MIRA INFORM REPORT

 

 

Report Date :

20.01.2013

 

IDENTIFICATION DETAILS

 

Name :

DONGNAM PRECISION IND. CO., LTD

 

 

Registered Office :

1593-6, Songjeong-dong, Gangseo-gu, Busan, Korea Noksan National Industrial Complex 618-818

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

22.07.2000

 

 

Com. Reg. No.:

603-81-42356

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Sections for Ships

 

 

No. of Employees :

105

 

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 – 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

DONGNAM PRECISION IND. CO., LTD

Registered Address

1593-6, Songjeong-dong, Gangseo-gu, Busan, Korea

Building

Noksan National Industrial Complex

Zip Code

618-818

Tel

+82-51-831-3500

Fax

+82-51-831-2687~8

E-mail

dongnam@dongnamco.com

Website

www.dongnamco.com

Trading Address

Noksan National Industrial Complex, 1593-6, Songjeong-dong, Gangseo-gu, Busan, Korea

Tel

+82-51-831-3500

Fax

+82-51-831-2687~8

Other Address-2nd Factory

1731-8, Songjeong-dong, Gangseo-gu, Busan, Korea

Other Address-Pangyo Inno Valley Office

B-903, 621, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

Type

Export

Industry

Manufacture of Sections for Ships

  Main Business

Multi Core Tube, Cable Tray, PVC Cover, Cable Hanger, Condense Case, Hand Rail, LNG Carrier, Cable Binding Tape(Band Hoop & Buckle), LNG Fittings

Established (mm/dd/yyyy)

07/22/2000

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Prying and bending tools(27112500)

Sell

Pipe or tube cutters(23171603)

Sell

Handrails(30191601)

Sell

Cable trays(39121201)

Sell

Hose or pipe clamps(31162906)

Sell

Pipe fittings(40142300)

Sell

Metal housings or cabinets(31261502)

Sell

Wire management components and busways(39121200)

Sell

Shells and casings(31261600)

Sell

Capacitors(32121500)

Buy

Aluminum(11101705)

Buy

Iron(11101713)

Buy

Steel(11101704)

 

 

CEO’s

 

Name

Tak Tae-Sik

Address

Suite 302-1502, 1634, Dadae-dong, Saha-gu, Busan, Korea

Date of Birth

08/26/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,760,000,000

Employees

105

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Industrial Bank of Korea-Noksan Industrial Complex Branch

Corporate Registered No.

180111-0331081

Business Registered No.

603-81-42356

Permit & Licenses

10/1999 ISO 9002 by URS

06/2001 ISO 9002 by DNV

06/2002 ISO 9001 by DNV

03/2004 ISO 9001

08/2004 CSA

2006 ISO 14001

2008 ISO 9001 by DNV

2008 ISO 14001 by DNV

 

Int’l Trade No.: 382405

Shareholder Position

Name

Shares

%

TAK TAE-SIK

319,018

90.63

OTHERS

32,982

9.37

TOTAL

352,000

100.00

Company History

06/09/1980 Established as DONG NAM ENTERPRISE CO.(Sole proprietorship)

05/03/1984 Changed company name to DONG NAM UIJANG INDUSTRY CO.

07/22/2000 Incorporated as the present name

10/16/2000 Moved to the present HQ address from 1500-13, Dadae-dong, Saha-gu, Busan, Korea

2005 Designated as an INNO-BIZ Company

2007 Awarded US$ 3 Million Export Top Prize

04/30/2010 Designated as a Venture Business

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Tak Tae-Sik

Male

Korean

07/22/2009

Director

Mr.

Kim Bong-Joo

Male

Korean

04/30/2012

Director

Mr.

Baik Joong-Jin

Male

Korean

10/31/2010

Auditor

M/S.

Ko Hwa-Ok

Female

Korean

03/10/2004

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

33,275,920,006

26,206,637,257

2,006,395,843

2010

27,990,877,588

19,800,835,148

2,796,908,510

2009

32,631,790,865

17,890,380,397

3,130,337,357

2008

33,937,063,652

18,413,539,231

2,845,365,384

2007

28,900,171,681

16,122,210,528

1,960,907,747

2006

22,571,840,347

13,095,308,547

1,554,466,956

2005

19,932,739,545

12,219,993,689

1,318,813,181

 

 

Financial Description

 

Authorized Capital(KRW)

7,040,000,000

Paid-Up Capital(KRW)

1,760,000,000

Total Issues Shares

352,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

26,206,637,257

19,800,835,148

17,890,380,397

Current Assets

13,802,334,023

10,322,480,940

10,282,880,145

-Quick Assets

6,837,501,857

7,551,469,121

9,025,857,160

-Inventories

6,964,832,166

2,771,011,819

1,257,022,985

Fixed Assets

12,404,303,234

9,478,354,208

7,607,500,252

-Investment

1,188,390,889

753,097,349

586,374,580

-Tangibles

10,091,594,394

7,467,019,913

6,140,377,712

-Intangibles

128,517,091

78,362,758

-

-Others

995,800,860

1,179,874,188

880,747,960

Total Liabilities

9,026,820,378

4,227,414,112

4,613,867,871

Current Liabilities

8,334,096,880

3,176,084,209

3,554,361,385

Fixed Liabilities

692,723,498

1,051,329,903

1,059,506,486

Capital Stock

1,760,000,000

1,760,000,000

1,760,000,000

Capital Surplus

 

 

 

Profit Surplus

15,419,816,879

13,813,421,036

11,516,512,526

Capital Adjustment

 

 

 

Total Equity

17,179,816,879

15,573,421,036

13,276,512,526

Liab. & Shareholder’s Equity

26,206,637,257

19,800,835,148

17,890,380,397

 

Current Liabilities

8,334,096,880

3,176,084,209

3,554,361,385

Trade Payables

882,164,818

908,579,350

1,774,720,583

Short-Term Borrowings

5,050,000,000

300,000,000

-

Account Payables

1,460,304,228

977,199,878

648,055,275

Withholdings

127,798,590

58,989,970

140,011,985

VAT Withhold

304,004,741

               -

62,675,673

Advance Receipts

18,525,000

18,531,600

105,439,122

Accrued Income Tax

      121,475,231

321,656,266

317,304,746

Accrued Expenses

280,884,272

284,887,145

232,294,001

Current Portion of Long-Term Debts

88,940,000

306,240,000

273,860,000

Fixed Liabilities

692,723,498

1,051,329,903

1,059,506,486

Long-Term Account Payables

234,990,000

638,930,000

945,170,000

Provision for Severance & Retirement

2,428,237,163

1,870,990,555

1,320,905,647

 

Income Statement

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

33,275,920,006

27,990,877,588

32,631,790,865

Cost of Sold Goods

25,779,529,235

20,977,499,548

24,547,684,552

Gross Profit

7,496,390,771

7,013,378,040

8,084,106,313

Selling & Admin. Expenses

5,341,832,437

4,186,816,094

4,444,944,457

Operating Income

2,154,558,334

2,826,561,946

3,639,161,856

Non-Operating Income

924,284,431

906,910,723

411,993,580

Non-Operating Expenses

683,899,161

369,575,309

324,700,956

Income Before Taxes

2,394,943,604

3,363,897,360

3,726,454,480

Income Taxes Expenses

388,547,761

566,988,850

596,117,123

Net Income

2,006,395,843

2,796,908,510

3,130,337,357

 

Cash Flows

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

-273,320,680

1,599,774,262

4,282,358,766

-Net Income

2,006,395,843

2,796,908,510

3,130,337,357

-Exp. without Cash Outflow

1,651,053,589

1,479,248,015

1,925,514,684

-Revenue without Cash Inflows

-106,854,902

-12,688,850

-3,206,855

-Changes in Asset/ & Liability

-3,823,915,210

-2,663,693,413

-770,286,420

Cash Flows from Investing

-4,214,283,580

-1,953,127,428

-1,868,565,791

-Cash Inflow from Investing

18,265,777,750

17,849,975,388

2,343,632,854

-Cash Outflows for Investing

-22,480,061,330

-19,803,102,816

-4,212,198,645

Cash Flows from Financing

4,125,520,000

226,440,000

-1,582,187,500

-Cash Inflows from Financing

7,146,760,000

1,300,300,000

150,000,000

-Cash Outflows from Financing

-3,021,240,000

-1,073,860,000

-1,732,187,500

Increase/Decrease in Cash

-362,084,260

-126,913,166

831,605,475

Cash at the Beginning of Year

887,788,926

1,014,702,092

183,096,617

Cash at the End of Year

525,704,666

887,788,926

1,014,702,092

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

Multi Core Tube, Cable Tray, PVC Cover, Cable Hanger, Condense Case, Hand Rail, LNG Carrier, Cable Binding Tape(Band Hoop & Buckle),LNG Fittings

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

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

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

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

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

HYUNDAI SAMHO HEAVY INDUSTRIES CO., LTD.(205411-0003915)

Competitors

SUNG IL CO., LTD.(SIM)

1587-4, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-831-8800  FAX:+82-51-831-5959

 

SEONGHWA INDUSTRIAL CO., LTD.

77-1, CHEONGOK-RI, JINSEONG-MYEON, JINJU-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-790-0100  FAX:+82-55-758-2944

 

DONG BANG SHIP MACHINERY CO., LTD.

414-2, JUKGOK-DONG, JINHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-545-0882  FAX:+82-55-545-0883

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

 

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2011

2010

2009

Export

 

 

 

Domestic

 

 

 

Total

 

 

 

The Subject exports to Singapore, China, Turkey and India.

 

 

News Clipping

 

Not Available

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.94

UK Pound

1

Rs.86.24

Euro

1

Rs.72.20

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.