MIRA INFORM REPORT

Report Date :

30.11.2012

IDENTIFICATION DETAILS

Name :	SUN KOO CO., LTD.

Formerly Known As :	SUN KOO Chemical Co., Ltd.

Registered Office :	1238-2, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea, 1Ra-203, Sihwa Industrial Complex, Zip cdoe 429-914

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	28.12.1999

Com. Reg. No.:	134-81-49722

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacturer of all other chemical products

No. of Employees :	32 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	SUN KOO CO., LTD. (Korean Company Name : “(주)선구”)
Registered Address	1238-2, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea
Building	1Ra-203, Sihwa Industrial Complex
Zip Code	429-914
Tel	+82-31-497-6691
Fax	+82-31-497-6694
E-mail	info@sunkoochem.com
Website	www.sunkoochem.com
Trading Address	1Ra-203, Sihwa Industrial Complex, 1238-2, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea
Tel	+82-31-497-6691
Fax	+82-31-497-6694
Type	Export/Import
Industry	Manufacture of All Other Chemical Products n.e.c.
Main Business	Lubricants, Stabilizers, Nucleating Agents, Non-Halogenated Flame Retardants
Established (mm/dd/yyyy)	12/28/1999

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Grease(15121902)
Sell	Engine oil(15121501)
Sell	Brake oil(15121509)
Sell	Gear oil(15121503)
Sell	Lubricating preparations(15121500)

CEO’s

Name	Hwang Sung-Ok
Address	Suite 17-606, 1685, Seocho-dong, Seocho-gu, Seoul, Korea
Date of Birth	02/12/1942
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

3,000,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Hana Bank

Corporate Registered No.

135511-0102728

Business Registered No.

134-81-49722

Permit & Licenses

2008 ISO 14001

2008 ISO 9001

Int’l Trade No.: 11444051

Shareholder Position

Name	Shares	%
HWANG SUNG-OK	303,299	50.55
HWANG EUI-CHEON	218,391	36.40
KIM SOON-DUCK	43,978	7.33
HWANG SOO-HYUN	17,166	2.86
HWANG JUNG-HYUN	16,666	2.78
HWANG SUNG-CHEOL	500	0.08
TOTAL	600,000	100.00

Company History

1982 Established as SUN KOO Chemical Co.(Sole Proprietorship)

12/28/1999 Incorporated as SUN KOO Chemical Co., Ltd.

10/19/2005 Changed company name to the present name

2009 Designated as an INNO-BIZ Company

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Hwang Sung-Ok	Male	Korean	12/28/2002
Director	Mr.	Hwang Eui-Cheon	Male	Korean	12/28/2002
Director	M/S.	Hwang Jung-Hyun	Female	Korean	02/12/2007
Auditor	M/S.	Kim Soon-Duck	Female	Korean	03/29/2002

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	23,558,873,881	15,156,343,274	1,061,399,446
2010	21,273,642,158	14,551,979,001	1,275,506,176
2009	16,081,154,089	13,991,313,142	92,315,849

Financial Description

Authorized Capital(KRW)	12,000,000,000
Paid-Up Capital(KRW)	3,000,000,000
Total Issued Shares	600,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	15,156,343,274	14,551,979,001	13,991,313,142
Current Assets	8,597,280,157	8,386,281,490	7,711,023,615
-Quick Assets	5,829,740,793	6,458,202,465	5,493,902,633
-Inventories	2,767,539,364	1,928,079,025	2,217,120,982
Fixed Assets	6,559,063,117	6,165,697,511	6,280,289,527
-Investment	890,909,100	530,909,100	168,042,735
-Tangibles	5,566,983,617	5,558,618,011	6,036,076,392
-Intangibles	101,170,400	76,170,400	76,170,400
Total Liabilities	4,723,515,962	5,080,551,135	5,795,391,452
Current Liabilities	4,125,369,347	4,581,633,391	5,109,023,174
Fixed Liabilities	598,146,615	498,917,744	686,368,278
Capital Stock	3,000,000,000	3,000,000,000	3,000,000,000
Capital Surplus
Profit Surplus	7,432,827,312	6,471,427,866	5,195,921,690
Capital Adjustment
Total Equity	10,432,827,312	9,471,427,866	8,195,921,690
Liab. & Shareholder’s Equity	15,156,343,274	14,551,979,001	13,991,313,142

Current Liabilities	4,125,369,347	4,581,633,391	5,109,023,174
Trade Payables	210,956,790	406,257,160	326,413,668
Account Payables	126,374,493	126,753,528	56,633,238
Advance Receipts	2,570,175	-
Accrued Income Tax	246,521,054	23,859,673	13,371,570
Withholdings	15,483,390	10,472,600	8,182,180
Short-Term Borrowings	3,400,000,000	3,900,000,000	4,700,000,000
Accrued Expenses	4,307,449	5,768,026	4,422,518
Current Portion of Long-Term Account Payables	19,155,996	8,522,404	-
Current Portion of Long-Term Debts	100,000,000	100,000,000	-
Fixed Liabilities	598,146,615	498,917,744	686,368,278
Long-Term Borrowings	-	100,000,000	300,000,000
Leasehold Deposit Received	400,000	400,000	-
Provision for Severance & Retirement	567,924,881	395,453,330	386,368,278
Long-Term Account Payables	29,821,734	3,064,414	-

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	23,558,873,881	21,273,642,158	16,081,154,089
Cost of Sold Goods	20,441,885,908	18,258,385,811	14,048,734,021
Gross Profit	3,116,987,973	3,015,256,347	2,032,420,068
Selling & Admin. Expenses	1,375,908,773	1,041,449,029	893,739,760
Operating Income	1,741,079,200	1,973,807,318	1,138,680,308
Non-Operating Income	135,125,279	97,182,338	90,807,769
Non-Operating Expenses	566,524,409	761,757,327	1,135,130,481
Income Before Taxes	1,309,680,070	1,309,232,329	94,357,596
Income Taxes Expenses	248,280,624	33,726,153	2,041,747
Net Income	1,061,399,446	1,275,506,176	92,315,849

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	1,105,012,610	2,181,719,981	793,804,303
-Net Income	1,061,399,446	1,275,506,176	92,315,849
-Exp. without Cash Outflow	942,875,514	934,447,453	1,242,075,429
-Sale without Cash Inflows	-1,043,454	-1,999,000	-
-Changes in Asset/ & Liability	-898,218,896	-26,234,648	-540,586,975
Cash Flows from Investing	-1,073,960,295	-711,422,813	-378,166,820
-Cash Inflow from Investing	1,045,454	8,167,981	37,445,000
-Cash Outflows for Investing	-1,075,005,749	-719,590,794	-415,611,820
Cash Flows from Financing	-700,000,000	-900,000,000	150,000,000
-Cash Inflows from Financing	9,400,000,000	11,000,000,000	7,200,000,000
-Cash Outflows from Financing	-10,100,000,000	-11,900,000,000	-7,050,000,000
Increase/Decrease in Cash	-668,947,685	570,297,168	565,637,483
Cash at the Beginning of Year	2,369,396,563	1,799,099,395	1,233,461,912
Cash at the End of Year	1,700,448,878	2,369,396,563	1,799,099,395

Products, Technologies, Services Description

Main Products & Services

Lubricants, Stabilizers, Nucleating Agents, Non-Halogenated Flame Retardants

Trade Partners & Competitors

Competitors

SHINSUNG PETROCHEMICAL CO., LTD.

8TH FL., SHINSUNG BLDG., 732-27, YEOKSAM 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-548-5597 FAX:+82-2-543-4078

S-OIL CORPORATION

45TH FL., KOREA LIFE INSURANCE 63 BLDG., 60, YEOEUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-3772-5151 FAX:+82-2-786-4030

ISU CHEMICAL CO., LTD.

112-4, BANPO 4-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-590-6600 FAX:+82-2-590-6666

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured company

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

Sales by Region

(Activity & Markets)

Not Available.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.20
UK Pound	1	Rs.88.38
Euro	1	Rs.71.47

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.