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Report Date : |
17.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
DAVIS DIAMOND CO. LTD |
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Formerly Known As : |
SION DIAMOND CO., LTD |
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Registered Office : |
6th Fl., Geumgang Bldg., 127, Bongik-dong, Jongno-gu, Seoul, Korea
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 : |
Wholesale of Watches and Jewelry |
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No. of Employees : |
13 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – 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 |
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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.
|
Source : CIA |
|
Company Name |
DAVIS DIAMOND CO. LTD. (Korean Company Name : “(주)다비스다이아몬드”) |
|
Registered Address |
127, Bongik-dong, Jongno-gu, Seoul, Korea |
|
Building |
6th Fl., Geumgang Bldg. |
|
Zip Code |
110-390 |
|
Tel |
+82-2-747-1802 |
|
Fax |
+82-2- 747-1807 |
|
E-mail |
contact@davis.co.kr;davis747@hanmail.net |
|
Website |
www.davisdia.com;www.previs.kr |
|
Trading Address |
6th Fl., Geumgang Bldg., 127, Bongik-dong,
Jongno-gu, Seoul, Korea |
|
Tel |
+82-2-747-1802 |
|
Fax |
+82-2-3676-8837 |
|
Other Address-Jongro Btanch |
Rm.101, Sungcahng Bladg., 97-1, Bongik-dong,
Jongno-gu, Seoul, Korea |
|
Tel |
+82-2-747-1805 |
|
Type |
Import |
|
Industry |
Wholesale of Watches and Jewelry |
|
Main Business |
Diamond |
|
Sub
Business |
|
|
Established (mm/dd/yyyy) |
02/21/2002 |
The Subject Company
occupies the premises of registered HQ address by leasing base.
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Diamond gemstones(54121501) |
|
Sell |
Fine jewelry necklaces(54101502) |
|
Name |
Hong Yeun-Ho |
|
Address |
Suite 1001-1002, 728, Naebalsan-dong,
Gangseo-gu, Seoul 157-280 Korea |
|
Date of Birth |
07/24/1962 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
|
Capital (KRW) |
300,000,000 |
|
Employees |
13 |
|
Formation |
Co., Ltd by shares |
|
Bank Details |
Industrial Bank of Korea-Jongro Branch Sc First Bank of Korea |
|
Corporate Registered No. |
110111-2451526 |
|
Business Registered No. |
101-81-80077 |
|
Permit & Licenses |
Int’l Trade No.: 45012398 |
|
Shareholder Position |
N/A |
|
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 |
|
|
|
|
Job Description |
Title |
Name |
Sex |
Nationality |
Inauguration Date |
|
President & CEO |
Mr. |
Hong Yeun-Ho |
Male |
Korean |
03/18/2002 |
|
Director |
M/S. |
Kim Young-Mi |
Female |
Korean |
03/28/2005 |
|
Director |
Mr. |
Chang Ki-Ho |
Male |
Korean |
11/17/2006 |
|
Auditor |
M/s. |
Kim Myung-Soon |
Female |
Korean |
03/28/2005 |
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
|
|
|
|
|
2011 |
|
|
|
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2010 |
|
|
|
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2009 |
|
|
|
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2008 |
5,644,000,000 |
3,624,000,000 |
-311,000,000 |
|
2007 |
3,705,000,000 |
2,279,000,000 |
57,000,000 |
|
2006 |
2,661,000,000 |
1,995,000,000 |
51,000,000 |
|
2005 |
|
|
|
|
2004 |
|
|
|
|
2003 |
|
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|
The latest financials
are not available, and the Subject Company does not have any obligations to
release its financials to the public.
|
Authorized Capital(KRW) |
400,000,000 |
|
Paid-Up Capital(KRW) |
300,000,000 |
|
Total Issues Shares |
60,000 |
Balance Sheet
|
|||
|
Unit : Korean Won |
As of 12/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Total Assets |
3,624,000,000 |
2,279,000,000 |
1,995,000,000 |
|
Current Assets |
|
|
|
|
-Quick Assets |
|
|
|
|
-Inventories |
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|
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Fixed Assets |
|
|
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-Investment |
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|
|
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-Tangibles |
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-Intangibles |
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|
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Total Liabilities |
3,395,000,000 |
1,739,000,000 |
1,511,000,000 |
|
Current Liabilities |
|
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Fixed Liabilities |
|
|
|
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Capital Stock |
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|
|
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Capital Surplus |
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Profit Surplus |
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|
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Capital Adjustment |
|
|
|
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Total Equity |
229,000,000 |
540,000,000 |
484,000,000 |
|
Liab. & Shareholder’s Equity |
3,624,000,000 |
2,279,000,000 |
1,995,000,000 |
Income Statement
|
|||
|
Unit : Korean Won |
As of 12/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Sales |
5,644,000,000 |
3,705,000,000 |
2,661,000,000 |
|
Cost of Sold Goods |
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Gross Profit |
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Selling & Admin. Expenses |
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Operating Income |
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Non-Operating Income |
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Non-Operating Expenses |
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Income Before Taxes |
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Income Taxes Expenses |
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Net Income |
-311,000,000 |
57,000,000 |
51,000,000 |
|
Main Products & Services |
Diamond, Jewelry |
|
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 |
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.
----
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
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
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
UK Pound |
1 |
Rs.83.65 |
|
Euro |
1 |
Rs.70.57 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.