MIRA INFORM REPORT

Report Date :

09.11.2012

IDENTIFICATION DETAILS

Name :	DAEYANG ELECTRIC CO., LTD.

Registered Office :	503, Sinpyeong 1-dong, Saha-gu, Busan, Korea 604-836

Country :	South Korea

Financials (as on) :	30.06.2012

Date of Incorporation :	01.07.1988

Com. Reg. No.:	603-81-09788

Legal Form :	Limited Company

Line of Business :	Manufacture of Sections for Ships

No. of Employees :	383

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 – 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	DAEYANG ELECTRIC CO., LTD. (Korean Company Name : “대양전기공업(주)”)
Registered Address	503, Sinpyeong 1-dong, Saha-gu, Busan, Korea
Zip Code	604-836
Tel	+82-51-200-5214
Fax	+82-51-200-5260
E-mail	kangsh@daeyang.co.kr
Website	www.daeyang.co.kr
Trading Address	503, Sinpyeong 1-dong, Saha-gu, Busan, Korea
Tel	+82-51-200-5214
Fax	+82-51-200-5260
Other Address-Gupyeong Branch	317-2, Gupyeong-dong, Saha-gu, Busan, Korea
Tel	+82-51-260-3504
Fax	+82-51-260-3555
Type	Export/Import
Industry	Manufacture of Sections for Ships
Main Business	Lighting Fixtures, Switch, Starter Panel, Main Switchboard, Marin Engine Control Console, Axial Fan
Established (mm/dd/yyyy)	07/01/1988

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Switches and controls and relays and accessories(39121500)
Sell	Integrated circuit sockets or mounts(32131006)
Sell	Circuit protection devices and accessories(39121600)
Sell	Electrical components(25173900)

CEO’s

Name	Seo Young-Woo
Address
Date of Birth	12/19/1972
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

4,747,650,000

Employees

383

Formation

Listed Company(KOSDAQ : 108380) as of 07/08/2011

Venture Business

Bank Details

Korea Development Bank-Shinpyung Dong Branch

Corporate Registered No.

180111-0081389

Business Registered No.

603-81-09788

Permit & Licenses

06/1986 UL Mark

07/1992 UL Mark

10/2008 ISO 14001

12/2010 OHSAS 18001:2007

Int’l Trade No.: 890399

Shareholder Position

Name	Shares	%
SEO YOUNG-WOO	6,298,186	66.33
OTHERS	3,197,114	33.67
TOTAL	9,495,300	100.00

Company History

07/01/1988 Incorporated as the present name

07/2000 Designated as an INNO-BIZ Company

11/2001 Awarded US$ 10 Million Export top Prize

06/2006 Designated as an INNO-BIZ Company again

11/2010 Awarded US$ 30 Million Export top Prize

08/12/2011 Designated as an INNO-BIZ Company again

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
President & CEO	Mr.	Seo Young-Woo	Korean	1972.12.19	Imperial College London, UK
President	Mr.	Chu Eun-Myung	Korean	1953.03.03	Navy Academy, Korea
Vice President	Mr.	Kim Jae-Yool	Korean	1955.09.	Busan Technical College, Korea
Outside Director	Mr.	Kim You-Il	Korean	1946.07.	Korea University, Korea
Auditor	Mr.	Baik Sung-Kwon	Korean	1939.01.	Dongah University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2012	60,827,747,952	130,960,202,950	7,177,831,075
(*)2011	92,439,335,676	124,623,276,129	10,233,881,463
(*)2010	87,417,115,063	84,878,497,437	11,420,453,673

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	4,747,650,000
Total Issued Shares	9,495,300

Balance Sheet

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	130,960,202,950	124,623,276,129	84,878,497,437
Current Assets	68,282,159,987	83,692,794,071	43,539,115,625
Cash & Cash Equivalents	11,309,201,976	15,955,769,755	13,518,405,196
Trade Receivables & Other Receivables	14,937,437,986	17,417,379,932	15,599,456,824
Marketable Financial Instruments	111,570,000	0	585,000
Other Current Financial Instruments	25,618,900,000	29,569,800,000	7,195,800,000
Other Current Assets	6,557,876,333	9,984,726,553	2,817,406,272
Inventories	9,747,173,692	10,765,117,831	4,407,462,333
Non-Current Assets	62,678,042,963	40,930,482,058	40,127,636,349
Marketable Financial Instruments	2,441,026,960	3,059,852,870	3,564,268,470
Investment_Subsidiaries	8,000,000,000
Non-Current Financial Instruments	79,100,000	80,100,000	23,100,000
Other Non-Current Assets	325,711,000	335,611,000	199,411,000
Tangibles	48,205,723,614	34,964,323,442	34,648,367,654
Investment_Real Estates	38,093,194	39,104,306	86,201,482
Investment_Real Estates	3,588,388,195	2,451,490,440	1,606,287,743
Non-Current Assets to be Sold	0	0	1,211,745,463
Total Liabilities	28,240,646,175	29,073,002,409	23,984,049,236
Current Liabilities	27,517,536,101	27,944,393,501	22,342,189,491
Trade Payables & Other Payables	9,946,466,326	9,911,753,710	8,362,352,387
Short-Term Borrowings	0	0	3,500,000,000
Other Current Liabilities	16,071,744,893	17,557,627,963	8,665,161,737
Deferred Income Tax Credit	1,499,324,882	475,011,828	1,814,675,367
Non-Current Liabilities	723,110,074	1,128,608,908	1,641,859,745
Other Non-Current Financial Debts	5,656,193	11,312,386	22,624,773
Other Non-Current Liabilities	153,000,000	93,000,000	173,000,000
Deferred Income Tax Credit	564,453,881	1,024,296,522	1,446,234,972
Capital Stock	4,747,650,000	4,747,650,000	3,322,650,000
Capital Surplus	23,617,716,924	23,617,716,924	0
Capital Adjustment	-445,480,660	-445,480,660	0
Others	9,372,351,530	9,380,899,550	9,556,191,758
Profit Surplus	65,427,318,981	58,249,487,906	48,015,606,443
Total Equity	102,719,556,775	95,550,273,720	60,894,448,201
Liab. & Shareholder’s Equity	130,960,202,950	124,623,276,129	84,878,497,437

Income Statement

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	60,827,747,952	92,439,335,676	87,417,115,063
Cost of Sold Goods	50,335,336,363	75,114,180,405	68,332,126,516
Gross Profit	10,492,411,589	17,325,155,271	19,084,988,547
Selling & Admin. Expenses	3,620,889,764	7,500,405,976	6,519,053,309
Other Operating Income	808,699,101	867,295,947	1,186,604,672
Other Operating Expenses	26,089,634	80,073,287	464,823,776
Operating Income	7,654,131,292	10,611,971,955	13,287,716,134
Finance Income	839,285,710	1,609,162,560	760,451,516
Finance Expenses	234,345,265	463,033,126	543,826,181
Income Before Taxes	8,259,071,737	11,758,101,389	13,504,341,469
Income Taxes Expenses	1,081,240,662	1,524,219,926	2,083,887,796
Net Income	7,177,831,075	10,233,881,463	11,420,453,673

Cash Flows

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Operating Activities Cash Flows	13,494,252,285	4,315,651,599	8,470,779,782
Net Income	7,177,831,075	10,233,881,463	11,420,453,673
Adjustment	6,603,983,069	-3,194,956,586	-355,151,322
Interests Received	223,875,010	565,035,291	297,002,985
Interests Paid		-53,753,390	-155,983,480
Dividends Received	2,922,400	9,112,400	2,922,400
Income Taxes	-514,359,269	-3,243,667,579	-2,738,464,474
Cash Flows from Investing	-18,206,822,722	-22,917,937,233	-3,201,422,966
Cash Flows from Financing	60,000,000	21,024,523,320	-1,960,000,000
Increase/Decrease in Cash	-4,646,567,779	2,437,364,559	3,320,300,632
Cash at the Beginning of Year	15,955,769,755	13,518,405,196	10,198,104,564
Cash at the End of Year	11,309,201,976	15,955,769,755	13,518,405,196

Products, Technologies, Services Description

Main Products & Services

Lighting Fixtures, Switch, Starter Panel, Main Switchboard, Marin Engine Control Console, Axial Fan

Trade Partners & Competitors

Customers

HYUNDAI-ROTEM COMPANY(194211-0036336)

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

SAMSUNG HEAVY INDUSTRIES CO., LTD.(110111-0168595)

STX OFFSHORE & SHIPBUILDING CO., LTD.(180111-0002814)

Competitors

MICRO CONTACT SOLUTION CO., LTD.

91, OSAEKDANG-RI, SEONGGEO-EUP, SEOBUK-GU, CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-621-4331~3 FAX:+82-41-621-4330

UG COM CO., LTD.

428, GALSAN 1-DONG, BUPYEONG-GU, INCHEON, KOREA

TEL:+82-32-529-5201 FAX:+82-32-529-5204

DUCKIL INDUSTRY CO., LTD.

PYEONGTAEK INDUSTRIAL COMPLEX, 537-5, SEGYO-DONG, PYEONGTAEK-SI, GYEONGGI-DO, KOREA

TEL:+82-31-650-9700 FAX:+82-31-666-4713

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

DAEYANG INSTRUMENT CO., LTD.(180111-0078732)

SEBANG HI-TECH CO., LTD.(110111-1392060)

DAEYANG JEONJANG CO., LTD.(KOREA)

DECO CO., LTD.(KOREA)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	06/2012	2011	2010
Export	23,895	32,869	30,657
Domestic	36,933	59,570	56,760
Total	60,828	92,439	87,417

The Subject deals with the companies in Germany, Japan, Singapore and USA.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.44
UK Pound	1	Rs.87.00
Euro	1	Rs.69.47

INFORMATION DETAILS

Report Prepared by :

PDT

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.