REG - Lotte Shopping CoLtd - 3rd Quarter Results <Origin Href="QuoteRef">023530.KS</Origin> - Part 4
03/03/2016 14:45
- Part 4: For the preceding part double click ID:nRSW9644Jc
The influence on the financial structure when classifying debt Debt ratio increased (from 66% to 69%, based on the data from the end of September, 2015.)
The influence on the financial structure when classifying debt
Debt ratio increased (from 66% to 69%, based on the data from the end of September, 2015.)
6. Sanctions and Fines
a. Lotte Shopping
In July 2013, the Seoul Regional Tax Office commenced a regular tax investigation into the Company and assessed additional
taxes, which were paid in full by the Company in February 2014.
b. Lotte Card
Business segment Company Date Sanction / fine Reason Measures taken to prevent reoccurrence
Card Lotte Card 2014.01.21 Advisory from the Financial Supervisory Service and imposition of fine (W500 million) Improper operation of board of directors.(Specialized Credit Finance Business Act Article 50) Strengthening of management of board of directors operation.
One employee was issued a "cautionary warning"
2014.02.11 Warning from the Financial Supervisory Service and imposition of fine (W1,000 Insurance solicitation with misleading information about insurance products.(Insurance Business Act Article 97) Employee training.
million)
One employee was issued an official "reprimand"
2014.02.16 Partial suspension of operations for 3 months from the Financial Services Commission Leaking of customer information.(Specialized Credit Finance Business Act Article 24, Use and Protection of Credit Information Act Article 19) Reinforcement of information security (physical and IT-related).
2014.10.28 Imposition of penalty surcharge (W50,000,000) and fine (W 6,000,000) from the Violation of the prohibited acts relating to credit card businesses, etc., Violation of duty to maintain sound business practice in recruiting credit card holders(Specialized Credit Finance Business Act Article 24, etc.) Reinforcement of relevant standards. Employee training.Strengthening of management supervision.
Financial Services Commission
Three managing directors- Former managing director (13 years and 7 months of tenure), an official "reprimand"-Former managing director (12 years of tenure), three months of salary reduction-Current managing director (15 years and 5 months of tenure), an official "reprimand"
2014.10.28 Two representative directors-Former representative director (5 years and 8 months of Lack of supervision and management with regard to developing and maintaining measures for personal credit information protection Replacement of representative directors.Strengthening of management supervision
tenure), an equivalent of "cautionary warning" -Former representative director (10
years and 11 months of tenure), an equivalent of recommendation of discharge
2014.10.28 Five managing directors-Former managing director (12 years of tenure), three months Neglectful supervision, development and management of security measures with regard to user personal information usage, Failing to convert user information when testing the electronic system.Lack of supervision, etc. Expansion of IT security infrastructures and work force.Regular employee training.Strengthening of internal regulation.
of salary reduction-Former managing director (7 years and 6 months of tenure), an
equivalent of an official "reprimand"-Former managing director (6 years and 4 months
of tenure), an equivalent of dismissal-Current managing director (10 years and 2
months of tenure), an official "reprimand"-Current managing director (10 years and 4
months of tenure), three months of salary reduction
2014.10.30 Imposition of fine (W 12,000,000) from the Ministry of Security and Public Violation of the rules relevant to personal information retention, etc. Regular employee training.Strengthening of internal regulation.
Administration
2015.02.12 Cautioned and imposition of fine (5 million Won)by the Financial Supervisor Service Failure to exhaustively manage and monitor the recruitment of members for issuance of credit card, etc. Full time educationfor the staffs and reinforcement of internal control
c. Woori Homeshopping
Distribution Woori Homeshopping 2015.03.25 Woori Homeshopping Act on Large Scale Distribution - non issuance of Correction order/notice order/penalty 37.4 billion won Paid penalty, organized TFT fair trade and took measures against disadvantages to subcontractors organized TFT fair trade (carried out making efforts in improving)
prior document and contract form (delayed issuance)
and advance oral order, delayed payment for sale
money, burden shift of costs for sales promotion,
demand of business management information and
provision of disadvantage through method of receipt
of fees and inducement of mobile order Period:
12.01.1~14.12.4
2015.05.14 Act on Signs and Advertisement- omission of significant information items notification: guide costs, selective tourist expenses and tourism products; important sign item in broadcastingPeriod: 14.09.01~11.09 Penalty : 62.50 million won Paid penalty and indication of omitted items Indicated omitted items
2015.06.12 Ecommerce Act- false and exaggerative ad in TV broadcasting sales/Liricos ample cosmetics- made false and exaggerative ad in broadcasting by pretending genuine cosmetics while giving sample ones. Period : 14.11.23 Correction order/penalty 8 million won Paid penalty/took disciplinary measures against responsible person through personnel committee Personnel committee carries out follow-up measures
(intensifying broadcasting and broadcasting review
process)
Correction order/penalty 8 million won
Paid penalty/took disciplinary measures against responsible person through personnel committee
Personnel committee carries out follow-up measures (intensifying broadcasting and broadcasting review process)
※ The above table summary does not include minor sanctions and fines.
C. Inventory Status
(Unit: million Won)
Department store Merchandise 1,635,709 1,645,156 1,406,355
Goods - - -
Goods in process - - -
Half-finished goods - - -
Raw materials - - -
Component materials - - -
Stored goods - - -
Goods not delivered - - -
Unsold property - - -
Completed property - - -
Uncompleted property - - -
Land site - - -
Sub-total 1,635,709 1,645,156 1,406,355
Discount store Merchandise 652,218 645,588 716,340
Goods - - -
Goods in process - - -
Half-finished goods - - -
Raw materials - - -
Component materials - - -
Stored goods 534 417 562
Goods not delivered 3,707 530 413
Unsold property 32,255 - -
Completed property - - -
Uncompleted property 465 23,756 36,068
Land site 1,643 16,061 35,130
Sub-total 690,822 686,352 788,513
Finance Merchandise 3,124 2,564 2,506
Goods - - -
Goods in process - - -
Half-finished goods - - -
Raw materials - - -
Component materials - - -
Stored goods - - -
Goods not delivered - - -
Unsold property - - -
Completed property - - -
Uncompleted property - - -
Land site - - -
Sub-total 3,124 2,564 2,506
Electronics Merchandise 447,155 357,113 339,729
Goods - - -
Goods in process - - -
Half-finished goods - - -
Raw materials - - -
Component materials - - -
Stored goods - - -
Goods not delivered - - -
Unsold property - - -
Completed property - - -
Uncompleted property - - -
Land site - - -
Sub-total 447,155 357,113 339,729
convenience store Merchandise 67,687 53,173 49,876
Goods - - -
Goods in process - - -
Half-finished goods - - -
Raw materials - - -
Component materials - - -
Stored goods 840 787 695
Goods not delivered - - -
Unsold property - - -
Completed property - - -
Uncompleted property - - -
Land site - - -
Sub-total 68,527 53,960 50,571
Others Merchandise 187,668 174,114 189,990
Goods 10,243 12,227 9,303
Goods in process 1,423 943 1,288
Half-finished goods - - -
Raw materials 1,655 873 1,166
Component materials 20 9 712
Stored goods 1,409 964 2,172
Goods not delivered 325 1,676 83
Unsold property - - -
Completed property - - -
Uncompleted property 288,183 225,103 322,104
Land site - - -
Sub-total 490,926 415,909 526,818
Total Merchandise 2,993,561 2,877,708 2,704,796
Goods 10,243 12,227 9,303
Goods in process 1,423 943 1,288
Half-finished goods - - -
Raw materials 1,655 873 1,166
Component materials 20 9 712
Stored goods 2,783 2,168 3,429
Goods not delivered 4,032 2,206 496
Unsold property 32,255 - -
Completed property - - -
Uncompleted property 288,648 248,859 358,172
Land site 1,643 16,061 35,130
Sub-total 3,336,263 3,161,054 3,114,492
Inventory as percentage of total assets (%) Inventory÷Assets×100 8.06% 7.89% 7.99%
Inventory turnover (times)[Annualized cost of sales÷{(Period start inventory＋Period end inventory)÷2}] 6.1 6.2 6.7
7.99%
Inventory turnover (times)[Annualized cost of sales÷{(Period start inventory＋Period end inventory)÷2}]
6.1
6.2
6.7
Due diligence of inventories
Business unit Department store Discount store Others
Date of due diligence 17 June,23 June ~ 24 June - 15 January - 26 March15 April - 30 June
※ The Company reviews its inventories in the presence of its independent auditors at the end of each financial year but not
for any interim period.
D. Securities Issuances
1. Amount of Outstanding Commercial Paper
(As of 30 September 2015)
(Unit: million Won)
Remaining maturity period Under 10 days Over 10 but under 30 days Over 30 but under 90 days Over 90 but under 180 days Over 180 days but under 1 year Over 1 but under 2 years Over 2 but under 3 years Over 3 years Total
Amount outstanding - 8,000 230,000 203,010 - - 115,000 150,000 706,010
2. Amount of electronic short-term debenture
(As of 30 September 2015)
(Unit: million Won)
Remaining maturity period Under 10 days Over 10 but under 30 days Over 30 but under 90 days Over 90 but under 180 days Over 180 days but under 1 year Total Limitations in issuance Limitations on balance
Amount outstanding - - - - - - - -
3. Amount of Outstanding Corporate Bonds
(As of 30 September 2015)
(Unit: million Won)
Remaining maturity period Under 1 year Over 1 but under 2 years Over 2 but under 3 years Over 3 but under 4 years Over 4 but under 5 years Over 5 but under 10 years Over 10 years Total
Amount outstanding 2,161,237 2,115,500 2,201,150 1,160,000 900,000 540,000 0 9,077,887
4. Amount of Outstanding Hybrid Securities
(As of 30 September 2015)
(Unit: million Won)
Remaining maturity period Under 1 year Over 1 but under 5 years Over 5 but under 10 years Over 10 but under 15 years Over 15 but under 20 years Over 20 but under 30 years Over 30 years Total
Amount outstanding - - - - - 270,000 - 270,000
5. Amount of Outstanding Conditional Capital Stocks Balance
(As of 30 September 2015)
(Unit: million Won)
Remaining maturity period Under 1 year Over 1 but under 2years Over 2 but under 3years Over 3 but under 4years Over 4 but under 5years Over 5 but under 10years Over 10 but under 20years Over 20 but under 30years Over 30 years Total
Amount outstanding - - - - - - - - - -
This information is provided by RNS
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