MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

DOOSAN ENGINEERING & CONSTRUCTION CO., LTD.

 

 

Registered Office :

726, Eonju-ro, Gangnam-gu, Seoul, Korea Doosan Bldg. 135-714

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

07.04.1976

 

 

Com. Reg. No.:

102-81-31754

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Subject is engaged in construction of highways, streets and roads

 

 

No. of Employees :

1,798

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. South 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. South 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-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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

 

Source : CIA

 

 

 

 

Basic Information

 

Basic

 

Company Name

DOOSAN ENGINEERING & CONSTRUCTION CO., LTD.

(Korean Company Name : “두산건설(주)”)

Registered Address

726, Eonju-ro, 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

726, Eonju-ro, Gangnam-gu, Seoul, Korea

(Old Address System : Doosan Bldg., 105-7, Nonhyeon 2-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-510-3114

Fax

+82-2-540-5221

Other Address

 

Tel

 

Fax

 

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

Address

 

Date of Birth

07/12/1954

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

399,562,515,000

Employees

1,798

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)

46,515,572

59.70

TREASURY STOCK

278,067

0.36

OTHERS

31,118,864

39.94

TOTAL

77,912,503

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., “두산건설(주)”)

03/27/2009 Changed English Company name to DOOSAN ENGINEERING & CONSTRUCTION CO., LTD., “두산건설(주)”)

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)

01/14/2014 Acquired REXCON CO.,LTD.(110111-3586273)

 

 

 

 

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

(*)06/2014

1,075,944,891,648

4,909,290,267,347

-29,396,772,850

(*)2013

2,188,154,435,493

4,745,785,695,785

-33,676,302,956

(*)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)

399,562,515,000

Total Issued Shares

77,912,503

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

4,909,290,267,347

4,745,785,695,785

3,909,839,944,918

Current Assets

2,518,967,315,888

2,421,651,265,230

2,369,703,846,119

Cash & Cash Equivalents

88,419,726,892

110,693,852,531

132,848,211,616

Current Financial Instruments

0

0

70,657,593,190

Marketable Financial Instruments

7,000,045,000

2,322,261,355

227,089,980

Trade Receivables

576,141,314,308

560,651,047,487

564,903,267,132

Other Receivables-Construction

707,233,480,654

651,469,727,259

375,779,432,941

Other Receivables

157,751,242,307

165,245,817,394

127,507,567,032

Advance Payments

95,409,571,638

34,147,024,256

44,202,519,597

Short-Term Receivables

577,054,793,689

591,783,767,733

723,506,623,202

Derivatives

18,525,586,075

10,486,785,189

9,803,861,307

Confirmed Contracts Assets

738,789,994

89,261,784

22,799,364

Inventories

30,202,121,649

22,954,834,558

36,706,436,057

Other Current Assets

260,490,643,682

271,806,885,684

283,538,444,701

Non-Current Assets

2,390,322,951,459

2,324,134,430,555

1,540,136,098,799

Non-Current Financial Instruments

52,171,760

49,171,760

53,171,760

Marketable Financial Instruments

132,288,711,841

135,603,349,577

229,592,152,408

Investment_Related Companies

305,308,448,928

417,187,728,430

388,949,699,355

Tangibles

808,403,850,501

661,774,547,728

519,878,187,147

Intangibles

331,560,783,884

333,278,369,393

23,565,316,906

Investment_Real Estates

69,279,377,510

67,680,941,040

64,621,660,008

Derivatives

1,954,040,808

897,142,080

1,813,739,625

Confirmed Contracts Assets

212,698,421

36,810,678

22,970,884

Deferred Income Tax Assets

224,714,166,039

238,548,541,207

261,054,345,158

Other Non-Current Assets

516,548,701,767

469,077,828,662

50,584,855,548

Total Liabilities

2,893,283,880,595

2,736,410,431,154

3,304,796,450,100

Current Liabilities

2,357,292,025,454

2,201,432,748,221

2,726,128,781,291

Trade Payables

668,181,033,753

639,433,278,605

688,117,578,068

Short-Term Borrowings

622,685,601,195

522,209,218,336

541,412,704,596

Other Short-Term Debts

318,653,289,105

231,463,984,574

176,000,000,000

Current Portion of Long-Term Debts

235,499,517,844

323,096,707,828

824,306,327,727

Advance Receipts

13,930,804,148

12,502,777,295

66,589,666,906

Other Payables-Construction

211,960,560,051

229,699,500,547

205,236,408,060

Account Payables

97,822,820,966

102,550,215,945

42,978,263,616

Accrued Expenses

51,944,323,975

55,408,068,023

71,899,860,018

Derivatives

2,868,084,372

1,151,878,271

34,856,907,241

Confirmed Contracts Liabilities

7,924,025,357

3,119,787,599

4,687,258,431

Other Current Liabilities

125,821,964,688

80,797,331,198

70,043,806,628

Non-Current Liabilities

535,991,855,141

534,977,682,933

578,667,668,809

Debentures

181,489,283,430

235,682,240,694

199,067,974,342

Long-Term Borrowings

117,691,615,820

153,156,355,382

61,100,137,632

Other Long-Term Debts

70,000,000,000

0

130,800,000,000

Provision for Severance & Retirement

57,481,061,949

51,538,983,433

53,958,105,682

Long-Term Trade Payables

5,008,058,008

3,363,880,000

4,803,378,750

Derivatives

1,718,524,392

289,625,264

3,695,540,383

Confirmed Contracts Liabilities

963,907,880

519,951,403

58,906,429

Provisions

68,473,767,881

73,953,544,036

74,330,362,942

Other Non-Current Financial Debts

33,165,635,781

16,473,102,721

50,853,262,649

Capital Stock

399,562,515,000

2,882,897,910,000

877,335,095,000

Capital Surplus

613,659,384,215

614,202,904

150,339,248,385

Others

-9,088,825,518

-676,395,285,331

1,703,683,938

Installments

152,376,412,068

132,165,111,474

26,653,624,381

Profit Surplus

859,496,900,987

-329,906,674,416

-450,988,156,886

Total Equity

2,016,006,386,752

2,009,375,264,631

605,043,494,818

Liab. & Shareholder’s Equity

4,909,290,267,347

4,745,785,695,785

3,909,839,944,918

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

1,075,944,891,648

2,188,154,435,493

2,229,066,382,563

Cost of Sold Goods

959,642,709,553

1,952,054,882,668

1,976,842,097,178

Gross Profit

116,302,182,095

236,099,552,825

252,224,285,385

Selling & Admin. Expenses

60,669,303,045

180,515,513,957

705,745,437,710

Operating Income

55,632,879,050

55,584,038,868

-453,521,152,325

Finance Income

23,630,304,153

48,509,585,474

88,182,339,136

Finance Expenses

87,547,459,736

189,607,973,967

265,503,617,906

Other Non-Operating Income

15,679,075,821

98,840,964,255

36,868,443,472

Other Non-Operating Expenses

37,849,795,437

55,210,509,216

190,870,907,065

Income Before Taxes

-30,454,996,149

-41,883,894,586

-784,844,894,688

Income Taxes Expenses

-1,058,223,299

-8,207,591,630

-169,998,152,531

Net Income

-29,396,772,850

-33,676,302,956

-614,846,742,157

 

Cash Flows

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

-68,656,949,769

-482,899,600,728

40,839,441,029

Net Income

-29,396,772,850

-33,676,302,956

-614,846,742,157

Adjustment

84,301,771,190

111,791,594,824

782,979,400,257

Changes in Asset/ & Liability

-58,159,295,216

-405,510,686,179

60,347,974,440

Interests Received

1,754,197,477

10,743,765,780

17,102,434,994

Interests Paid

-65,561,263,207

-166,698,297,345

-192,242,890,994

Dividends Received

82,799,830

123,616,671

1,456,548,171

Income Taxes

-1,678,386,993

326,708,477

-13,957,283,682

Cash Flows from Investing

-15,496,268,594

381,586,255,752

-164,354,822,607

Cash Flows from Financing

61,965,392,179

79,178,366,290

-172,904,790,766

Increase/Decrease in Cash

-22,274,125,639

-22,154,359,085

-296,588,229,897

Cash at the Beginning of Year

110,693,852,531

132,848,211,616

429,436,441,513

Cash at the End of Year

88,419,726,892

110,693,852,531

132,848,211,616

 

Products, Technologies, Services Description

 

Main Products & Services

Apartment Building Construction, Civil Engineering Construction

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

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.

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

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

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

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

 

 

Court Action

 

There are 4 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 26,469,000,000 KRW, and 4 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 29,209,764,000 KRW.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.