MIRA INFORM REPORT

Report Date :

26.05.2012

IDENTIFICATION DETAILS

Name :	CKD BIO CORPORATION

Registered Office :	368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea, Chongkundang Bldg., 120-756

Country :	South Korea

Financials (as on) :	30.09.2011

Date of Incorporation :	12.11.2001

Com. Reg. No.:	110-81-53652

Legal Form :	Listed Company

Line of Business :	Manufacture of Medicinal Chemicals and Antibiotics

No. of Employees :	267

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 :	Good

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	CKD BIO CORPORATION (Korean Company Name : “종근당바이오(주)”)
Registered Address	368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea
Building	Chongkundang Bldg.
Zip Code	120-756
Tel	+82-2-2194-0555
Fax	+82-2-2194-0556
E-mail	intl@ckdbio.com
Website	www.ckdbio.com
Trading Address	Chongkundang Bldg., 368, Chungjeongno 3-ga, Seodaemun-gu, Seoul, Korea
Tel	+82-2-2194-0555
Fax	+82-2-2194-0556
Other Address-Ansan Factory	16B-20, 454, Mongnae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea
Tel	+82-31-489-1173
Fax	+82-31-489-1166
Type	Export/Import
Industry	Manufacture of Medicinal Chemicals and Antibiotics
Main Business	Raw Material, Medicine, Acarbose, Potassium Clavulanate, DMCT, Tacrolimus, Cyclosporin
Established (mm/dd/yyyy)	11/12/2001

The Subject owns the premises of Ansan Factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Antibiotics(51101500)
Sell	Antacids and antiflatulents(51171500)
Sell	Drugs and Pharmaceutical Products(51000000)
Sell	Antifungal drugs(51101800)
Sell	Anthelmintics and other antiparasitics(51101700)

CEO’s

Name	Lee Jang-Han
Date of Birth	08/28/1952
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

13,073,722,500

Employees

267

Formation

Listed Company (Korea Stock Exchange : 063160) as of 12/11/2001

A Company of Chong Kun Dang Group

Bank Details

Woori Bank-Seodaemun Corporate Finance Center

Corporate Registered No.

110111-2373308

Business Registered No.

110-81-53652

Permit & Licenses

03/2005 Acquired COS on Potassium Clavulanate

Shareholder Position

Name	Shares	%
LEE JANG-HAN	1,000,280	19.13
LEE BOK-HWAN	2,726	0.05
JUNG JAE-JEONG	100,000	1.91
LEE JU-WON	100,000	1.91
LEE JU-KYUNG	100,000	1.91
LEE JU-AH	100,000	1.91
NATIONAL PENSION SERVICE(110171-0007134)	449,150	8.59
CHONG KUN DANG PHARMACEUTICAL CORP.(110111-0028955)	162,322	3.10
KYOUNGBO CHEMICAL CO., LTD. (164811-0001961)	33,066	0.63
KIM JEONG-WOO	411	0.01
OTHERS	3,181,534	60.84
TOTAL	5,229,489	100.00

Company History

11/2002 Incorporated as spinning off from CKD Pharm.

11/2001 Awarded The Presidential Prize on Environmental Technology from the Ministry of Environment

11/2001 Designated as a Leading Company in exporting of Parts & Materials by the Ministry of Industry & Resources

12/2001 Listed at KSE

03/2004 Designated as the next generation’s 1^st class products, Potassium Clavulanate

03/2005 Acquired COS on Potassium Clavulanate

11/2010 Awarded US$ 100 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Lee Jang-Han	Korean	1952.08.28	Korea University, Korea
Vice President & CEO	Mr.	Kang Hee-Il	Korean	1953.12.16	-
Outside Director	Mr.	Kang Tae-Won	Korean	1953.07.18	Oxford University, UK
Outside Director	Mr.	Kil Kwang-Seob	Korean	1948.03.21	Kyunghee University, Korea
Auditor	Mr.	Lee Hae-Moon	Korean	1956.01.05	Chonbuk Technical College, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)09/2011	82,321,686,112	193,739,404,153	7,704,587,416
2010	121,568,351,961	118,267,533,188	14,375,712,177
2009	106,553,579,320	111,260,253,039	16,183,929,127
2008	83,393,221,679	94,850,023,744	8,737,628,538
2007	66,409,840,687	84,953,644,909	(-)3,273,391,605
2006	72,197,255,948	94,264,058,866	428,646,943
2005	64,360,882,458	100,680,943,036	(-)13,363,505,377
2004	68,718,195,340	107,594,102,819	1,105,026,359

(*)09/2011's figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	32,000,000,000
Paid-Up Capital(KRW)	13,073,722,500
Total Issues Shares	5,229,489

Balance Sheet

Unit : Korean Won	01/01/2011~09/30/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	193,739,404,153	178,906,402,305	164,600,095,142
Current Assets	77,963,145,523	77,466,857,233	76,434,084,770
Cash & Cash Equivalents	4,210,711,275	11,623,406,743	15,601,293,295
Trade Receivables	40,038,619,813	42,179,773,746	36,074,003,921
Account Receivables	3,258,722,027	2,019,793,671	1,737,854,786
Other Receivables	210,270,166	150,574,255	87,858,952
Inventories	29,907,134,191	21,240,990,798	22,771,275,344
Others	337,688,051	252,318,020	161,798,472
Non-Current Assets	115,776,258,630	101,439,545,072	88,166,010,372
Long-Term Financial Instruments	2,182,000,000	1,722,000,000	1,206,000,000
Long-Term Marketable Financial Instruments	18,600,000	18,600,000	18,600,000
Other Long-Term Receivables	79,830,000	79,830,000	77,550,000
Tangibles	111,976,300,065	98,058,582,671	85,254,075,051
Intangibles	1,519,528,565	1,560,532,401	1,609,785,321
Total Liabilities	77,837,162,612	67,719,739,132	67,392,533,438
Current Liabilities	61,434,244,695	55,448,206,433	55,431,849,330
Trade Payables	16,961,439,835	17,696,566,965	16,719,078,200
Account Payables	11,520,364,291	4,860,379,606	7,293,410,802
Short-Term Borrowings	27,463,096,579	27,231,669,635	26,935,241,894
Other Payable Liabilities	4,113,793,581	3,914,783,574	3,568,123,502
Other Liabilities	1,032,638,491	444,870,220	712,162,314
Short-Term Borrowings	342,911,918	1,299,936,433	203,832,618
Non-Current Liabilities	16,402,917,917	12,271,532,699	11,960,684,108
Long-Term Borrowings	3,949,900,000	1,110,928,000	2,072,320,000
Provision for Severance & Retirement	2,618,040,470	1,972,410,133	1,246,157,459
Other Long-Term Salaries	540,117,997	496,636,216	375,530,711
Deferred Income Tax Credit	9,064,424,945	8,366,925,762	7,816,100,858
Other Liabilities	230,434,505	324,632,588	450,575,080
Capital Stock	13,073,722,500	13,073,722,500	13,073,722,500
Capital Surplus	25,748,533,629	26,645,508,485	27,388,980,146
Profit Surplus	77,079,985,412	71,467,432,188	56,744,859,058
Total Equity	115,902,241,541	111,186,663,173	97,207,561,704
Liab. & Shareholder’s Equity	193,739,404,153	178,906,402,305	164,600,095,142

Balance Sheet
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Total Assets	118,267,533,188	111,260,253,039	94,850,023,744
Current Assets	63,017,973,893	66,247,651,963	57,688,067,239
-Quick Assets	41,179,986,872	43,476,376,619	32,276,558,068
-Inventories	21,837,987,021	22,771,275,344	25,411,509,171
Fixed Assets	55,249,559,295	45,012,601,076	37,161,956,505
-Investment	1,740,600,000	1,224,600,000	972,600,000
-Tangibles	50,557,912,947	40,987,522,464	33,635,290,299
-Intangibles	273,912,011	402,574,331	526,856,490
-Others	2,677,134,337	2,397,904,281	2,027,209,716
Total Liabilities	42,127,237,011	47,183,359,978	45,697,443,920
Current Liabilities	39,556,998,188	44,202,635,816	43,132,233,605
Fixed Liabilities	2,570,238,823	2,980,724,162	2,565,210,315
Capital Stock	13,073,722,500	13,073,722,500	13,073,722,500
Capital Surplus	27,388,980,146	27,388,980,146	27,388,980,146
Profit Surplus	36,421,065,192	23,614,190,415	8,737,628,538
Capital Adjustment	-743,471,661		-47,751,360
Total Equity	76,140,296,177	64,076,893,061	49,152,579,824
Liab. & Shareholder’s Equity	118,267,533,188	111,260,253,039	94,850,023,744

Income Statement

Unit : Korean Won	01/01/2011~09/30/2011	As of 12/31/2010	As of 12/31/2009
Sales	82,321,686,112	121,568,351,961
Cost of Sold Goods	64,145,452,715	89,436,414,693
Gross Profit	18,176,233,397	32,131,937,268
Selling & Admin. Expenses	10,488,628,721	13,264,542,023
Other Operating Income	1,858,977,463	511,968,678
Other Operating Expenses	667,938,028	1,796
Operating Income	8,878,644,111	19,379,362,127
Finance Income	3,325,406,171	2,631,999,569
Finance Expenses	3,266,643,340	3,462,780,346
Income Before Taxes	8,937,406,942	18,548,581,350
Income Taxes Expenses	1,232,819,526	2,032,288,520
Net Income	7,704,587,416	16,516,292,830

Income Statement
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Sales	121,568,351,961	106,553,579,320	83,393,221,679
Cost of Sold Goods	92,016,505,908	76,927,791,115	62,022,573,841
Gross Profit	29,551,846,053	29,625,788,205	21,370,647,838
Selling & Admin. Expenses	13,380,886,869	12,536,048,642	13,767,379,365
Operating Income	16,170,959,184	17,089,739,563	7,603,268,473
Non-Operating Income	3,096,070,138	4,348,381,154	10,135,646,221
Non-Operating Expenses	3,462,782,142	4,608,446,965	7,861,611,824
Income Before Taxes	15,804,247,180	16,829,673,752	9,877,302,870
Income Taxes Expenses	1,428,535,003	645,744,625	1,139,674,332
Net Income	14,375,712,177	16,183,929,127	8,737,628,538

Cash Flows

Unit : Korean Won	01/01/2011~09/30/2011	As of 12/31/2010	As of 12/31/2009
Operating Activities Cash Flows	14,231,908,974	19,220,157,216
Cash Flows from Operating	16,232,070,004	20,445,209,165
Net Income	7,704,587,416	16,516,292,830
Adjustment	9,043,326,827	11,664,669,834
Changes in Asset/ & Liability	-515,844,239	-7,735,753,499
Interests Received	70,187,241	293,473,435
Interests Paid	-809,609,519	-1,197,073,924
Dividends Received		480,000
Income Taxes	-1,488,471,788	-321,931,460
Cash Flows from Investing	-21,136,183,813	-20,251,787,357
Cash Flows from Financing	-737,719,969	-2,977,273,320
Increase/Decrease in Cash	-7,412,695,468	-3,977,886,552
Cash at the Beginning of Year	11,623,406,743	15,601,293,295
Cash at the End of Year	4,210,711,275	11,623,406,743

Cash Flows
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Cash Flows from Operating	23,887,459,236	26,573,027,964	10,689,036,538
-Net Income	14,375,712,177	16,183,929,127	8,737,628,538
-Exp. without Cash Outflow	12,239,932,441	8,316,201,653	12,992,933,992
-Revenue without Cash Inflows	-187,355,375	-381,688,180	-5,386,022,343
-Changes in Asset/ & Liability	-2,540,830,007	2,454,585,364	-5,655,503,649
Cash Flows from Investing	-20,251,356,727	-14,781,825,947	496,757,651
-Cash Inflow from Investing	94,493,830	489,261,947	4,524,698,913
-Cash Outflows for Investing	-20,345,850,557	-15,271,087,894	-4,027,941,262
Cash Flows from Financing	-7,613,989,061	-5,334,279,969	-4,196,385,850
-Cash Inflows from Financing	5,400,000,000	12,710,000,000	13,164,000,000
-Cash Outflows from Financing	-13,013,989,061	-18,044,279,969	-17,360,385,850
Increase/Decrease in Cash	-3,977,886,552	6,456,922,048	6,989,408,339
Cash at the Beginning of Year	15,601,293,295	9,144,371,247	2,154,962,908
Cash at the End of Year	11,623,406,743	15,601,293,295	9,144,371,247

Products, Technologies, Services Description

Main Products & Services

Potassium Clavulanate, DMCT, Rifampicin, Cyclosporin,Tacrolimus

Annual Production Capacity (Unit : Kg)

Products	03/2011	2010	2009
P.Clavulanate	77,244	163,033	125,630
DMCT	-	134,000	86,860
Acarbose	-	11,760	8,001
Rifampicin	13,500	52,800	17,250
Tacrolimus	3.4	5.5	3.3
Cyclosporin(A)	-	-	-

Trade Partners & Competitors

Suppliers

DONG SUH ONG(DOMESTIC)

UNI CHEMA(OVERSEAS)

KYUNGDONG CERAMIC(DOMESTIC)

YUSUNG FOODS(DOMESTIC)

DONG WOO SHIN TECH(DOMESTIC)

NIPPON SODA(OVERSEAS)

Customers

Major Pharmaceutical Companies

Sales Channel

Export : The Subject → Overseas Wholesalers

The Subject -> Local Wholesalers -> Overseas Wholesalers

Domestic Sales: The Subject → Wholesalers

The Subject → Domestic Pharmaceutical Companies

Conditions

Export : Direct selling by L/C, D/A, T/T in advance, CAD

Domestic Sales : Direct selling by 60 days credit

Competitors

YUHAN CORPORATION

49-6, DAEBANG-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-828-0181 FAX:+82-2-828-0300

YUHAN CHEMICAL INC.

5BA-402, SIHWA INDUSTRIAL COMPLEX, 678-1, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-488-5800 FAX:+82-31-499-4115

KUNWHA PHARMACEUTICAL CO., LTD.

94, GARAKBON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-2047-7700 FAX:+82-2-430-1135

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

CHONG KUN DANG PHARMACEUTICAL CORP.(110111-0028955)

CHONG KUN DANG INDUSTRIES CO., LTD.(110111-0253437)

ANSUNG PRECISION MACHINERY CO., LTD.( 134811-0013673)

BELLCOM CO., LTD.(110111-2261339)

CHONGKUNDANG HEALTH CARE CO., LTD.(135011-0049540)

KOREA HINET CO., LTD. (110111-0892136)

CKD VENTURE CAPITAL CORPORATION(160111-0065098)

CKD BIO CORP.(110111-2373308)

BELL SM CO., LTD.(110111-3483841)

BELL I&S CO., LTD.(110111-3895913)

KYOUNGBO CHEMICAL CO., LTD. (164811-0001961)

CKD LIVING CO., LTD.(110111-3667049)

(10.00% held by the subject company)

BARDIA FARMA S.P.A

EQUIS PHARMACEUTICALS, INC

Subsidiary

BELLCHEMIE AG

Sales by Region

(Activity & Markets)

Sales/ Unit : KRW	09/2011	2010	2009
Export	62,845,958,502	93,224,184,468	77,487,203,094
Domestic	19,475,727,610	28,344,167,493	29,066,376,226
Total	82,321,686,112	121,568,351,961	106,553,579,320

The subject exports about 30 kinds of raw materials and finished products to USA, China, South America, Middle East, Africa and Europe.

Court Action

No.

News Clipping

---

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.73
UK Pound	1	Rs.87.26
Euro	1	Rs.69.84

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.