MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	BOO KUK STEEL IND. CO., LTD

Registered Office :	686, Dohwa 2.3-dong, Nam-gu, Incheon, Korea 402-807

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	16.12.1972

Com. Reg. No.:	131-81-06103

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products

No. of Employees :	33

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Slow but 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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

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	BOO KUK STEEL IND. CO., LTD.
Registered Address	686, Dohwa 2.3-dong, Nam-gu, Incheon, Korea
Zip Code	402-807
Tel	+82-32-864-5591~4
Fax	+82-32-867-5591
E-mail	bksteel@korea.com
Website	www.bookuksteel.co.kr
Trading Address	686, Dohwa 2.3-dong, Nam-gu, Incheon, Korea
Tel	+82-32-864-5591~4
Fax	+82-32-867-5591
Type	Export/Import
Industry	Manufacture of Hot Rolled, Drawn and Extruded Iron or Steel Products
Main Business	Stainless Steel Bar Channels, Stainless Steel Flat Bars, Stainless Steel Angles
Established (mm/dd/yyyy)	16/12/1972

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Bar(30101600)
Sell	Angles(30101500)
Sell	Stainless steel plate(30102205)
Sell	Iron plate(30102203)
Sell	Steel channels(30101804)
Sell	Channels(30101800)

CEO’s

Name	Chang Young-Hoon
Address	Suite B-101, 60, Donggwang-ro 32-gil, Seocho-gu, Seoul, Korea
Date of Birth	06/20/1946
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	1,800,000,000
Employees	33
Formation	Co., Ltd by Shares
Bank Details	Industrial Bank of Korea-Juan Buk Branch Hana Bank-Gazwa Industrial Complex Branch
Corporate Registered No.	120111-0005240
Business Registered No.	131-81-06103
Permit & Licenses	N/A
Shareholder Position	Chang Young-Hoon & his family(3) have 100% shares.
Company History	16/12/1972 Incorporated as the present name 12/10/2001 Increased capital to 1,800,000,000 KRW from 450,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Chang Young-Hoon	Male	Korean	03/31/2012
Director	Mr.	Ahn Ho-Keun	Male	Korean	03/31/2012
Director	Mr.	Chang Young-Bok	Male	Korean	03/31/2012
Auditor	Mr.	Park Gyo-Jin	Male	Korean	08/26/2000

Financials

Year / Unit : KRW	Sales	Assets	Net Income
12/2011	10,506,384,970	26,374,617,081	105,195,028
05/2011	11,163,197,674	25,402,364,304	419,427,449
05/2010	10,601,332,641	27,644,363,865	-678,095,244

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	1,800,000,000
Total Issued Shares	360,000

Balance Sheet

Unit : Korean Won	06/01/2011~12/31/2011	06/01/2010~ 05/31/2011	As of 05/31/2009
Total Assets	26,374,617,081	25,402,364,304	27,644,363,865
Current Assets	10,210,090,891	10,574,002,768	11,863,923,909
-Quick Assets	4,156,730,072	3,547,539,424	4,461,679,287
-Inventories	6,053,360,819	7,026,463,344	7,402,244,622
Fixed Assets	16,164,526,190	14,828,361,536	15,780,439,956
-Investment	316,245,689	267,486,500	333,457,000
-Tangibles	14,491,894,009	14,522,301,336	14,624,468,319
-Intangibles	119,900	189,900	309,900
-Others	1,356,266,592	38,383,800	822,204,737
Total Liabilities	16,676,990,215	15,809,932,466	18,471,359,476
Current Liabilities	16,654,110,215	15,135,898,183	17,496,574,176
Fixed Liabilities	22,880,000	674,034,283	974,785,300
Capital Stock	1,800,000,000	1,800,000,000	1,800,000,000
Capital Surplus	5,240,270,117	5,240,270,117	5,240,270,117
Profit Surplus	-4,930,234,051	-5,035,429,079	-5,454,856,528
Capital Adjustment	7,587,590,800	7,587,590,800	7,587,590,800
Total Equity	9,697,626,866	9,592,431,838	9,173,004,389
Liab. & Shareholder’s Equity	26,374,617,081	25,402,364,304	27,644,363,865

Current Liabilities	16,654,110,215	15,135,898,183	17,496,574,176
Trade Payables	405,743,082	359,880,823	41,827,942
Short-Term Borrowings	11,110,000,000	12,297,500,000	12,747,500,000
Short-Term Borrowings-Foreign Currency	4,115,293,649	1,712,438,724	3,331,824,369
Account Payables	195,000,615	373,981,447	849,232,370
Advance Receipts	10,645,856	9,281,346	10,762,359
Withholdings	10,839,330	5,754,830	6,129,730
Accrued Expenses	31,165,263	33,399,762	27,118,232
Short-Term Borrowings to Shareholders/ Executives/ Employees	-	-	56,155,845
VAT Withhold	120,462,420	141,101,251	87,223,329
Current Portion of Long-Term Debts	654,960,000	102,560,000	90,000,000
Guarantee Deposit Withhold	-	100,000,000	100,000,000
Borrowings to Related Companies	-	-	148,800,000
Fixed Liabilities	22,880,000	674,034,283	974,785,300
Long-Term Borrowings	22,880,000	577,440,000	630,000,000
Provision for Severance & Retirement	194,196,616	223,773,008	504,935,965

Income Statement

Unit : Korean Won	06/01/2011~12/31/2011	06/01/2010~ 05/31/2011	As of 05/31/2009
Sales	10,506,384,970	11,163,197,674	10,601,332,641
Cost of Sold Goods	8,820,193,724	9,150,167,549	9,050,143,632
Gross Profit	1,686,191,246	2,013,030,125	1,551,189,009
Selling & Admin. Expenses	614,785,214	1,016,313,139	1,000,018,918
Operating Income	1,071,406,032	996,716,986	551,170,091
Non-Operating Income	73,920,734	648,483,305	219,048,084
Non-Operating Expenses	1,040,131,738	1,225,772,842	1,448,313,419
Income Before Taxes	105,195,028	419,427,449	-678,095,244
Income Taxes Expenses	-	-	-
Net Income	105,195,028	419,427,449	-678,095,244

Cash Flows

Unit : Korean Won	06/01/2011~12/31/2011	06/01/2010~ 05/31/2011	As of 05/31/2009
Cash Flows from Operating	-56,863,875	1,955,434,562	-1,833,334,656
-Net Income	105,195,028	419,427,449	-678,095,244
-Exp. without Cash Outflow	438,628,751	356,393,091	504,252,730
-Revenue without Cash Inflows	-2,186,192	-387,290,057	-27,300,753
-Changes in Asset/ & Liability	-598,501,462	1,566,904,079	-1,632,191,389
Cash Flows from Investing	-130,071,891	-110,845,290	671,998,351
-Cash Inflow from Investing	277,915,420	525,661,799	1,402,530,978
-Cash Outflows for Investing	-407,987,311	-636,507,089	-730,532,627
Cash Flows from Financing	979,030,663	-2,233,086,016	1,854,026,353
-Cash Inflows from Financing	4,838,505,885	3,256,397,922	4,015,393,720
-Cash Outflows from Financing	-3,859,475,222	-5,489,483,938	-2,161,367,367
Increase/Decrease in Cash	792,094,897	-388,496,744	692,690,048
Cash at the Beginning of Year	349,960,397	738,457,141	45,767,093
Cash at the End of Year	1,142,055,294	349,960,397	738,457,141

Products, Technologies, Services Description

Main Products & Services	Stainless Steel Bar Channels, Stainless Steel Flat Bars, Stainless Steel Angles
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

Competitors

ILSHIN STEEL INTERNATIONAL CO., LTD.

RM.603, KYUNGSUNG BLDG., 814-1, SEOJEONG-DONG, PYEONGTAEK-SI, GYEONGGI-DO, KOREA

TEL:+82-31-666-8789 FAX:+82-31-668-8784

KOREA STAINLESS METAL CO., LTD.

660-39, BONGAM-DONG, MASAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-299-6111 FAX:+82-55-299-6114

DUCKSOO METAL CO., LTD.

1658-5, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-831-7177 FAX:+82-51-831-7185

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

KEUN YOUNG STEEL CO., LTD.(KOREA)

Cooperative Enterprise

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	2011	2010	2009
Export
Domestic
Total

The Subject deals with the companies in Russia, USA, India and China.

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (KRW)	Status
	Seoul High Court	The Subject Company	Yein Logistics Co., Ltd.(Korea)	Claim for Compensation from Damages	1,615,700,000	2^nd round is proceeding

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.08
UK Pound	1	Rs.89.53
Euro	1	Rs.72.77

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%)

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.