MIRA INFORM REPORT

 

 

Report Date :

26.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DAEWON STEEL CO., LTD.

 

 

Registered Office :

1259-5, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.09.1995

 

 

Com. Reg. No.:

133-81-28122

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of cold rolled, drawn and extruded iron or steel products

 

 

No. of Employees :

63

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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

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

 

Basic

 

Company Name

DAEWON STEEL CO., LTD.

(Korean Company Name : “대원스틸(주)”)

Registered Address

1259-5, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Building

2Na-705, Sihwa Industrial Complex

Zip Code

429-922

Tel

+82-31-432-6521

Fax

+82-31-497-5684

E-mail

dwsteel@dwsteel.co.kr

Website

www.dwsteel.co.kr

Trading Address

2Na-705, Sihwa Industrial Complex, 1259-5, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea

Tel

+82-31-432-6521

Fax

+82-31-497-5684

Other Address-Overseas Sales Dept.

92, Da-dong, Jung-gu, Seoul, Korea

Tel

+82-2-316-7675

Fax

+82-2-7770-5028

Type

Export

Industry

Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products

  Main Business

Cold Rolled, Carbon Steel

  Sub Business

 

Established (mm/dd/yyyy)

09/21/1995

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel(11101704)

 

CEO’s

 

Name

Lee On-Young

Address

Suite 108-904, 944, Yongho-dong, Nam-gu, Busan, Korea

Date of Birth

10/22/1949

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

26,319,000,000

Employees

63

Formation

Co., Ltd by shares

A Company of DONGKUK INDUSTRIES COMPANY

Bank Details

Shinhan Bank

Busan Bank

Kookmin Bank

Corporate Registered No.

120111-0123711

Business Registered No.

133-81-28122

Permit & Licenses

06/10/1999 ISO 9001

12/2007 ISO/TS 16949

 

Int’l Trade No.: 14030518

Shareholder Position

Name

Shares

%

DONGKUK INDUSTRIES COMPANY(110111-0085583)

10,000,000

38.00

DONGKUK STRUCTURES & CONSTRUCTION COMPANY LIMITED.(110111-2276784)

10,000,000

38.00

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

5,003,050

19.01

BULYIWON FOUNDATION(114222-0005772)

1,315,950

5.00

TOTAL

26,319,000

100.00

Company History

09/21/1995 Incorporated as SHINWHA SPECIAL STEEL CO., LTD.

09/06/2000 Started Corporate Clearing Procedure by the approval from Suwon District Court

11/22001 Awarded US$5 Million Export Top Prize

02/10/2004 Completed Corporate Clearing Procedure by the approval from Suwon District Court

02/11/2004 Changed company name to the present name

05/08/2006 Spin off par value to 1,000 KRW from 5,000 KRW

09/2007 Designated as a Promising SME Company

10/26/2007 Increased the authorized shares to 100,000,000 shares from 20,000,000 shares

11/06/2007 Increased capital to 26,319,000,000 KRW from 10,000,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lee On-Young

Male

Korean

04/01/2010

Director

Mr.

Yim Soon-Myung

Male

Korean

09/01/2004

Director

Mr.

Jang Se-Hee

Male

Korean

12/24/2003

Director

Mr.

Jeon Jae-Yoon

Male

Korean

04/01/2013

Auditor

Mr.

Jeon Kyung-Doo

Male

Korean

03/28/2011

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

79,875,973,369

87,917,750,228

-1,504,682,916

(*)2011

83,826,007,949

103,838,513,881

2,137,819,409

(*)2010

78,674,930,195

90,928,741,860

5,820,583,797

2009

51,660,088,200

70,795,998,500

-7,257,291,878

2008

78,701,618,515

78,427,868,787

3,581,193,135

2007

44,957,945,842

62,630,787,260

210,953,451

2006

 37,948,193,835

 39,840,921,789

 213,434,341

2005

36,161,998,184

37,809,286,101

1,614,451,564

2004

30,285,823,833

30,160,313,162

2,643,966,850

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

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

26,319,000,000

Total Issued Shares

26,319,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

87,917,750,228

103,838,513,881

90,928,741,860

Current Assets

35,841,163,306

51,881,888,907

39,050,458,390

Cash & Cash Equivalents

4,061,067,717

5,472,088,910

2,619,334,692

Current Financial Instruments

 

 

1,158,900,000

Inventories

16,672,030,223

28,526,622,047

19,695,024,531

Trade Receivables

14,910,064,705

17,832,084,598

14,662,790,197

Other Receivables

55,320,851

3,228,025

821,603,152

Advance Payments

24,455,610

12,369,810

4,500,000

Unearned Income

874,066

1,220,394

 

Derivatives

 

 

72,067,343

Current Financial Instruments

 

 

4,400,000

Other Current Assets

117,350,134

34,275,123

11,838,475

Non-Current Assets

52,076,586,922

51,956,624,974

51,878,283,470

Marketable Financial Instruments

6,596,985,500

7,633,654,650

9,499,659,120

Tangibles

31,124,438,067

30,735,983,737

29,206,028,091

Intangibles

15,806,000

16,450,002

20,912,572

Other Financial Assets

39,649,480

99,558,007

63,224,894

Investment_Related Companies

14,160,471,568

13,421,348,578

13,066,298,793

Deferred Income Tax Assets

89,406,307

-

 

Non-Current Financial Instruments

49,830,000

49,630,000

22,160,000

Total Liabilities

33,653,345,753

47,034,342,097

34,917,466,512

Current Liabilities

21,458,812,639

35,967,377,981

26,603,431,149

Trade Payables

6,940,598,262

14,479,491,188

12,505,620,069

Account Payables

1,126,008,605

1,107,531,356

996,062,422

Advance Receipts

22,563,738

1,386,829

106,057,133

Withholdings

34,263,277

75,532,954

64,139,193

Guarantee Deposit Withhold

8,754,973

19,641,120

18,904,880

Accrued Expenses

359,369,343

419,182,104

471,012,997

Short-Term Borrowings

12,815,250,412

19,504,036,669

11,778,593,018

Current Portion of Long-Term Debts

10,600,000

10,600,000

10,600,000

Derivatives

141,404,029

61,731,440

15,626,838

Deferred Income Tax Credit

-

288,244,321

636,814,599

Non-Current Liabilities

12,194,533,114

11,066,964,116

8,314,035,363

Long-Term Borrowings

10,150,600,000

10,161,200,000

7,084,800,000

Confirmed Salaries

344,258,054

120,554,967

139,384,053

Deferred Income Tax Credit

-

618,780,269

951,851,310

Other Payables

-

69,200,000

48,000,000

Guarantee Deposit Withhold

95,000,000

90,000,000

90,000,000

Finance Guarantee

1,597,446,180

-

 

Other Non-Current Financial Debts

7,228,880

7,228,880

-

Capital Stock

26,319,000,000

26,319,000,000

26,319,000,000

Capital Surplus

13,981,895,487

13,981,895,487

13,981,895,487

Others

-1,625,648,414

-730,736,078

556,517,380

Profit Surplus

15,589,157,402

17,234,012,375

15,153,862,481

Total Equity

54,264,404,475

56,804,171,784

56,011,275,348

Liab. & Shareholder’s Equity

87,917,750,228

103,838,513,881

90,928,741,860

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

79,875,973,369

83,826,007,949

78,674,930,195

Cost of Sold Goods

75,636,241,161

75,313,336,235

66,451,624,189

Gross Profit

4,239,732,208

8,512,671,714

12,223,306,006

Selling & Admin. Expenses

4,065,223,915

4,319,978,110

4,341,566,774

Operating Income

174,508,293

4,192,693,604

8,257,357,301

Non-Operating Income

786,677,311

1,580,865,297

508,006,626

Non-Operating Expenses

888,358,956

1,225,277,889

1,310,133,765

Profits from investment on Related Companies

-497,074,322

245,464,261

1,177,745,208

Finance Income

80,405,924

81,087,816

250,906,406

Finance Expenses

1,588,946,813

1,552,217,530

828,629,087

Income Before Taxes

-1,932,788,563

3,322,615,559

7,679,634,620

Income Taxes Expenses

-428,105,647

1,184,796,150

1,859,050,823

Net Income

-1,504,682,916

2,137,819,409

5,820,583,797

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

6,793,476,882

-6,282,869,293

-1,325,746,614

Cash Flows from Operating

8,350,110,236

-3,593,341,561

-722,737,126

Net Income

-1,932,788,563

3,322,615,559

7,679,634,620

Adjustment

4,049,892,189

2,474,332,183

1,558,319,960

Changes in Asset/ & Liability

6,233,006,610

-9,390,289,303

-9,960,691,706

Interests Paid

-1,611,723,586

-1,615,965,870

-640,155,308

Interests Received

80,752,252

81,261,998

63,759,316

Dividends Received

332,276,360

332,276,360

106,094,000

Income Taxes

-357,938,380

-1,487,100,220

-132,707,496

Cash Flows from Investing

-1,499,225,671

-1,674,185,260

-12,354,914,072

Cash Flows from Financing

-6,705,272,404

10,809,808,771

8,218,150,987

Increase/Decrease in Cash

-1,411,021,193

2,852,754,218

-5,462,509,699

Cash at the Beginning of Year

5,472,088,910

2,619,334,692

8,089,472,755

Cash at the End of Year

4,061,067,717

5,472,088,910

2,619,334,692

 

Products, Technologies, Services Description

 

Main Products & Services

Cold Rolled Tool Steel Strip

Cold Rolled Carbon Steel Strip

Cold Rolled Alloy Steel Strip

Cold Rolled Steel Strip

Cold Rolled Spring Steel

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

HAN KOOK CAPABILITY CO., LTD.(120111-0070988)

JS&T CO., LTD.(120111-0491085)

Competitors

TS METAL CO., LTD.

2B-23L, BANWOL INDUSTRIAL COMPLEX, 391, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-508-0740  FAX:+82-31-508-0743

 

DAEHAN STEEL CO., LTD.

370-16, SINPYEONG 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-220-3300  FAX:+82-51-220-3398

 

KOREA STEEL SHAPES CO., LTD.

727-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-323-2611  FAX:+82-51-325-5713

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGKUK INDUSTRIES COMPANY(110111-0085583)

(3.1% held by the subject company)

 

DK DONGSHIN CO., LTD.(110111-3850959)

(33.33% held by the subject company)

 

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

(7.21% held by the subject company)

 

DONGKUK STRUCTURES & CONSTRUCTION COMPANY LIMITED.(110111-2276784)

CHOSUN STEELWIRE CO., LTD.(110111-0008486)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER GENERATION CO., LTD.(201111-0023666)

KODUCK WIND POWER GENERATION CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNG SEOK DEVELOPMENT CO., LTD.(115611-0003879)

KUMHWA STEEL CO., LTD.(110111-0230386)

DK WIND POWER GENERATION CO., LTD.(234111-0045158)

NAMWON SOLAR POWER GENERATION CO., LTD.(211311-0005428)

 

DK AMERICA., INC.

Corporate Ownership

DONGKUK INDUSTRIES COMPANY(110111-0085583)

Major Shareholders

 

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD.(110111-0017586)

 

 

Sales by Region (Activity & Markets)

 

The Subject exports to China, Japan, Asia and Europe.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.63

UK Pound

1

Rs.99.94

Euro

1

Rs.85.14

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.