MIRA INFORM REPORT

 

 

Report No. :

338489

Report Date :

25.08.2015

 

IDENTIFICATION DETAILS

 

Name :

DAEHAN NAKAGAWA IND. CO., LTD.

 

 

Registered Office :

220, Jungangbuk-gil, Gaya-eup, Haman-gun, Gyeongsangnam-do, Korea, 52048

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

05.12.1981

 

 

Com. Reg. No.:

608-81-02835

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

·         Manufactures geared motors and time switches

·         Manufactures plastic magnets

·         Designing and Manufactures of precision molds and press molds

·         Manufactures automobile electric components

 

 

No. of Employees :

125

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 


Basic Information

 

Company Name

DAEHAN NAKAGAWA IND. CO., LTD.

(Korean Company Name : “대한중천산업()”)

Registered Address

220, Jungangbuk-gil, Gaya-eup, Haman-gun, Gyeongsangnam-do, Korea

Building

 

Zip Code

52048

Tel

+82-55-582-1201~5

Fax

+82-55-582-1245

E-mail

daehan@daehannk.com

Website

www.daehannk.co.kr

Trading Address

220, Jungangbuk-gil, Gaya-eup, Haman-gun, Gyeongsangnam-do, Korea

(Old Address System : 990-3, Geomam-ri, Gaya-eup, Haman-gun, Gyeongsangnam-do, Korea)

Tel

+82-55-582-1201~5  +82-31-211-8702

Fax

+82-55-582-1245  +82-31-211-8703

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufactures geared motors and time switches

Manufactures plastic magnets

Designing and Manufactures of precision molds and press molds

Manufactures automobile electric components

  Main Business

Pressure Sensor Switch, Time Switch, Inlet Water Valves, Safety Switch, Door Locker, Door Switch, Pump Motor, Bidet parts, Fuel Cell System

  Sub Business

 

Established (mm/dd/yyyy)

12/05/1981

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Switches and controls and relays and accessories(39121500)

Sell

Electrical components(25173900)

 

 

CEO’s

 

Name

Heo Deok-Yeol

Address

Suite 302, 659, Samjinuigeo-daero, Jindong-myeon, Masanhappo-gu, Changwon-si, Gyeongsangnam-do, Korea

Date of Birth

12/18/1965

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

505,000,000

Employees

125

Formation

Co., Ltd by Shares

Bank Details

Gyungnam Bank

Hana Bank

Corporate Registered No.

194311-0000131

Business Registered No.

608-81-02835

Permit & Licenses

05/17/2004 ISO 14001

11/06/2000 ISO 9001

 

Int’l Trade No.: 510150

Shareholder Position

Name

Shares

%

NAKAGAWA ELECTRIC IND. CO., LTD.(JAPAN)

49,995

49.5

OTHERS(3)

51,005

50.50

TOTAL

101,000

100.00

Company History

12/05/1981 Incorporated as the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Heo Deok-Yeol

Male

Korean

05/07/2014

Co-President & CEO

Mr.

Ha Jung Young Woo

Male

Japanese

12/05/2012

Director

Mr.

San Ro Seung Gae

Male

Japanese

12/05/2012

Director

Mr.

Oh Il-Hwan

Male

Korean

12/05/2009

Director

Mr.

Kwon Tae-Yoon

Male

Korean

12/05/2012

Auditor

Mr.

Kim Do-Won

Male

Korean

12/05/2009

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

28,867,031,388

25,932,021,968

1,129,716,372

2013

30,826,411,332

25,709,448,394

396,638,947

2012

34,433,262,951

26,684,840,842

884,008,701

2011

36,894,021,985

24,706,425,504

1,881,898,125

2010

37,125,668,129

24,734,236,458

1,665,658,715

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000

Paid-Up Capital(KRW)

505,000,000

Total Issued Shares

101,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

25,932,021,968

25,709,448,394

26,684,840,842

Current Assets

13,000,135,725

12,416,322,494

14,098,489,792

-Quick Assets

9,830,123,531

9,052,635,324

11,516,821,390

-Inventories

3,170,012,194

3,363,687,170

2,581,668,402

Fixed Assets

12,931,886,243

13,293,125,900

12,586,351,050

-Investment

4,601,190,700

4,701,190,700

3,602,134,500

-Tangibles

8,090,197,563

8,351,437,220

8,743,718,570

-Intangibles

 

 

 

-Others

240,497,980

240,497,980

240,497,980

Total Liabilities

2,533,208,295

3,328,621,093

4,527,692,488

Current Liabilities

1,809,708,295

2,663,621,093

4,362,692,488

Fixed Liabilities

723,500,000

665,000,000

165,000,000

Capital Stock

505,000,000

505,000,000

505,000,000

Capital Surplus

 

 

 

Profit Surplus

22,893,813,673

21,875,827,301

21,652,148,354

Capital Adjustment

 

 

 

Total Equity

23,398,813,673

22,380,827,301

22,157,148,354

Liab. & Shareholder’s Equity

25,932,021,968

25,709,448,394

26,684,840,842

 

Current Liabilities

1,809,708,295

2,663,621,093

4,362,692,488

Trade Payables

950,975,348

1,554,783,813

1,233,623,538

Short-Term Borrowings

 

 

2,300,000,000

Account Payables

1,320,000

247,038,000

112,228,532

Advance Receipts

22,447,139

-

6,230,000

Withholdings

125,936,898

143,643,598

92,884,746

Accrued Expenses

532,096,436

714,008,891

606,470,112

Current Portion of Long-Term Debts

16,500,000

-

 

Accrued Income Tax

160,432,474

4,146,791

11,255,560

Fixed Liabilities

723,500,000

665,000,000

165,000,000

Long-Term Borrowings

223,500,000

165,000,000

165,000,000

Leasehold Deposit Received

500,000,000

500,000,000

-

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

28,867,031,388

30,826,411,332

34,433,262,951

Cost of Sold Goods

25,693,186,493

28,379,045,471

31,372,612,167

Gross Profit

3,173,844,895

2,447,365,861

3,060,650,784

Selling & Admin. Expenses

2,468,915,863

2,947,132,708

2,436,073,240

Operating Income

704,929,032

-499,766,847

624,577,544

Non-Operating Income

865,127,191

1,347,698,789

1,024,582,930

Non-Operating Expenses

260,730,307

405,678,293

586,505,164

Income Before Taxes

1,309,325,916

442,253,649

1,062,655,310

Income Taxes Expenses

179,609,544

45,614,702

178,646,609

Net Income

1,129,716,372

396,638,947

884,008,701

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

3,345,755,905

1,361,486,565

1,996,037,005

-Net Income

1,129,716,372

396,638,947

884,008,701

-Exp. without Cash Outflow

914,955,346

1,369,324,480

778,313,158

-Revenue without Cash Inflows

-44,337,010

-2,467,455

-102,214,998

-Changes in Asset/ & Liability

1,345,421,197

-402,009,407

435,930,144

Cash Flows from Investing

-2,991,322,466

1,757,538,885

-3,979,364,140

-Cash Inflow from Investing

1,947,563,636

4,980,712,238

11,242,443,747

-Cash Outflows for Investing

-4,938,886,102

-3,223,173,353

-15,221,807,887

Cash Flows from Financing

-36,730,000

-2,085,188,532

2,078,585,495

-Cash Inflows from Financing

75,000,000

2,891,641,200

3,722,479,682

-Cash Outflows from Financing

-111,730,000

-4,976,829,732

-1,643,894,187

Increase/Decrease in Cash

317,703,439

1,033,836,918

95,258,360

Cash at the Beginning of Year

1,977,903,727

944,066,809

848,808,449

Cash at the End of Year

2,295,607,166

1,977,903,727

944,066,809

 

 

Products, Technologies, Services Description

 

Main Products & Services

Pressure Sensor Switch, Inlet Water Valves, Safety Switch, Door Locker, Door Switch, Pump Motor, Bidet parts, Fuel Cell System

Detailed Products Spec.

 

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

LG ELECTRONICS INC.(110111-2487050)

Competitors

WOOJIN MECHANICAL AND ELECTRIC CO., LTD.

837, IMOK-DONG, JANGAN-GU, SUWON-SI, GYEONGGI- DO, KOREA

TEL:+82-31-249-6121~6  FAX:+82-31-248-7840

 

DASS TECH CO., LTD.

319-1, SONGDAE-RI, OCHANG-EUP, CHEONGWON-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-218-5670  FAX:+82-43-218-5671

 

JNC HITEC CO., LTD.

127, NOKSANSANDAN 27-RO, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-974-9500  FAX:+82-51-974-9595

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SUZHOU NAKAGAWA CO., LTD.(CHINA)

(100.0% held by the subject company)

 

CHANGWON NAKAGAWA IND. CO., LTD.(194211-0209074)

(100.0% held by the subject company)

 

DONGNAI NAKAGAWA ELECTRIC IND. CO., LTD.

(50.0% held by the subject company)

 

NAKAGAWA ELECTRIC IND. Korea CO., LTD.(190111-0001830)

HONG KONG NAKAGAWA

NESA

Overseas Office

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Japan, China and Hong Kong.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.51

UK Pound

1

Rs.104.00

Euro

1

Rs.76.27

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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.