MIRA INFORM REPORT

 

 

Report Date :

13.09.2014

 

IDENTIFICATION DETAILS

 

Name :

DONG IL CORPORATION

 

 

Registered Office :

516, Teheran-ro, Gangnam-gu, Seoul, Korea 8th Fl., Jeong-heon Bldg. 8th Fl., Jeong-heon Bldg.

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

01.09.1955

 

 

Com. Reg. No.:

120-81-14879

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Knitted Fabric Mills

 

 

No. of Employees

586

 

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 :

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

 

Company name and address

 

Company Name

DONG IL CORPORATION

(Korean Company Name : “동일방직(주)”)

Registered Address

516, Teheran-ro, Gangnam-gu, Seoul, Korea

Building

8th Fl., Jeong-heon Bldg.

Zip Code

135-846

Tel

+82-2-2222-3071

Fax

+82-2-2222-3280

E-mail

export@dong-il.com

Website

www.dong-il.com

Trading Address

8th Fl., Jeong-heon Bldg., 516, Teheran-ro, Gangnam-gu, Seoul, Korea

(Old Address System : 8th Fl., Jeong-heon Bldg., 944-1, Daechi 3-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-2222-3071

Fax

+82-2-2222-3280

Other Address-Cheonju Factory

140-26, Songjeong-dong, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Korea

Tel

+82-43-263-0701

Fax

+82-43-263-0704

Other Address-Incheon Factory

37, Manseok-dong, Dong-gu, Incheon, Korea

Tel

+82-32-764-1531

Fax

+82-32-764-2228

Other Address-Janghang Factory

450-8, Wonsu-ri, Janghang-eup, Seocheon-gun, Chungcheongnam-do, Korea

Tel

+82-41-956-6061

Fax

+82-41-956-5181

Type

Export/Import

Industry

Cotton of Spinning

  Main Business

Cotton Yarn, Gassed Mercerized Yarn, Knitted Fabrics

  Sub Business

Manufacture of Knitted Fabric Mills

Established (mm/dd/yyyy)

09/01/1955

The Subject owns the premises of registered HQ address, Cheonju Factory, Incheon Factory and Janghang Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cotton fabrics(11161700)

Sell

Yarns(11151700)

Sell

Specialty fabrics or cloth(11162100)

Sell

Silk yarn(11151705)

Sell

Cotton thread(11151601)

Sell

Rubber fabrics(11162117)

Sell

Synthetic fabrics(11161800)

 

 

CEO’s

 

Name

Suh Min-Sok

Address

 

Date of Birth

06/15/1943

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

11,068,735,000

Employees

586

Formation

Listed Company (Korea Stock Exchange : 001530) as of 01/04/1964

A Company of DONG IL GROUP

Bank Details

Shinhan Bank-Teheranro Branch

Citibank, Korea

Korea Exchange Bank

Corporate Registered No.

110111-0019219

Business Registered No.

120-81-14879

Permit & Licenses

07/1964 KS Mark

12/1971 KS Mark

 

Int’l Trade No.: 671714

Shareholder Position

Name

Shares

%

KOREA VALUE ASSET MANAGEMENT CO., LTD.(110111-3398959 )

167,002

7.54

JUNHEON FOUNDATION(134122-0000035)

226,246

10.22

SUH MIN-SOK

147,424

6.66

SHIN YOUNG INVESTMENT MANAGEMENT CO., LTD.(110111-1304148)

153,236

6.92

DONG YANG TEXTILE MFG. CO., LTD.(134111-0000319)

129,168

5.83

TREASURY STOCK

595,567

26.90

OTHERS

795,104

35.92

TOTAL

2,213,747

100.00

Company History

09/01/1955 Incorporated as DONG YANG CORPORATION

01/1966 Changed company name to the present name

08/1986 Moved to the present HQ address

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Suh Min-Sok

Korean

1943.06.15.

Seoul National University, Korea

Sr. Executive Director & CEO

Mr.

Kim In-Hwan

Korean

1954.09.21.

Inha University, Korea

Executive Director

Mr.

Moon Ik

Korean

1951.10.24.

Seogyung University, Korea

Executive Director

Mr.

Seo Tae-Won

Korean

1974.09.06

Boston College, USA

Executive Director

Mr.

You Chang-Ho

Korean

1963.06.01

Hanyang University, Korea

Outside Director

Mr.

Jung Yeon-Jo

Korean

1936.05.11.

Seoul National University, Korea

Outside Director

Mr.

Shin Hong-Soon

Korean

1941.02.23.

Yonsei University, Korea

Outside Director

Mr.

Lee Sang-Ryeol

Korean

1946.12.18

Columbia University, USA

Auditor

Mr.

Kim Ki-Po

Korean

1953.08.16.

Dongkuk University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2014

119,329,552,356

662,301,920,286

2,580,191,795

(*)2013

255,904,574,555

662,848,793,562

2,193,130,454

(*)2012

261,397,754,675

672,500,906,851

-9,301,642,247

(*)2011

295,953,323,648

709,438,280,893

1,236,179,890

(*)2010

244,394,629,358

713,573,629,271

16,125,770,587

2009

171,817,444,152

380,929,243,871

5,208,862,754

2008

162,516,632,066

384,616,430,647

2,413,495,053

2007

133,981,732,455

375,985,401,534

2,239,537,345

2006

127,214,782,497

408,382,284,310

59,609,035,221

2005

141,201,770,436

331,077,514,318

5,872,926,198

2004

143,139,202,718

320,490,082,257

4,496,725,823

2003

161,409,690,559

349,264,971,376

11,349,956,057

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

 

Financial Description

 

Authorized Capital(KRW)

30,000,000,000

Paid-Up Capital(KRW)

11,068,735,000

Total Issues Shares

2,213,747

 

Balance Sheet

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

662,301,920,286

662,848,793,562

672,500,906,851

Current Assets

108,861,136,304

111,681,869,288

128,416,333,142

Cash & Cash Equivalents

3,033,180,978

1,545,332,405

12,535,294,155

Current Financial Instruments

4,617,950,469

5,092,486,739

13,951,138,801

Trade Receivables

40,112,753,509

41,847,148,415

42,370,155,300

Other Receivables

14,479,972,632

4,512,124,297

4,665,663,528

Inventories

45,817,662,350

58,393,225,993

54,580,660,945

Other Current Assets

799,616,366

291,551,439

313,420,413

Non-Current Assets

553,440,783,982

551,166,924,274

544,084,573,709

Other Financial Assets

43,731,331,066

44,998,393,388

29,718,124,252

Investment_Related Companies

153,234,034,781

147,469,284,781

147,469,284,781

Tangibles

351,021,895,421

353,023,231,047

359,245,023,359

Investment_Related Companies

2,314,517,445

2,325,251,559

2,352,393,639

Intangibles

1,496,350,040

1,496,350,040

1,822,850,040

Long-Term Trade Receivables

312,440,463

489,346,376

1,231,160,884

Other Receivables

1,202,214,766

1,237,067,083

2,117,736,754

Other Non-Current Assets

128,000,000

128,000,000

128,000,000

Total Liabilities

186,507,003,932

187,446,586,622

200,311,536,170

Current Liabilities

103,782,202,334

113,355,725,759

113,173,387,718

Trade Payables

3,785,211,820

8,939,858,920

15,275,920,776

Other Current Financial Debts

95,477,707,624

99,455,255,297

91,373,735,010

Other Payables

4,487,474,437

4,847,032,482

6,446,907,662

Other Current Liabilities

31,808,453

113,579,060

76,824,270

Non-Current Liabilities

82,724,801,598

74,090,860,863

87,138,148,452

Other Non-Current Financial Debts

12,941,117,007

5,323,268,739

20,195,693,613

Provision for Severance & Retirement

165,196,441

587,506,301

0

Deferred Income Tax Credit

64,038,899,826

63,772,524,258

62,631,078,039

Other Payables

5,579,588,324

4,407,561,565

4,311,376,800

Capital Stock

11,068,735,000

11,068,735,000

11,068,735,000

Others

-22,705,194,551

-22,095,712,638

-24,767,124,951

Profit Surplus

487,431,375,905

486,429,184,578

485,887,760,632

Total Equity

475,794,916,354

475,402,206,940

472,189,370,681

Liab. & Shareholder’s Equity

662,301,920,286

662,848,793,562

672,500,906,851

 

Income Statement

Unit : Korean Won

01/01/2014~06/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

119,329,552,356

255,904,574,555

261,397,754,675

Cost of Sold Goods

117,942,511,074

250,233,597,961

277,348,943,023

Gross Profit

1,387,041,282

5,670,976,594

-15,951,188,348

Selling & Admin. Expenses

3,644,334,651

7,801,979,761

9,185,638,238

Operating Income

-2,257,293,369

-2,131,003,167

-25,136,826,586

Finance Income

10,437,569,521

12,825,457,811

23,829,282,811

Finance Expenses

5,113,327,110

8,499,022,101

8,304,734,057

Other Income

303,910,595

1,168,329,151

1,168,956,591

Other Expenses

714,389,879

1,107,638,501

4,373,248,913

Income Before Taxes

2,656,469,758

2,256,123,193

-12,816,570,154

Income Taxes Expenses

76,277,963

62,992,739

-3,514,927,907

Net Income

2,580,191,795

2,193,130,454

-9,301,642,247

 

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

7,550,853,267

959,165,992

13,019,910,707

Net Income

2,580,191,795

2,193,130,454

-9,301,642,247

Adjustment

4,684,571,012

-6,886,577,243

9,536,717,339

Interests Received

186,937,862

411,503,034

828,038,890

Interests Paid

-1,278,331,974

-2,851,576,747

-3,997,348,332

Dividends Received

1,308,590,562

8,008,058,974

12,276,229,118

Income Taxes

68,894,010

84,627,520

3,677,915,939

Cash Flows from Investing

-9,935,362,321

-2,813,554,717

16,162,050,221

Cash Flows from Financing

3,876,384,528

-9,135,542,349

-19,641,147,940

Increase/Decrease in Cash

1,491,875,474

-10,989,931,074

9,540,812,988

Cash at the Beginning of Year

1,545,332,405

12,535,294,155

2,995,914,119

Cash at the End of Year

3,033,180,978

1,545,332,405

12,535,294,155

 

Products, Technologies, Services Description

 

Main Products & Services

Greige Yarn

Dyed Yarn

Woven Fabric

Knitted Fabric

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

ILSHIN SPINNING CO., LTD.(110111-0041717)

ILSHIN BLDG., 15-15, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-3774-0114  FAX:+82-2-786-5891~3

 

CHONBANG CO.,LTD.(110111-0005664)

12TH FI., CHUNGJEONG TOWER BLDG., 464, CHUNGJEONGNO 3-GA, SEODAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2122-6000  FAX:+82-2-392-3923

 

KYUNGBANG CO., LTD.(110111-0013287)

441-10, YEONGDEUNGPODONG 4-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2639-6114  FAX:+82-2-2639-6079

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DONG-IL INDUSTRIAL CO., LTD.(130111-0006973)

(99.64% held by the subject company)

 

DONG IL RENOWN INC.(120111-0002444)

(85.71% held by the subject company)

 

DONG-IL ALUMNIUM CO., LTD.(161511-0005350)

(90.23% held by the subject company)

 

DONG-IL Y&K INC.(110111-0090384)

(72.68% held by the subject company)

 

DONG-IL DEVANLAY INC.(110111-1973604)

(50.0% held by the subject company)

 

DI BIZ CO., LTD.(110111-0584858)

(2.0% held by the subject company)

Affiliates-Overseas

PT DONG-IL INDONESIA

(75.0% held by the subject company)

 

DIB-EGYPT

(96.0% held by the subject company)

 

QINGDAO DONG-IL CO., LTD.-CHINA

DIA ALUMINUM INDIA PVT. LTD

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

DONG-IL INDUSTRIAL CO., LTD.(130111-0006973)

(99.64% held by the subject company)

 

DONG IL RENOWN INC.(120111-0002444)

(85.71% held by the subject company)

 

DONG-IL ALUMNIUM CO., LTD.(161511-0005350)

(90.23% held by the subject company)

 

DONG-IL Y&K INC.(110111-0090384)

(72.68% held by the subject company)

 

DONG-IL DEVANLAY INC.(110111-1973604)

(50.0% held by the subject company)

 

PT DONG-IL INDONESIA

(75.0% held by the subject company)

 

DIB-EGYPT

(96.0% held by the subject company)

 

DONG-IL CNE CO., LTD.(110111-0395205)

 

DONG-IL ALUMNIUM INDIA

(50.0% held by the subject company)

PLOT NO.A-6/2, MIDC RANJANGAON, TAL. SHIRUR, DIST. PUNE 412-220, MAHARASHTRA, INDIA

 

DONG-IL VIETNAM

LOT F, LOC AN-BIHN SON INDUSTRIAL ZONE, LONG THANH DISTRICT, DONG NAI PROVINCE, VIETNAM

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

38,312

182,345

146,855

Domestic

27,038

113,608

97,540

Total

65,350

295,953

244,395

The Subject Company exports the dyed yarn and functional yarn to Asia, Europe and USA. And it imports from USA, Egypt, Australia, China, Pakistan and Uzbekistan.

 

 

Court Action

 

No.

 

 

News Clipping

 

--

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.84

UK Pound

1

Rs.98.72

Euro

1

Rs.78.64

 

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.