MIRA INFORM REPORT

 

 

Report Date :

13.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DONGBU SPECIAL STEEL CO., LTD.

 

 

Registered Office :

891-10, Daechi 4-dong, Gangnam-gu, Seoul, Korea, 4th Fl., Dongbu Financial Center, Zip Code 135-523

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

04.01.2011

 

 

Com. Reg. No.:

120-87-62602

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Steel Wire

 

 

No. of Employees :

250

 

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

 

Company Name

DONGBU SPECIAL STEEL CO., LTD.

(Korean Company Name : “동부특수강()”)

Registered Address

891-10, Daechi 4-dong, Gangnam-gu, Seoul, Korea

Building

4th Fl., Dongbu Financial Center

Zip Code

135-523

Tel

+82-2-3450-8120

Fax

+82-2-3450-8522

E-mail

rosekh@dongbu.com

Website

www.dongbuspecialsteel.com

Trading Address

4th Fl., Dongbu Financial Center, 891-10, Daechi 4-dong, Gangnam-gu, Seoul, Korea

(New Address System : 432, Teheran-ro, Gangnam-gu, Seoul, Korea)

Tel

+82-2-3450-8120

Fax

+82-2-3450-8522

Other Address-Factory

792-1, Goedong-dong, Nam-gu, Pohang-si, Gyeongbuk, Korea

Tel

+82-54-289-2114

Fax

+82-54-285-8022

Type

Export

Industry

Manufacture of Steel Wire

  Main Business

CHQ Wire, Steel Wire, Cold Drawn Bar

Established (mm/dd/yyyy)

01/04/2011

The Subject owns the premises of Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Mechanical wire(31151800)

Sell

Steel bars(30101604)

 

CEO’s

 

Name

Seo Young-Joon

Address

Suite 305-701, 28, Naruter-ro 4 gil, Seocho-gu, Seoul, Korea

Date of Birth

01/21/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

20,000,000,000

Employees

250

Formation

Co., Ltd by Shares

A Company of DONGBU Group

Bank Details

Hana Bank

Korea Development Bank

Korea Exchange Bank

Corporate Registered No.

110111-4505595

Business Registered No.

120-87-62602

Permit & Licenses

N/A

Shareholder Position

Name

Shares

%

DONGBU STEEL CO., LTD.(110111-0393308)

20,000,000

100.00

TOTAL

20,000,000

100.00

Company History

01/04/2011 Incorporated after spin off from DONGBU STEEL CO., LTD.(110111-0393308)

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Seo Young-Joon

Male

Korean

11/01/2011

Director

Mr.

Park Jae-Jong

Male

Korean

01/04/2011

Director

Mr.

Cho Sung-Kwan

Male

Korean

01/04/2011

Outside Director

Mr.

Lee Moon-Seok

Male

Korean

07/01/2012

Auditor

Mr.

You Si-Young

Male

Korean

03/30/2012

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

370,994,376,904

318,226,778,132

7,188,053,351

 

Financial Description

 

Authorized Capital(KRW)

80,000,000,000

Paid-Up Capital(KRW)

20,000,000,000

Total Issues Shares

20,000,000 (Common : 14,400,000 / Preferable : 5,600,000)

 


 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

318,226,778,132

 

 

Current Assets

202,661,862,728

 

 

Cash & Cash Equivalents

2,253,308,030

 

 

Other Financial Assets

9,700,964,227

 

 

Trade Receivables

120,960,859,953

 

 

Other Receivables

1,389,133,439

 

 

Inventories

67,947,650,342

 

 

Other Current Assets

409,946,737

 

 

Non-Current Assets

115,564,915,404

 

 

Other Financial Assets

5,500,000

 

 

Marketable Financial Instruments

2,067,804,000

 

 

Long-Term Trade Receivables

135,520,445

 

 

Other Receivables

817,898,060

 

 

Tangibles

107,188,997,794

 

 

Intangibles

4,904,356,958

 

 

Deferred Income Tax Assets

444,838,147

 

 

Total Liabilities

188,587,283,066

 

 

Current Liabilities

162,569,392,879

 

 

Trade Payables

86,635,015,309

 

 

Other Payables

9,940,027,144

 

 

Short-Term Borrowings

55,935,783,375

 

 

Current Portion of Long-Term Debts

10,000,000,000

 

 

Accrued Income Tax

58,567,051

 

 

Non-Current Liabilities

26,017,890,187

 

 

Long-Term Borrowings

24,800,000,000

 

 

Provision for Severance & Retirement

1,217,890,187

 

 

Capital Stock

20,000,000,000

 

 

Capital Surplus

102,416,316,045

 

 

Profit Surplus

7,223,179,021

 

 

Total Equity

129,639,495,066

 

 

Liab. & Shareholder’s Equity

318,226,778,132

 

 

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

370,994,376,904

 

 

Cost of Sold Goods

343,851,199,539

 

 

Gross Profit

27,143,177,365

 

 

Selling & Admin. Expenses

16,708,346,744

 

 

Other Operating Income

1,411,997,569

 

 

Other Operating Expenses

101,519,657

 

 

Operating Income

11,745,308,533

 

 

Finance Income

5,076,555,737

 

 

Finance Expenses

8,840,260,840

 

 

Income Before Taxes

7,981,603,430

 

 

Income Taxes Expenses

793,550,079

 

 

Net Income

7,188,053,351

 

 

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

-37,876,768,195

 

 

Cash Flows from Operating

-33,388,596,238

 

 

Net Income

7,188,053,351

 

 

Adjustment

12,704,945,103

 

 

Changes in Asset/ & Liability

-53,281,594,692

 

 

Interests Received

223,196,117

 

 

Interests Paid

-3,521,639,658

 

 

Income Taxes

-1,189,728,416

 

 

Cash Flows from Investing

-49,977,780,760

 

 

Cash Inflow from Investing

608,719,837,225

 

 

Cash Outflows for Investing

-658,697,617,985

 

 

Cash Flows from Financing

90,107,856,985

 

 

Cash Inflows from Financing

168,577,194,429

 

 

Cash Outflows from Financing

-78,469,337,444

 

 

Increase/Decrease in Cash

2,253,308,030

 

 

Cash at the Beginning of Year

-

 

 

Cash at the End of Year

2,253,308,030

 

 

 

 

Products, Technologies, Services Description

 

Main Products & Services

-Cold Drawn Bar

Characteristics: The cold drawn steel bar (CD Bar) is a hot-rolled wire rod that has undergone the cold-rolled drawing process. It is sheared to a regular length, which adds perfect straightness as one of its features. Compared with hot rolled drawn steel bars, cold-rolled drawn steel bars feature superb surface roughness, dimensional precision, and straightness. They are used in the manufacture of automotive parts and home electrical appliances. The Subject offers long bars and CTL (cut to length) products which are sheared to the length of the final part.

 

Applications: Automotive shafts, industrial machines, OA machines

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

Customers

DONGBU STEEL CO., LTD.(110111-0393308)

DONGBU METAL CO., LTD.(110111-3836678)

Competitors

SEAH SPECIAL STEEL CO., LTD.

747, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-4771  FAX:+82-54-285-4095

 

POSCO SPECIALTY STEEL CO., LTD.

65, SINCHON-DONG, CHANG-WON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-269-6114  FAX:+82-55-269-6901

 

KISWIRE LTD.

475, MANGMI 2-DONG, SUYEONG-GU, BUSAN, KOREA

TEL:+82-51-760-1700  FAX:+82-51-757-7379

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DONGBU STEEL CO., LTD.(110111-0393308)

DONGBU HITECK CO., LTD.(110111-0026206)

DONGBU FINE CHEMICALS CO., LTD.(110111-0026206)

DONGBU FINECELL CO., LTD.(110111-1504102)

TOMATO LSI INC.(110111-1801988)

SOLEX SEMICONCODUCTOR CO., LTD.(110111-3727611)

DONGBU METAL CO., LTD.(110111-3836678)

DONGBU CORPORATION(110111-0005002)

DONGBU ENGINEERING CO., LTD. (110111-0659536)

DONGBU PUSAN CONTAINER TERMINAL CO., LTD.(180111-0356013)

CENTRAL PIER OPERATION CO., LTD.(180111-0290237)

DONGBU GWANGYANG LOGISTICS CENTER CO., LTD.(204611-0025180)

DONGBU EXPRESS MARINE CO., LTD.(180111-0605866)

FINE-ADVANTAS AMC CORPORATION CO., LTD.(110111-3783811)

DONGBU COMPLEX LOGISTICS CO., LTD.(204611-0026203)

DAESUNG FREZING TRANSPORTATION CO., LTD.(115611-0011096)

DAESUNG TOTAL LOGISTICS SYSTEM CO., LTD.(115611-0038892)

DCT CO., LTD.(144711-0015786)

DONGBU GWANGYANG STEEL DISTRIBUTION CENTER CO., LTD.(204611-0027649)

BAIKSAN ITS CO., LTD.(110111-2585630)

DONGBU INSURANCE CO., LTD.(110111-0095285)

DONGBU AUTOMOBILE INSURANCE CLAIM ADJUSTMENT CO., LTD.(110111-0367402)

DONGBU SECURITIES CO., LTD.(110111-0339956)

DONGBU MUTUAL SAVING BANK (110111-0135627)

DONGBU ASSET MANAGEMENT CO., LTD. (110111-1363160)

DONGBU CNI CO., LTD.(110111-1054339)

GONGJU ENVIRONMENT CO., LTD.(161211-0011288)

DONGBU INCHEON PORT TERMINAL CO., LTD. (120111-0305327)

DONGBU LIFE INSURANCE CO., LTD.(110111-0623606)

DONGBU CAPITAL CORP. (110111-1220641)

DONGBU CO., LTD. (110111-0367212)

DONGBU WORLD INC.(110111-0628086)

DONGBU EXPRESS CO., LTD.(110111-4505769)

 

DONGBU LED CO., LTD.(110111-4616623)

(19.52% held by the subject company)

Affiliates-Overseas

DONGBU AUSTRALIA PTY. LTD.

DONGBU EXPRESS INDIA LOGISTICS PRIVATE LIMITED

YOUNGKU DONGBU HANNONG SEEDS CO., LTD.

DONGBUCHEM.HK LTD.

EASTERNCHEM PTE. LTD

DONGBU HITEK USA, INC.

DONGBU HIGHTECH HONGKONG CO., LIMITED

DONGBU HITECK(SHIMCHEON) CO., LTD.(CHINA)

MICROCMOS, INC.

DONGBU ZSC

DONGBU HANNONG (HEILONGJIANG) CHEMICAL CORP.

SOLEX SEMICONDUCTOR(SHANGHAI) R&D LTD

SOLEX SEMICONDUCTOR INDIA PRIVATE LIMITED

SHANGHAI DONGBU INTERNATIONAL FREIGHT AGENCY CO., LTD.

DONGBU ELECTRIC COMPENENTS CO., LTD.

DONGBU PRECISION PRODUCTS CO., LTD.

DONGBU U.S.A. INC.

DONGBU JAPAN CO., LTD.

DONGBU SINGAPORE PTE, LTD.

Corporate Ownership

DONGBU STEEL CO., LTD.(110111-0393308)

Major Shareholders

DONGBU STEEL CO., LTD.(110111-0393308)

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to Iran.

 


Court Action

 

No.

 

 

News Clipping

 

------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.80.89

Euro

1

Rs.70.73

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.