MIRA INFORM REPORT

 

 

Report Date :

30.05.2014

 

IDENTIFICATION DETAILS

 

Name :

DOOWON STEEL CO., LTD.

 

 

Formerly Known as :

DOOWON STEEL CO.(Sole Proprietorship)

 

 

Registered Office :

366-1, Taehwa-ri, Bongsan-myeon, Kimcheon-si, Gyeongsangbuk-do, Korea, Zip code 740-823

 

 

Country :

South korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.02.2003

 

 

Com. Reg. No.:

510-81-13597

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacturer of Guilt, Coloration, Surface Processing Steel Materials, Electrolytic Galvanized Iron(EGI), Electrolytic Galvanized Steels & EG Coil

 

 

No of Employees :

27

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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 about half of GDP.

 

Source : CIA

 

 

 


Basic

 

Company Name

DOOWON STEEL CO., LTD.

(Korean Company Name : “두원스틸()”)

Registered Address

366-1, Taehwa-ri, Bongsan-myeon, Kimcheon-si, Gyeongsangbuk-do, Korea

Zip Code

740-823

Tel

+82-54-433-2860

Fax

+82-54-433-2866

E-mail

santada2@hanmail.net

Website

www.doowonsteel.com

Trading Address

366-1, Taehwa-ri, Bongsan-myeon, Kimcheon-si, Gyeongsangbuk-do, Korea

Tel

+82-54-433-2860

Fax

+82-54-433-2866

Type

Export

  Main Business

Manufacturer of Guilt, Coloration, Surface Processing Steel Materials, Electrolytic Galvanized Iron(EGI), Electrolytic Galvanized Steels & EG Coil

Established (mm/dd/yyyy)

02/18/2003

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel plate(30102204)

 

 

CEO’s

 

Name

Jung Young-Chool

Address

Suite 108-502, 1090-6, Suseong-dong 4-ga, Suseong-gu, Daegu, Korea

Date of Birth

09/29/1959

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

6,000,000,000

Employees

27

Formation

Co., Ltd by Shares

Bank Details

Kookmin Bank

Korea Exchange Bank

Shinhan Bank

Corporate Registered No.

171311-0010913

Business Registered No.

510-81-13597

Permit & Licenses

05/14/2003 ISO 9001

05/09/2007 ISO 14001

Shareholder Position

Name

Shares

%

JEONG AN STEEL CO., LTD.(170111-0038126)

1,200,000

100.00

TOTAL

1,200,000

100.00

Company History

11/05/2001 Established as DOOWON STEEL CO.(Sole Proprietorship)

02/18/2003 Incorporated as the present name

11/30/2004 Awarded US$ 10 Million Export Top prize

11/01/2006 Designated as an INNO-BIZ Company

12/22/2009 Increased the authorized shares to 4,800,000 shares from 1,200,000 shares

12/23/2009 Increased capital to 6,000,000,000 KRW from 3,500,000,000 KRW

11/2010 Agreed with Financial Institutes Creditors on Management Normalizing Plan

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Jung Young-Chool

Male

Korean

02/18/2006

Director

Mr.

Lee Jong-Jin

Male

Korean

03/08/2012

Director

Mr.

Jang Myung-Joong

Male

Korean

02/18/2009

Auditor

Mr.

Yoon Hee-Sub

Male

Korean

02/18/2006

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

65,564,153,389

59,108,908,877

181,940,963

2012

64,874,246,038

38,433,293,464

743,007,814

2011

78,897,418,290

92,749,531,687

2,549,272,219

2010

70,223,890,751

86,875,434,028

-943,002,388

2009

46,643,512,459

79,354,749,406

-13,158,040,964

2008

113,615,257,048

75,145,232,879

-5,309,670,391

 

 

Financial Description

 

Authorized Capital(KRW)

24,000,000,000

Paid-Up Capital(KRW)

6,000,000,000

Total Issued Shares

1,200,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

59,108,908,877

38,433,293,464

92,749,531,687

Current Assets

21,474,258,540

18,105,808,231

9,077,130,090

-Quick Assets

17,122,007,898

13,397,411,948

6,000,643,818

-Inventories

4,352,250,642

4,708,396,283

3,076,486,272

Fixed Assets

37,634,650,337

20,327,485,233

83,672,401,597

-Investment

34,615,888,985

17,066,242,151

79,972,573,228

-Tangibles

2,842,077,394

3,084,559,124

3,523,144,411

-Intangibles

176,683,958

176,683,958

176,683,958

Total Liabilities

39,390,436,638

33,143,115,379

80,929,662,472

Current Liabilities

35,421,458,355

33,074,206,985

39,858,842,513

Fixed Liabilities

3,968,978,283

68,908,394

41,070,819,959

Capital Stock

6,000,000,000

6,000,000,000

6,000,000,000

Capital Surplus

 

 

 

Profit Surplus

-3,473,053,595

-3,654,994,558

-4,367,272,588

Capital Adjustment

17,191,525,834

2,945,172,643

10,187,141,803

Total Equity

19,718,472,239

5,290,178,085

11,819,869,215

Liab. & Shareholder’s Equity

59,108,908,877

38,433,293,464

92,749,531,687

 

Current Liabilities

35,421,458,355

33,074,206,985

39,858,842,513

Trade Payables

10,032,327,155

4,610,573,695

8,789,609,622

Short-Term Borrowings

23,085,559,603

27,066,009,214

26,893,219,896

Account Payables

1,298,383,449

402,531,534

360,528,789

Withholdings

10,083,200

2,677,150

3,487,110

Advance Receipts

-

398,267

398,267

Accrued Expenses

162,020,002

171,989,327

166,073,829

Accrued Income Taxes

17,084,946

-

-

Current Portion of Long-Term Debts

816,000,000

820,027,798

-

Derivatives

-

 

3,645,525,000

Fixed Liabilities

3,968,978,283

68,908,394

41,070,819,959

Long-Term Borrowings

-

-

37,813,916,810

Provision for Severance & Retirement

336,028,422

286,676,916

219,874,776

Non-Current Portion of Deferred Income Tax Credit

3,968,978,283

68,908,394

3,256,903,149

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

65,564,153,389

64,874,246,038

78,897,418,290

Cost of Sold Goods

59,777,112,842

58,682,592,816

73,754,557,873

Gross Profit

5,787,040,547

6,191,653,222

5,142,860,417

Selling & Admin. Expenses

3,067,893,378

3,173,455,463

2,452,931,170

Operating Income

2,719,147,169

3,018,197,759

2,689,929,247

Non-Operating Income

567,039,234

15,548,234,809

4,933,978,289

Non-Operating Expenses

2,923,479,696

17,613,858,445

3,248,000,416

Income Before Taxes

362,706,707

952,574,123

4,375,907,120

Income Taxes Expenses

180,765,744

209,566,309

1,826,634,901

Net Income

181,940,963

743,007,814

2,549,272,219

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

3,882,674,141

-18,081,310,047

-3,718,773,024

-Net Income

181,940,963

743,007,814

2,549,272,219

-Exp. without Cash Outflow

1,006,795,867

14,028,587,870

822,202,830

-Revenue without Cash Inflows

-

-14,916,168,248

-4,744,175,738

-Changes in Asset/ & Liability

2,693,937,311

-17,936,737,483

-2,346,072,335

Cash Flows from Investing

-44,409,200

54,998,700,910

95,444,545

-Cash Inflow from Investing

-

55,000,000,000

145,684,545

-Cash Outflows for Investing

-44,409,200

-1,299,090

-50,240,000

Cash Flows from Financing

-3,984,477,409

-36,821,099,694

3,559,202,949

-Cash Inflows from Financing

-

117,936,720

3,568,652,260

-Cash Outflows from Financing

-3,984,477,409

-36,939,036,414

-9,449,311

Increase/Decrease in Cash

-146,212,468

96,291,169

-64,125,530

Cash at the Beginning of Year

279,084,612

182,793,443

246,918,973

Cash at the End of Year

132,872,144

279,084,612

182,793,443

 

 

Products, Technologies, Services Description

 

Main Products & Services

Guilt, Coloration, Surface Processing Steel Materials, Electrolytic Galvanized Iron(EGI), Electrolytic Galvanized Steels & EG Coil

 

Trade Partners & Competitors

 

Suppliers

DONGBU STEEL CO., LTD.(110111-0393308)

POSCO(174611-0000741)

HYUNDAI HYSCO CO., LTD.(110111-0302416)

Competitors

KOSTEEL CO., LTD.

4TH FL., HOUSTORY, 32-4, JEONNONG 2-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2106-0200  FAX:+82-2-581-8800

 

JEIL TECHNOS CO., LTD.

1850, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-278-2841~4  FAX:+82-54-278-2883

 

GUM SUNG INDUSTRIAL CO., LTD.

649-1, NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-977-0047  FAX:+82-54-977-0049

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

JEONG AN STEEL CO., LTD.(170111-0038126)

JEONG AN HI-TUBE CO., LTD.(170111-0006511)

Subsidiary

JEONG AN ASIA DEVELOPMENT CO., LTD.(VIETNAM)

(100.00% held by the subject company)

 

GWANZHOU DOOWON STEEL CO., LTD.(CHINA)

(100.00% held by the subject company)

Corporate Ownership

JEONG AN STEEL CO., LTD.(170111-0038126)

Major Shareholders

JEONG AN STEEL CO., LTD.(170111-0038126)

Cooperative Enterprise

-Insured company

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

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to China and Singapore.

 

 

Court Action

 

No.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.84

UK Pound

1

Rs.98.41

Euro

1

Rs.80.03

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

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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.