MIRA INFORM REPORT

 

 

Report No. :

333207

Report Date :

23.07.2015

 

IDENTIFICATION DETAILS

 

Name :

DAIWHA CORPORATION LTD.

 

 

Registered Office :

3, Yeoksam-Ro 33-Gil, Gangnam-Gu, Seoul, Daehwa Bldg., Korea 135-514

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

19.08.1983

 

 

Com. Reg. No.:

220-81-04837

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

·         Wholesale of Medical, Precision and Scientific Instruments and Equipment

·         Manufacture of Other Medical and Surgical Equipment and Orthopedic Appliances n.e.c.

 

 

No. of Employees :

67

 

 

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

DAIWHA CORPORATION LTD.

Registered Address

3, Yeoksam-ro 33-gil, Gangnam-gu, Seoul, Korea

Building

Daehwa Bldg.

Zip Code

135-514

Tel

+82-2-558-1711~6

Fax

+82-2-554-0317

E-mail

dawha@daiwha.com

Website

www.daiwha.com

Trading Address

Daehwa Bldg., 3, Yeoksam-ro 33-gil, Gangnam-gu, Seoul, Korea

(Old Address System : Daehwa Bldg., 733-18, Yeoksam 2-dong, Gangnam-gu, Seoul, Korea)

Tel

+82-2-558-1711~6

Fax

+82-2-558-1745

Other Address-Wonju Factory

135, Donghwagongdan-ro, Munmak-eup, Wonju-si, Gangwon-do, Korea

(Old Address System : 1656-2, Donghwa-ri, Munmak-eup, Wonju-si, Gangwon-do, Korea)

Tel

 

Fax

 

Type

Export/Import

Industry

Wholesale of Medical, Precision and Scientific Instruments and Equipment

  Main Business

Electrosurgical Unit, Infusion Pump, Syringe Pump, Medical Film

  Sub Business

Manufacture of Other Medical and Surgical Equipment and Orthopedic Appliances n.e.c.

Established (mm/dd/yyyy)

08/19/1983

The Subject Company occupies the premises of registered HQ address by leasing base.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Electrosurgical or electrocautery equipment or accessories or related products(42295104)

Sell

Syringes and accessories(42142600)

Sell

Medical equipment and accessories and supplies(42000000)

Sell

Darkroom supplies(45141600)

Sell

Electrotherapy equipment(42141800)

Sell

Pumps(40151500)

 

 

CEO’s

 

Name

Yoon Dae-Young

Address

Suite Ga-104, 29-6, Gumi-ro 116beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

Date of Birth

03/10/1952

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

1,700,000,000

Employees

67

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Yeoksam Station Branch

Industrial Bank of Korea

Corporate Registered No.

110111-0355027

Business Registered No.

220-81-04837

Permit & Licenses

09/1993 ISO 9001

11/1996 ISO 9001

10/2003 CE Mark

05/2005 CE Mark

 

Int’l Trade No.: 864985

Shareholder Position

Name

Shares

%

YOON DAE-YOUNG

308,238

90.66

LIM DO-HEE

11,825

3.48

TREASURY STOCK

19,937

5.86

TOTAL

340,000

100.00

Company History

08/19/1983 Incorporated as the present name

06/05/1999 Increased capital to 1,200,000,000 KRW from 1,000,000,000 KRW

04/06/2005 Increased the authorized shares to 5,000,000 shares from 320,000 shares

12/2005 Awarded US$ 1 Million Export Top Prize

11/13/2014 Increased capital to 1,700,000,000 KRW from 1,500,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Yoon Dae-Young

Male

Korean

03/20/2012

President & CEO

Mr.

Yoon Dae-Sung

Male

Korean

03/03/2014

Auditor

M/S.

Lim Do-Hee

Female

Korean

03/20/2015

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2014

11,082,786,573

11,474,059,947

67,095,443

2013

13,263,154,777

11,083,832,440

-598,516,684

2012

14,166,062,395

10,921,281,748

-897,583,239

2011

18,544,778,422

13,035,389,111

85,947,637

2010

15,487,614,857

10,041,713,596

-772,154,966

2009

15,525,893,500

10,321,765,530

1,767,999,184

 

 

Financial Description

 

Authorized Capital(KRW)

25,000,000,000

Paid-Up Capital(KRW)

1,700,000,000

Total Issued Shares

340,000

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

11,474,059,947

11,083,832,440

10,921,281,748

Current Assets

6,531,902,192

6,815,149,145

6,524,742,217

-Quick Assets

2,077,205,976

2,656,588,330

3,140,529,796

-Inventories

4,454,696,216

4,158,560,815

3,384,212,421

Fixed Assets

4,942,157,755

4,268,683,295

4,396,539,531

-Investment

68,962,000

92,862,000

92,962,000

-Tangibles

3,161,554,714

3,387,614,224

3,436,529,309

-Intangibles

1,109,809,570

120,775,600

201,636,751

-Others

601,831,471

667,431,471

665,411,471

Total Liabilities

5,835,281,971

5,611,085,907

4,850,018,531

Current Liabilities

5,175,057,917

4,944,862,141

4,299,106,118

Fixed Liabilities

660,224,054

666,223,766

550,912,413

Capital Stock

1,700,000,000

1,500,000,000

1,500,000,000

Capital Surplus

 

 

 

Profit Surplus

4,041,381,576

3,974,286,133

4,572,802,817

Capital Adjustment

-102,603,600

-1,539,600

-1,539,600

Total Equity

5,638,777,976

5,472,746,533

6,071,263,217

Liab. & Shareholder’s Equity

11,474,059,947

11,083,832,440

10,921,281,748

 

Current Liabilities

5,175,057,917

4,944,862,141

4,299,106,118

Trade Payables

1,177,968,083

1,355,339,082

1,237,029,311

Short-Term Borrowings

3,694,533,875

3,092,951,662

2,439,120,070

Current Portion of Long-Term Debts

-

100,000,000

100,000,000

Account Payables

72,549,845

143,009,097

208,054,467

Advance Receipts

50,394,479

76,433,062

14,591,760

Withholdings

37,802,353

49,314,955

50,238,097

Guarantee Deposit Withhold

11,067,052

11,981,474

18,515,472

Accrued Expenses

130,742,230

115,832,809

231,556,941

Fixed Liabilities

660,224,054

666,223,766

550,912,413

Provision for Severance & Retirement

862,430,517

1,016,362,425

898,470,403

Long-Term Borrowings

 

 

100,000,000

Long-Term Account Payables

109,443,640

91,358,053

52,651,590

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

11,082,786,573

13,263,154,777

14,166,062,395

Cost of Sold Goods

7,350,157,099

9,004,014,866

10,547,608,864

Gross Profit

3,732,629,474

4,259,139,911

3,618,453,531

Selling & Admin. Expenses

3,640,654,803

4,730,302,234

4,472,301,651

Operating Income

91,974,671

-471,162,323

-853,848,120

Non-Operating Income

232,931,575

121,433,636

183,208,108

Non-Operating Expenses

257,810,803

248,787,997

226,943,227

Income Before Taxes

67,095,443

-598,516,684

-897,583,239

Income Taxes Expenses

-

-

-

Net Income

67,095,443

-598,516,684

-897,583,239

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Cash Flows from Operating

543,089,839

-415,965,402

-709,180,985

-Net Income

67,095,443

-598,516,684

-897,583,239

-Exp. without Cash Outflow

777,410,072

756,727,459

779,322,321

-Revenue without Cash Inflows

-1,533,810

-

-12,706,087

-Changes in Asset/ & Liability

-299,881,866

-574,176,177

-578,213,980

Cash Flows from Investing

-1,241,472,505

-613,687,311

-472,516,704

-Cash Inflow from Investing

125,500,000

30,000,000

41,590,909

-Cash Outflows for Investing

-1,366,972,505

-643,687,311

-514,107,613

Cash Flows from Financing

707,862,353

801,196,404

1,184,595,468

-Cash Inflows from Financing

4,210,230,016

2,637,649,625

3,182,085,644

-Cash Outflows from Financing

-3,502,367,663

-1,836,453,221

-1,997,490,176

Increase/Decrease in Cash

9,479,687

-228,456,309

2,897,779

Cash at the Beginning of Year

13,589,017

242,045,326

239,147,547

Cash at the End of Year

23,068,704

13,589,017

242,045,326

 

 

Products, Technologies, Services Description

 

Main Products & Services

Electrosurgical Unit, Infusion Pump, Syringe Pump, Medical Film

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Competitors

WOOJIN CO., LTD.

2ND FL., DONGEUN BLDG., 168-18, SAMJEON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-417-3403  FAX:+82-2-417-3471

 

SM MEDICAL CO., LTD.

RM. 303, JUNGGYE INDUSTRIAL COMPLEX , 511-2, JUNGGYE 2.3-DONG, NOWON-GU, SEOUL, KOREA

TEL:+82-2-972-6789  FAX:+82-2-974-7771

 

CALS MEDICAL CORP.

RM. 503, NOBEL TECHNO TOWER, 138-12, SANGDAEWON 1-DONG, JUNGWON-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-709-7001  FAX:+82-31-707-4781

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

DAIWHA SILUP CO.(KOREA)

HIEUN F&B CO.(KOREA)

Cooperative Enterprise

-Insured Company

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

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Asia, Europe and Africa.

 

 

Court Action

 

No.

 

 

News Clipping

 

------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.53

UK Pound

1

Rs.99.19

Euro

1

Rs.69.60

 

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.