MIRA INFORM REPORT

Report Date :

29.06.2012

IDENTIFICATION DETAILS

Name :	SAM YOUNG CHEMICAL CO., LTD.

Formerly Known As :	SAM YOUNG CHEMICAL INDUSTRY CO.

Registered Office :	70, Sogong-dong, Jung-gu, Seoul, Korea, 6th Fl., Samyeong Bldg., Zip Code 100-070

Country :	South korea

Financials (as on) :	31.03.2012

Date of Incorporation :	10.04.1959

Com. Reg. No.:	113-81-06556

Legal Form :	Listed Company

Line of Business :	Manufacturer of Plastic Films, Sheets and Plates

No. of Employees :	280

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 :	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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

South Korea

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

Basic

Company Name	SAM YOUNG CHEMICAL CO., LTD. (Korean Company Name : “삼영화학공업(주)”)
Registered Address	70, Sogong-dong, Jung-gu, Seoul, Korea
Building	6th Fl., Samyeong Bldg.
Zip Code	100-070
Tel	+82-2-757-2291~4
Fax	+82-2-753-7704
E-mail	sysop@sycc.co.kr
Website	www.sycc.co.kr
Trading Address	6th Fl., Samyeong Bldg., 70, Sogong-dong, Jung-gu, Seoul, Korea
Tel	+82-2-757-2291~4
Fax	+82-2-753-7704
Other Address-Cheongju Factory	140, Songjeong-dong, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Korea
Tel	+82-43-262-3635
Fax	+82-43-263-3635
Other Address-Gumi Factory	210, Gongdan-dong, Gumi-si, Gyeongsangbuk-do, Korea
Tel	+82-54-463-5463
Fax	+82-54-463-5462
Other Address-Gimhae Factory	San 66, Hagye-ri, Jinyeong-eup, Gimhae-si, Gyeongsangnam-do, Korea
Tel	+82-55-342-2345
Fax	+82-55-342-2335
Other Address-Gwangju Direct Sales Office	651-5, Nongseong 2-dong, Seo-gu, Gwangju, Korea
Tel	+82-62-365-9121
Other Address-Busan Direct Sales Office	20-209, Industrials Goods Center, 578, Gwaebeop-dong, Sasang-gu, Busan, Korea
Tel	+82-51-319-2058
Type	Export
Industry	Manufacture of Plastic Films, Sheets and Plates
Main Business	Capacitor Film, BOPP Film, PVC Film, Polypropylene Film, Polyethylene Stretch Film, Packaging Paper Container, Carton Pack
Established (mm/dd/yyyy)	04/10/1959

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Films(13111200)
Sell	Biaxially orientated polypropylene(13111212)
Sell	Packaging boxes and bags and pouches(24121500)
Sell	Domestic disposable kitchenware(52151500)
Sell	Polypropylene films(13111211)

CEO’s

Name	Lee Byung-Ho
Date of Birth	04/30/1947
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

17,000,000,000

Employees

280

Formation

Listed Company (Korea Stock Exchange : 003720) as of 06/30/1976

Bank Details

Korea Exchange Bank-Sogong Dong Branch

Corporate Registered No.

110111-0010001

Business Registered No.

113-81-06556

Permit & Licenses

Int’l Trade No.: 690355

Shareholder Position

Name	Shares	%
LEE SEOK-JOON	5,100,000	15.00
KWANJUNG FOUNDATION(110122-0032573)	1,700,000	5.00
OTHERS	27,200,000	80.00
TOTAL	34,000,000	100.00

Company History

04/10/1959 Incorporated as SAM YOUNG CHEMICAL INDUSTRY CO.(Sole Proprietorship)

06/03/1963 Changed company name to the present name

05/04/2010 Split off the par value to 500 KRW from 5,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Date of Birth
President & CEO	Mr.	Lee Byung-Ho	Male	Korean	1947.04.30
Chairman	Mr.	Lee Jong-Hwan	Male	Korean	1924.01.09
Vice Chairman	Mr.	Lee Seok-Joon	Male	Korean	1954.07.12
Sr. Executive Director	Mr.	Lee Kyung-Hee	Male	Korean	2012.08.02
Outside Director	Mr.	Kim Dae-Won	Male	Korean	1939.03.07
Outside Director	Mr.	Lee Jong-Yong	Male	Korean	1931.05.27
Auditor	Mr.	Kim Boo-Kyu	Male	Korean	1937.03.06

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)03/2012	46,199,687,076	190,191,867,257	3,540,816,744
(*)2011	220,282,912,656	188,774,884,607	22,675,078,399
(*)2010	192,401,459,769	174,412,067,817	16,658,466,293

Financial Description

Authorized Capital(KRW)	30,000,000,000
Paid-Up Capital(KRW)	17,000,000,000
Total Issued Shares	34,000,000

Balance Sheet
Unit : Korean Won	01/01/2012~03/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	190,191,867,257	188,774,884,607	174,412,067,817
Current Assets	96,815,598,591	90,920,124,515	79,956,412,756
Cash & Cash Equivalents	12,501,656,851	12,179,762,674	18,253,746,219
Current Financial Instruments	23,377,550,443	19,207,550,443	8,785,767,613
Trade Receivables	39,997,614,394	38,652,914,725	33,972,081,204
Other Receivables	2,347,650,547	2,326,119,304	4,696,712,733
Other Current Assets	4,641,158,105	4,535,063,626	511,029,622
Inventories	13,949,968,251	14,018,713,743	13,737,075,365
Non-Current Assets	93,376,268,666	97,854,760,092	94,455,655,061
Non-Current Financial Instruments	2,500,000	2,500,000	2,500,000
Marketable Financial Instruments	13,275,000	13,275,000	13,275,000
Investment_Subsidiaries	55,531,056,171	60,609,399,920	60,609,399,920
Tangibles	37,410,942,240	36,755,280,038	32,440,441,414
Intangibles	20,803,167	22,327,445	30,684,555
Deferred Income Tax Assets	78,666,488	132,952,089	950,328,572
Other Non-Current Assets	319,025,600	319,025,600	409,025,600
Total Liabilities	63,960,522,928	55,907,852,273	59,483,361,987
Current Liabilities	51,098,236,458	42,760,177,537	44,757,292,561
Trade Payables	26,800,326,695	24,191,201,000	30,561,076,359
Other Payables	220,486,704	926,457,701	2,642,811,552
Short-Term Borrowings	8,000,000,000	8,000,000,000	8,000,000,000
Accrued Income Tax	6,939,669,364	5,995,889,961	2,242,431,638
Other Current Liabilities	8,035,243,695	2,590,688,875	431,073,012
Current Portion of Long-Term Debts	1,102,510,000	1,055,940,000	879,900,000
Non-Current Liabilities	12,862,286,470	13,147,674,736	14,726,069,426
Long-Term Borrowings	8,867,340,000	9,154,560,000	10,210,500,000
Provision for Severance & Retirement	3,709,759,118	3,605,306,001	4,119,168,906
Other Non-Current Liabilities	285,187,352	387,808,735	396,400,520
Capital Stock	17,000,000,000	17,000,000,000	17,000,000,000
Installments	58,816,353,651	46,631,161,546	46,631,161,546
Profit Surplus	50,414,990,678	69,235,870,788	51,297,544,284
Total Equity	126,231,344,329	132,867,032,334	114,928,705,830
Liab. & Shareholder’s Equity	190,191,867,257	188,774,884,607	174,412,067,817

Income Statement
Unit : Korean Won	01/01/2012~03/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	46,199,687,076	220,282,912,656	192,401,459,769
Cost of Sold Goods	38,678,356,674	175,670,242,798	158,205,362,048
Gross Profit	7,521,330,402	44,612,669,858	34,196,097,721
Selling & Admin. Expenses	3,473,911,188	14,275,529,676	13,323,529,825
Other Operating Income	917,818,171	1,599,629,941	1,512,255,331
Other Operating Expenses	512,477,544	1,206,467,508	2,201,236,973
Operating Income	4,452,759,841	30,730,302,615	20,183,586,254
Finance Income	237,922,433	795,265,887	382,893,471
Finance Expenses	149,065,166	583,548,146	558,620,118
Income Before Taxes	4,541,617,108	30,942,020,356	20,007,859,607
Income Taxes Expenses	1,000,800,364	8,266,941,957	3,349,393,314
Net Income	3,540,816,744	22,675,078,399	16,658,466,293

Cash Flows
Unit : Korean Won	01/01/2012~03/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	6,134,439,578	14,622,774,059	23,885,926,472
-Net Income	3,540,816,744	22,675,078,399	16,658,466,293
-Exp. without Cash Outflow	2,136,464,764	12,257,212,608	7,286,755,930
-Revenue without Cash Inflows	-243,279,739	-918,404,338	-463,721,167
-Changes in Asset/ & Liability	701,376,267	-15,089,346,717	2,768,196,922
Interests Received	171,739,904	795,265,887	382,893,471
Interests Paid	-115,657,401	-583,548,146	-558,620,118
Income Taxes	-57,020,961	-4,513,483,634	-2,188,044,859
Cash Flows from Investing	-5,571,895,401	-15,080,105,709	-15,652,195,986
-Cash Inflow from Investing	76,199,806	9,275,818,364	1,093,997,750
-Cash Outflows for Investing	-5,648,095,207	-24,355,924,073	-16,746,193,736
Cash Flows from Financing	-240,650,000	-5,616,651,895	5,353,035,340
-Cash Inflows from Financing	0	8,361,409,105	24,423,470,640
-Cash Outflows from Financing	-240,650,000	-13,978,061,000	-19,070,435,300
Increase/Decrease in Cash	321,894,177	-6,073,983,545	13,586,765,826
Cash at the Beginning of Year	12,179,762,674	18,253,746,219	4,666,980,393
Cash at the End of Year	12,501,656,851	12,179,762,674	18,253,746,219

Products, Technologies, Services Description

Main Products & Services

Capacitor Film, BOPP Film, PVC Film, Polypropylene Film, Polyethylene Stretch Film, Packaging Paper Container, Carton Pack

Trade Partners & Competitors

Suppliers

KOREA PETRO CHEMICAL IND CO.,LTD.(110111-0024698)

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

HANWHA CHEMICAL CO., LTD.(110111-0360935)

BOREALIS

WEYCO

Competitors

HWASEUNG INDUSTRIES CO., LTD.

6TH FL., JANGCHEON BLDG., 1287-21, YEONSAN 5-DONG, YEONJE-GU, BUSAN, KOREA

TEL:+82-51-311-0081 FAX:+82-51-312-2465

SKC HAAS DISPLAY FILMS CO., LTD.

460, CHEONHEUNG-RI, SEONGGEO-EUP, SEOBUK-GU, CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-550-9999 FAX:+82-41-622-9999

SANGBO ELECTRONIC CO., LTD.

466, UIJEON-RI, JINYEONG-EUP, GIMHAE-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-343-0822 FAX:+82-55-343-2679

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Subsidiary

SAM YOUNG HEAVY INDUSTRIES CO., LTD.(191311-0014359)

TEL: +82-55-350-3500

(50.0% held by the subject company)

DAIRYEN SAM YOUNG CHEMICAL CO., LTD.(CHINA)

TEL:+86-411-8751-1321

(100.0% held by the subject company)

Sales by Region

(Activity & Markets)

Sales/ Unit : KRW	03/2012	2011	2010
Export	21,752,045,541	118,040,422,161	96,087,612,221
Domestic	24,447,641,535	102,242,490,495	96,313,847,548
Total	46,199,687,076	220,282,912,656	192,401,459,769

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.92
UK Pound	1	Rs.88.91
Euro	1	Rs.71.25

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.