MIRA INFORM REPORT

Report Date :

20.03.2012

IDENTIFICATION DETAILS

Name :	DAEWOO ELECTRONICS CORPORATION
Registered Office :	14th Fl., Narakium Jeodong Bldg. 1-2, Jeodong 1-ga, Jung-gu, Korea 121-709
Country :	South Korea
Financials (as on) :	31.05.2011
Date of Incorporation :	05.10.1987
Com. Reg. No.:	410-81-06501
Legal Form :	Co., Ltd by shares
Line of Business :	Manufacture of Electric Appliances for Kitchen
No. of Employees :	2,545

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Exits

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	DAEWOO ELECTRONICS CORPORATION (Korean Company Name : “(주)대우일렉트로닉스”)
Registered Address	1-2, Jeodong 1-ga, Jung-gu, Korea
Building	14th Fl., Narakium Jeodong Bldg.
Zip Code	121-709
Tel	+82-2-360-7114
Fax	+82-2-364-5588
E-mail	admin@dwe.co.kr
Website	www.dwe.co.kr
Trading Address	14th Fl., Narakium Jeodong Bldg., 1-2, Jeodong 1-ga, Jung-gu, Korea
Tel	+82-2-360-7114
Fax	+82-2-360-7873
Other Address	17-13, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea
Tel	+82-2-3215-5822
Other Address	223-27, Sangdaewon-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea
Tel	+82-2-360-7114
Other Address-Gumi Factory(Audio/Video)	295, Gongdan-dong, Gumi-si, Gyeongsangbuk-do, Korea
Tel	+82-54-467-7114
Fax	+82-54-461-8788
Other Address-R&D Center	412-2, Cheongcheon 2-dong, Bupyeong-gu, Incheon, Korea
Tel	+82-32-510-7104
Fax	+82-32-523-8103
Other Address-Incheon Factory(Refregerator)	604, Yonghyeon-dong, Nam-gu, Incheon, Korea
Tel	+82-32-880-5114
Fax	+82-32-880-5005
Other Address-Incheon Factory(VCR Drum)	541-5, Gajwa 3-dong, Seo-gu, Incheon, Korea
Tel	+82-32-570-7600
Other Address-Yongin Factory(Air Conditioner)	638-1, Tongsam-ri, Namsa-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea
Tel	+82-31-329-8114
Fax	+82-31-329-8011
Other Address-Gwangju Factory(Living/Kitchen)	Daewoo Electronics Corp., 981-1, Jangdeok-dong, Gwangsan-gu, Gwangju, Korea
Tel	+82-62-950-8114
Fax	+82-62-951-2010
Other Address-Yongin Factory(Motor)	988-1, Jangdeok-dong, Gwangsan-gu, Gwangju, Korea
Tel	+82-62- 952-2011
Type	Export/Import
Industry	Manufacture of Television and Radio Receivers, Sound or Video Recording or Reproducing Apparatuses, and Related Goods
Main Business	PDP, PVR, HDTV, TV, Digital Video, Refrigerator, Washing Machine, Air Conditioner
Sub Business	Manufacture of Electric Appliances for Kitchen
Established (mm/dd/yyyy)	10/05/1987

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Motors(26101600)
Sell	Domestic microwave ovens(52141502)
Sell	Domestic refrigerators(52141501)
Sell	Video cassette players or recorders(52161529)
Sell	Industrial freezers(24131600)
Sell	Televisions(52161505) -Receiving HD broadcasting
Sell	Air conditioners(40101701)
Sell	Vacuum cleaners(47121602)
Sell	Domestic clothes washers(52141601)
Buy	Steel plate(30102204)
Buy	Copper pipe(40142110)

CEO’s

Name	Lee Sung
Address	Rm.402-702, 875, Janghang-dong, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea
Date of Birth	11/19/1951
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

2,661,365,000

Employees

2,545

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Daewoo Center Branch

Busan Bank

Corporate Registered No.

110111-0546452

Business Registered No.

410-81-06501

Permit & Licenses

06/1999 ISO 9001 by BSI

Int’l Trade No.: 474076

Shareholder Position

Name	Shares	%
KOREA ASSET MANAGEMENT CORPORATION(114671-0023169)	305,637	57.42
KOREA EXCHANGE BANK(110111-0672538)	36,142	6.79
SHINHAN BANK(110111-0012809)	30,605	5.75
WOORI BANK(110111-0023393)	28,582	5.37
SEOUL GUARANTEE INSURANCE COMPANY(110111-0099774)	27,830	5.23
OTHERS	103,477	19.44
TOTAL	532,273	100.00

Company History

10/05/1987 Incorporated as DAEWOO MOTOR INDUSTRIAL CO., LTD.

10/25/2002 Changed company name to the present name by acquiring Video/ Air Conditioning /Living Div.

10/28/2002 Moved to Credit Center Bldg., 686, Ahyeon 3-dong, Mapo-gu, Seoul, Korea from 988-1, Jangdeok-dong, Gwangsan-gu, Gwangju, Korea.

11/25/2002 Agreed to proceed Work Out Program with Creditors’ Association

12/18/2002 Increased capital to 532,273,800,000 KRW from 13,000,000,000 KRW

04/2003 Acquired ME(Car Audio) & MEMS(Electronic Machinery System) from DAEWOO ELECTRONICS CO., LTD.

08/08/2008 Moved to the present HQ address from Credit Center Bldg., 686, Ahyeon 3-dong, Mapo-gu, Seoul, Korea

05/08/2009 Decide to sell Vacuum Business to ACE ELECTRONIC CO., LTD.

05/15/2009 Decide to sell Air Conditoner Business to KITURAMI BOILER CO., LTD.(110111-0838148)

05/15/2009 Decide to sell Motor Business to HANAM ELECTRICS CO., LTD.(200111-0098305)

06/01/2009 Decide to sell Showcase Business to PREMIERE CO., LTD.

06/11/2009 Decide to sell Video Business to DAEWOO DISPLAY CORPORATION(110111-4024967) at 6,455,000,000 KRW and sold as of 07/07/2009

11/12/2009 Decide to prolong Work Out Program Agreed Period until 03/31/2011

01/31/2011 Decide to prolong Work Out Program Agreed Period until 03/31/2012

03/25/2011 Decreased capital to 2,661,365,000 KRW from 532,273,800,000 KRW

03/30/2011 Changed the financial closing date to May 31 from December 31.

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Sung	Male	Korean	01/06/2009
Director	Mr.	Lee Chang-Hee	Male	Korean	03/30/2011
Outside Director	Mr.	Lee Doo-Ho	Male	Korean	11/10/2011
Outside Director	Mr.	Kim Cheon-Woong	Male	Korean	11/10/2011
Outside Director	Mr.	Jung Won-Young	Male	Korean	11/10/2011
Outside Director	Mr.	Kang Myung-Hoon	Male	Korean	11/10/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
05/2011	525,035,348,696	888,938,997,647	201,122,259
2010	1,282,919,492,849	888,938,997,647	(-)63,342,198,990
2009	1,127,178,673,967	1,007,941,510,519	(-)191,443,523,352
2008	1,192,033,170,665	1,298,369,908,608	(-)44,068,738,113
2007	1,771,476,159,339	1,301,230,996,817	(-)122,890,092,134
2006	1,960,134,451,865	1,428,196,580,663	(-)188,617,921,743
2005	2,157,396,945,139	1,654,907,205,990	(-)93,960,083,289
2004	2,306,128,323,453	1,712,875,059,119	30,407,951,871
2003	2,071,529,101,628	1,689,971,550,031	75,006,893,692

03/30/2011 Changed the financial closing date to May 31 from December 31.

Financial Description

Authorized Capital(KRW)	1,000,000,000,000
Paid-Up Capital(KRW)	2,661,365,000
Total Issues Shares	532,273

Balance Sheet

Unit : Korean Won	01/01/2011~05/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	888,938,997,647	1,007,941,510,519	1,298,369,908,608
Current Assets	415,414,989,196	439,569,009,767	623,138,418,992
-Quick Assets	358,445,423,821	382,674,256,346	548,209,098,540
-Inventories	56,969,565,375	56,894,753,421	74,929,320,452
Fixed Assets	473,524,008,451	568,372,500,752	675,231,489,616
-Investment	190,143,728,774	188,030,622,521	235,943,695,330
-Tangibles	269,866,551,675	362,614,658,997	406,043,743,413
-Intangibles	7,373,080,090	10,545,155,970	21,729,883,573
-Others	6,140,647,912	7,182,063,264	11,514,167,300
Total Liabilities	1,090,360,106,440	1,144,545,490,148	1,236,151,672,193
Current Liabilities	429,476,740,283	415,914,507,279	515,677,061,364
Fixed Liabilities	660,883,366,157	728,630,982,869	720,474,610,829
Capital Stock	532,273,800,000	532,273,800,000	532,273,800,000
Capital Surplus	-	-	-
Profit Surplus	-738,066,375,865	-674,724,176,875	-483,280,653,523
Capital Adjustment	4,371,467,072	5,846,397,246	13,225,089,938
Total Equity	-201,421,108,793	-136,603,979,629	62,218,236,415
Liab. & Shareholder’s Equity	888,938,997,647	1,007,941,510,519	1,298,369,908,608

Current Liabilities	418,790,882,085	429,476,740,283	415,914,507,279
Trade Payables	271,701,957,181	265,081,598,305	217,030,047,198
Short-Term Borrowings	53,983,176,925	61,650,072,535	53,782,610,124
Account Payables	56,008,206,759	62,859,052,614	62,683,375,303
Advance Receipts	20,533,386,436	21,955,942,716	20,152,729,676
Accrued Expenses	5,822,559,590	3,413,807,229	34,507,194,115
Withholdings	2,570,855,682	5,099,762,884	8,728,155,821
Guarantee Deposit Received	398,043,472	355,043,472	662,341,372
Provision for Sales Guarantee	7,772,696,040	9,061,460,528	11,013,792,951
Fixed Liabilities	658,989,392,563	660,883,366,157	728,630,982,869
Long-Term Borrowings	594,122,475,355	595,311,975,355	649,619,675,355
Long-Term Borrowings-Foreign Currency	7,407,314,048	7,802,520,984	8,515,243,544
Provision for Severance & Retirement	69,991,437,032	67,376,982,892	66,404,027,267
Leasehold Deposit Received	-	8,000,000	412,300,000
Provisions for Contingent Loss	324,180,000	3,256,538,190	20,343,221,777

Income Statement

Unit : Korean Won	01/01/2011~05/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	525,035,348,696	1,282,919,492,849	1,127,178,673,967
Cost of Sold Goods	451,528,364,123	1,077,564,182,671	930,803,213,246
Gross Profit	73,506,984,573	205,355,310,178	196,375,460,721
Selling & Admin. Expenses	73,340,390,960	190,093,823,141	155,396,345,303
Operating Income	166,593,613	15,261,487,037	40,979,115,418
Non-Operating Income	37,230,945,522	51,551,944,463	86,010,966,031
Non-Operating Expenses	37,196,416,876	82,891,140,397	112,766,927,162
Income Before Taxes from Continuous Business	201,122,259	-16,077,708,897	14,223,154,287
Income Taxes Expenses from Continuous Business	-	-	38,174,500
Net Income from Continuous Business	201,122,259	-16,077,708,897	14,184,979,787
Net Income from Stopped Business	-	-47,264,490,093	-205,628,503,139
Net Income	201,122,259	-63,342,198,990	-191,443,523,352

Cash Flows

Unit : Korean Won	01/01/2011~05/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	8,607,799,563	-19,316,335,098	22,497,674,980
-Net Income	201,122,259	-63,342,198,990	-191,443,523,352
-Exp. without Cash Outflow	36,798,070,483	90,274,321,800	257,692,279,163
-Revenue without Cash Inflows	-21,792,660,619	-19,825,889,368	-39,507,955,595
-Changes in Asset/ & Liability	-6,598,732,560	-26,422,568,540	-4,243,125,236
Cash Flows from Investing	-3,982,719,391	40,081,288,716	10,740,373,098
-Cash Inflow from Investing	2,268,855,240	73,087,022,473	65,203,614,905
-Cash Outflows for Investing	-6,251,574,631	-33,005,733,757	-54,463,241,807
Cash Flows from Financing	-7,648,019,960	-46,424,683,704	-17,284,280,649
-Cash Inflows from Financing	75,162,257,591	197,235,642,143	161,303,579,723
-Cash Outflows from Financing	-82,810,277,551	-243,660,325,847	-178,587,860,372
Increase/Decrease in Cash	-3,022,939,788	-25,659,730,086	15,953,767,429
Cash at the Beginning of Year	9,197,577,305	34,857,307,391	18,903,539,962
Cash at the End of Year	6,174,637,517	9,197,577,305	34,857,307,391

Products, Technologies, Services Description

Main Products & Services

Analog TV, Digital TV, Digital Video, Air Conditioner, Washing Machine, Home Appliances and other Industrial Electronics

Trade Partners & Competitors

Customers	As of 07/12/2002, according to the court’s decision, the subject signed the agreement for long-term sales trough Hi-Mart.
Competitors	SAMSUNG ELECTRONICS CO,.LTD.(130111-0006246) LG ELECTRONICS INC.(110111-2487050)

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	DE LOGIS CO., LTD.(110111-3288580) (100.0% held by the subject company) DAEWOO ELEC SERVICE CO., LTD.(110111-1498777) (100.0% held by the subject company)
Subsidiary	DAEWOO ELEC SERVICE CO., LTD.(110111-1498777) (100.0% held by the subject company) DE LOGIS CO., LTD.(110111-3288580) (100.0% held by the subject company) DEARCO (100.0% held by the subject company) DEAM (100.0% held by the subject company) DECOMEX (100.0% held by the subject company) DEE (100.0% held by the subject company) DEHACO (60.0% held by the subject company) DEHAMEX (100.0% held by the subject company) DEJACO (100.0% held by the subject company) DEME (100.0% held by the subject company) DEMESA (100.0% held by the subject company) DEMOJIN (100.0% held by the subject company) DEMPOL (100.0% held by the subject company) DEPASA (100.0% held by the subject company) DESA (100.0% held by the subject company) DESUK (100.0% held by the subject company) DECHISA (100.0% held by the subject company) DEMDA (100.0% held by the subject company)
Cooperative Enterprise	-Insured Company SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078) MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

Sales by Region

(Activity & Markets)

Sales/ Unit : KRW	2010	2009	2008
Export	409,192,997,750	1,022,059,924,880	906,658,624,870
Domestic	115,842,350,946	260,859,567,969	220,520,049,097
Total	525,035,348,696	1,282,919,492,849	1,127,178,673,967

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (KRW)	Status
	International Chamber of Commerce, ICC	Parson	The Subject Company	Claim for Compensation from Damages	USD98,081	Proceeding
	California North District Court	FUNAI Electronic Company, Ltd.	The Subject Company	Infringement of the patent on VCR's DECK	US$7,217,000	The Subject was defeated at 1^st round.
	Court In Germany	Grundig Multimedia B.V.	The Subject Company	Infringement of Patent Right	Euro250,000	Proceeding
		Gemstar	The Subject Company	Infringement of Patent Right	US$1,700,000	Negotiating

There are 20 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting 45,600,000,000 KRW, 28 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting 294,000,000,000 KRW as of 05/31/2011.

News Clipping

--

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.12
UK Pound	1	Rs.79.37
Euro	1	Rs.66.00

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.