MIRA INFORM REPORT

 

 

Report Date :

29.10.2013

 

IDENTIFICATION DETAILS

 

Name :

DOOSAN ENGINEERING & CONSTRUCTION CO., LTD.

 

 

Registered Office :

105-7, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea Doosan Bldg. 135-714

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

07.04.1976

 

 

Com. Reg. No.:

102-81-31754

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Apartment Building Construction, Civil Engineering Construction

 

 

No. of Employees :

2,068

 

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 :

No Complaints

 

 

Litigation :

Exist

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

DOOSAN ENGINEERING & CONSTRUCTION CO., LTD.

Registered Address

105-7, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea

Building

Doosan Bldg.

Zip Code

135-714

Tel

+82-2-510-3114

Fax

+82-2-540-5221

E-mail

doosanenc@doosan.com

Website

www.doosanenc.com

Trading Address

Doosan Bldg., 105-7, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea

(New Address System : 726, Eonju-ro, Gangnam-gu, Seoul, Korea)

Tel

+82-2-510-3114

Fax

+82-2-540-5221

Type

Export

Industry

Apartment Building Construction

  Main Business

Apartment Building Construction, Civil Engineering Construction

  Sub Business

Construction of Highways, Streets and Roads

Established (mm/dd/yyyy)

04/07/1976

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Commercial or industrial construction(72131600)

Sell

General building construction(72130000)

Sell

Concrete and mortars(30111500)

Sell

Windows(30171600)

Sell

Plastic pipe(40142115)

Sell

Renovation of buildings or landmarks or monuments(72102801)

 

 

CEO’s

 

Name

Yang Hee-Sun

Date of Birth

07/12/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

2,769,211,550,000

Employees

2,068

Formation

Listed Company (Korea Stock Exchange : 011160 ) as of 01/30/1996

A Company of DOOSAN GROUP

Bank Details

Woori Bank-Gwanghwamun Branch

Corporate Registered No.

110111-0194277

Business Registered No.

102-81-31754

Permit & Licenses

01/1996 ISO 9001

10/1996 ISO 14001

11/1997 ISO 9001

 

Int’l Trade No.: 803317

Shareholder Position

Name

Shares

%

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD.(194211-0000943)

465,155,728

84.29

TREASURY STOCK

3,958,292

0.72

OTHERS

82,728,290

14.99

TOTAL

551,842,310

100.00

Company History

04/07/1976 Incorporated as KORYO PORT DEVELOPMENT CO., LTD.

11/20/1984 Changed company name to KORYO INDUSTRY DEVELOPMENT CO., LTD.

04/06/2004 Changed company name to DOOSAN INDUSTRY DEVELOPMENT CO., LTD.

03/16/2007 Changed company name to DOOSAN CONSTRUCTION & ENGINEERING CO., LTD.

03/27/2009 Changed English Company name to DOOSAN ENGINEERING & CONSTRUCTION CO., LTD.

11/04/2010 Acquired DOOSAN MECATEC CO., LTD.(110111-0126022)

04/17/2013 Increased capital to 2,769,211,550,000 KRW from 877,335,095,000 KRW

04/17/2013 Acquired HRSG Business from DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD.(194211-0000943)

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Yang Hee-Sun

Korea

1954.07.12

Sungkyunkwan University, Korea

Sr. Executive Director & CFO

Mr.

Song Jung-Ho

Korea

1960.01.17

Cheonbuk National University, Korea

Outside Director

Mr.

Lee Jong-Baik

Korea

1950.08.08

-

Outside Director

Mr.

Kim Chang-Sub

Korea

1956.02

-

Outside Director

Mr.

Ham Sang-Moon

Korea

1954.02

-

Outside Director

Mr.

Choi Jong-Won

Korea

1958.10

-

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2013

1,107,560,211,326

4,699,241,199,792

3,327,325,717

(*)2012

2,229,066,382,563

3,909,839,944,918

-614,846,742,157

(*)2011

2,633,993,139,884

4,831,264,326,233

-293,451,649,514

(*)2010

2,302,809,002,965

5,040,351,635,766

2,282,924,896

2009

2,310,257,829,856

2,986,223,388,084

50,883,951,621

2008

1,939,946,009,238

2,424,533,468,161

41,302,182,075

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

 

 

Financial Description

 

Authorized Capital(KRW)

4,500,000,000,000

Paid-Up Capital(KRW)

2,769,211,550,000

Total Issued Shares

551,842,310

 

Balance Sheet

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

4,699,241,199,792

3,909,839,944,918

4,831,264,326,233

Current Assets

2,856,954,932,729

2,369,703,846,119

3,472,648,325,677

Cash & Cash Equivalents

199,025,671,113

132,848,211,616

429,436,441,513

Current Financial Instruments

26,270,588,513

70,657,593,190

0

Marketable Financial Instruments

2,538,720,145

227,089,980

893,781,740

Trade Receivables

760,949,017,316

564,903,267,132

1,427,608,820,614

Other Receivables-Construction

461,584,135,801

375,779,432,941

239,005,941,523

Other Receivables

163,620,383,879

127,507,567,032

164,019,205,828

Advance Payments

52,424,463,203

44,202,519,597

30,866,832,611

Short-Term Receivables

867,722,248,178

723,506,623,202

813,611,646,827

Derivatives

1,329,179,012

9,803,861,307

2,192,366,336

Confirmed Contracts Assets

2,904,676,291

22,799,364

1,612,413,376

Inventories

34,443,308,368

36,706,436,057

65,759,353,648

Non-Current Assets to be Sold

0

0

12,500,000,000

Other Current Assets

284,142,540,910

283,538,444,701

285,141,521,661

Non-Current Assets

1,842,286,267,063

1,540,136,098,799

1,358,616,000,556

Non-Current Financial Instruments

49,171,760

53,171,760

53,171,760

Marketable Financial Instruments

207,424,341,533

229,592,152,408

215,018,474,868

Investment_Related Companies

417,107,648,430

388,949,699,355

387,706,839,355

Tangibles

487,114,623,985

519,878,187,147

519,696,247,102

Intangibles

337,354,713,902

23,565,316,906

27,861,313,056

Investment_Real Estates

68,219,570,374

64,621,660,008

63,990,356,699

Derivatives

0

1,813,739,625

365,078,269

Confirmed Contracts Assets

1,814,962,436

22,970,884

435,542,534

Deferred Income Tax Assets

260,478,633,600

261,054,345,158

91,147,794,056

Other Non-Current Assets

62,722,601,043

50,584,855,548

52,341,182,857

Total Liabilities

3,152,674,793,573

3,304,796,450,100

3,610,334,809,860

Current Liabilities

2,753,090,464,792

2,726,128,781,291

2,454,114,484,913

Trade Payables

553,328,971,000

688,117,578,068

714,662,632,959

Short-Term Borrowings

577,202,055,234

541,412,704,596

507,824,717,417

Other Short-Term Debts

319,681,807,183

176,000,000,000

143,724,000,306

Current Portion of Long-Term Debts

709,644,682,418

824,306,327,727

465,688,644,391

Advance Receipts

68,656,208,173

66,589,666,906

74,040,866,822

Other Payables-Construction

255,880,652,552

205,236,408,060

223,824,549,070

Account Payables

96,406,688,867

42,978,263,616

46,560,291,909

Accrued Expenses

73,595,015,315

71,899,860,018

178,072,051,187

Accrued Income Tax

0

0

14,780,242,210

Derivatives

43,521,217,192

34,856,907,241

10,123,416,711

Confirmed Contracts Liabilities

207,412,963

4,687,258,431

874,873,038

Other Current Liabilities

54,965,753,895

70,043,806,628

73,938,198,893

Non-Current Liabilities

399,584,328,781

578,667,668,809

1,156,220,324,947

Debentures

137,978,351,419

199,067,974,342

683,031,202,914

Long-Term Borrowings

57,991,175,552

61,100,137,632

113,164,299,222

Other Long-Term Debts

0

130,800,000,000

175,000,000,000

Provision for Severance & Retirement

66,755,723,284

53,958,105,682

49,926,574,893

Long-Term Trade Payables

7,699,000,000

4,803,378,750

5,552,000,000

Derivatives

2,646,252,613

3,695,540,383

588,600,080

Confirmed Contracts Liabilities

0

58,906,429

325,980,248

Provisions

76,934,797,340

74,330,362,942

78,090,900,098

Other Non-Current Financial Debts

49,579,028,573

50,853,262,649

50,540,767,492

Capital Stock

2,769,211,550,000

877,335,095,000

877,335,095,000

Capital Surplus

383,956,235

150,339,248,385

150,221,708,985

Others

-952,335,780,644

1,703,683,938

1,234,946,152

Installments

26,628,263,412

26,653,624,381

27,288,083,863

Profit Surplus

-297,321,582,784

-450,988,156,886

164,849,682,373

Total Equity

1,546,566,406,219

605,043,494,818

1,220,929,516,373

Liab. & Shareholder’s Equity

4,699,241,199,792

3,909,839,944,918

4,831,264,326,233

 

Income Statement

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Sales

1,107,560,211,326

2,229,066,382,563

2,633,993,139,884

Cost of Sold Goods

980,268,995,717

1,976,842,097,178

2,365,882,579,432

Gross Profit

127,291,215,609

252,224,285,385

268,110,560,452

Selling & Admin. Expenses

79,151,303,125

705,745,437,710

577,691,641,023

Operating Income

48,139,912,484

-453,521,152,325

-309,581,080,571

Finance Income

37,814,566,673

88,182,339,136

111,117,150,128

Finance Expenses

112,650,280,625

265,503,617,906

199,220,475,840

Other Non-Operating Income

62,970,134,941

36,868,443,472

99,385,100,883

Other Non-Operating Expenses

32,363,626,921

190,870,907,065

59,340,073,041

Income Before Taxes

3,910,706,552

-784,844,894,688

-357,639,378,441

Income Taxes Expenses

583,380,835

-169,998,152,531

-64,187,728,927

Net Income

3,327,325,717

-614,846,742,157

-293,451,649,514

 

Cash Flows

Unit : Korean Won

01/01/2013~06/30/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

-392,221,359,575

40,839,441,029

-157,122,099,784

Net Income

3,327,325,717

-614,846,742,157

-293,451,649,514

Adjustment

55,640,495,793

782,979,400,257

443,591,869,930

Changes in Asset/ & Liability

-377,687,072,844

60,347,974,440

-152,797,205,378

Interests Received

7,167,669,762

17,102,434,994

23,093,746,625

Interests Paid

-82,688,808,276

-192,242,890,994

-158,368,589,551

Dividends Received

123,025,221

1,456,548,171

549,899,000

Income Taxes

1,896,005,052

-13,957,283,682

-19,740,170,896

Cash Flows from Investing

33,286,369,409

-164,354,822,607

-76,361,487,154

Cash Flows from Financing

27,637,058,700

-172,904,790,766

145,047,450,699

Increase/Decrease in Cash

66,177,459,497

-296,588,229,897

-88,245,566,086

Cash at the Beginning of Year

132,848,211,616

429,436,441,513

517,682,007,599

Cash at the End of Year

199,025,671,113

132,848,211,616

429,436,441,513

 

 

Products, Technologies, Services Description

 

Main Products & Services

Apartment Building Construction, Civil Engineering Construction

 

 

Trade Partners & Competitors

 

Competitors

SAMSUNG C&T CORPORATION(110111-0002975)

DAEWOO ENGINEERING & CONSTRUCTION CO., LTD.(110111-2137895)

HYUNDAI ENGINEERING & CONSTRUCTION CO., LTD.(110111-0007909)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestics

DOOSAN CORPORATION(110111-0013774)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

DOOSAN INFRACORE CO., LTD.(120111-0234469)

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)

Affiliates-Overseas

DOOSAN MARINE INDUSTRY (DALIAN) CO., LTD.

DALIAN SAMYOUNG DOOSAN METAL PRODUCT CO., LTD.

DOOSAN HOLDINGS EUROPE LTD.

DOOSAN INFRACORE INTERNATIONAL, INC.

Subsidiary

REXCON CO.,LTD.(110111-3586273)

(100.0% held by the subject company)

 

DOOSAN CUVEX CO., LTD(140111-0032570)

(100.0% held by the subject company)

 

DOOSAN HEAVY INDUSTRIES VIETNAM HAIPHONG CO., LTD.

KM 92, HIGHWAY 5, SODAU WARD,  HONGBANG DISTRICT, HAIPHONG CITY, VIETNAM

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2012

2011

2010

Export

 

 

 

Domestic

 

 

 

Total

 

 

 

The Subject exports to Australia, China, Egypt and USA.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There are cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 105,556,000,000 KRW.

 

 

News Clipping

 

Not Available


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.99.49

Euro

1

Rs.84.88

 

 

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%)

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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.