MIRA INFORM REPORT

 

 

Report Date :

26.02.2014

 

IDENTIFICATION DETAILS

 

Name :

DAEWON GSI CO., LTD.

 

 

Registered Office :

235, Gongdan-ro, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

11.04.1982

 

 

Com. Reg. No.:

504-81-04185

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Machinery for Food, Beverage and Tobacco Processing

 

 

No. of Employees :

165

 

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 :

Slow but correct

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 GSI CO., LTD.

(English Co. Name : DAEWON GLOBAL SYSTEM INTEGRATION CO., LTD.)

(Korean Company Name : “()대원지에스아이”)

Registered Address

235, Gongdan-ro, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

Building

 

Zip Code

718-802

Tel

+82-54-973-2221~8

Fax

+82-54-973-2230

E-mail

trade@daewon.com

Website

www.daewon.com

Trading Address

235, Gongdan-ro, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

(Old Address System : 990-2, Geumsan-ri, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea)

Tel

+82-54-973-2221~8

Fax

+82-54-973-2230

Other Address-Biotech Business Division

37, Gongdan-ro 6-gil, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea

Tel

 

Fax

 

Other Address-Eco-Friendly Business Devision

1112-1, Gwang-eum-ri, Namhu-myeon, Andong-si, Gyeongbuk, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

 

  Main Business

Rice Polishing Mill, Dry Storage Extension Equipment, Grain Dryer, Color Sorter

  Sub Business

 

Established (mm/dd/yyyy)

11/04/1982

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Grain analyzers(41112701)

Sell

Rice cleaning or hulling equipment(21102004)

Sell

Grading machines for seed or grain or dried leguminous vegetables(21102003)

Sell

Agricultural machinery for cleaning and sorting and grading(21102000)

 

CEO’s

 

Name

Suh Yong-Kyo

Address

Rm.107-705, 500-1, Sangyeok-dong, Buk-gu, Daegu, Korea

Date of Birth

04/05/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

1,248,500,000

Employees

165

Formation

Co., Ltd by shares

Bank Details

Daegu Bank

Industrial Bank of Korea

Korea Exchange Bank

NACF

Corporate Registered No.

170111-0016924

Business Registered No.

504-81-04185

Permit & Licenses

1999 EM Mark

2001 EM Mark

06/2003 ISO 9001 by BQR

11/2006 CE Mark

11/2006 CE Mark

 

Int’l Trade No.: 13002743

Shareholder Position

Name

Shares

%

SUH YONG-KYO

486,915

19.50

PARK MYUNG-OK

511,885

20.50

SEO OK-HEE

378,200

15.10

BAE YEON-CHANG

120,000

4.80

TREASURY STOCK

1,000,000

40.10

TOTAL

2,497,000

100.00

Company History

01/1970 Established as SUNGCHANG MACHINERY CO.(Sole Proprietorship)

07/1973 Changed company name to DAEWON INDUSTRY CO.

11/04/1982 Incorporated as DAEWON INDUSTRY CO., LTD.

02/1995 Moved to the present HQ address

12/07/2001 Changed company name to the present name

11/2002 Awarded US$5 Million Export Top Prize

01/05/2004 Decreased capital to 1,248,500,000 KRW from 1,300,000,000 KRW

01/08/2004 Spin off to the existing company and DAEWON JEONSUL CO., LTD.

11/2005 Awarded US$10 Million Export Top Prize

 

 


 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Suh Yong-Kyo

Male

Korean

04/11/2005

Director

Mr.

Suh Chan-Kyo

Male

Korean

03/20/;2008

Director

Mr.

Han Ki-Dong

Male

Korean

03/31/2009

Director

Mr.

Suh Bo-Sung

Male

Korean

08/01/2011

Auditor

M/S.

Seo Myung-Ok

Female

Korean

03/20/;2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2012

50,315,598,554

79,580,654,002

2,385,865,219

2011

70,705,053,997

69,599,279,015

4,522,031,461

2010

58,114,132,658

75,116,466,802

9,440,202,321

2009

65,629,650,477

89,524,386,726

8,707,852,318

2008

67,298,340,330

65,905,128,128

4,711,261,050

2007

41,359,703,039

45,870,332,663

1,615,519,941

2006

40,249,761,626

52,300,676,837

2,717,923,074

2005

41,607,575,036

44,912,940,591

4,689,919,071

2004

36,189,538,934

35,784,262,079

2,520,472,655

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

1,248,500,000

Total Issues Shares

2,497,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

79,580,654,002

69,599,279,015

75,116,466,802

Current Assets

43,271,605,450

48,208,918,727

51,641,440,550

-Quick Assets

36,450,719,764

42,248,983,416

39,546,922,104

-Inventories

6,820,885,686

5,959,935,311

12,094,518,446

Fixed Assets

36,309,048,552

21,390,360,288

23,475,026,252

-Investment

3,934,311,468

3,852,352,201

3,728,683,802

-Tangibles

31,648,381,455

16,785,616,458

19,104,548,321

-Intangibles

77,936,667

108,812,667

142,753,167

-Others

648,418,962

643,578,962

499,040,962

Total Liabilities

39,705,729,822

37,837,167,030

47,876,386,278

Current Liabilities

21,357,780,132

36,072,615,107

42,113,770,434

Fixed Liabilities

18,347,949,690

1,764,551,923

5,762,615,844

Capital Stock

1,248,500,000

1,248,500,000

1,248,500,000

Capital Surplus

365,002,877

365,002,877

365,002,877

Profit Surplus

47,210,658,776

44,824,793,557

40,302,762,096

Capital Adjustment

-8,949,237,473

-14,676,184,449

-14,676,184,449

Total Equity

39,874,924,180

31,762,111,985

27,240,080,524

Liab. & Shareholder’s Equity

79,580,654,002

69,599,279,015

75,116,466,802

 

Current Liabilities

21,357,780,132

36,072,615,107

42,113,770,434

Trade Payables

6,113,327,406

10,730,712,424

7,189,205,826

Short-Term Borrowings

12,851,600,000

18,959,900,000

30,446,589,104

Account Payables

4,094,000

622,494,000

4,094,000

Advance Receipts

1,026,570,756

281,208,410

2,595,199,237

Withholdings

134,241,323

82,584,320

98,143,500

VAT Withhold

257,890,705

176,759,237

-

Accrued Expenses

598,705,942

593,922,883

591,748,767

Accrued Income Tax

-

509,664,459

-

Current Portion of Long-Term Debts

371,350,000

693,050,000

1,188,790,000

Convertible Bonds

-

3,400,000,000

 

Fixed Liabilities

18,347,949,690

1,764,551,923

5,762,615,844

Long-Term Borrowings

15,342,850,000

657,050,000

1,404,030,000

Convertible Bonds

 

 

3,400,000,000

Long-Term Account Payables

 

 

391,200,000

Leasehold Deposit Received

308,000,000

311,040,000

8,040,000

Deferred Income Tax Credit

2,697,099,690

711,502,857

550,362,361

Provision for Severance & Retirement

-

1,027,224,000

745,042,570

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

50,315,598,554

70,705,053,997

58,114,132,658

Cost of Sold Goods

32,672,905,860

48,267,399,077

33,842,658,001

Gross Profit

17,642,692,694

22,437,654,920

24,271,474,657

Selling & Admin. Expenses

13,104,198,506

15,272,912,023

11,064,238,575

Operating Income

4,538,494,188

7,164,742,897

13,207,236,082

Non-Operating Income

6,217,630,589

7,712,151,718

4,492,260,290

Non-Operating Expenses

7,950,404,597

7,716,433,842

6,295,252,542

Income Before Taxes

2,805,720,180

7,160,460,773

11,404,243,830

Income Taxes Expenses

419,854,961

2,638,429,312

1,964,041,509

Net Income

2,385,865,219

4,522,031,461

9,440,202,321

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

-341,136,446

20,629,515,489

2,803,352,680

-Net Income

2,385,865,219

4,522,031,461

9,440,202,321

-Exp. without Cash Outflow

2,447,558,918

4,063,150,970

1,535,059,150

-Revenue without Cash Inflows

-741,483,604

-1,278,475,087

-1,405,765,389

-Changes in Asset/ & Liability

-4,433,076,979

13,322,808,145

-6,766,143,402

Cash Flows from Investing

-6,537,497,553

-8,078,001,091

-6,993,069,141

-Cash Inflow from Investing

161,532,406,310

139,313,208,437

83,959,515,929

-Cash Outflows for Investing

-168,069,903,863

-147,391,209,528

-90,952,585,070

Cash Flows from Financing

5,121,232,352

-11,598,167,858

-21,783,984,449

-Cash Inflows from Financing

184,774,400,000

94,691,141,246

128,474,000,000

-Cash Outflows from Financing

-179,653,167,648

-106,289,309,104

-150,257,984,449

Increase/Decrease in Cash

-1,757,401,647

953,346,540

-25,973,700,910

Cash at the Beginning of Year

8,444,030,603

7,490,684,063

33,464,384,973

Cash at the End of Year

6,686,628,956

8,444,030,603

7,490,684,063

 

Products, Technologies, Services Description

 

Main Products & Services

Color Sorter Manufacturer

Color Sorter

Rice Color Sorter

Cereals Sorter

Camera Sorter

Grain Sorter

Grain Sorting Machine

Grain Color Sorter

Seed Color Sorter

Tea Sorter

Color Sorting Machine

Rice Processing Machinery

Tea Color Sorter

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

NACF

Competitors

ATS INTERNATIONAL CO., LTD.

RM. 707, PHOENIX BLDG., 702-23, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2051-2650~4  FAX:+82-2-2051-2655

 

HANSUNG ENGINEERING CO., LTD.

586, PUNGSEO-RI, PUNGSE-MYEON, DONGNAM-GU, CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-553-4561  FAX:+82-41-553-6053

 

HAN JAM MACHINERY CO., LTD.

123-6, HA-RI, YEOJU-EUP, YEOJU-GUN, GYEONGGI-DO, KOREA

TEL:+82-31-883-9559  FAX:+82-31-884-0598

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAEWON JEONSUL CO., LTD.(KOREA)

WAPS CO., LTD.(170111-0051730)

ILSUNG TECH CO., LTD.(KOREA)

ILSUNG INVESTMENT CO., LTD.(175211-0034664)

DAEWON GSI(THAILAND)CO., LTD.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

PT. DAEWON INDONESIA

TIANJIN DAEWON BUSINESS CO., LTD.(CHINA : 천지대원길새상무())

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIREINSURANCE CO., LTD.(110111-0035893)

LIG INSURANCE CO., LTD.(110111-0017859)

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Sri Lanka, China, Taiwan, Colombia, India, Indonesia, Japan, Pakistan, Philippines, Russia and Vietnam.

 

Court Action

 

There are 4 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 273,233,000 KRW, and a case filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 307,044,000 KRW.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.98

UK Pound

1

Rs.103.31

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%)

 

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.