MIRA INFORM REPORT

Report Date :

21.10.2011

IDENTIFICATION DETAILS

Name :	BIONET CO., LTD.
Registered Office :	Rm. 1101, E&C Venture Dream Tower 3-cha 197-33, Guro 3-dong, Guro-gu, Seoul, Korea 152-719
Country :	South Korea
Financials (as on) :	31.12.2010
Date of Incorporation :	05.10.1999
Com. Reg. No.:	120-81-94209
Legal Form :	Co., Ltd by Shares
Line of Business :	Manufacture of Electro-Diagnostic and Therapy Apparatuses

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
South Korea	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Basic Information

Company Name	BIONET CO., LTD. (Korean Company Name : “(주)바이오넷”)
Registered Address	197-33, Guro 3-dong, Guro-gu, Seoul, Korea
Building	Rm. 1101, E&C Venture Dream Tower 3-cha
Zip Code	152-719
Tel	+82-70-7585-6434
Fax	+82-2-6499-7789
E-mail	sales@ebionet.com
Website	www.ebionet.com
Trading Address	Rm. 1101, E&C Venture Dream Tower 3-cha, 197-33, Guro 3-dong, Guro-gu, Seoul, Korea
Tel	+82-70-7585-6434
Fax	+82-2-6499-7789
Other Address-Uiwang Factory	124-3, Ojeon-dong, Uiwang-si, Gyeonggi-do, Korea
Type	Export
Industry	Manufacture of Electro-Diagnostic and Therapy Apparatuses
Main Business	Electrocardiographs, Fetal Monitors
Sub Business
Established (mm/dd/yyyy)	10/05/1999

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Acute care monitoring units and related products(42181900)
Sell	Electrocardiography EKG units(42181701)
Sell	Blood pressure units and related products(42181600)
Sell	Fetal or gynecological ultrasound or echo units(42201702)
Sell	Electrocardiography EKG units(42181701)

CEO’s

Name	Kang Dong-Joo
Address	Suite 504-203, 27, Jamsil-dong, Songpa-gu, Seoul, Korea
Date of Birth	10/27/1962
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

2,910,135,000

Employees

55

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Industrial Bank of Korea

Korea Exchange Bank

Woori Bank

Corporate Registered No.

110111-1782766

Business Registered No.

120-81-94209

Permit & Licenses

07/2005 CSA

10/2002 ISO 9001

03/2002 ISO 9002

02/2002 CE Mark

06/13/2001 KT Mark

06/2000 CE Mark

06/2000 ISO 9003

Int’l Trade No.: 11712253

Shareholder Position

Name	Shares	%
KANG DONG-JOO	56,459	9.70
UBCARE CO., LTD.(110111-1105364)	56,063	9.63
KOREA DEVELOPMENT BANK(110135-0000937)	50,000	8.59
DAEWOONG CO., LTD.(131111-0000271)	37,245	6.40
DAEWOONG PHARMA CO., LTD.(134811-0075342)	37,245	6.40
MEDISON CO., LTD.(KOREA)	24,935	4.28
JI YOUNG-JOON	23,700	4.07
GENEXEL-SEIN INC.(134111-0030316)	23,617	4.06
KIM SUN-IL	21,363	3.67
SONG KWANG-SEOK	18,369	3.16
OTHERS	233,031	40.04
TOTAL	582,027	100.00

Company History

10/05/1999 Incorporated as the present name

02/2000 Designated as a Venture Business

09/2001 Designated as an INNO-BIZ Company

01/11/2005 Moved to the present HQ address from 188-5, Guro-dong, Guro-gu, Seoul, Korea

11/2005 Awarded US$ 5 Million Export Top Prize

07/31/2007 Increased capital to 2,910,135,000 KRW from 2,903,535,000 KRW

03/28/2008 Increased the authorized shares to 3,000,000 shares from 1,000,000 shares

11/25/2010 Designated as a Venture Business again

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kang Dong-Joo	Male	Korean	10/05/1999
Director	Mr.	Song Kwang-Seok	Male	Korean	03/30/2008
Director	Mr.	Kim Kwui-Nam	Male	Korean	03/31/2006
Director	Mr.	Lee Min-Hwa	Male	Korean	03/27/2009
Director	Mr.	Seo Hyun-Yeol	Male	Korean	03/28/2011
Auditor	Mr.	Nah Yoon-Sang	Male	Korean	12/27/2002

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2010	14,204,700,221	22,664,127,682	720,171,658
2009	12,417,485,969	22,617,462,298	664,737,553
2008	11,586,481,255	21,429,991,554	640,732,748
2007	11,798,436,860	20,534,113,424	501,018,519
2006	11,129,458,939	20,152,725,376	434,992,035

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	2,910,135,000
Total Issued Shares	582,027

Balance Sheet

Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Total Assets	22,664,127,682	22,617,462,298	21,429,991,554
Current Assets	8,306,057,261	8,896,641,489	8,073,921,067
-Quick Assets	6,033,200,263	6,499,507,236	5,380,476,107
-Inventories	2,272,856,998	2,397,134,253	2,693,444,960
Fixed Assets	14,358,070,421	13,720,820,809	13,356,070,487
-Investment	5,557,725,378	5,441,260,997	5,477,207,316
-Tangibles	4,244,413,008	4,067,698,222	4,195,049,883
-Intangibles	4,538,359,481	4,194,289,036	3,675,992,288
-Others	17,572,554	17,572,554	7,821,000
Total Liabilities	10,938,929,656	11,514,410,795	11,066,990,935
Current Liabilities	7,263,949,081	6,802,874,737	7,173,817,576
Fixed Liabilities	3,674,980,575	4,711,536,058	3,893,173,359
Capital Stock	2,910,135,000	2,910,135,000	2,910,135,000
Capital Surplus	5,175,175,971	5,175,175,971	5,175,175,971
Profit Surplus	2,932,825,464	2,212,653,806	1,547,916,253
Capital Adjustment	707,061,591	805,086,726	729,773,395
Total Equity	11,725,198,026	11,103,051,503	10,363,000,619
Liab. & Shareholder’s Equity	22,664,127,682	22,617,462,298	21,429,991,554

Current Liabilities	7,263,949,081	6,802,874,737	7,173,817,576
Trade Payables	1,575,486,130	1,676,119,073	1,387,569,028
Short-Term Borrowings	4,019,538,956	3,470,000,000	2,498,908,298
Account Payables	251,723,560	621,114,970	317,524,069
Advance Receipts	72,647,389	142,836,439	142,197,215
Withholdings	27,994,420	28,848,500	27,847,690
Accrued Expenses	10,927,908	14,590,795	42,567,173
Current Portion of Long-Term Debts	805,592,440	673,164,960	633,470,640
Current Portion of Bond With Warrant	400,000,000	-	2,000,000,000
Current Portion of Long-Term Account Payables	116,200,000	176,200,000	89,960,000
Current Portion of Finance Lease Debts	-	-	33,773,463
Fixed Liabilities	3,674,980,575	4,711,536,058	3,893,173,359
Bond With Warrant	500,000,000	1,200,000,000	-
Long-Term Borrowings	1,541,392,440	2,365,329,920	2,919,411,920
Provision for Severance & Retirement	951,590,287	807,305,736	632,587,439
Current Portion of Long-Term Account Payables	702,200,000	409,867,000	341,174,000

Income Statement

Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Sales	14,204,700,221	12,417,485,969	11,586,481,255
Cost of Sold Goods	7,572,430,739	5,753,326,764	6,198,674,514
Gross Profit	6,632,269,482	6,664,159,205	5,387,806,741
Selling & Admin. Expenses	5,147,884,292	4,883,371,415	3,739,580,654
Operating Income	1,484,385,190	1,780,787,790	1,648,226,087
Non-Operating Income	357,086,333	250,367,628	660,917,052
Non-Operating Expenses	1,121,299,865	1,366,417,865	1,655,369,975
Income Before Taxes	720,171,658	664,737,553	653,773,164
Income Taxes Expenses	-	-	13,040,416
Net Income	720,171,658	664,737,553	640,732,748

Cash Flows

Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Cash Flows from Operating	1,461,434,022	1,356,308,758	2,151,552,998
-Net Income	720,171,658	664,737,553	640,732,748
-Exp. without Cash Outflow	1,054,386,290	994,639,579	989,628,849
-Revenue without Cash Inflows	-154,912,426	-8,926,938	-50,665,824
-Changes in Asset/ & Liability	-158,211,500	-294,141,436	571,857,225
Cash Flows from Investing	-3,729,328,199	-2,915,419,637	-2,742,876,608
-Cash Inflow from Investing	528,973,300	1,256,821,485	1,794,125,267
-Cash Outflows for Investing	-4,258,301,499	-4,172,241,122	-4,537,001,875
Cash Flows from Financing	939,500,836	1,445,085,599	1,145,924,586
-Cash Inflows from Financing	2,019,332,796	2,934,091,702	2,877,000,000
-Cash Outflows from Financing	-1,079,831,960	-1,489,006,103	-1,731,075,414
Increase/Decrease in Cash	-1,328,393,341	-114,025,280	554,600,976
Cash at the Beginning of Year	2,376,126,582	2,490,151,862	1,935,550,886
Cash at the End of Year	1,047,733,241	2,376,126,582	2,490,151,862

Products, Technologies, Services Description

Main Products & Services

Electrocardiographs, Fetal Monitors

Trade Partners & Competitors

Competitors

DONGBANG HEALTHDYNE CO., LTD. 3RD FL., UNICON BLDG., 140-17, SAMSEONG 2-DONG, GANGNAM-GU, SEOUL, KOREA TEL:+82-2-566-9966 FAX:+82-2-566-9963 PATIENT MONITOR YONGHYEON INDUSTRIAL COMPLEX, 522-6, YONGHYEON-DONG, UIJEONGBU-SI, GYEONGGI-DO, KOREA TEL:+82-31-853-1522 FAX:+82-31-853-1525 MGB ENDOSCOPY CO., LTD. RM. 1101, E&C VENTURE DREAM TOWER 3-CHA, 197-33, GURO 3-DONG, GURO-GU, SEOUL, KOREA TEL:+82-70-7585-6444 FAX:+82-2-6300-6417

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	MGB ENDOSKOPISCHE GERATE GMBH (31.10% held by the subject company)
Subsidiary	MGB ENDOSCOPY CO. LTD.(110111-1599484) (98.56% held by the subject company) BIONET AMERICA INC. (100.0% held by the subject company) VETFRIEND.COM. INC. (100.0% held by the subject company) BIONET LATIN AMERICA (100.0% held by the subject company) MBIO INTERNATIONAL CO., LTD.(110111-3649401) (100.0% held by the subject company) BIONET LATIN AMERICA (100.0% held by the subject company)

Sales by Region

(Activity & Markets)

The Subject exports to China, Germany and USA.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.71
UK Pound	1	Rs.78.08
Euro	1	Rs.68.05

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.