MIRA INFORM REPORT

Report Date :

10.11.2012

IDENTIFICATION DETAILS

Name :	DAEWON GSI CO., LTD.

Registered Office :	990-2, Geumsan-ri, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea, Zip Code 718-802

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	04.11.1982

Com. Reg. No.:	504-81-04185

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacturer of Machinery for Food, Beverage and Tobacco Processing

No. of Employees :	169 employees

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

Company Name	DAEWON GSI CO., LTD. (English Co. Name : DAEWON GLOBAL SYSTEM INTEGRATION CO., LTD.) (Korean Company Name : “(주)대원지에스아이”)
Registered Address	990-2, Geumsan-ri, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea
Zip Code	718-802
Tel	+82-54-973-2221~8
Fax	+82-54-973-2230
E-mail	trade@daewon.com
Website	www.daewon.com
Trading Address	990-2, Geumsan-ri, Waegwan-eup, Chilgok-gun, Gyeongsangbuk-do, Korea
Tel	+82-54-973-2221~8
Fax	+82-54-973-2230
Other Address-Biotech Business Division	983, Geumsan-ri, Waegwan-eup ,Chilgok-gun, Gyeongbuk, Korea
Other Address	1112-1, Gwang-eum-ri, Namhu-myeon, Andong-si, Gyeongbuk, Korea
Type	Export/Import
Industry	Manufacture of Machinery for Food, Beverage and Tobacco Processing
Main Business	Rice Polishing Mill, Dry Storage Extension Equipment, Grain Dryer, Color Sorter
Established (mm/dd/yyyy)	11/04/1982

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Grain analyzers(41112701)
Sell	Rice cleaning or hulling equipment(21102004)
Sell	Grading machines for seed or grain or dried leguminous vegetables(21102003)
Sell	Agricultural machinery for cleaning and sorting and grading(21102000)

CEO’s

Name	Suh Yong-Kyo
Address	Rm.107-705, 500-1, Sangyeok-dong, Buk-gu, Daegu, Korea
Date of Birth	04/05/1955
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,248,500,000

Employees

169

Formation

Co., Ltd by shares

Bank Details

Daegu Bank

Industrial Bank of Korea

Korea Exchange Bank

NACF

Corporate Registered No.

170111-0016924

Business Registered No.

504-81-04185

Permit & Licenses

1999 EM Mark

2001 EM Mark

06/2003 ISO 9001 by BQR

11/2006 CE Mark

Int’l Trade No.: 13002743

Shareholder Position

Name	Shares	%
SUH YONG-KYO	486,915	19.50
PARK MYUNG-OK	511,885	20.50
SEO OK-HEE	378,200	15.10
BAE YEON-CHANG	120,000	4.80
TREASURY STOCK	1,000,000	40.10
TOTAL	2,497,000	100.00

Company History

01/1970 Established as SUNGCHANG MACHINERY CO.(Sole Proprietorship)

07/1973 Changed company name to DAEWON INDUSTRY CO.

11/04/1982 Incorporated as DAEWON INDUSTRY CO., LTD.

02/1995 Moved to the present HQ address

12/07/2001 Changed company name to the present name

11/2002 Awarded US$5 Million Export Top Prize

01/05/2004 Decreased capital to 1,248,500,000 KRW from 1,300,000,000 KRW

01/08/2004 Spin off to the existing company and DAEWON JEONSUL CO., LTD.

11/2005 Awarded US$10 Million Export Top Prize

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Suh Yong-Kyo	Male	Korean	04/11/2005
Director	Mr.	Jang Young-Ho	Male	Korean	03/20/;2008
Director	Mr.	Suh Chan-Kyo	Male	Korean	03/20/;2008
Director	Mr.	Han Ki-Dong	Male	Korean	03/31/2009
Director	Mr.	Suh Bo-Sung	Male	Korean	08/01/2011
Auditor	M/S.	Seo Myung-Ok	Female	Korean	03/20/;2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	70,705,053,997	69,599,279,015	4,522,031,461
2010	58,114,132,658	75,116,466,802	9,440,202,321
2009	65,629,650,477	89,524,386,726	8,707,852,318
2008	67,298,340,330	65,905,128,128	4,711,261,050
2007	41,359,703,039	45,870,332,663	1,615,519,941
2006	40,249,761,626	52,300,676,837	2,717,923,074
2005	41,607,575,036	44,912,940,591	4,689,919,071
2004	36,189,538,934	35,784,262,079	2,520,472,655

Financial Description

Authorized Capital(KRW)	50,000,000,000
Paid-Up Capital(KRW)	1,248,500,000
Total Issues Shares	2,497,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	69,599,279,015	75,116,466,802	89,524,386,726
Current Assets	48,208,918,727	51,641,440,550	63,326,313,763
-Quick Assets	42,248,983,416	39,546,922,104	56,689,939,507
-Inventories	5,959,935,311	12,094,518,446	6,636,374,256
Fixed Assets	21,390,360,288	23,475,026,252	26,198,072,963
-Investment	3,852,352,201	3,728,683,802	3,107,169,148
-Tangibles	16,785,616,458	19,104,548,321	21,720,561,336
-Intangibles	108,812,667	142,753,167	178,711,167
-Others	643,578,962	499,040,962	1,191,631,312
Total Liabilities	37,837,167,030	47,876,386,278	57,048,324,074
Current Liabilities	36,072,615,107	42,113,770,434	50,909,850,722
Fixed Liabilities	1,764,551,923	5,762,615,844	6,138,473,352
Capital Stock	1,248,500,000	1,248,500,000	1,248,500,000
Capital Surplus	365,002,877	365,002,877	365,002,877
Profit Surplus	44,824,793,557	40,302,762,096	30,862,559,775
Capital Adjustment	-14,676,184,449	-14,676,184,449	-
Total Equity	31,762,111,985	27,240,080,524	32,476,062,652
Liab. & Shareholder’s Equity	69,599,279,015	75,116,466,802	89,524,386,726

Current Liabilities	36,072,615,107	42,113,770,434	50,909,850,722
Trade Payables	10,730,712,424	7,189,205,826	7,544,082,829
Short-Term Borrowings	18,959,900,000	30,446,589,104	38,052,189,104
Account Payables	622,494,000	4,094,000	4,094,000
Advance Receipts	281,208,410	2,595,199,237	846,731,960
Withholdings	82,584,320	98,143,500	105,740,130
VAT Withhold	176,759,237	-	28,834,692
Accrued Expenses	593,922,883	591,748,767	554,971,220
Accrued Income Tax	509,664,459	-	2,771,926,787
Current Portion of Long-Term Debts	693,050,000	1,188,790,000	1,001,280,000
Convertible Bonds	3,400,000,000	-	-
Fixed Liabilities	1,764,551,923	5,762,615,844	6,138,473,352
Long-Term Borrowings	657,050,000	1,404,030,000	2,364,240,000
Convertible Bonds	-	3,400,000,000	3,400,000,000
Long-Term Account Payables	-	391,200,000	144,400,000
Leasehold Deposit Received	311,040,000	8,040,000	18,040,000
Deferred Income Tax Credit	711,502,857	550,362,361	393,867,500
Provision for Severance & Retirement	1,027,224,000	745,042,570	555,480,040

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	70,705,053,997	58,114,132,658	65,629,650,477
Cost of Sold Goods	48,267,399,077	33,842,658,001	37,120,341,156
Gross Profit	22,437,654,920	24,271,474,657	28,509,309,321
Selling & Admin. Expenses	15,272,912,023	11,064,238,575	14,780,171,215
Operating Income	7,164,742,897	13,207,236,082	13,729,138,106
Non-Operating Income	7,712,151,718	4,492,260,290	5,692,162,826
Non-Operating Expenses	7,716,433,842	6,295,252,542	8,872,642,831
Income Before Taxes	7,160,460,773	11,404,243,830	10,548,658,101
Income Taxes Expenses	2,638,429,312	1,964,041,509	1,840,805,783
Net Income	4,522,031,461	9,440,202,321	8,707,852,318

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	20,629,515,489	2,803,352,680	7,761,425,180
-Net Income	4,522,031,461	9,440,202,321	8,707,852,318
-Exp. without Cash Outflow	4,063,150,970	1,535,059,150	6,373,882,999
-Revenue without Cash Inflows	-1,278,475,087	-1,405,765,389	-1,667,570,632
-Changes in Asset/ & Liability	13,322,808,145	-6,766,143,402	-5,652,739,505
Cash Flows from Investing	-8,078,001,091	-6,993,069,141	-948,933,714
-Cash Inflow from Investing	139,313,208,437	83,959,515,929	112,178,908,349
-Cash Outflows for Investing	-147,391,209,528	-90,952,585,070	-113,127,842,063
Cash Flows from Financing	-11,598,167,858	-21,783,984,449	19,952,699,104
-Cash Inflows from Financing	94,691,141,246	128,474,000,000	167,255,549,104
-Cash Outflows from Financing	-106,289,309,104	-150,257,984,449	-147,302,850,000
Increase/Decrease in Cash	953,346,540	-25,973,700,910	26,765,190,570
Cash at the Beginning of Year	7,490,684,063	33,464,384,973	6,699,194,403
Cash at the End of Year	8,444,030,603	7,490,684,063	33,464,384,973

Products, Technologies, Services Description

Main Products & Services

Color Sorter Manufacturer

Color Sorter

Rice Color Sorter

Cereals Sorter

Camera Sorter

Grain Sorter

Grain Sorting Machine

Grain Color Sorter

Seed Color Sorter

Tea Sorter

Color Sorting Machine

Rice Processing Machinery

Tea Color Sorter

Trade Partners & Competitors

Customers

NACF

Competitors

ATS INTERNATIONAL CO., LTD.

RM. 707, PHOENIX BLDG., 702-23, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-2051-2650~4 FAX:+82-2-2051-2655

HANSUNG ENGINEERING CO., LTD.

586, PUNGSEO-RI, PUNGSE-MYEON, DONGNAM-GU, CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-553-4561 FAX:+82-41-553-6053

HAN JAM MACHINERY CO., LTD.

123-6, HA-RI, YEOJU-EUP, YEOJU-GUN, GYEONGGI-DO, KOREA

TEL:+82-31-883-9559 FAX:+82-31-884-0598

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

DAEWON JEONSUL CO., LTD.(KOREA)

WAPS CO., LTD.(170111-0051730)

ILSUNG TECH CO., LTD.(KOREA)

DMC CO., LTD.(KOREA)

DAEWON GSI(THAILAND)CO., LTD.

Subsidiary

PT. DAEWON INDONESIA

CHUNJI DAEWON KILSAE SANGMU CO., LTD.(CHINA : 천지대원길새상무(유))

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIREINSURANCE CO., LTD.(110111-0035893)

Sales by Region

(Activity & Markets)

The Subject deals with the companies in Sri Lanka, China, Taiwan, Colombia, India, Indonesia, Japan, Pakistan, Philippines, Russia and Vietnam.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.34
UK Pound	1	Rs.86.97
Euro	1	Rs.69.43

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.