Chapter 394: 394
Chapter 394: Debt Ratio (1) – Part 1
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When Gun-Ho and Young-Eun finished their dinner, a waiter came to their table and asked, “Did you enjoy your dinner? Do you mind if I clean the table?”
“Of course not . Please do so . ”
Once the waiter took empty plates from the table, Gun-Ho asked Young-Eun,
“Why don’t we take a walk? It will aid digestion . ”
“I have to go back to the hospital . Since this restaurant is close to where I work, I might run across my colleagues on the street . ”
“What about having a glass of beer?”
“Can we just stay here until we part?”
Young-Eun looked at her watch .
Gun-Ho wanted to spend more time with her, but she seemed to want to call it a night . Gun-Ho didn’t want to lose his chance to get closer to her .
Gun-Ho wondered . ‘Does she not like me?’
“Let’s at least have a cup of coffee before we call it a night . ”
Gun-Ho quickly brought two cups of coffee from a vending machine inside the restaurant before Young-Eun could say no . While having a cup of coffee, Young-Eun asked Gun-Ho, “I heard you went to college in China . ”
“That’s right . I went to Zhejiang University . ”
“Did you study the Chinese language there?”
“No, I majored in Economics . ”
“You must be fluent in Chinese . ”
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“I can converse in Chinese . ”
Silence filled the air . This time, Gun-Ho broke the silence by asking Young-Eun, “How do you spend your Sundays? Do you go to church by any chance?”
“I usually do my laundry, and sometimes I take a walk too . ”
“You take a walk? Where do you usually take a walk?”
“My usual place is the Fortress Wall of Seoul . ”
Gun-Ho asked her again while having his cup of coffee, “Which path do you take to get there?”
“When I go there by myself, I take the road from the Hyehwa four-way intersection . With friends, I get off from the next subway station at Hansung University Station . ”
“Hansung University Station?”
“Yes, we pass the Starbucks and take the street behind Gyeongsin High School . ”
“I see . I like walking around Fortress Wall of Seoul as well . ”
Gun-Ho lied without realizing what he was saying . His hobby was taking a nap, not taking a walk .
When Gun-Ho almost finished his coffee, he took out his business card .
“This is my business card . ”
Young-Eun Kim closely looked at Gun-Ho’s business card . It listed three different companies: GH Development, GH Mobile, and Dyeon Korea . Gun-Ho was the president of all three companies .
Gun-Ho then handed a pen and a piece of paper to Young-Eun, and he said, “Let me have your phone number since I gave my business card to you . I’d like to contact you if I have a question about my mother’s condition . ”
Young-Eun hesitated a bit before giving her phone number to Gun-Ho . Since now, Gun-Ho had her number and he felt like the relationship was going forward . Young-Eun stood up from her seat once she finished her coffee, and said, “Let’s go . ”
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“Thank you for having dinner with me . I’m afraid that I might take too much of your time today . I hope I could have a chance to join you in taking a walk around Fortress Wall of Seoul someday . ”
Gun-Ho and Young-Eun walked out of the restaurant after Gun-Ho paid for the dinner at the counter .
“Thank you for the dinner . Well, bye . ”
Young-Eun gave a slight nod to Gun-Ho with a faint smile . Gun-Ho gave a firm nod to Young-Eun showing his respect .
“Good night . I will give you a call . ”
Young-Eun turned around and walked off in the direction of Hyehwa Town .
Gun-Ho walked to the parking lot where Chan-Ho would be waiting for him in his Bentley . Chan-Ho was listening to the music in the car .
“Huh? You came earlier than I expected, sir . ”
“You ate, right?”
“Yes, I did . Sir, you seem to be feeling pleasant . ”
“What are you talking about? Let’s go to my pleasant home!”
Gun-Ho felt good on the way home . He felt like everything would go very well .
It was the day when Gun-Ho was supposed to receive the third quarterly report of GH Mobile on its profit and loss .
All of the GH Mobile’s executive officers gathered in Gun-Ho’s office .
The internal auditor distributed relevant documents to the meeting attendees before he began to give the verbal report . Jong-Suk started fiddling with his cup of water in front of him . He must have felt bored when the internal auditor started talking with too many numbers .
Gun-Ho, who was looking at Jong-Suk, said, “Director Jong-Suk Park, please pay attention . ”
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“Huh? Oh, yes, sir . Of course . ”
Director Jong-Suk Park sat straight and tried to focus on hearing the internal auditor’s report . When other people were present at work, Director Jong-Suk Park couldn’t talk to Gun-Ho in an informal way . He couldn’t even call him brother either .
After the meeting ended, everyone left the office except President Jang-Hwan Song .
After making sure that everyone was out, President Song started speaking while having a bottle of water, “Sir, when you acquired this company, you invested 2 billion won . And you added an additional 3 billion won later . ”
“That’s correct . ”
“As the internal auditor presented during the meeting, our debt has been reduced from 70 billion won to 60 billion won . ”
“I heard that . ”
“The paid-in capital of this company is 2 . 5 billion won . Mulpasaneop was left with 500 million won after its reduction of capital, and you added 2 billion to it when you acquired the company . That made its current paid-in capital 2 . 5 billion won . ”
“That’s correct . ”
“The president of Mulpasaneop left the company after collecting his shares of 500 million won and his investment fund of 1 . 5 billion won, a total of 2 billion won . ”
“That’s right . ”
“You then put your 3 billion won into this company in order to pay off bad and urgent debts . This fund of 3 billion won which was deposited from you as the president of this company is listed under the liability account . That’s why even though we paid off some of our outstanding balance to our vendors, our debt doesn’t appear to be reduced . ”
“Hmm . ”
“Our company doesn’t have much earned surplus yet . Accordingly, if we divide the total liabilities by the sum of the paid-capital and the earned surplus in order to calculate our debt ratio, we come up with more than 400% . ”
“Hmm . ”
“We will have to make more effort to reduce the debt ratio . ”
“So, you are suggesting that I capitalize on the 3 billion won that I previously put into this company in order to reduce our debt ratio . ”
“I’m sorry, sir . It’s not something I can suggest or ask you to do so since it’s your call as an investor to this company . I’m just telling you the current status of this company’s financial situation . ”
“Hmm . ”
“You could take your dividend at the end of each year along with your investment fund of 30 billion won . The company will still survive . However, it will prolong the preparation time to have this company go public . ”
“Hmm . ”
“The reason I’m telling you this now is that we failed to get a work from L Group yesterday . They determined that our company has financial stability issues because our debt ratio is way too high . I just want you to consider this current situation . ”
“What is the average debt ratio in the industry?”
“It’s 160% . ”
“Hmm . They require a company to keep its debt ratio 1 . 5 times lower than the industrial average debt ratio in order to successfully register with KOSDAQ, don’t they?”
“That’s correct . ”
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