MIRA INFORM REPORT

 

 

Report No. :

354370

Report Date :

17.12.2015

 

IDENTIFICATION DETAILS

 

Name :

DK DONGSHIN CO., LTD.

 

 

Registered Office :

46, Dadong-Gil, Jung-Gu, Seoul, 11FL., Dadong Bldg. Korea 04522

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

29.02.2008

 

 

Com. Reg. No.:

104-86-13169

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

·         Manufacture of Structural Metal Sheet Products and Ornamental Metal Works Used on Building

·         Color Steel Products of PCM(Pre Coated Metal), Pre-Coated Metal Plate, Steel Plate, Stainless Plate

 

 

No. of Employees :

205

 

 

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 – 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

DK DONGSHIN CO., LTD.

Registered Address

46, Dadong-gil, Jung-gu, Seoul, Korea

(Old Address System : 92, Da-dong, Jung-gu, Seoul, Korea)

Building

11FL., Dadong Bldg.

Zip Code

04522

Tel

+82-54-286-0050

Fax

+82-54-286-0176

E-mail

lemonlike2@dkdongshin.co.kr;garam34@dkis.co.kr

Website

www.dkdongshin.co.kr

Trading Address

154, Daesong-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 710-1, Goedong-dong, Nam-gu, Pohang-si, Gyeongbuk, Korea)

Tel

+82-54-280-0211

Fax

+82-54-286-0176

Other Address-Gyeongju Branch

736-3, Cheongang-ro, Gangdong-myeon, Gyeongju-si, Gyeongsangbuk-do, Korea

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Structural Metal Sheet Products and Ornamental Metal Works Used on Building

  Main Business

Color Steel Products of PCM(Pre Coated Metal), Pre-Coated Metal Plate, Steel Plate, Stainless Plate

  Sub Business

 

Established (mm/dd/yyyy)

02/29/2008

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Steel(11101704)

Sell

Steel plate(30102204)

Sell

Metal smelting and refining and forming processes(73121500)

 

 

CEO’s

 

Name

Ju Hern-Wook

Address

Suite 105-1901, 391, Samho-ro, Buk-gu, Pohang-si, Gyeongsangbuk-do, Korea

Date of Birth

07/26/1951

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

22,050,000,000

Employees

205

Formation

Co., Ltd by shares

A Company of DONGKUK INDUSTRIES GROUP

Bank Details

Shinhan Bank

Kookmin Bank

KEB Hana Bank

SC Bank

Corporate Registered No.

110111-3850959

Business Registered No.

104-86-13169

Permit & Licenses

Int’l Trade No.: 45341566

Shareholder Position

Name

Shares

%

DAEWON STEEL CO., LTD.(120111-0123711)

2,160,000

48.98

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

900,000

20.41

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

100,000

2.27

BUL YI WON(114222-0005772)

100,000

2.27

OTHER INDIVIDUALS(5)

1,150,000

26.07

TOTAL

4,410,000

100.00

Company History

02/29/2008 Incorporated as the present name

04/02/2008 Increased capital to 30,000,000,000 KRW from 7,500,000,000 KRW

06/30/2008 Increased the authorized shares to 200,000,000 shares from 6,000,000 shares

07/02/2008 Increased capital to 45,000,000,000 KRW from 30,000,000,000 KRW

04/27/2014 Decreased capital to 11,250,000,000 from 45,000,000,000 KRW

05/15/2014 Increased capital to 22,050,000,000 KRW from 11,250,000,000 KRW

 

 

 

 

Management

 

Job Description

 

Name

Nationality

Date of Birth

Inauguration Date

President & CEO

Ju Hern-Wook

Korean

11/02/1956

07/01/2014

Director

Jang Se-Hee

Korean

03/12/1968

02/29/2008

Director

Jang Sang-Geon

Korean

12/02/1935

02/29/2008

Director

Jang Hye-Won

Korean

12/21/1970

02/29/2008

Auditor

Lee Chan-Kook

Korean

09/14/1952

02/29/2008

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2014

165,563,491,784

124,522,670,407

-803,192,384

(*)2013

186,944,723,782

117,366,562,752

-1,982,340,849

(*)2012

189,876,710,491

125,706,566,742

315,676,686

(*)2011

179,171,718,630

144,120,327,654

711,507,940

(*)2010

171,123,453,055

134,164,767,137

2,664,615,141

2009

114,514,297,294

122,261,143,621

-26,412,748,050

2008

94,168,921,793

118,394,363,644

2,272,632,811

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

 

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000,000

Paid-Up Capital(KRW)

22,050,000,000

Total Issues Shares

4,410,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

124,522,670,407

117,366,562,752

125,706,566,742

Current Assets

72,173,980,447

59,790,605,513

67,007,348,365

Cash & Cash Equivalents

1,473,473,449

604,849,110

14,671,058

Current Financial Instruments

7,874,579,638

4,482,265,562

4,145,257,095

Trade Receivables

23,927,766,878

21,546,133,446

24,309,515,970

Other Receivables

1,087,975,849

997,396,205

1,264,652,386

Advance Payments

3,762,928

224,234,398

30,922,894

Accrued Income

149,669,106

34,863,539

27,633,248

Prepaid Expenses

102,970,720

89,734,966

105,967,732

Prepaid Income Taxes

21,856,150

16,600,650

65,426,041

Inventories

29,797,566,777

31,794,527,637

37,043,301,941

Non-Current Assets to be Sold

7,734,358,952

-

 

Non-Current Assets

52,348,689,960

57,575,957,239

58,699,218,377

Non-Current Financial Instruments

561,742,969

893,063,503

391,274,877

Marketable Financial Instruments

580,934,759

731,552,113

731,552,113

Held-to-Maturity Financial Assets

-

125,000

125,000

Investment_Related Companies

-

2,018,015,871

5,385,957,218

Tangibles

38,129,005,804

44,731,513,810

45,302,182,690

Investment_Real Estates

3,101,827,250

3,101,827,250

3,101,827,250

Intangibles

48,432,072

62,256,468

1,749,734

Long-Term Receivables

3,814,224,000

-

 

Guarantee Deposit Withhold

566,646,000

904,541,310

574,755,586

Deferred Income Tax Assets

5,545,877,106

5,133,061,914

3,209,793,909

Total Liabilities

77,297,654,520

92,628,542,775

98,917,986,066

Current Liabilities

66,710,089,087

90,374,072,412

86,354,476,689

Trade Payables

22,436,484,978

17,840,171,559

20,727,320,007

Account Payables

3,409,064,692

2,390,701,162

2,382,323,386

Advance Receipts

120,409,927

365,824,255

91,943,820

Withholdings

135,303,330

99,196,280

92,509,470

Accrued Expenses

501,706,525

534,393,957

501,229,622

Short-Term Borrowings

38,457,308,518

59,043,865,199

54,100,610,384

Current Portion of Long-Term Debts

-

10,099,920,000

8,458,540,000

Derivatives

1,649,811,117

-

12,563,509,377

Non-Current Liabilities

10,587,565,433

2,254,470,363

5,000,000,000

Long-Term Borrowings

10,000,000,000

1,741,540,000

6,841,460,000

Provision for Severance & Retirement

584,837,863

442,424,789

669,205,803

Long-Term Account Payables

-

17,662,000

-

Other Non-Current Financial Debts

2,727,570

52,843,574

52,843,574

Capital Stock

22,050,000,000

45,000,000,000

45,000,000,000

Capital Surplus

46,229,406,610

-

 

Capital Adjustment

-

-662,059,000

-662,059,000

Profit Surplus

-21,054,390,723

-19,599,921,023

-17,549,360,324

Total Equity

47,225,015,887

24,738,019,977

26,788,580,676

Liab. & Shareholder’s Equity

124,522,670,407

117,366,562,752

125,706,566,742

 

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

165,563,491,784

186,944,723,782

189,876,710,491

Cost of Sold Goods

155,270,059,999

175,723,574,313

176,217,064,797

Gross Profit

10,293,431,785

11,221,149,469

13,659,645,694

Selling & Admin. Expenses

8,026,513,604

8,611,398,416

8,679,466,757

Operating Income

2,266,918,181

2,609,751,053

4,980,178,937

Other Non-Operating Income

2,411,276,478

1,306,370,459

783,918,622

Other Non-Operating Expenses

3,477,811,309

4,630,668,415

2,470,794,136

Finance Income

309,841,911

1,884,259,489

2,287,333,935

Finance Expenses

2,542,539,235

5,056,079,944

4,995,588,240

Income Before Taxes

-1,032,313,974

-3,886,367,358

585,049,118

Income Taxes Expenses

-229,121,590

-1,904,026,509

269,372,432

Net Income

-803,192,384

-1,982,340,849

315,676,686

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

6,841,382,021

6,829,091,412

2,418,271,446

-Net Income

-803,192,384

-1,982,340,849

315,676,686

-Exp. without Cash Outflow

7,671,510,538

10,014,237,048

8,952,545,099

-Revenue without Cash Inflows

-1,197,143,011

-1,409,523,117

-1,993,732,103

-Changes in Asset/ & Liability

3,555,652,701

3,650,062,619

-591,783,283

-Adjustment

-2,385,445,823

-3,443,344,289

-4,264,434,953

Cash Flows from Investing

-7,449,674,695

-2,737,313,093

3,520,533,077

-Cash Inflow from Investing

131,771,558,839

10,862,236,746

11,656,882,022

-Cash Outflows for Investing

-139,221,233,534

-13,599,549,839

-8,136,348,945

Cash Flows from Financing

1,476,888,948

-3,501,255,784

-7,485,314,973

-Cash Inflows from Financing

133,243,713,338

4,957,284,216

49,151,177,095

-Cash Outflows from Financing

-131,766,824,390

-8,458,540,000

-56,636,492,068

Increase/Decrease in Cash

868,624,339

590,178,052

-1,546,510,450

Cash at the Beginning of Year

604,849,110

14,671,058

1,561,181,508

Cash at the End of Year

1,473,473,449

604,849,110

14,671,058

 

 

Products, Technologies, Services Description

 

Main Products & Services

Color Steel Products of PCM(Pre Coated Metal), Pre-Coated Metal Plate, Steel Plate, Stainless Plate

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

SOZHOU DONGSHIN COLOR METAL CO., LTD.(CHINA)

Customers

SAMSUNG C&T CORPORATION(110111-0002975)

SAMSUNG ELECTRONICS CO., LTD.(130111-0006246)

Competitors

DONGKWANG CO., LTD.

655, DONGO-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-354-8599  FAX:+82-31-354-8662

 

SEYUN STEEL CO., LTD.

500-21, BUGYANG-DONG, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-355-5250  FAX:+82-31-356-7042~3

 

GWANG SHIN STEEL CO., LTD.

619-3, DOCHEON-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-959-9932  FAX:+82-62-959-9935

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DONGKUK INDUSTRIES CO., LTD.(110111-0085583)

(6.67% held by the subject company)

 

DAEWON STEEL CO., LTD.(120111-0123711)

(33.33% held by the subject company)

 

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

(4.44 held by the subject company)

 

CHOSUN STEELWIRE CO.,LTD(110111-0008486)

DONGKUK S&C(110111-2276784)

DONGKUK REFRACTORIES CO., LTD.(195511-0069249)

HANRYO ENERGY DEVELOPMENT CO., LTD.(206211-0026796)

SHINAN WIND POWER CO., LTD.(201111-0023666)

GO DEOK WIND POWER CO., LTD.(161311-0017432)

DONGYEON S&T CO., LTD.(110111-3401059)

CHUNGSEOK DEVELOPMENT CO., LTD.

DK AMERICA, INC.

KUMHWA METAL CO., LTD.

DK WIND POWER CO., LTD.(234111-0045158)

NAMWON WIND POWER CO., LTD.(211311-0005428)

DK DONGSHIN CO., LTD.(110111-3850959)

 

SOZHOU DONGSHIN COLOR METAL CO., LTD.(CHINA)

(80.7% held by the subject company)

Overseas Office

QSSC S.A DE C.V

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

Not Available.

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

 

The Subject Company

-

432

The Subject won.

 

 

News Clipping

 

-----------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.85

UK Pound

1

Rs.100.58

Euro

1

Rs.73.16

KRW

`

Rs.0.056

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.