MIRA INFORM REPORT

 

 

Report Date :

13.02.2013

 

IDENTIFICATION DETAILS

 

Name :

DAEDONG INDUSTRIAL CO., LTD.

 

 

Registered Office :

1-12, Buk-ri, Nongong-eup, Dalseong-gun, Daegu, Korea 711-857

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

20.05.1947

 

 

Com. Reg. No.:

514-81-06690

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Agricultural and Forestry Machinery

 

 

No. of Employees :

807

 

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 Complaint

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

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

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 currently is among the world's 20 largest economies. 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. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. 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.

 

Source : CIA

 

Basic Information

 

Company Name

DAEDONG INDUSTRIAL CO., LTD.

(Korean Company Name : “대동공업()”)

Registered Address

1-12, Buk-ri, Nongong-eup, Dalseong-gun, Daegu, Korea

Zip Code

711-857

Tel

+82-53-610-3000

Fax

+82-53-615-1050

E-mail

jskim@daedong.co.kr

Website

www.daedong.co.kr

Trading Address

1422-5, Seocho-dong, Seocho-gu, Seoul, Korea (P.O.BOX 53)

Tel

+82-2-3470-7300

Fax

+82-2-583-3646

Other Address-R&D Center

400-1, Jikgyo-ri, Changnyeong-eup, Changnyeong-gun, Gyeongsangnam-do, Korea

Tel

+82-55-530-7100

Fax

+82-55-530-7111

Other Address-Gangwon Sales Office

198-45, Hupyeong-dong, Chuncheon-si, Gangwon-do, Korea

Tel

+82-33-257-8941

Other Address-Sales Office

412, Bojeong-dong, Giheung-gu, Yongin-si, Gyeonggi-do, Korea

Tel

+82-31-262-8131

Fax

+82-31-262-9830

Other Address-Youngnam Sales Office

464, Seongsan-ri, Hwawon-eup, Dalseong-gun, Daegu, Korea

Tel

+82-53-635-1655

Fax

+82-53-635-1645

Other Address-Chungcheong Sales Office

508-1, Gongam-ri, Banpo-myeon, Gongju-si, Chungcheongnam-do, Korea

Tel

+82-41-857-3381

Fax

+82-41-857-3385

Other Address-Jeonnam Sales Office

737-1, Ancheong-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-62-955-6301

Fax

 

Type

Export

Industry

Manufacture of Agricultural and Forestry Machinery

  Main Business

Tractor, Combine, Rice Transplanter, Power Tiller

  Sub Business

 

Established (mm/dd/yyyy)

05/20/1947

The Subject owns the premises of registered HQ address/Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cultivators(21101503)

Sell

Transplanters(21101602)

Sell

Laboratory bailers(41104005)

Sell

Fertilizer spreaders or distributors(21101804)

Sell

Mowers(21101701)

Sell

Agricultural tractors(25101901)

Sell

Skid steer loaders(22101529)

Sell

Combine harvesters(21101704)

Sell

Engines(26101500)

Buy

Motors(26101600)

Buy

Gears(31171700)

Buy

Engines(26101500)

Buy

Steel plate(30102204)

Buy

Conveyor belting(24101715)

Buy

Chains(31151600)

Buy

Batteries and cells and accessories(26111700)

Buy

Hydraulic motors(26101613)

Buy

Pigment paints(31211503)

Buy

Mufflers or resonators(25173702)

Buy

Tanks and cylinders and their accessories(24111800)

Buy

Tires and tire tubes(25172500)

Buy

Glass products(30171700)

 

CEO’s

 

Name

Kim Jun-Sik

Address

 

Date of Birth

05/20/1966

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

23,728,210,000

Employees

807

Formation

Listed Company (Korea Stock Exchange : 000490 ) as of 06/27/1975

A company of DAEDONG INDUSTRIAL GROUP

Bank Details

Shinhan Bank

Corporate Registered No.

191111-0000104

Business Registered No.

514-81-06690

Permit & Licenses

02/14/1997 ISO 14001

02/14/1997 ISO 9001

2002 ISO 9001

12/01/2005 ISO 14001

 

Int’l Trade No.: 770244

Shareholder Position

Name

Shares

%

KIM JUN-SIK

5,023,805

21.17

KIM SANG-SOO

1,435,000

6.05

KIM EUN-JOA

385,040

1.62

PARK KYUNG

292,600

1.23

KIM HYUNG-CHUL

197,425

0.83

TREASURY STOCK

3,000,000

12.64

OTHERS

13,394,340

56.45

TOTAL

23,728,210

100.00

Company History

05/20/1947 Incorporated as DAEDONG KONGUPSA CO.(sole Proprietorship)

11/16/1966 Incorporated as present name

06/27/1975 Listed company at KSE Market

11/30/1993 Awarded US$10 Million Export Prize

11/30/2003 Awarded US$50 Million Export Prize

11/30/2004 Awarded US$70 Million Export Prize

12/02/2008 Awarded US$100 Million Export Top Prize

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Date of Birth

Vice Chairman & CEO

Mr.

Kim Jun-Sik

Male

Korean

1966.05.20

Co-President & CEO

Mr.

Kwak Sang-Cheol

Male

Korean

1957.11.27

Co-President & CEO

Mr.

Jin Young-Kyun

Male

Korean

1955.04.03

Vice Chairman

Mr.

Han Jae-Hyoung

Male

Korean

1940.02.04

Outside Director

Mr.

Kwon Dae-Kun

Male

Korean

1965.09.23

Outside Director

Mr.

Kim Hong-Sik

Male

Korean

1949.09.16

Outside Director

Mr.

Lee Won-Oh

Male

Korean

1967.02.12

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

396,600,878,348

510,372,947,495

8,854,607,824

(*)2011

503,098,278,437

469,760,508,800

1,725,338,419

(*)2010

441,001,481,131

463,412,628,897

2,348,280,428

2009

418,106,583,135

309,133,717,685

3,761,024,329

2008

442,575,770,712

323,348,858,586

-13,555,880,972

2007

384,042,383,110

299,814,173,314

-4,684,185,374

2006

342,911,913,556

299,821,794,424

1,870,374,057

2005

 351,006,218,000

266,137,903,000

5,023,081,000

2004

283,422,212,000

 238,329,440,000

4,239,679,000

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

 

Financial Description

 

Authorized Capital(KRW)

320,000,000,000

Paid-Up Capital(KRW)

23,728,210,000

Total Issues Shares

23,728,210

 

Balance Sheet

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

510,372,947,495

469,760,508,800

463,412,628,897

Current Assets

253,591,597,335

214,018,267,686

208,724,509,777

Cash & Cash Equivalents

2,717,493,254

2,410,763,113

1,765,979,990

Trade Receivables & Other Receivables

140,035,874,930

97,875,015,613

106,754,619,119

Current Financial Instruments

139,496,336

73,250,756

293,547,645

Current Non-Financial Instruments

1,050,088,493

753,929,205

872,458,505

Inventories

109,648,644,322

112,905,308,999

97,411,089,949

Deferred Income Taxes

0

0

1,626,814,569

Non-Current Assets

256,781,350,160

255,742,241,114

254,688,119,120

Investment_Subsidiaries

30,282,671,147

30,282,671,147

28,534,671,147

Investment_Real Estates

6,636,391,911

6,658,440,916

6,687,839,588

Tangibles

204,396,099,082

204,497,257,619

210,056,583,305

Intangibles

13,423,738,470

12,135,201,882

7,223,345,250

Other Non-Current Assets

2,042,449,550

2,168,669,550

2,185,679,830

Total Liabilities

291,572,068,109

257,879,247,341

251,928,715,386

Current Liabilities

219,683,474,284

181,980,897,620

177,650,989,375

Trade Payables & Other Payables

80,016,844,373

69,760,489,742

61,806,166,529

Short-Term Borrowings

125,330,570,071

97,159,190,619

104,295,306,510

Other Current Financial Debts

8,457,689,816

9,217,472,933

9,293,970,645

Other Non-Current Financial Debts

3,537,595,671

3,436,202,158

2,255,545,691

Deferred Income Tax Credit

2,340,774,353

2,407,542,168

0

Non-Current Liabilities

71,888,593,825

75,898,349,721

74,277,726,011

Long-Term Trade Payables & Other Payables

34,136,920,381

37,717,883,769

33,793,811,790

Provision for Severance & Retirement

16,763,251,883

18,061,325,373

18,120,446,875

Other Non-Current Financial Debts

2,508,958,045

2,364,044,277

2,426,296,804

Other Non-Current Provisions

4,096,389,884

3,903,383,400

3,610,098,019

Deferred Income Tax Credit

14,383,073,632

13,851,712,902

16,327,072,523

Capital Stock

23,728,210,000

23,728,210,000

23,728,210,000

Capital Surplus

4,176,999,776

4,176,999,776

4,176,999,776

Others

0

0

3,620,439

Profit Surplus

190,895,669,610

183,976,051,683

183,575,083,296

Total Equity

218,800,879,386

211,881,261,459

211,483,913,511

Liab. & Shareholder’s Equity

510,372,947,495

469,760,508,800

463,412,628,897

 

Income Statement

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

396,600,878,348

503,098,278,437

441,001,481,131

Cost of Sold Goods

306,600,664,780

394,566,032,929

342,114,465,605

Gross Profit

90,000,213,568

108,532,245,508

98,887,015,526

Selling Expenses

39,291,849,932

52,986,696,800

43,777,682,947

Admin. Expenses

37,650,058,823

49,739,486,566

45,748,376,389

Operating Income

13,058,304,813

5,806,062,142

9,360,956,190

Other Income

175,813,462

2,455,385,320

976,588,384

Finance Income

2,604,090,839

1,046,191,167

762,819,861

Finance Expenses

4,016,298,530

7,287,653,223

7,409,071,692

Income Before Taxes

11,821,910,584

2,019,985,406

3,691,292,743

Income Taxes Expenses

2,967,302,760

294,646,987

1,343,012,315

Net Income

8,854,607,824

1,725,338,419

2,348,280,428

                                                                                                                                       

Cash Flows

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

-5,783,087,525

30,245,296,339

18,109,271,803

Net Income

8,854,607,824

1,725,338,419

2,348,280,428

Adjustment

-12,388,430,974

27,173,369,858

16,715,122,527

Income Taxes

-2,249,264,375

1,346,588,062

-954,131,152

Cash Flows from Investing

-15,448,747,243

-18,692,352,006

-22,736,777,531

Cash Flows from Financing

21,538,564,909

-10,908,161,210

4,769,026,170

Increase/Decrease in Cash

306,730,141

644,783,123

141,520,442

Cash at the Beginning of Year

2,410,763,113

1,765,979,990

1,624,459,548

Cash at the End of Year

2,717,493,254

2,410,763,113

1,765,979,990

 

Products, Technologies, Services Description

 

Main Products & Services

Tractor

Combine

Rice Transplanter

Power Tiller

Engines

 

Brand Name : D500(C), DSM72(G), DT10DE, S3-680(A), 4A220A-DY

 

Trade Partners & Competitors

 

Suppliers

DAEDONG GEAR CO., LTD.(191111-0000758)

KYEONG NAM STEEL CO., LTD.(194211-0006090)

Customers

BOBCAT COMPANY-USA

CLARK EQUIPMENT COMPANY-USA

NATIONAL AGRICULTURAL COOPERATIVE FEDERATION-KOREA

Competitors

KUKJE, MACHINERY CO., LTD.(131111-0000635)

11-1, YANGSU-RI, OKCHEON-EUP, OKCHEON-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-732-1151  FAX:+82-43-732-1162

 

TONG YANG MOOLSAN CO., LTD.(110111-0032899)

2ND FL., DAEYONG BLDG., 90, NONHYEON 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3014-2800  FAX:+82-2-3014-2850

 

LS MTRON CO., LTD.(134111-0168349)

11TH FL., LS TOWER, 1026-6, HOGYE 1-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-689-8288  FAX:+82-31-689-8298

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAEDONG GEAR CO., LTD.(191111-0000758)

(31.6% held by the subject company)

Subsidiary

DAEDONG METAL CO., LTD. (174111-0002630)

(70.13% held by the subject company)

 

HAN KUK CHAIN IND. CO., LTD (134611-0000260)

(24.51% held by the subject company)

 

DAEDONG SEOCHON CO., LTD.(164411-0006927)

(100.00% held by the subject company)

 

DAEDONG-USA, INC.

(100.00% held by the subject company)

 

DAENONG NAMKYUNG CO., LTD.(CHINA)

(90.00% held by the subject company)

 

DAEDONG KIOTI EUROPE.B.V.

(100.00% held by the subject company)

STATIONSWEG 36, 3214 VK ZUIDLAND, NETHERLANDS

Cooperative Enterprise

KUBOTA CORPORATION(JAPAN)

SHIBAWURA(JAPAN)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

176,780

209,213

 

Domestic

219,821

293,885

 

Total

396,601

503,098

 

The Subject exports to USA.

 

Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

 

Kabushikikaisha Kubota(Japan)

The Subject Company

Claim for Compensation from Infringement of Patent

600,000,000

2nd round is proceeding

 

News Clipping

 

 

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FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.84.48

Euro

1

Rs.72.23

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.