MIRA INFORM REPORT

Report Date :

07.12.2012

IDENTIFICATION DETAILS

Name :	SAMIL ELTEC CO., LTD.
Registered Office :	127-6, Gujang-ri, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Korea 445-915
Country :	South Korea
Financials (as on) :	31.12.2011
Date of Incorporation :	24.02.1992
Com. Reg. No.:	138-81-10699
Legal Form :	Co., Ltd by shares
Line of Business :	Manufacture of Boards for Electric Control or Distribution
No. of Employees :	60

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
South Korea	A1	A1

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

SOUTH KOREA - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible 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, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, 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 6.9% in 1998, and then recovered by 9% in 1999-2000. 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. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

Basic Information

Company Name	SAMIL ELTEC CO., LTD. (Korean Company Name : “(주)삼일엘텍”)
Registered Address	127-6, Gujang-ri, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Korea
Zip Code	445-915
Tel	+82-31-353-3131
Fax	+82-31-354-3153
E-mail	xiexie@samileltec.co.kr;springtown@naver.com
Website	www.samileltec.co.kr
Trading Address	127-6, Gujang-ri, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Korea
Tel	+82-31-353-3131
Fax	+82-31-354-3153
Type	Export/Import
Industry	Manufacture of Boards for Electric Control or Distribution
Main Business	Elevator Controller, Elevator System, Elevator Inverter
Established (mm/dd/yyyy)	02/24/1992

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Renovation of buildings or landmarks or monuments(72102801)
Sell	Inverters(32121705)
Sell	Forklift or elevator accessories or supplies(24101629)
Sell	Synchronous motors(26101609)
Buy	Switches and controls and relays and accessories(39121500)
Buy	Power supply transformers(39121002)
Buy	Capacitors(32121500)
Buy	Magnetic coils(39121010)
Buy	Diodes(32111500)
Buy	Light emitting diodes LEDs(32111503)
Buy	Circuit protection devices and accessories(39121600)
Buy	Electrical insulators(39121721)
Buy	Central processing unit CPU processors(43201503)
Buy	System boards processors interfaces or modules(43201500)

CEO’s

Name	Lee Yang-Won
Address	Suite 1201-1101, 1088, Sanbon-dong, Gunpo-si, Gyeonggi-do, Korea
Date of Birth	12/28/1953
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,799,985,000

Employees

60

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Corporate Registered No.

110111-0837463

Business Registered No.

138-81-10699

Permit & Licenses

10/2000 ISO9001

Int’l Trade No.: 11178936

Shareholder Position

Name	Shares	%
LEE YANG-WON	299,338	83.15
OTHERS(4)	60,659	16.85
TOTAL	359,997	100.00

Company History

02/24/1992 Incorporated as SAMIL INSTRUMENT INCORPORATION

03/2000 Changed company name to the present name

11/2001 Designated as an INNO-BIZ Company

03/28/2003 Moved to the present HQ address from 889-1, Gwanyang 2-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

06/02/2005 Designated as a Venture Business

11/2005 Awarded US$3 Million Export Top Prize

11/2006 Awarded US$5 Million Export Top Prize

03/30/2007 Increased capital to 1,471,490,000 KRW from 1,350,000,000 KRW

03/30/2008 Increased capital to 1,799,985,000 KRW from 1,471,490,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Yang-Won	Male	Korean	03/30/2005
Director	M/S.	Jung Young-Ae	Female	Korean	03/30/2005
Director	Mr.	You Soong-Yeol	Male	Korean	03/30/2005
Auditor	Mr.	Kwon Moon-Ho	Male	Korean	10/24/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	14,801,348,744	13,339,272,525	1,572,576,997
2010	14,341,242,908	12,402,228,176	828,843,793
2009	13,860,127,470	12,321,045,021	868,922,366
2008	13,660,149,726	12,684,392,927	1,782,660,507
2007	12,472,547,885	10,532,622,233	1,830,992,753
2006	10,830,015,666	9,880,004,523	1,223,602,271
2005	10,655,109,841	7,830,531,809	776,968,676
2004	10,119,675,643	7,656,568,423	1,260,669,003

Financial Description

Authorized Capital(KRW)	2,400,000,000
Paid-Up Capital(KRW)	1,799,985,000
Total Issued Shares	359,997

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	13,339,272,525	12,402,228,176	12,321,045,021
Current Assets	8,791,084,048	7,641,260,424	7,215,575,901
-Quick Assets	7,550,861,769	6,469,182,841	6,072,863,693
-Inventories	1,240,222,279	1,172,077,583	1,142,712,208
Fixed Assets	4,548,188,477	4,760,967,752	5,105,469,120
-Investment	1,693,636,430	1,883,168,631	2,179,618,215
-Tangibles	2,800,416,216	2,839,957,360	2,889,611,990
-Intangibles	24,123,831	37,829,761	36,226,915
-Others	30,012,000	12,000	12,000
Total Liabilities	4,976,559,391	5,164,018,370	5,027,385,031
Current Liabilities	4,844,635,443	5,164,018,370	4,706,928,204
Fixed Liabilities	131,923,948	-	320,456,827
Capital Stock	1,799,985,000	1,799,985,000	1,799,985,000
Capital Surplus
Profit Surplus	5,928,921,675	4,896,340,178	4,967,488,885
Capital Adjustment	633,806,459	541,884,628	526,186,105
Total Equity	8,362,713,134	7,238,209,806	7,293,659,990
Liab. & Shareholder’s Equity	13,339,272,525	12,402,228,176	12,321,045,021

Current Liabilities	4,844,635,443	5,164,018,370	4,706,928,204
Trade Payables	2,288,531,263	1,777,930,812	1,975,905,965
Account Payables	129,555,175	113,423,025	140,638,273
Withholdings	59,274,140	40,441,490	62,401,608
VAT Withhold	48,445,704	13,681,830	-
Advance Receipts	24,507,886	19,125,058	39,879,132
Short-Term Borrowings	2,292,084,560	3,131,199,680	2,484,050,720
Accrued Expenses	2,236,715	5,816,475	4,052,506
Current Portion of Long-Term Debts	-	62,400,000	-
Fixed Liabilities	131,923,948	-	320,456,827
Long-Term Borrowings	-	-	125,000,000
Provision for Severance & Retirement	1,667,344,281	1,499,924,112	1,397,971,667

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	14,801,348,744	14,341,242,908	13,860,127,470
Cost of Sold Goods	9,556,111,519	9,816,349,875	9,880,794,438
Gross Profit	5,245,237,225	4,524,893,033	3,979,333,032
Selling & Admin. Expenses	3,520,263,674	3,412,592,476	3,399,025,962
Operating Income	1,724,973,551	1,112,300,557	580,307,070
Non-Operating Income	433,588,175	577,712,937	1,172,537,253
Non-Operating Expenses	580,229,479	861,169,701	883,921,957
Income Before Taxes	1,578,332,247	828,843,793	868,922,366
Income Taxes Expenses	5,755,250	-	-
Net Income	1,572,576,997	828,843,793	868,922,366

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	1,397,708,015	786,280,352	868,640,040
-Net Income	1,572,576,997	828,843,793	868,922,366
-Exp. without Cash Outflow	1,037,078,719	898,829,806	481,664,936
-Revenue without Cash Inflows	-76,933,728	-172,032,284	-161,594,449
-Changes in Asset/ & Liability	-1,135,013,973	-769,360,963	-320,352,813
Cash Flows from Investing	-101,779,119	421,884,961	111,651,596
-Cash Inflow from Investing	31,003,960	534,141,067	6,577,594,820
-Cash Outflows for Investing	-132,783,079	-112,256,106	-6,465,943,224
Cash Flows from Financing	-1,441,510,620	-462,592,500	-979,152,500
-Cash Inflows from Financing	-	500,000,000	725,000,000
-Cash Outflows from Financing	-1,441,510,620	-962,592,500	-1,704,152,500
Increase/Decrease in Cash	-145,581,724	745,572,813	1,139,136
Cash at the Beginning of Year	1,372,583,368	627,010,555	625,871,419
Cash at the End of Year	1,227,001,644	1,372,583,368	627,010,555

Products, Technologies, Services Description

Main Products & Services

Control Panel Inverter Synchronous Motor Display

Trade Partners & Competitors

Customers

CHANGSOO SAMIL ELECTRONICS CO., LTD.(CHINA) DAIRYEN SAMIL ELECTRONICS CO., LTD.(CHINA) SAMIL ELTEC JAPAN SIGMA OTIS(CHINA)

Competitors

BLUETEM CO. C-3407, DONG-IL TECHNO TOWN, 889-1, GWANYANG 2-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA TEL:+82-31-425-2391 FAX:+82-31-425-2396 TECHMOVE ELECTRONICS RM. 620, HANSHIN CORE OFFICETEL, 11-9, SINCHEON-DONG, SONGPA-GU, SEOUL, KOREA TEL:+82-2-412-8088 FAX:+82-2-419-5469 HYEON DAE CO., LTD 102-705, CHUNUI TECHNO PARK 1-CHA, 200-1, CHUNUI-DONG, WONMI-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-32-662-9644~5 FAX:+82-32-662-9646

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	SAMIL ELTEC JAPAN (15.0% held by the subject company) CHANGSOO SAMIL ELECTRONICS CO., LTD.(CHINA) (100.0% held by the subject company) DAIRYEN SAMIL ELECTRONICS CO., LTD.(CHINA) (51.7% held by the subject company)
Subsidiary	CHANGSOO SAMIL ELECTRONICS CO., LTD.(CHINA) (100.0% held by the subject company) DAIRYEN SAMIL ELECTRONICS CO., LTD.(CHINA) (51.7% held by the subject company)
Cooperative Enterprise	-Insured Company DONGBU INSURANCE CO., LTD.(110111-0095285)

Sales by Region

(Activity & Markets)

Sales/ Unit : KRW	2011	2010	2009
Export	5,686,117,281	5,758,335,946	5,279,055,433
Domestic	9,115,231,463	8,582,906,962	8,581,072,037
Total	14,801,348,744	14,341,242,908	13,860,127,470

The Subject deals with the companies in China, Japan, Saudi Arabia and South East Asia.

Court Action

No.

News Clipping

--

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.46
UK Pound	1	Rs.87.63
Euro	1	Rs.71.11

INFORMATION DETAILS

Report Prepared by :

SDA

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.