MIRA INFORM REPORT

 

 

Report Date :

18.03.2014

 

IDENTIFICATION DETAILS

 

Name :

DCM CORPORATION

 

 

Formerly Known As :

DAERIM CORP.

 

 

Registered Office :

55, Ungsangnonggongdanji-gil, Yangsan-si, Gyeongsangnam-do, Korea, Zip Code 626-841

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

April 1972 (Sole Proprietorship)

01.01.1987 (Listed Company)    

 

 

Com. Reg. No.:

621-81-16744

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacturer of Basic Cut Products of Iron or Steel to Non-rectangular Shapes

·         Wholesaler of Metal Plates, Bars, Pipes, and Basic Metals

 

 

No. of Employees :

150

 

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 :

No Complaints 

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

Company Name

DCM CORPORATION

(Korean Company Name : “디씨엠()”)

Registered Address

55, Ungsangnonggongdanji-gil, Yangsan-si, Gyeongsangnam-do, Korea

Zip Code

626-841

Tel

+82-55-366-9991~5

Fax

+82-55-366-9996

E-mail

dcm@dcmcorp.co.kr

Website

www.dcmcorp.co.kr

Trading Address

55, Ungsangnonggongdanji-gil, Yangsan-si, Gyeongsangnam-do, Korea

(Old Address System : 89-14, Deokgye-dong, Yangsan-si, Gyeongsangnam-do, Korea)

Tel

+82-55-366-9991~5

Fax

+82-55-366-9996

Other Address-Busan Factory

139-10, Sajik-dong, Dongnae-gu, Busan, Korea

Tel

+82-51-501-4133

Type

Export

Industry

Manufacture of Basic Cut Products of Iron or Steel to Non-rectangular Shapes

  Main Business

Laminate Steel Sheet, Industrial Film, Masking Film

  Sub Business

Wholesaler of Metal Plates, Bars, Pipes, and Basic Metals

Established (mm/dd/yyyy)

01/01/1987

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel plate(30102204)

Buy

Films(13111200)

Buy

Coil(30101900)

Buy

Plastic sheet(30102515)

Buy

Iron plate(30102203)

Buy

Other adhesives and sealants(31201600)

 

 

CEO’s

 

Name

Jung Yeon-Taek

Date of Birth

04/20/1951

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

6,000,000,000

Employees

150

Formation

Listed Company(Korea Stock Exchange: 024090) as of 08/18/1999

Bank Details

Busan Bank- Deokgye Branch

Corporate Registered No.

180111-0071794

Business Registered No.

621-81-16744

Permit & Licenses

02/25/1998 ISO 9002

12/2003 ISO 9001

11/2008 ISO 9001

 

Int’l Trade No.: 370833

Shareholder Position

Name

Shares

%

JUNG YEON-TAEK

2,133,000

18.23

JUNG DONG-WOO

1,150,000

9.83

MOON JUNG-HYE

809,090

6.92

JUNG DONG-EUN

781,230

6.68

TREASURY STOCK

1,656,550

14.16

OTHERS

5,170,130

44.19

TOTAL

11,700,000

100.00

Company History

04/1972  Established as DAERIM CHEMICAL COMPANY(Sole Proprietorship)

01/01/1987 Incorporated as DAERIM CORP.

05/14/1999 Changed company name to the present name

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Jung Yeon-Taik

Korean

1951.04.20

Yonsei University, Korea

Sr. Executive Director

M/S.

Moon Jung-Hye

Korean

1957.09.26

Ehwa Women's University, Korea

Executive Director

Mr.

Sohn Kyung-Tae

Korean

1956.01.24

Youngnam University, Korea

Outside Director

Mr.

Lim Jung-Tae

Korean

1950.07.26

Busan National University, Korea

Auditor

Mr.

Yoon Kwon-Cheol

Korean

1950.01.01

Dongah University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2013

126,619,873,559

150,431,640,233

3,348,150,456

(*)2012

158,251,717,097

184,411,551,745

12,728,174,825

(*)2011

174,851,107,911

155,109,843,055

15,125,085,536

(*)2010

154,111,000,000

148,043,000,000

22,413,000,000

2009

111,680,006,051

121,786,808,308

13,484,883,426

2008

106,278,612,573

105,984,641,281

10,513,450,345

2007

80,388,750,632

88,762,196,189

13,070,531,901

2006

64,415,776,328

73,167,869,638

6,303,851,169

2005

56,399,193,392

66,321,584,988

5,490,160,575

2004

46,926,812,720

61,192,031,246

4,867,162,532

2003

39,725,945,441

55,684,239,369

4,129,510,970

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

 

 

Financial Description

 

Authorized Capital(KRW)

20,000,000,000

Paid-Up Capital(KRW)

6,000,000,000

Total Issued Shares

11,700,000

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

150,431,640,233

184,411,551,745

155,109,843,055

Current Assets

97,326,674,671

134,005,539,937

112,172,815,996

Cash & Cash Equivalents

12,878,626,073

11,793,794,444

5,979,716,980

Current Financial Instruments

11,843,231,594

6,984,384,764

6,097,393,979

Finance Assets from this year's Income

22,026,186,341

24,364,791,246

29,290,911,526

Marketable Financial Instruments

3,290,966,349

4,295,943,597

4,068,283,427

Trade Receivables & Other Receivables

16,313,699,359

56,510,773,288

23,983,461,436

Other Current Assets

1,221,898,877

68,566,958

13,946,657,594

Inventories

29,439,457,588

29,987,285,640

28,806,391,054

Deferred Income Tax

312,608,490

-

 

Non-Current Assets

53,104,965,562

50,406,011,808

42,937,027,059

Non-Current Financial Instruments

515,600,000

98,000,000

1,433,931,507

Finance Assets from this year's Income

 

 

996,885,000

Marketable Financial Instruments

5,780,294,320

2,630,300,024

4,459,612,466

Other Receivables

319,412,000

148,138,000

100,516,000

Investment_Subsidiaries

868,570,000

868,570,000

868,570,000

Tangibles

24,206,682,461

24,968,852,407

17,163,110,293

Intangibles

100,000,000

100,000,000

100,000,000

Investment_Real Estates

21,314,406,781

21,592,151,377

17,814,401,793

Total Liabilities

21,437,812,750

51,530,138,762

28,230,228,986

Current Liabilities

16,938,979,736

49,674,220,744

27,138,904,749

Trade Payables & Other Payables

12,132,563,297

27,324,312,140

16,710,984,047

Short-Term Borrowings

4,483,089,716

20,213,663,267

6,847,308,171

Other Current Liabilities

323,326,723

998,921,849

308,878,584

Deferred Income Tax Credit

-

1,137,323,488

3,271,733,947

Non-Current Liabilities

4,498,833,014

1,855,918,018

1,091,324,237

Provision for Severance & Retirement

1,051,868,544

1,162,846,802

707,142,217

Other Payables

2,850,358,317

-

 

Deferred Income Tax Credit

596,606,153

693,071,216

384,182,020

Capital Stock

6,000,000,000

6,000,000,000

6,000,000,000

Capital Surplus

14,979,028,315

14,979,028,315

14,979,028,315

Others

-4,553,151,662

-4,220,889,162

-3,902,623,462

Installments

-793,556,304

119,260,435

150,364,165

Profit Surplus

113,361,507,134

116,004,013,395

109,652,845,051

Total Equity

128,993,827,483

132,881,412,983

126,879,614,069

Liab. & Shareholder’s Equity

150,431,640,233

184,411,551,745

155,109,843,055

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

126,619,873,559

158,251,717,097

174,851,107,911

Cost of Sold Goods

117,269,050,479

136,290,745,142

143,787,008,587

Gross Profit

9,350,823,080

21,960,971,955

31,064,099,324

Selling & Admin. Expenses

7,769,397,094

9,790,929,330

9,187,983,218

Operating Income

1,581,425,986

12,170,042,625

21,876,116,106

Other Income

3,057,544,930

4,506,987,344

3,562,673,111

Other Expenses

2,522,885,924

1,758,357,496

7,222,019,087

Finance Income

2,493,007,902

1,825,036,921

1,413,335,124

Finance Expenses

470,379,605

639,666,794

428,519,602

Income Before Taxes

4,138,713,289

16,104,042,600

19,201,585,652

Income Taxes Expenses

790,562,833

3,375,867,775

4,076,500,116

Net Income

3,348,150,456

12,728,174,825

15,125,085,536

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

27,002,005,688

-692,331,584

9,121,862,891

Cash Flows from Operating

26,828,317,961

2,700,989,880

14,542,618,653

Interests Received

2,559,807,897

1,808,983,600

938,347,754

Interests Paid

-362,839,159

-569,743,651

-414,262,190

Income Taxes

-2,031,161,720

-5,101,376,413

-6,344,209,250

Dividends Received

7,880,709

468,815,000

399,367,924

Cash Flows from Investing

-7,054,916,072

-547,378,770

-10,721,988,198

Cash Inflow from Investing

37,181,876,464

34,939,206,998

28,601,239,557

Cash Outflows for Investing

-44,236,792,536

-35,486,585,768

-39,323,227,755

Cash Flows from Financing

-18,734,116,051

7,092,069,396

-3,976,207,026

Cash Inflows from Financing

3,661,089,716

43,129,116,768

49,057,279,513

Cash Outflows from Financing

-22,395,205,767

-36,037,047,372

-53,033,486,539

Increase/Decrease in Cash

1,212,973,565

5,852,359,042

-5,576,332,333

Cash at the Beginning of Year

11,793,794,444

5,979,716,980

11,570,306,725

Cash at the End of Year

12,878,626,073

11,793,794,444

5,979,716,980

 

 

Products, Technologies, Services Description

 

Main Products & Services

-Steel Division

CR(Cold Rolled) steel sheet 

EGI(Electro-Galvanized Iron) steel sheet 

GI(Galvanized Iron) steel sheet 

Laminating Steel Sheet

 

-Film Division

Eva Film

Functional Film

Masking Film 

PET Film

 

 

Trade Partners & Competitors

 

Suppliers

POSCO(174611-0000741)

LG CHEM LTD(110111-2207995)

HANWHA L&C CORPORATION(110111-1725930)

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.(161411-0013066)

DORIM CORP.

Customers

LG ELECTRONICS INC.(110111-2487050)

SAMSUNG ELECTRONICS CO,.LTD(130111-0006246)

DAEWOO ELECTRONICS CORP.(110111-0546452)

Competitors

HAEWON ST CO., LTD.

546-7, OSEON-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-958-7000  FAX:+82-62-958-7095

 

HAN YANG STEEL IND. CO., LTD.

472-2, JAKJEON 2-DONG, GYEYANG-GU, INCHEON, KOREA

TEL:+82-32-547-5540  FAX:+82-32-549-7914

 

DANIL INDUSTRY CO., LTD.

656-1, SEONJEONG-RI, SAMSEONG-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-883-5400  FAX:+82-43-883-5403

 

(*) The Subject accounts for about 50.0% domestic market share.

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DORIM CORP.(184511-0015386)

(58.57% held by the subject company)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

52,657

76,069

72,481

Domestic

69,913

98,782

81,630

Total

122,570

174,851

154,111

The Subject exports to China & Japan.

 

 

Court Action

 

No.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

        Rs.61.52

UK Pound

1

Rs.102.22

Euro

1

Rs.85.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

               

 

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.