MIRA INFORM REPORT

 

 

Report Date :

11.06.2013

 

IDENTIFICATION DETAILS

 

Name :

DOOSAN ENGINE CO., LTD.

 

 

Registered Office :

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

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

30.12.1999

 

 

Com. Reg. No.:

609-81-40128

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Internal Combustion Piston Engines

 

 

No. of Employees :

1,010

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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.

Source : CIA


Basic Information

 

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

(New Address System : 18, Gongdan-ro 21beon-gil, Seongsan-gu, 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

1,010

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

2,369,449

3.41

OTHERS

22,065,551

31.75

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

Seoul National University, Korea

Sr. Executive Director

Mr.

Cho Nam-Seok

Korean

1959.10.05

Korea University, Korea

Executive Director

Mr.

Nam Sang-Min

Korean

1955.04.01

Yonsei University, Korea

Executive Director

Mr.

Kim Jeong-Kwon

Korean

1955.06.30

Youngnam University, Korea

Vice President & CFO

Mr.

Jang Myung-Ho

Korean

1964.02.07

Gyungbuk National Uiniversity, Korea

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.

Yoon Yong-Seok

Korean

1954.10.

George Washington University, USA

Outside Director

Mr.

Lee Jae-Young

Korean

1965.12.

Washington University, USA

Outside Director

Mr.

Hwang Byung-Ki

Korean

1949.01.23

London University, UK

Outside Director

Mr.

Joo Jong-Nam

Korean

1956.08.17

Massachusetts University, USA

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2013

214,317,725,555

1,577,028,652,751

3,853,457,145

(*)2012

1,377,618,958,445

1,672,968,308,719

54,366,505,061

(*)2011

2,005,949,262,462

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

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

1,577,028,652,751

1,672,968,308,719

2,051,480,611,768

Current Assets

541,574,697,788

633,297,122,185

982,127,630,841

Cash & Cash Equivalents

51,631,289,204

94,678,541,896

320,469,576,651

Trade Receivables & Other Receivables

102,785,643,091

85,279,263,499

150,483,354,332

Income Taxes

259,656,312

 

 

Current Financial Instruments

131,154,274,100

171,144,774,100

147,862,076,202

Derivatives

15,821,558,391

38,090,761,839

8,153,605,085

Confirmed Contracts

21,203,466,471

20,627,029,543

66,708,349,474

Inventories

203,874,046,506

205,200,840,990

247,231,575,247

Current Non-Financial Instruments

14,844,763,713

18,275,910,318

41,219,093,850

Non-Current Assets

1,035,453,954,963

1,039,671,186,534

1,069,352,980,927

Long-Term Trade Receivables & Other Receivables

14,501,373,034

14,958,733,970

8,131,176,298

Equity Method Investment

363,994,102,690

363,994,102,690

365,024,719,731

Tangibles

570,515,447,756

576,429,596,197

551,384,215,311

Investment_Real Estates

 

 

36,130,101,804

Intangibles

19,587,097,126

18,614,288,888

14,536,132,373

Non-Current Financial Instruments

14,860,999,406

14,843,063,703

11,613,959,581

Non-Current Derivatives

2,107,747,706

12,352,565,282

3,752,006,943

Non-Current Confirmed Contracts

46,836,469,127

36,354,513,147

74,959,113,548

Other Non-Current Assets

3,050,718,118

2,124,322,657

3,821,555,338

Total Liabilities

928,908,646,603

1,028,488,896,541

1,461,182,444,094

Current Liabilities

616,074,987,189

710,931,856,014

1,207,088,087,624

Trade Payables & Other Payables

487,042,728,765

539,176,625,537

952,145,586,746

Advance Receipt Construction

15,830,660,947

19,416,602,363

34,079,376,921

Short-Term Borrowings

13,263,211,540

29,828,495,145

23,306,698,323

Current Portion of Long-Term Debts

66,726,000,000

64,266,000,000

69,198,000,000

Income Taxes

10,123,828,048

18,195,115,048

6,426,973,157

Current Derivatives

7,819,670,707

3,330,156,254

33,080,119,987

Current Confirmed Contracts

9,111,830,125

26,500,340,834

6,933,180,782

Other Current Non-Financial Debts

6,157,057,057

10,218,520,833

1,972,607,106

Current Portion of Debentures

 

 

79,945,544,602

Non-Current Liabilities

312,833,659,414

317,557,040,527

254,094,356,470

Long-Term Borrowings

116,726,000,000

114,266,000,000

138,396,000,000

Debentures

99,487,085,427

99,461,490,305

 

Long-Term Account Payables

1,407,917,488

1,057,450,866

2,332,156,206

Provision for Severance & Retirement

20,741,511,731

19,815,842,555

26,590,315,593

Non-Current Derivatives

3,568,817,513

2,112,892,517

17,936,849,494

Non-Current Confirmed Contracts

12,720,065,285

21,881,552,439

5,002,643,700

Finance Guarantee

3,986,432,090

4,121,160,256

349,001,248

Provision for Repairing

18,113,336,013

19,568,071,955

20,507,108,230

Deferred Income Tax Credit

36,082,493,867

35,272,579,634

42,980,281,999

Capital Stock

69,500,000,000

69,500,000,000

69,500,000,000

Others

367,262,151,202

367,475,014,377

367,016,357,075

Profit Surplus

211,357,854,946

207,504,397,801

153,781,810,599

Total Equity

648,120,006,148

644,479,412,178

590,298,167,674

Liab. & Shareholder’s Equity

1,577,028,652,751

1,672,968,308,719

2,051,480,611,768

 

 

Income Statement

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

214,317,725,555

1,377,618,958,445

2,005,949,262,462

Cost of Sold Goods

197,717,657,237

1,224,471,146,479

1,643,634,050,361

Gross Profit

16,600,068,318

153,147,811,966

362,315,212,101

Selling & Admin. Expenses

10,882,626,439

83,848,547,463

65,183,683,598

Operating Income

5,717,441,879

69,299,264,503

297,131,528,503

Finance Income

39,898,284,769

120,952,187,860

82,712,678,543

Finance Expenses

39,139,550,974

119,418,727,442

76,290,640,093

Other Operating Income

790,989,257

13,234,832,799

4,900,658,036

Other Operating Expenses

2,603,793,553

11,812,205,822

23,244,862,628

Other Income

 

 

2,771,523,706

Income Before Taxes

4,663,371,378

72,255,351,898

282,437,838,655

Income Taxes Expenses

809,914,233

17,888,846,837

72,801,358,898

Net Income

3,853,457,145

54,366,505,061

209,636,479,757

 

 

Cash Flows

 

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-65,666,011,814

-184,905,897,449

147,081,537,595

Net Income

3,853,457,145

54,366,505,061

209,636,479,757

Adjustment

-61,008,033,704

-230,651,072,632

-67,050,110,900

Interests Received

1,503,784,821

14,153,701,528

17,768,136,595

Interests Paid

-1,685,103,384

-9,195,894,449

-12,619,715,213

Dividends Received

826,620

 

137,155,040

Income Taxes

-8,330,943,312

-13,579,136,957

-790,407,684

Cash Flows from Investing

39,177,443,493

-47,640,073,910

-34,920,081,023

Cash Flows from Financing

-16,565,283,605

6,785,287,127

-128,477,870,938

Increase/Decrease in Cash

-43,047,252,692

-225,791,034,755

-16,407,901,878

Cash at the Beginning of Year

94,678,541,896

320,469,576,651

336,877,478,529

Cash at the End of Year

51,631,289,204

94,678,541,896

320,469,576,651

 

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.57.78

UK Pound

1

Rs.89.71

Euro

1

Rs.76.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.