MIRA INFORM REPORT

Report Date :

13.09.2014

IDENTIFICATION DETAILS

Name :	DTR CORPORATION

Formerly Known As :	DRAGON PRECISION TOOLS CO., LTD.

Registered Office :	36B-11L, Namdong Industrial Complex, 405-846, 85, Namdong-daero 370beon-Gil, Namdong-gu, Incheon

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	16.03.1976

Com. Reg. No.:	139-81-15566

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Saws, Saw Blades and Interchangeable Tools.

No of Employees :	159

RATING & COMMENTS

MIRA’s Rating :

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 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

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. 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

Company Name	DTR CORPORATION
Registered Address	85, Namdong-daero 370beon-gil, Namdong-gu, Incheon, Korea
Building	36B-11L, Namdong Industrial Complex
Zip Code	405-846
Tel	+82-32-814-1540~6
Fax	+82-32-814-5381
E-mail	webmaster@dragon.co.kr
Website	www.dtr.kr

Trading Address	85, Namdong-daero 370beon-gil, Namdong-gu, Incheon, Korea (Old Address System : 36B-11L, Namdong Industrial Complex, 610-10, Namchon-dong, Namdong-gu, Incheon, Korea)
Tel	+82-32-814-1540~6
Fax	+82-32-814-5381

Type	Export/Import
Industry	Manufacture of Saws, Saw Blades and Interchangeable Tools
Main Business	Gear Hob Cutter, Milling Cutter, Roughing End Mill, Gear Shaper Cutter

Established (mm/dd/yyyy)	03/16/1976

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Hobs(23171613)
Sell	Milling cutters(23171612)

CEO’s

Name	Chun Yong-Bae
Address	40, Seongsan-ro 11-gil, Seodaemun-gu, Seoul, Korea
Date of Birth	05/18/1944
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,500,000,000

Employees

159

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Namdong Industrial Complex Branch

Corporate Registered No.

110111-0193188

Business Registered No.

139-81-15566

Permit & Licenses

Int’l Trade No.: 421270

Shareholder Position

Name	Shares	%
CHUN YONG-BAE & HIS FAMILY(5)	300,000	100.00
TOTAL	300,000	100.00

Company History

03/16/1976 Incorporated as DRAGON PRECISION TOOLS CO., LTD.

06/20/2001 Increased the authorized shares to 1,200,000 shares from 400,000 shares

06/28/2001 Increased capital to 1,500,000,000 KRW from 1,300,000,000 KRW

03/16/2008 Changed company name to the present name

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Chun Yong-Bae	Male	Korean	03/28/1999
Director	M/S.	Lee Kyung-Ja	Female	Korean	01/06/2001
Director	Mr.	Chun Jong-Yoon	Male	Korean	10/02/1999
Director	Mr.	Chun Jong-Hoon	Male	Korean	12/23/2004
Director	Mr.	Chun Jong-Bum	Male	Korean	01/06/2013
Auditor	M/S.	Song Yoo-Jin	Female	Korean	03/31/2006

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	22,098,170,401	65,008,179,962	6,172,935,213
2012	25,041,059,197	68,458,169,233	7,527,698,930
2011	25,777,539,365	66,085,838,004	-24,723,868
2010	21,956,806,638	63,741,362,034	424,896,651

Financial Description

Authorized Capital(KRW)	6,000,000,000
Paid-Up Capital(KRW)	1,500,000,000
Total Issued Shares	300,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	65,008,179,962	68,458,169,233	66,085,838,004
Current Assets	19,016,206,740	21,246,222,444	18,127,648,059
-Quick Assets	12,487,411,457	14,557,673,753	12,517,237,519
-Inventories	6,528,795,283	6,688,548,691	5,610,410,540
Fixed Assets	45,991,973,222	47,211,946,789	47,958,189,945
-Investment	1,515,988,752	1,411,280,713	3,352,317,977
-Tangibles	44,354,498,226	45,674,135,402	44,380,537,754
-Intangibles	3,916,244	8,070,674	12,225,104
-Others	117,570,000	118,460,000	213,109,110
Total Liabilities	34,377,024,651	43,999,966,035	48,981,495,320
Current Liabilities	27,783,304,390	29,831,364,670	20,308,934,574
Fixed Liabilities	6,593,720,261	14,168,601,365	28,672,560,746
Capital Stock	1,500,000,000	1,500,000,000	1,500,000,000
Capital Surplus	2,183,191,443	2,183,191,443	2,183,191,443
Profit Surplus	14,083,722,572	7,910,787,359	556,816,995
Capital Adjustment	12,864,241,296	12,864,224,396	12,864,334,246
Total Equity	30,631,155,311	24,458,203,198	17,104,342,684
Liab. & Shareholder’s Equity	65,008,179,962	68,458,169,233	66,085,838,004

Current Liabilities	27,783,304,390	29,831,364,670	20,308,934,574
Trade Payables	423,292,051	259,235,864	446,757,348
Account Payables	1,635,476,765	1,489,269,047	1,511,501,010
Short-Term Borrowings	470,000,000	3,350,000,000	1,700,000,000
Withholdings	94,559,510	129,070,190	117,150,260
Advance Receipts	110,640,339	87,175,813	163,534,866
Accrued Expenses	23,201,657	32,694,624	37,304,544
Accrued Income Tax	-	24,403,382	17,342,590
Current Portion of Long-Term Debts	25,011,134,068	24,444,515,750	16,300,343,956
Guarantee Deposit Withhold	15,000,000	15,000,000	15,000,000
Fixed Liabilities	6,593,720,261	14,168,601,365	28,672,560,746
Long-Term Borrowings	3,535,504,192	11,479,331,750	26,315,284,804
Provision for Severance & Retirement	3,051,216,069	2,618,269,615	2,276,275,942
Leasehold Deposit Received	7,000,000	71,000,000	81,000,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	22,098,170,401	25,041,059,197	25,777,539,365
Cost of Sold Goods	15,823,648,611	16,744,012,697	16,381,321,079
Gross Profit	6,274,521,790	8,297,046,500	9,396,218,286
Selling & Admin. Expenses	5,733,205,272	6,043,385,259	5,804,046,706
Operating Income	541,316,518	2,253,661,241	3,592,171,580
Non-Operating Income	6,987,538,666	7,098,325,194	650,192,372
Non-Operating Expenses	1,304,649,478	1,732,017,633	4,034,685,887
Income Before Taxes	6,224,205,706	7,619,968,802	207,678,065
Income Taxes Expenses	51,270,493	92,269,872	232,401,933
Net Income	6,172,935,213	7,527,698,930	-24,723,868

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,723,794,318	3,481,880,528	1,334,060,751
-Net Income	6,172,935,213	7,527,698,930	-24,723,868
-Exp. without Cash Outflow	2,494,744,770	2,811,535,800	4,867,187,518
-Revenue without Cash Inflows	-6,548,533,435	-6,415,049,666	-33,065,904
-Changes in Asset/ & Liability	-395,352,230	-442,304,536	-3,475,336,995
Cash Flows from Investing	2,591,658,420	-4,966,764,016	-2,731,866,081
-Cash Inflow from Investing	13,328,560,564	12,890,581,098	7,384,213,864
-Cash Outflows for Investing	-10,736,902,144	-17,857,345,114	-10,116,079,945
Cash Flows from Financing	-3,710,000,000	1,544,520,000	1,211,451,090
-Cash Inflows from Financing	12,670,000,000	19,428,750,000	21,170,411,090
-Cash Outflows from Financing	-16,380,000,000	-17,884,230,000	-19,958,960,000
Increase/Decrease in Cash	605,452,738	59,636,512	-186,354,240
Cash at the Beginning of Year	108,654,226	49,017,714	235,371,954
Cash at the End of Year	714,106,964	108,654,226	49,017,714

Products, Technologies, Services Description

Main Products & Services

Gear Hob Cutter, Milling Cutter, Roughing End Mill, Gear Shaper Cutter

Trade Partners & Competitors

Competitors

HWACHEON MACHINERY WORKS CO., LTD.

1022-7, BANGBAE 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-523-7766 FAX:+82-2-523-7767

DAEHWA INDUSTRIAL MACHINERY CO., LTD.

676-1, NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-979-3000 FAX:+82-54-979-3030

FUSO INDUSTRIAL MACHINERY CO., LTD.

385-3, DEOKPO 2-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-302-1771 FAX:+82-51-302-3112

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

DTR USA CORPORATION

DTR JAPAN CO., LTD.

JINYONG PRECISION CO., LTD.(120111-0103507)

DRAGON TECH CO., LTD.(KOREA)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.84
UK Pound	1	Rs.98.73
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIT

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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