MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	DONGSUH COMPANIES INC.

Registered Office :	564, Dohwa-dong, Mapo-gu, Seoul, Korea, 10th Fl., Dongsuh Bldg. 121-730

Country :	South Korea

Financials (as on) :	30.06.2011

Date of Incorporation :	16.05.1975

Com. Reg. No.:	Listed Company

Legal Form :	Listed Company

Line of Business :	Wholesale of Other Prepared Food like, Tea, Coffee, Sauce

No. of Employees :	256

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 :	Regular
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	DONGSUH COMPANIES INC. (Korean Company Name : “(주)동서”)
Registered Address	564, Dohwa-dong, Mapo-gu, Seoul, Korea
Building	10th Fl., Dongsuh Bldg.
Zip Code	121-730
Tel	+82-2-701-5050
Fax	+82-2-716-7730
E-mail	eschoi79@dongsuh.com
Website	www.dongsuh.com
Trading Address	10th Fl., Dongsuh Bldg., 564, Dohwa-dong, Mapo-gu, Seoul, Korea
Tel	+82-2-701-5050
Fax	+82-2-716-7730
Other Address- Ansan Factory	24B, Banwol Industrial Complex, 1114, Singil-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea
Tel	+82-31-491-3471~3
Fax	+82-31-492-2037
Other Address-Sihwa Factory	2Da-301, Sihwa Industrial Complex, 1263, Jeongwang 2-dong, Siheung-si, Gyeonggi-do, Korea
Tel	+82-31-431-4240
Fax	+82-31-432-4620
Other Address-Warehouse	34-4, Gupyeong-dong, Saha-gu, Busan, Korea
Type	Export/Import
Industry	Wholesale of Other Prepared Food
Main Business	Tea, Coffee, Sauce
Sub Business	Manufacture of Plastic Films, Sheets and Plates
Established (mm/dd/yyyy)	05/16/1975

The Subject owns the premises of registered HQ address, Ansan Factory, Sihwa Factory and warehouse.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Packaging films(24141514)
Sell	Hardware and fittings(40141700)
Sell	Shelf stable fruit(50101636)
Sell	Soft drinks(50202306)
Sell	Temperature and heat measuring instruments(41112200)
Sell	Coextruded films(13111205)
Buy	Packaging boxes(24121503)
Buy	Resins(13111000)
Buy	Polyethylene(13111016)
Buy	Films(13111200)
Buy	Base Metals(11101700)

CEO’s

Name	Kim Jong-Won
Date of Birth	11/08/1956
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

14,900,000,000

Employees

256

Formation

Listed Company (KOSDAQ : 026960) as of 12/27/1995

Bank Details

Kookmin Bank

Citibank, Korea

Korea Exchange Bank

Woori Bank

Hana Bank

Corporate Registered No.

110111-0180888

Business Registered No.

105-81-38440

Permit & Licenses

Int’l Trade No.: 831121

Shareholder Position

Name	Shares	%
KIM SANG-HUN	10,884,590	36.53
KIM SEOK-SOO	5,999,204	20.13
HAN HYE-YEON	665,610	2.23
MOON HYE-YOUNG	593,560	1.99
KIM JONG-HEE	1,030,626	3.46
TREASURY STOCK	424,080	1.42
OTHERS	10,202,330	34.24
TOTAL	29,800,000	100.00

Company History

05/16/1975 Incorporated as Apollo Heat Bottle Co., Ltd.

11/14/1978 Changed company name to Apollo Co., Ltd.

03/31/1981 Changed company name to Yudong Corporation

02/12/1989 Moved to the present HQ address

05/16/1996 Changed company name to the present name

08/01/1996 Acquired Saehan Yutong Co., Ltd.

Detailed Information

Management

Job Description	Title	Name	Sex	Date of Birth	Education
Chairman & CEO	Mr.	Kim Sang-Hun	Korean	1949.11.29	Korea University, Korea
President & CEO	Mr.	Kim Jong-Won	Korean	1956.11.08	Seogang University, Korea
Outside Director	Mr.	Yoon Se-Cheol	Korean	1957.04.16	University of Helsinki, Finland
Outside Director	Mr.	Choi In-Ho	Korean	1934.03.08	Busan University, Korea
Auditor	Mr.	Lee Hong-Jae	Korean	1937.04.03	Dongah University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)09/2012	316,402,354,973	907,501,876,862	87,485,971,130
(*)2011	407,145,531,095	861,895,480,653	90,706,392,992
(*)2010	349,442,663,606	786,983,903,134	84,576,609,313
2009	308,838,422,000	722,684,057,000	107,817,530,000
2008	282,336,739,000	643,559,001,000	90,119,507,000
2007	235,209,649,805	572,631,736,324	76,472,756,615
2006	222,018,926,711	494,564,280,111	63,891,382,729
2005	220,231,122,197	464,927,870,872	66,858,126,777
2004	218,729,069,751	418,257,440,214	53,452,287,691

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	50,000,000,000
Paid-Up Capital(KRW)	14,900,000,000
Total Issued Shares	29,800,000

Balance Sheet

Unit : Korean Won	01/01/2011~09/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	907,501,876,862	861,895,480,653	786,983,903,134
Current Assets	474,410,707,976	309,647,203,416	405,362,371,417
Cash & Cash Equivalents	162,656,741,234	54,710,590,252	69,167,779,518
Current Financial Instruments	85,000,000,000	170,000,000,000	270,000,000,000
Other Current Financial Instruments	140,101,035,105	450,000	15,770,000
Trade Receivables & Other Receivables	54,951,518,341	52,373,708,052	44,778,533,618
Other Current Assets	371,956,238	247,803,263	273,048,170
Derivatives	3,655,754	3,181,496	722,575
Inventories	31,325,801,304	32,311,470,353	21,126,517,536
Non-Current Assets	433,091,168,886	552,248,277,237	381,621,531,717
Other Financial Assets	12,500,000	12,500,000	12,500,000
Marketable Financial Instruments	473,640,000	473,640,000	473,640,000
Other Financial Instruments	70,005,000	140,227,274,137	59,365,000
Investment_Subsidiaries	16,230,137,671	16,230,137,671	16,230,137,671
Investment_Related Companies	346,527,720,084	325,556,980,084	301,292,973,604
Long-Term Trade Receivables & Other Receivables	109,465,000	563,745,563	59,455,000
Tangibles	56,000,745,088	56,709,183,702	50,946,747,620
Intangibles	2,286,439,015	1,047,897,752	990,174,293
Investment_Real Estates	11,380,517,028	11,426,918,328	11,556,538,529
Total Liabilities	91,891,115,809	94,121,112,114	76,347,837,209
Current Liabilities	59,302,646,557	61,134,787,866	45,737,883,326
Trade Payables & Other Payables	42,019,998,654	45,690,617,036	34,394,278,822
Other Current Liabilities	1,525,533,814	1,784,023,211	1,747,983,166
Accrued Income Tax	15,756,714,089	13,646,301,202	9,591,051,115
Derivatives	400,000	13,846,417	4,570,223
Non-Current Liabilities	32,588,469,252	32,986,324,248	30,609,953,883
Long-Term Trade Payables & Other Payables	3,750,600,804	3,802,010,969	3,724,026,082
Provision for Severance & Retirement	2,382,865,802	1,491,322,005	1,598,839,446
Deferred Income Tax Credit	26,455,002,646	27,692,991,274	25,287,088,355
Capital Stock	14,900,000,000	14,900,000,000	14,900,000,000
Others	2,141,798,173	2,141,798,173	187,807,623
Profit Surplus	798,568,962,880	750,732,570,366	695,548,258,302
Total Equity	815,610,761,053	767,774,368,539	710,636,065,925
Liab. & Shareholder’s Equity	907,501,876,862	861,895,480,653	786,983,903,134

Balance Sheet

Unit : Thousand Korean Won	01/01/2011~06/30/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	820,945,584	722,684,057	643,559,001
Current Assets	404,952,255	345,509,325	279,814,768
-Quick Assets	383,825,737	326,719,092	259,817,009
-Inventories	21,126,518	18,790,233	19,997,759
Fixed Assets	415,993,329	377,174,732	363,744,233
-Investment	356,143,102	318,084,386	303,016,323
-Tangibles	58,873,027	58,013,600	59,656,794
-Intangibles	147,994	241,235	126,810
-Others	829,206	835,511	944,306
Total Liabilities	90,892,652	79,590,217	82,650,871
Current Liabilities	46,266,406	40,713,469	46,729,121
Fixed Liabilities	44,626,246	38,876,748	35,921,750
Capital Stock	14,900,000	14,900,000	14,900,000
Capital Surplus	46,906,962	46,906,961	46,906,961
Profit Surplus	621,695,253	535,707,492	454,328,288
Capital Adjustment	46,550,717	45,579,387	44,772,881
Total Equity	730,052,932	643,093,840	560,908,130
Liab. & Shareholder’s Equity	820,945,584	722,684,057	643,559,001

Income Statement

Unit : Korean Won	01/01/2011~09/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	316,402,354,973	407,145,531,095	349,442,663,606
Cost of Sold Goods	264,328,462,597	340,440,962,554	289,853,751,616
Gross Profit	52,073,892,376	66,704,568,541	59,588,911,990
Selling Expenses	5,832,554,829	7,374,423,779	6,193,363,794
Admin. Expenses	15,220,641,901	20,155,841,221	16,323,771,086
Other Operating Income	4,749,765,633	6,826,011,652	6,347,726,603
Other Operating Expenses	1,127,019,351	1,905,311,126	1,943,867,217
Operating Income	34,643,441,928	44,095,004,067	41,475,636,496
Finance Income	74,360,034,378	73,283,692,606	64,929,604,067
Finance Expenses	197,382	1,863,957	66,981,179
Income Before Taxes	109,003,278,924	117,376,832,716	106,338,259,384
Income Taxes Expenses	21,517,307,794	26,670,439,724	21,761,650,071
Net Income	87,485,971,130	90,706,392,992	84,576,609,313

Cash Flows

Unit : Korean Won	01/01/2011~09/30/2012	As of 12/31/2011	As of 12/31/2010
Operating Activities Cash Flows	87,377,205,150	94,756,945,769	84,279,735,903
Cash Flows from Operating	30,203,248,673	43,990,677,126	45,606,947,557
Net Income	87,485,971,130	90,706,392,992	84,576,609,313
Adjustment	-57,282,722,457	-46,715,715,866	-38,969,661,756
Interests Received	14,368,346,449	11,785,957,438	9,222,046,538
Dividends Received	63,453,020,000	59,103,085,500	52,903,500,000
Income Taxes	-20,647,409,972	-20,122,774,295	-23,452,758,192
Cash Flows from Investing	60,226,502,346	-73,963,031,035	-116,890,661,375
Cash Flows from Financing	-39,657,492,000	-35,251,104,000	-30,844,716,000
Increase/Decrease in Cash	107,946,215,496	-14,457,189,266	-63,455,641,472
Cash at the Beginning of Year	54,710,590,252	69,167,779,518	132,623,420,990
Cash at the End of Year	162,656,741,234	54,710,590,252	69,167,779,518

Products, Technologies, Services Description

Main Products & Services

Tea, Coffee, Sauce

Packing Business Division

Tea Business Division

Wholesales of Edible Oils and Beverages

Trade Partners & Competitors

Suppliers

DONGSUH FOOD & TRADING CO., LTD.(124311-0011116)

DONGSUH FOODS CORPORATION(120111-0000464)

DONG SUH OIL & FATS CO., LTD.(194211-0002824)

Customers

Competitors

CJ FRESHWAY CORPORATION

156-2 HAKAL-REE GEEHUENG-GU YOUNGIN-SI, KYEONGGI-DO, 449-910 SOUTH KOREA

TEL:+82-2-21496007 FAX:+82-2-21496098

E-NET CORPORATION

2F, SOOAHM BUILDING 66-1 YANGJAE-DONG SUHCHO-GU SEOUL, 138-240 SOUTH KOREA

TEL:+82-2-34983400 FAX:+82-2-5747447

NRD CO., LTD.

344 DAEYA-RI SAMSEONG-MYEON EUMSEON-GUN, CHOONGCHUNGBOOK-DO, 369-830 SOUTH KOREA

TEL:+82-43-8788851 FAX:+82-43-8776818

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

DONGSUH FOODS CORPORATION(120111-0000464)

(50.0% held by the subject company)

DONG SUH OIL & FATS CO., LTD.(194211-0002824)

(19.0% held by the subject company)

DONGSUH FOOD & TRADING CO., LTD.(124311-0011116)

(62.5% held by the subject company)

DAESUNG MACHINERY CO., LTD.

(48.0% held by the subject company)

SUNG JE DEVELOPMENT CO., LTD.(110111-0430142)

(19.8% held by the subject company)

DONGSUH SILUP CO., LTD.(CHINA)

(100.0% held by the subject company)

DONGSUH BEVERAGE CORPORATION(110111-4537126)

(17.00% held by the subject company)

MIGABANG CO., LTD.(284714-0000146)

Subsidiary

DONGSUH FOOD & TRADING CO., LTD.(124311-0011116)

(62.5% held by the subject company)

Sales by Region (Activity & Markets)

Sales/ Unit :Thousand KRW	09/2012	2011	2010
Export	50,119,494	63,327,982	47,481,709
Domestic	266,282,862	343,817,550	301,960,955
Total	316,402,356	407,145,532	349,442,664

Court Action

No.

News Clipping

---

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.96
UK Pound	1	Rs.87.49
Euro	1	Rs.70.15

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.

MIRA INFORM REPORT

Basic

Detailed Products

CEO’s

Profiles

Detailed Information

Financials

Balance Sheet

Balance Sheet

Income Statement

Cash Flows

Products, Technologies, Services Description

Trade Partners & Competitors

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Sales by Region (Activity & Markets)

Court Action

News Clipping

Unit