MIRA INFORM REPORT

 

 

Report Date :

11.01.2014

 

IDENTIFICATION DETAILS

 

Name :

DK DONGSHIN CO., LTD.

 

 

Registered Office :

46, Dadong-gil, Jung-gu, Seoul, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.02.2008

 

 

Com. Reg. No.:

104-86-13169

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Structural Metal Sheet Products and Ornamental Metal Works Used on Building

 

 

No. of Employees :

179

 

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 – 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

DK DONGSHIN CO., LTD.

(Korean Company Name : “디케이동신()”)

Registered Address

46, Dadong-gil, Jung-gu, Seoul, Korea

(Old Address System : 92, Da-dong, Jung-gu, Seoul, Korea)

Building

 

Zip Code

790-300

Tel

+82-54-286-0050

Fax

+82-54-286-0176

E-mail

lemonlike2@dkdongshin.co.kr;garam34@dkis.co.kr

Website

www.dkdongshin.co.kr

Trading Address

154, Daesong-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 710-1, Goedong-dong, Nam-gu, Pohang-si, Gyeongbuk, Korea)

Tel

+82-54-280-0211

Fax

+82-54-286-0176

Other Address-Gyeongju Branch

736-3, Cheongang-ro, Gangdong-myeon, Gyeongju-si, Gyeongsangbuk-do, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Structural Metal Sheet Products and Ornamental Metal Works Used on Building

  Main Business

Color Steel Products of PCM(Pre Coated Metal), Pre-Coated Metal Plate, Steel Plate, Stainless Plate

  Sub Business

 

Established (mm/dd/yyyy)

02/29/2008

The Subject owns the premises of Trading Address.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel(11101704)

Sell

Steel plate(30102204)

Sell

Metal smelting and refining and forming processes(73121500)

 

CEO’s

 

Name

Lim Soon-Myung

Address

Suite 205-704, 2001, Bangbae-dong, Seocho-gu, Seoul, Korea

Date of Birth

07/26/1951

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

 

Capital (KRW)

45,000,000,000

Employees

179

Formation

Co., Ltd by shares

A Company of DONGKUK INDUSTRIES GROUP

Bank Details

Shinhan Bank

Kookmin Bank

Korea Exchange Bank

Corporate Registered No.

110111-3850959

Business Registered No.

104-86-13169

Permit & Licenses

Int’l Trade No.: 45341566

Shareholder Position

Name

Shares

%

DAEWON STEEL CO., LTD.(120111-0123711)

3,000,000

33.33

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

600,000

6.67

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

400,000

4.44

BUL YI WON(114222-0005772)

400,000

4.44

OTHER INDIVIDUALS

4,600,000

51.11

TOTAL

9,000,000

100.00

Company History

02/29/2008 Incorporated as the present name

04/02/2008 Increased capital to 30,000,000,000 KRW from 7,500,000,000 KRW

06/30/2008 Increased the authorized shares to 200,000,000 shares from 6,000,000 shares

07/02/2008 Increased capital to 45,000,000,000 KRW from 30,000,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Lim Soon-Myung

Male

Korean

04/01/2010

Director

Mr.

Jang Se-Hee

Male

Korean

02/29/2008

Director

Mr.

Jang Sang-Geon

Male

Korean

02/29/2008

Director

M/S.

Jang Hye-Won

Female

Korean

02/29/2008

Auditor

Mr.

Lee Chan-Kook

Male

Korean

02/29/2008

 


 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

189,876,710,491

125,706,566,742

315,676,686

(*)2011

179,171,718,630

144,120,327,654

711,507,940

(*)2010

171,123,453,055

134,164,767,137

2,664,615,141

2009

114,514,297,294

122,261,143,621

-26,412,748,050

2008

94,168,921,793

118,394,363,644

2,272,632,811

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

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000,000

Paid-Up Capital(KRW)

45,000,000,000

Total Issues Shares

9,000,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

125,706,566,742

144,120,327,654

134,164,767,137

Current Assets

67,007,348,365

76,909,339,385

65,927,110,630

Cash & Cash Equivalents

14,671,058

1,561,181,508

2,945,752,951

Current Financial Instruments

4,145,257,095

13,126,300,168

9,182,000,000

Trade Receivables

24,309,515,970

21,964,825,508

22,262,894,954

Other Receivables

1,264,652,386

633,249,285

1,504,911,096

Advance Payments

30,922,894

86,416,670

20,000,000

Derivatives

-

68,908,538

75,335,865

Accrued Income

27,633,248

335,204,084

-

Prepaid Expenses

105,967,732

88,610,137

-

Prepaid Income Taxes

65,426,041

50,330,360

-

Inventories

37,043,301,941

38,994,313,127

29,585,433,129

Current Non-Financial Instruments

-

-

350,782,635

Non-Current Assets

58,699,218,377

67,210,988,269

68,237,656,507

Non-Current Financial Instruments

391,274,877

159,278,304

3,257,185,536

Marketable Financial Instruments

731,552,113

731,552,113

581,552,113

Held-to-Maturity Financial Assets

125,000

125,000

125,000

Investment_Related Companies

5,385,957,218

5,365,957,218

4,922,303,046

Tangibles

45,302,182,690

41,915,255,093

43,038,202,007

Investment_Real Estates

3,101,827,250

3,100,632,090

3,100,632,090

Intangibles

1,749,734

6,794,870

11,840,006

Guarantee Deposit Withhold

574,755,586

175,458,195

-

Long-Term Prepaid Expenses

-

12,398,771,050

-

Deferred Income Tax Assets

3,209,793,909

3,357,164,336

1,307,076,816

Other Non-Current Financial Instruments

-

-

12,018,739,893

Total Liabilities

98,917,986,066

117,214,871,103

108,696,644,086

Current Liabilities

86,354,476,689

99,915,001,374

88,057,375,156

Trade Payables

20,727,320,007

31,146,737,850

27,470,359,528

Account Payables

2,382,323,386

2,546,598,529

2,720,125,446

Advance Receipts

91,943,820

76,425,962

42,543,400

Withholdings

92,509,470

38,532,620

71,042,483

Accrued Expenses

501,229,622

406,204,947

444,861,346

Short-Term Borrowings

54,100,610,384

57,000,000,000

49,308,442,953

Current Portion of Long-Term Debts

8,458,540,000

8,000,000,000

8,000,000,000

Derivatives

-

700,501,466

-

Non-Current Liabilities

12,563,509,377

17,299,869,729

20,639,268,930

Debentures

5,000,000,000

5,000,000,000

 

Long-Term Borrowings

6,841,460,000

12,000,000,000

20,000,000,000

Provision for Severance & Retirement

669,205,803

247,026,155

586,425,356

Other Non-Current Financial Debts

52,843,574

52,843,574

52,843,574

Capital Stock

45,000,000,000

45,000,000,000

45,000,000,000

Capital Adjustment

-662,059,000

-662,059,000

-662,059,000

Profit Surplus

-17,549,360,324

-17,432,484,449

-20,010,038,677

Others

 

 

1,140,220,728

Total Equity

26,788,580,676

26,905,456,551

25,468,123,051

Liab. & Shareholder’s Equity

125,706,566,742

144,120,327,654

134,164,767,137

 

 

Income Statement

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

189,876,710,491

179,171,718,630

171,123,453,055

Cost of Sold Goods

176,217,064,797

166,889,441,416

-155,245,829,423

Gross Profit

13,659,645,694

12,282,277,214

15,877,623,632

Selling & Admin. Expenses

8,679,466,757

7,426,174,057

-8,600,252,828

Operating Income

4,980,178,937

4,856,103,157

6,451,167,460

Other Non-Operating Income

783,918,622

1,130,402,688

1,510,462,267

Other Non-Operating Expenses

2,470,794,136

1,719,308,779

-1,853,141,820

Finance Income

2,287,333,935

1,415,981,445

1,626,990,832

Finance Expenses

4,995,588,240

6,689,036,280

-4,869,498,677

Equity Profits on Related Companies

- 

- 

-483,523,791

Income Before Taxes

585,049,118

-1,005,857,769

3,208,659,615

Income Taxes Expenses

269,372,432

-1,717,365,709

-544,044,474

Net Income

315,676,686

711,507,940

2,664,615,141

 

Cash Flows

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

2,418,271,446

-5,136,809,740

-2,809,785,799

-Net Income

315,676,686

711,507,940

2,664,615,141

-Exp. without Cash Outflow

8,952,545,099

7,608,729,054

8,097,093,014

-Revenue without Cash Inflows

-1,993,732,103

-1,347,343,647

-740,706,312

-Changes in Asset/ & Liability

-591,783,283

-7,373,245,606

-8,692,960,857

-Adjustment

-4,264,434,953

-4,736,457,481

-4,137,826,785

Cash Flows from Investing

3,520,533,077

-939,318,750

2,477,379,947

-Cash Inflow from Investing

11,656,882,022

19,754,696,120

249,719,675,367

-Cash Outflows for Investing

-8,136,348,945

-20,694,014,870

-247,242,295,420

Cash Flows from Financing

-7,485,314,973

4,691,557,047

2,164,875,502

-Cash Inflows from Financing

49,151,177,095

15,000,000,000

6,164,875,502

-Cash Outflows from Financing

-56,636,492,068

-10,308,442,953

-4,000,000,000

Increase/Decrease in Cash

-1,546,510,450

-1,384,571,443

1,832,469,650

Cash at the Beginning of Year

1,561,181,508

2,945,752,951

1,113,283,301

Cash at the End of Year

14,671,058

1,561,181,508

2,945,752,951

 

 

Products, Technologies, Services Description

 

Main Products & Services

Color Steel Products of PCM(Pre Coated Metal), Pre-Coated Metal Plate, Steel Plate, Stainless Plate

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

SAMSUNG C&T CORPORATION(110111-0002975)

SAMSUNG ELECTRONICS CO., LTD.(130111-0006246)

Competitors

DONGKWANG CO., LTD.

655, DONGO-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-354-8599  FAX:+82-31-354-8662

 

SEYUN STEEL CO., LTD.

500-21, BUGYANG-DONG, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-355-5250  FAX:+82-31-356-7042~3

 

GWANG SHIN STEEL CO., LTD.

619-3, DOCHEON-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-959-9932  FAX:+82-62-959-9935

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

(6.67% held by the subject company)

 

DAEWON STEEL CO., LTD.(120111-0123711)

(33.33% held by the subject company)

 

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

(4.44 held by the subject company)

 

CHOSUN STEELWIRE CO.,LTD(110111-0008486)

DONGKUK S&C(110111-2276784)

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

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

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

GO DEOK WIND POWER CO., LTD.(161311-0017432)

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

CHUNGSEOK DEVELOPMENT CO., LTD.

DK AMERICA, INC.

KUMHWA METAL CO., LTD.

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

NAMWON WIND POWER CO., LTD.(211311-0005428)

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

 

SOZHOU DONGSHIN COLOR METAL CO., LTD.(CHINA)

(48.25 held by the subject company)

Overseas Office

QSSC S.A DE C.V

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region (Activity & Markets)

 

Not Available.


 

Court Action

 

Case No.

Court

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

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

Cause

Amount (Million KRW)

Status

 

 

 

The Subject Company

-

432

The Subject won.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.102.06

Euro

1

Rs.84.31

 

 

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.