MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	KOREA PILLAR PACKING CO., LTD.

Registered Office :	371, Jinsa-ri, Gongdo-myeon, Anseong-si, Gyeonggi-do, Korea 456-826

Country :	South Korea

Financials (as on) :	31.12.2009

Date of Incorporation :	13.11.1978

Com. Reg. No.:	125-81-01684

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Other General- Purpose Machinery

No. of Employees :	63

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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

(31.03.2011)

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	KOREA PILLAR PACKING CO., LTD. (Korean Company Name : “한국필아공업(주)”)
Registered Address	371, Jinsa-ri, Gongdo-myeon, Anseong-si, Gyeonggi-do, Korea
Zip Code	456-826
Tel	+82-31-656-4501~3
Fax	+82-31-656-4504
E-mail	webmaster@koreapillar.com
Website	www.koreapillar.com
Trading Address	Rm. 1703, Kukdong Bldg., 60-1, Chungmuro 3-ga, Jung-gu, Seoul, Korea
Tel	+82-2-2277-4031
Fax	+82-2-2275-9140
Type	Export/Import
Industry	Manufacture of Other General- Purpose Machinery n.e.c.
Main Business	Mechanical Seal, Gasket, Packing, Coupling
Established (mm/dd/yyyy)	11/13/1978

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Seal mechanical(31181604)
Sell	Packings(31181701)
Sell	Gaskets(31181500)

CEO’s

Name	Heo Ryoung
Address	Suite 105-1701, 266, Dongmak-ro, Mapo-gu, Seoul, Korea
Date of Birth	03/08/1968
Title	Co-President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,000,000,000

Employees

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank-Chungmuro Kukdong Corporation Branch

SC First Bank of Korea-Toigyero Branch

Corporate Registered No.

1346110-000541

Business Registered No.

125-81-01684

Permit & Licenses

11/06/2000 ISO 9001

Int’l Trade No.: 827128

Shareholder Position

Name	%
CHO YONG-BAIK	40.00
NIPPON PILLAR PACKING CO., LTD.	49.00
OTHERS(8)	11.00
TOTAL	100.00

Company History

11/13/1978 Incorporated as the present name

04/10/1982 Registered as a Foreign Direct Investment Corporation

05/14/2010 Designated as a Venture Business

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Heo Ryoung	Male	Korean	08/08/2012
Director	Mr.	Ooyi Wateruo	Male	Japanese	08/08/2012
Director	Mr.	Cho Yong-Baik	Male	Korean	08/08/2012
Director	Mr.	Koto Yukio	Male	Japanese	08/08/2012
Director	Mr.	Hur Sung-Ok	Male	Korean	08/08/2012
Director	Mr.	Yamawuchi Sadamitsu	Male	Korean	08/08/2012
Director	Mr.	You Kil-Dong	Male	Korean	08/08/2012
Director	Mr.	Kastumi Ryohichi	Male	Japanese	08/08/2012
Director	Mr.	Byun Byung-Ro	Male	Korean	08/08/2012
Auditor	Mr.	Maruoka Kazuhiro	Male	Japanese	08/08/2012

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011
2010
2009	9,158,000,000	6,661,000,000	285,000,000
2008	9,090,000,000	6,621,000,000	247,000,000
2007	8,579,000,000	6,905,000,000	218,000,000
2006
2005
2004
2003

The latest financials are not available, and the Subject Company does not have any obligations to release its financials to the public.

Financial Description

Authorized Capital(KRW)	1,500,000,000
Paid-Up Capital(KRW)	1,000,000,000
Total Issues Shares	200,000

Balance Sheet
Unit : Million Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Total Assets		6,661	6,621
Current Assets		4,398	4,334
-Quick Assets		3,464	3,340
-Inventories		934	995
Fixed Assets		2,263	2,286
-Investment		159	112
-Tangibles		1,842	1,941
-Intangibles		91	64
-Others		171	169
Total Liabilities		4,475	4,721
Current Liabilities		3,126	3,524
Fixed Liabilities		1,349	1,197
Capital Stock		1,000	1,000
Capital Surplus
Profit Surplus		1,186	900
Capital Adjustment
Total Equity		2,186	1,900
Liab. & Shareholder’s Equity		6,661	6,621

Income Statement
Unit : Million Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Sales		9,158	9,090
Cost of Sold Goods		6,698	6,436
Gross Profit		2,460	2,654
Selling & Admin. Expenses		1,928	2,037
Operating Income		532	617
Non-Operating Income		84	98
Non-Operating expenses		245	348
Income Before Taxes		371	367
Income Taxes Expenses		86	119
Net Income		285	247

Products, Technologies, Services Description

Main Products & Services

Mechanical Seal, Gasket, Packing, Coupling

Trade Partners & Competitors

Competitors

JOHN CRANE KOREA

RM. 201, CHUNGJEONG BLDG., 2-2, CHUNGJEONGNO 2-GA, SEODAEMUN-GU, SEOUL, KOREA

TEL:+82-2-3147-1900 FAX:+82-2-3147-1904

HYCOS CO., LTD.

T-408, THE CITY SEVEN SHOPPING MALL, DAEWON-DONG, UICHANG-GU, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-288-0615 FAX:+82-55-288-0613

DAI YANG INDUSTRIES CO.

405-3, JANGAM-RI, MAJANG-MYEON, ICHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-907-8833 FAX:+82-31-907-8842

Sales by Region

(Activity & Markets)

The Subject deals with the companies in China, Japan and Middle East.

Court Action

Not Available.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.69
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Report Prepared by :

PRL

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.