MIRA INFORM REPORT

Report Date :

27.04.2012

IDENTIFICATION DETAILS

Name :	KYUNGIN SYNTHETIC CORPORATION
Registered Office :	223-52, Seongnam-dong, Seo-gu, Incheon, Korea, Zip Code 404-220
Country :	South korea
Financials (as on) :	31.12.2011
Date of Incorporation :	14.10.1977
Com. Reg. No.:	137-81-00562
Legal Form :	Listed Company
Line of Business :	Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents
No. of Employees :	378

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 :	Usually 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^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

Company Name	KYUNGIN SYNTHETIC CORPORATION (Trade Name: KISCO) (Korean Company Name : “(주)경인양행”)
Registered Address	223-52, Seongnam-dong, Seo-gu, Incheon, Korea
Zip Code	404-220
Tel	+82-32-571-7498
Fax	+82-32-571-7497
E-mail	kisco@kyungin.co.kr
Website	www.kyungin.co.kr
Trading Address	112-31, Yeomchang-dong, Gangseo-gu, Seoul, Korea
Tel	+82-2-3665-4001
Fax	+82-2-3660-8539
Other Address-Siheung Factory	1Ra-706, Sihwa Industrial Complex, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea
Tel	+82-31-499-4020
Fax	+82-31-499-2155
Other Address-Ansan Factory	785-7, Wonsi-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea
Tel	+82-31-491-0111
Fax	+82-31-495-3521
Type	Export/Import
Industry	Manufacture of Synthetic Colouring Matter, Tanning Materials and Other Coloring Agents
Main Business	Reactive Dyestuffs, Disperse Dyestuffs, Acid Dyestuffs, Direct Dyestuffs, Fluorescent Dyestuffs, Solvent Dyestuffs
Sub Business	Food, Food Additives, Ginseng Products
Established (mm/dd/yyyy)	10/14/1977

The Subject owns the premises of registered address/ Factory(4,826.0), Siheung Factory(6,694) and Ansan Factory (5,600).

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Dyes(12171500) -Colorants
Sell	Reactives (Bifunctional, Vinylsulfone)
Sell	Disperse(Synolon Dyes, Papilion Dyes)
Sell	Direct(Fast yellow, Black)
Sell	Acid(Syno Acid Dyestuffs)
Sell	For Leather(Brown, Black, Others)
Sell	OBA (Cotton & Rayon, Nylon, Pulp & Paper, Detergent, Polyester)
Sell	Solvent Dyes
Buy	P-Base
Buy	H-ACID

CEO’s

Name	Kim Heung-Joon
Address	-
Date of Birth	06/14/1967
Title	Vice Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

18,750,000,000 KRW

Employees

378

Formation

Listed Company (Korea Stock Exchange : 012610 ) as of 10/05/1995

Foreign Direct Investment Corporation

Bank Details

Industrial Bank of Korea-Youngdungpo Branch

Citibank, Korea-Youngdungpo Branch

Shinhan Bank

Corporate Registered No.

120111-0005703

Business Registered No.

137-81-00562

Permit & Licenses

05/31/1995 ISO 9002

11/30/1997 ISO 14001

Int’l Trade No.: 860477

Shareholder Position

Name	Shares	%
KIM HEUNG-JOON	8,008,260	21.36
SUMITOMO CORP	7,159,180	19.09
KIM DONG-KIL	2,152,801	5.74
KIM SEOK-IM	984,580	2.63
KIM SUNG-YEON	1,190,340	3.17
EASTWELL CO., LTD.(110111-0900525)	979,940	2.61
TREASURY STOCK	405,580	1.08
OTHERS	16,619,319	44.32
TOTAL	37,500,000	100.00

Company History

10/1971 Established Syno Chemical Industrial Co., Ltd.

08/1976 Founded Samjung Industrial Co., Ltd.

10/1976 Renamed Syno Chemical Industrial Co., Ltd. to Kyung-In Chemical Co., Ltd.

10/1977 Changed Kyung-In Chemical Co., Ltd. to Kyung-In Synthetic Corporation (KISCO)

01/1978 Changed Samjung Industrial Co., Ltd. to Kyung-In Synthetic Co., Ltd. (KISC)

01/1978 Kim Dong-Gil inaugurated as chairman of the board of directors

06/1980 Dedicated KISCO's Seoul office building and the Dyestuff Research and Development Institute

03/1983 KISCO installed a spray dryer for the first time in Korea.

08/1984 KISCO designated as an outstanding small and medium-sized industrial firm by Korea Industrial Research Institute

09/1984 Dedicated the Ansan Factory of KISC

11/1987 KISCO awarded US$5 Million Export Tower from the government and the Prime Minister Award

12/1987 KISCO presented the Best Industry Award (at the award ceremony of the first National Science Award)

02/1988 Dedicated the expanded Ansan Factory of KISC

04/1988 KISC signed a technical cooperation agreement with Showa Kako Corporation of Japan.

10/1988 KISCO'S Dyestuff Institute designated by the government as a research institute whose workers are exempted from the active military service

11/1988 KISCO received the US$10 Million Export Tower

12/1988 KISCO's new chemical product registered with Japanese government according to Japan'schemical substance control law.

08/1989 KISCO acquired Samwon Chemical Industrial Co., Ltd.

10/1989 KISCO dedicated low-cost apartments for the employees in Inchon; KISC built low-cost apartments for the employees in Ansan

11/1989 KISC received the US$5 Million Export Tower

12/1989 Dedicated the expanded Seoul office of KISCO

08/1992 KISC acquired equity of Rachada Chemicals Co., Ltd. based in Thailand

11/1992 Founded Eastwell Co., Ltd.

12/1994 KISCO received the 12th Venture Business Award

05/1995 KISCO acquired ISO 9002 Quality Assurance Certificate from Lloyd's Register Q.A. of the United Kingdom

07/1995 KISCO awarded the Korea Textile Grand Prize in the Dyestuff and Pigment Division

10/1995 KISCO stocks listed on the Korea Stock Exchange (Paid-in capital: 6.5 billion won)

04/1996 KISCO acquired equity of Namo Interactive Inc.

06/1996 KISCO won Textile Industry Grand Award in Dyestuff and Pigment Division

03/1997 KISCO received a citation from the West Inchon Tax Office on Taxation Day.

05/1997 KISCO received a citation from the Prime Minister on Labor Day.

05/1997 KISCO established Turkey joint ventures Kimsoy Chemical Industries, Inc. and Kimsoy Exim, Inc.

05/1997 KISCO established United States joint-venture KISCO USA, Inc.

06/1997 KISCO signed a Strategic Alliance Agreement with Sumitomo Chemical Co., Ltd. of Japan for overall cooperation in dyestuff technology and production

06/1997 KISCO established Joint Ventures PAPITECH.CO., Ltd.

11/1997 KISCO received Bronze Tower Medal on Export Award Day.

12/1997 KISCO received ISO 14001 (KSA QA)

08/1998 KISCO signed the sale contract for Disperse dyestuffs with Ciba-Geigy of Switzerland.

12/1998 KISC merged into KISCO.

07/1999 KISCO was admitted to the membership of ETAD

07/1999 KISCO launched in an environmental business (Green Systems Engineering Services)

05/2000 KISCO made the investment into YangWoo corporation

Management

Job Description	Title	Name	Nationality	Date of Birth	Education & Career
Vice Chairman & CEO	Mr.	Kim Heung-Joon	Korean	1967.06.14	Hanyang University, Korea
Chairman	Mr.	Kim Dong-Kil	Korean	1938.03.03	Seoul National University, Korea
President	Mr.	Huh Dadvid Jeong-Sun	Korean	1965.11.02	Dowling College MBA
Vice President	Mr.	Cho Sung-Yong	Korean	1968.11.04	Seoul National University, Korea
Director	Mr.	Park Jang-woo	Korean	1952.07.13	Sumitomo Corp.
Outside Director	Mr.	Chang Sang-Jae	Korean	1936.10.10	Seoul National University, Korea
Outside Director	Mr.	Kim Jeong-Hong	Korean	1937.08.08	Seoul National University, Korea
Auditor	Mr.	Sung Nak-Gwan	Korean	1936.01.03	Seoul National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)2011	128,707,611,144	245,825,939,561	2,788,642,280
(*)2010	149,007,815,759	250,809,033,564	3,367,162,134
2009	129,006,385,709	218,551,978,762	11,569,545,044
2008	125,462,289,226	163,333,430,906	12,873,680,246
2007	93,016,593,682	120,854,546,914	4,246,011,551
2006	84,978,240,253	95,503,927,506	883,371,290
2005	88,050,292,316	100,565,451,354	2,533,411,044
2004	95,832,343,219	92,524,130,882	4,301,525,438
2003	129,006,385,709	218,551,978,762	11,569,545,044

(*)2011and 2010‘s figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	25,000,000,000
Paid-Up Capital(KRW)	18,750,000,000
Total Issues Shares	37,500,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	245,825,939,561	250,809,033,564
Current Assets	99,039,936,815	104,532,345,363
Cash & Cash Equivalents	1,889,398,488	2,315,063,261
Current Financial Instruments	86,839,759	86,839,759
Trade Receivables & Other Receivables	43,619,403,706	47,788,947,007
Other Current Financial Instruments	550,768,276	263,380,326
Inventories	51,423,188,073	51,843,016,885
Other Current Non-Financial Instruments	1,470,338,513	2,235,098,125
Non-Current Assets	146,786,002,746	146,276,688,201
Non-Current Financial Instruments	105,395,514	53,729,740
Marketable Financial Instruments	917,448,292	1,047,816,821
Held-to-Maturity Financial Assets	25,420,000	25,420,000
Investment_Related Companies	67,519,815,173	67,519,815,173
Tangibles	69,431,560,262	68,435,611,169
Investment_Real Estates	1,673,379,773	2,049,469,938
Intangibles	968,875,032	971,634,660
Other Non-Current Financial Instruments	6,144,108,700	6,173,190,700
Total Liabilities	86,943,666,685	93,123,885,144
Current Liabilities	64,682,273,575	71,223,637,582
Trade Payables & Other Payables	11,456,888,957	14,240,067,764
Short-Term Borrowings	46,049,234,377	51,789,283,871
Current Portion of Long-Term Debts	3,712,900,000	1,746,350,000
Other Current Financial Debts	2,890,756,758	2,457,515,919
Accrued Income Tax	90,765,335	81,814,178
Other Current Liabilities	481,728,148	908,605,850
Non-Current Liabilities	22,261,393,110	21,900,247,562
Long-Term Borrowings	13,856,450,000	13,492,700,000
Deferred Income Tax Credit	8,404,943,110	8,407,547,562
Capital Stock	18,750,000,000	18,750,000,000
Capital Surplus	27,926,478,099	27,926,478,099
Others	-1,735,533,275	-2,022,273,816
Installments	-288,953,646	-255,695,281
Profit Surplus	114,230,281,698	113,286,639,418
Total Equity	158,882,272,876	157,685,148,420
Liab. & Shareholder’s Equity	245,825,939,561	250,809,033,564

Balance Sheet
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Total Assets	236,560,209,629	218,551,978,762	163,333,430,906
Current Assets	90,862,893,260	77,705,248,004	82,394,043,287
-Quick Assets	39,019,876,375	33,635,095,821	38,838,524,196
-Inventories	51,843,016,885	44,070,152,183	43,555,519,091
Fixed Assets	145,697,316,369	140,846,730,758	80,939,387,619
-Investment	77,099,858,354	75,142,811,845	52,652,550,934
-Tangibles	66,912,582,655	64,029,450,373	26,576,493,901
-Intangibles	2,759,628	7,352,808	13,316,052
-Others	1,682,115,732	1,667,115,732	1,697,026,732
Total Liabilities	84,421,398,946	69,220,644,765	62,800,403,476
Current Liabilities	56,663,018,716	50,191,795,373	52,864,562,994
Fixed Liabilities	27,758,380,230	19,028,849,392	9,935,840,482
Capital Stock	18,750,000,000	18,750,000,000	18,700,000,000
Capital Surplus	29,230,490,925	29,230,490,925	29,516,813,688
Profit Surplus	62,200,842,329	57,739,570,655	48,005,025,611
Capital Adjustment	41,957,477,429	43,611,272,417	4,311,188,131
Total Equity	152,138,810,683	149,331,333,997	100,533,027,430
Liab. & Shareholder’s Equity	236,560,209,629	218,551,978,762	163,333,430,906

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	128,707,611,144	149,007,815,759
Cost of Sold Goods	109,831,812,699	129,714,311,973
Gross Profit	18,875,798,445	19,293,503,786
Selling & Admin. Expenses	16,999,541,036	18,592,720,171
Operating Income	1,876,257,409	700,783,615
Finance Income	2,352,691,278	3,668,907,914
Finance Expenses	2,415,785,356	1,923,689,286
Non-Operating Income	3,945,518,464	4,550,066,415
Non-Operating Expenses	2,829,726,858	3,657,771,000
Income Before Taxes	2,928,954,937	3,338,297,658
Income Taxes Expenses	140,312,657	-28,864,476
Net Income	2,788,642,280	3,367,162,134

Income Statement
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Sales	149,007,815,759	129,006,385,709	125,462,289,226
Cost of Sold Goods	129,904,427,702	107,172,866,646	100,415,343,171
Gross Profit	19,103,388,057	21,833,519,063	25,046,946,055
Selling & Admin. Expenses	18,592,720,171	16,888,627,498	17,002,871,257
Operating Income	510,667,886	4,944,891,565	8,044,074,798
Non-Operating Income	12,685,494,747	20,436,719,242	28,619,130,110
Non-Operating Expenses	6,970,488,002	11,813,481,461	21,917,039,339
Income Before Taxes	6,225,674,631	13,568,129,346	14,746,165,569
Income Taxes Expenses	-93,597,043	1,998,584,302	1,872,485,323
Net Income	6,319,271,674	11,569,545,044	12,873,680,246

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Operating Activities Cash Flows	10,022,891,410	-12,213,959,377
Net Income	2,788,642,280	3,367,162,134
Adjustment	7,604,414,312	-17,665,904,135
Interests Received	55,025,011	317,602,795
Dividends Received	2,114,591,858	3,376,094,248
Interests Paid	-2,415,196,663	-1,810,850,027
Income Taxes	-124,585,388	201,935,608
Cash Flows from Investing	-4,871,099,509	-6,741,432,509
Cash Flows from Financing	-5,585,049,494	18,815,730,941
Increase/Decrease in Cash	-433,257,593	-139,660,945
Cash at the Beginning of Year	2,315,063,261	2,472,795,074
Cash at the End of Year	1,889,398,488	2,315,063,261

Cash Flows
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Cash Flows from Operating	-15,404,457,745	17,573,797,332	-1,222,759,088
-Net Income	6,319,271,674	11,569,545,044	12,873,680,246
-Exp. without Cash Outflow	7,500,888,637	9,561,324,899	13,585,686,761
-Revenue without Cash Inflows	-8,356,973,454	-14,860,406,529	-25,169,639,162
-Changes in Asset/ & Liability	-20,867,644,602	11,303,333,918	-2,512,486,933
Cash Flows from Investing	-3,569,005,009	-442,142,768	-16,345,471,519
-Cash Inflow from Investing	34,779,929,121	47,695,442,352	17,293,986,128
-Cash Outflows for Investing	-38,348,934,130	-48,137,585,120	-33,639,457,647
Cash Flows from Financing	18,815,730,941	-16,638,710,700	18,360,064,537
-Cash Inflows from Financing	23,496,116,797	2,433,345,000	21,026,222,077
-Cash Outflows from Financing	-4,680,385,856	-19,072,055,700	-2,666,157,540
Increase/Decrease in Cash	-157,731,813	492,943,864	791,833,930
Cash at the Beginning of Year	2,472,795,074	1,979,851,210	1,188,017,280
Cash at the End of Year	2,315,063,261	2,472,795,074	1,979,851,210

Products, Technologies, Services Description

Main Products & Services

Manufacturer of Reactive dyes for cotton, rayon & wool, Disperse dyes for polyester, acetate, triacetate & micro fiber, O.B.A. for paper, pulp, cotton, polyester, nylon, acrylic & detergent, Acid dyes for nylon, silk, wool & leather, Direct dyes for paper, leather & cotton, Solvent dyes for polyester fiber, plastic, resin, master batch, Ink for color ink jet printer." Brand Name : Synozol

Trade Partners & Competitors

Customers	CIBA SPECIALTY CHEMICALS INC EASTWELL CO., LTD.(110111-0900525) YANGWOO CO., LTD.(115911-0018773)
Competitors	OH YOUNG INDUSTRIAL CO., LTD.(115611-0001071) RIFA INDUSTRIAL CO., LTD.(110111-0018138) M.DOHMENKOREA, LTD.(110111-2189953)

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	JMC CO., LTD.(124611-0284494) (83.50% held by the subject company) YANGWOO CO., LTD.(115911-0018773) (60.00% held by the subject company) EASTWELL CO., LTD.(110111-0900525) (38.96% held by the subject company) DAITO-KISCO CORPORTION(120111-0368466) (50.00% held by the subject company) KISCO SHANGHAI(CHINA) (100.00% held by the subject company) LIANYUNGANG KISCO(CHINA) (100.00% held by the subject company) KISCO USA(USA) (35.00% held by the subject company) KIMSOY CHEMICAL(TURKEY) (50.00% held by the subject company) KIMSOY EXIM(TURKEY) (50.00% held by the subject company) RACHADA CHEMICAL(THAILAND) (14.00% held by the subject company) NAMO  IT(THAILAND) (49.00% held by the subject company) DAITO KISCO (50% held by the Subject Company)
Subsidiary	JMC CO., LTD.(124611-0284494) (83.50% held by the subject company) YANGWOO CO., LTD.(115911-0018773) (60.00% held by the subject company) EASTWELL CO., LTD.(110111-0900525) (38.96% held by the subject company) LIANYUNGANG KISCO CHEMICAL CO., LTD. (100% held by the Subject Company) KISCO SHANGHAI (100.0% held by the Subject Company)
Cooperative Enterprise	SUMITOMO CHEMICAL-JAPAN T.H INT-USA -Insured Company GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

Sales by Region

(Activity & Markets)

Sales/ Unit : KRW	03/2010	2009	2008
Export	22,637,000,000	81,251,470,091	81,456,569,665
Domestic	11,916,000,000	47,754,915,618	44,005,719,561
Total	34,553,000,000	129,006,385,709	125,462,289,226

The subject deals with the companies in Pakistan, USA, Asian Countries and European Countries.

Court Action

No.

News Clipping

--

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.57
UK Pound	1	Rs.85.03
Euro	1	Rs.69.56

INFORMATION DETAILS

Report Prepared by :

MNL

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.