-5700 FAX:+82-2-3471-1455 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 |
(Activity & Markets)
The subject imports
Diamond from the companies in India. For 2005, 2006 and 2007, the subject has
been ranked as 3rd importer of Diamond and 1st Wholesaler
in Korea.
Not Available.
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DIAMOND INDUSTRY – INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.03 |
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UK Pound |
1 |
Rs.82.43 |
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Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.