MIRA INFORM REPORT

 

 

Report No. :

329377

Report Date :

26.06.2015

 

IDENTIFICATION DETAILS

 

Name :

DONGIL PAPER MFG. CO., LTD.

 

 

Registered Office :

104, Haean-Ro, Danwon-Gu, Ansan-Si, Gyeonggi-Do, 17-51, Banwol Industrial Complex, Korea 425-100

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

16.09.1986

 

 

Com. Reg. No.:

134-81-05796

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Paper and Paperboard.

 

 

No. of Employees :

284

 

 

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

DONGIL PAPER MFG. CO., LTD.

Registered Address

104, Haean-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Building

17-51, Banwol Industrial Complex

Zip Code

425-100

Tel

+82-31-491-0010

Fax

+82-31-491-0023

E-mail

webmaster@dongilpaper.co.kr

Website

www.dongilpaper.co.kr

Trading Address

17-51, Banwol Industrial Complex, 104, Haean-ro, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

(Old Address System : 17-51, Banwol Industrial Complex, 492-1, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea)

Tel

+82-31-491-0010

Fax

+82-31-491-0023

Other Address-Uiryeong Factory

1540-1, Dongdong-ri, Uiryeong-eup, Uiryeong-gun, Gyeongsangnam-do, Korea

Tel

+82-55-572-3020

Fax

+82-55-572-3025

Type

Export

Industry

Manufacture of Other Paper and Paperboard

  Main Business

Corrugate Medium Paper, Taste Linner Paper, Two Sides Paper

  Sub Business

 

Established (mm/dd/yyyy)

09/16/1986

The Subject owns the premises of registered HQ address and Uiryeong Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cardboard(14121503)

Sell

Paper wastes(11141604)

 

 

CEO’s

 

Name

Jung Young-Sup

Address

 

Date of Birth

01/02/1948

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

19,845,000,000

Employees

284

Formation

Listed Company (Korea Stock Exchange : 019300) as of 08/18/1995

A Company of TAILIM PACKAGING IND. CO., LTD.(130111-0010015)

Bank Details

Industrial Bank of Korea

Shinhan Bank

Citibank, Korea-Ansan Branch

Corporate Registered No.

130111-0026236

Business Registered No.

134-81-05796

Permit & Licenses

Int’l Trade No.: 934578

Shareholder Position

Name

Shares

%

TAILIM PACKAGING IND. CO., LTD.(130111-0010015)

13,025,000

32.82

JUNG DONG-SUB

4,735,000

11.93

JUNG YOUNG-SUB

1,984,500

5.00

DONG-GWANG PANJI CO., LTD.(135511-0184958)

2,635,230

6.64

DAESUNG ENFORCED CORRUGATED CO., LTD.(120111-0019895)

2,947,000

7.43

OTHERS

14,363,270

36.19

TOTAL

39,690,000

100.00

Company History

09/16/1986 Incorporated as the present name

03/21/2008 Spin off the par value to 500 KRW from 5,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman & CEO

Mr.

Jung Dong-Sub

Korean

1931.01.14

Kyunghee University, Korea

President & CEO

Mr.

Jung Young-Sub

Korean

1948.01.02

Seoul National University, Korea

Director

Mr.

Jung Sang-Moon

Korean

1962.11

-

Vice President

Mr.

Kim Jin-Doo

Korean

1961.01.11

Korea Aerospace University, Korea

Director

Mr.

Jung Yoo-Cheon

Korean

1965.01.18

Chungang University, Korea

Director

Mr.

Ko Sam-Kyu

Korean

1952.01.25

Seoul National University, Korea

Outside Director

Mr.

Jung Joo-Sub

Korean

1933.02.20

Seoul National University, Korea

Outside Director

Mr.

Kim Soon-Jong

Korean

1958.05

-

Auditor

Mr.

Ji Chil-Sung

Korean

1948.10.13

Korea National Open University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

51,990,921,346

291,506,350,355

-702,837,851

(*)2014

195,608,651,248

299,636,101,977

4,717,241,188

(*)2013

209,220,119,998

275,142,410,845

4,318,072,273

(*)2012

220,631,694,709

273,982,720,873

11,784,101,046

(*)2011

241,909,053,516

269,194,222,780

15,235,001,440

2010

213,573,904,140

296,257,450,838

14,291,985,495

2009

158,832,543,505

281,814,603,793

11,816,198,061

2008

166,339,480,755

217,718,356,442

5,892,556,371

2007

128,025,035,492

195,015,407,694

6,279,958,233

2006

100,294,980,082

158,615,391,228

5,429,396,371

2005

94,892,293,113

151,397,679,531

6,053,656,464

 

 

Financial Description

 

Authorized Capital(KRW)

50,000,000,000

Paid-Up Capital(KRW)

19,845,000,000

Total Issues Shares

39,690,000

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

291,506,350,355

299,636,101,977

275,142,410,845

Current Assets

45,645,914,028

43,399,740,530

41,706,262,851

Cash & Cash Equivalents

1,830,820,134

956,135,898

1,761,419,668

Trade Receivables & Other Receivables

28,555,691,569

23,820,614,217

23,778,255,390

Current Financial Instruments

673,803,801

412,947,510

1,543,545,799

Current Non-Financial Instruments

1,016,534,511

1,282,701,769

2,140,848,589

Inventories

13,569,064,013

16,927,341,136

12,447,551,729

Deferred Income Tax Assets

0

0

34,641,676

Non-Current Assets

245,860,436,327

256,236,361,447

233,436,147,994

Non-Current Financial Instruments

2,327,442,036

2,758,924,746

1,911,879,456

Marketable Financial Instruments

3,517,329,830

3,493,996,730

2,094,010,730

Investment_Related Companies

60,655,878,200

60,655,878,200

61,157,154,550

Tangibles

154,132,190,427

156,476,552,559

135,295,155,045

Investment_Real Estates

22,698,702,059

30,384,885,074

30,441,489,134

Intangibles

2,363,152,637

2,284,343,536

2,290,520,618

Other Non-Current Assets

165,741,138

181,780,602

245,938,461

Total Liabilities

140,823,909,652

147,078,323,242

125,771,309,438

Current Liabilities

83,847,246,582

89,066,279,991

73,962,659,678

Trade Payables & Other Payables

8,746,231,591

8,848,261,628

7,487,184,450

Short-Term Borrowings

48,825,604,182

55,529,387,936

48,600,000,000

Current Portion of Long-Term Debts

20,234,200,000

20,202,700,000

12,971,720,000

Other Current Financial Debts

4,487,106,504

3,633,593,760

3,584,012,168

Other Current Liabilities

977,640,593

166,266,636

1,319,743,060

Deferred Income Tax Credit

576,463,712

686,070,031

0

Non-Current Liabilities

56,976,663,070

58,012,043,251

51,808,649,760

Long-Term Borrowings

46,303,300,000

47,093,800,000

40,175,500,000

Other Non-Current Financial Debts

681,000,000

901,000,000

1,401,000,000

Confirmed Salaries

6,636,747,828

6,490,184,488

6,333,857,189

Deferred Income Tax Credit

3,355,615,242

3,527,058,763

3,898,292,571

Capital Stock

19,845,000,000

19,845,000,000

19,845,000,000

Capital Surplus

16,471,230,652

16,471,230,652

16,471,230,652

Others

-215,808,501

-234,008,320

0

Profit Surplus

114,582,018,552

116,475,556,403

113,054,870,755

Total Equity

150,682,440,703

152,557,778,735

149,371,101,407

Liab. & Shareholder’s Equity

291,506,350,355

299,636,101,977

275,142,410,845

 

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

51,990,921,346

195,608,651,248

209,220,119,998

Cost of Sold Goods

49,731,539,769

171,786,085,069

186,061,351,749

Gross Profit

2,259,381,577

23,822,566,179

23,158,768,249

Selling & Admin. Expenses

4,158,393,755

15,467,149,880

15,995,110,370

Operating Income

-1,899,012,178

8,355,416,299

7,163,657,879

Other Income

2,166,542,091

1,875,959,685

2,020,543,698

Other Expenses

20,558,525

1,033,364,962

509,266,527

Finance Income

48,298,925

202,179,772

274,427,522

Finance Expenses

993,993,271

3,934,892,644

3,973,832,474

Profits from investment

0

-91,130,390

0

Income Before Taxes

-698,722,958

5,374,167,760

4,975,530,098

Income Taxes Expenses

4,114,893

656,926,572

657,457,825

Net Income

-702,837,851

4,717,241,188

4,318,072,273

 

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

1,696,582,183

19,580,543,544

19,223,079,636

Net Income

-702,837,851

4,717,241,188

4,318,072,273

Adjustment

3,623,275,950

20,833,868,297

20,471,293,838

Changes in Asset/ & Liability

-962,678,257

-5,971,154,476

-3,162,863,585

Interests Received

29,120,355

156,205,093

209,285,796

Income Taxes

-290,298,014

-155,616,558

-2,612,708,686

Cash Flows from Investing

7,857,661,664

-36,159,521,577

-17,390,397,801

Cash Flows from Financing

-8,679,216,908

15,776,911,352

-2,148,146,307

Increase/Decrease in Cash

875,026,939

-802,066,681

-315,464,472

Cash at the Beginning of Year

956,135,898

1,761,419,668

2,085,282,860

Cash at the End of Year

1,830,820,134

956,135,898

1,761,419,668

 

 

Products, Technologies, Services Description

 

Main Products & Services

Corrugate Medium Paper, Taste Linner Paper, Two Sides Paper

 

Brand Name : CK

Production Capacity (Unit : Ton)

Item

09/2010

2009

2008

Linner Paper

194,250

259,000

259,000

Corrugate Medium Paper

138,600

184,800

184,800

Total

332,850

443,800

443,800

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

 

Customers

 

Competitors

SHINDAEYANG PAPER CO., LTD.(130111-0008789)

ASIA PAPER MANUFACTURING CO., LTD.(110111-0006274)

ASIA PAPERTEC INC.(134111-0000939)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TAILIM PACKAGING IND. CO., LTD.(130111-0010015)

(9.89% held by the subject company)

 

TAESUNG INDUSTRIAL CO., LTD.(175111-0000229)

(25.00% held by the subject company)

 

KORENSO KOREA CO., LTD.(135511-0158234)

(15.33% held by the subject company)

 

DONG-GWANG PANJI CO., LTD.(135511-0184958)

(25.00% held by the subject company)

 

J. TAUSEND INC.(110111-2767626)

(25.00% held by the subject company)

 

AP TECHNOLOGY CO., LTD.(135811-0075747)

(31.83% held by the subject company)

 

DONGIL PACKAGE CO., LTD.(131411-0169071)

(49.00% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

WALLSAN CO., LTD.(135011-0054557)

(50.06% held by the subject company)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

09/2010

2009

2008

Export

2,533,612

9,851,726

4,610,533

Domestic

155,035,008

148,980,817

161,728,947

Total

157,568,620

158,832,543

166,339,480

 

 

Court Action

 

No.

 

 

News Clipping

 

-------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.61

UK Pound

1

Rs.99.79

Euro

1

Rs.71.17

 

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