MIRA INFORM REPORT

Report Date :

05.10.2012

IDENTIFICATION DETAILS

Name :	DAE LIM PAPER CO., LTD.

Registered Office :	7, Nueup-dong, Osan-si, Gyeonggi-do, Korea 447-160

Country :	South Korea

Financials (as on) :	30.06.2012

Date of Incorporation :	21.03.1984

Com. Reg. No.:	124-81-32409

Legal Form :	Listed Company

Line of Business :	Manufacture of Pulp

No. of Employees :	71

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

(31.03.2011)

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	DAE LIM PAPER CO., LTD. (Korean Company Name : “(주)대림제지”)
Registered Address	7, Nueup-dong, Osan-si, Gyeonggi-do, Korea
Zip Code	447-160
Tel	+82-31-373-7670~5
Fax	+82-31-373-0662
E-mail	webmaster@dealimpaper.co.kr
Website	www.daelimpaper.co.kr
Trading Address	7, Nueup-dong, Osan-si, Gyeonggi-do, Korea
Tel	+82-31-373-7670~5
Fax	+82-31-373-0662
Type	Export/Import
Industry	Manufacture of Pulp
Main Business	Corrugated Medium Paper, Liners, Container Board
Established (mm/dd/yyyy)	03/21/1984

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Machine finished or glazed kraft paper(14122102)
Sell	Paper making and paper processing machinery and equipment and supplies(23151900)
Buy	Felt(60121902)
Buy	Paper wastes(11141604)

CEO’s

Name	Ryu Chang-Seung
Date of Birth	07/18/1975
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

4,500,000,000

Employees

Formation

Listed Company (KOSDAQ : 017650) as of 11/07/1994

Bank Details

Industrial Bank of Korea-Osan Branch

Corporate Registered No.

134811-0003020

Business Registered No.

124-81-32409

Permit & Licenses

03/02/1988 KS Mark

12/05/2003 ISO 9001

12/05/2006 ISO 9001

Int’l Trade No.: 189897

Shareholder Position

Name	Shares	%
RYU CHANG-SEUNG	2,012,025	22.36
RYU JONG-WOO	1,381,300	15.35
KWON HYUCK-JOON	1,129,020	12.54
KWON JI-YOUNG	1,023,520	11.37
RYU DONG-WON	254,800	2.83
RYU JONG-WOOK	230,000	2.56
KWON OH-DAL	14,276	0.16
RYU JONG-KYU	10,000	0.11
OTHERS	2,945,059	32.72
TOTAL	9,000,000	100.00

Company History

03/21/1984 Incorporated as the present name

06/25/2002 Spin off the par value to 500 KRW from 5,000 KRW

11/30/2003 Awarded US$ 5 Million Export Top Prize

Management

Job Description	Title	Name	Nationality	Date of Birth	Education/Career
President & CEO	Mr.	Ryu Chang-Seung	Korean	1975. 07. 18	California State University, USA
Vice Chairman	Mr.	Kwon Oh-Dal	Korean	1938. 03. 03	-
Advisor	Mr.	Ryu Jong-Kyu	Korean	1953. 02. 05	Present Vice Chairman of Korea Paper Mfg Co., Ltd
Outside Director	Mr.	Choi Joong-Eung	Korean	1945. 03. 28	-
Auditor	Mr.	Maeng Joong-Kil	Korean	1943.11.	-

Financials

Year / Unit : KRW	Sales	Assets	Net Income
09/2010	49,574,279,795	78,430,710,695	3,990,047,549
2009	35,309,295,612	70,760,035,404	3,994,901,086
2008	50,550,745,039	54,436,559,924	2,898,873,151
2007	39,086,241,529	45,237,000,262	4,271,098,115
2006	42,210,555,425	40,395,170,257	4,667,542,167
2005	44,823,303,767	35,950,448,671	407,716,656

Financial Description

Authorized Capital(KRW)	60,000,000,000
Paid-Up Capital(KRW)	4,500,000,000
Total Issues Shares	9,000,000

Balance Sheet
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	108,975,176,382	105,121,619,759	102,417,961,165
Current Assets	27,918,156,505	24,839,207,670	20,184,393,370
Cash & Cash Equivalents	4,992,615,825	142,226,955	51,341,402
Current Financial Instruments	2,987,000,000	3,957,000,000	2,200,000,000
Trade Receivables & Other Receivables	14,325,953,646	15,234,829,843	15,154,117,446
Inventories	4,920,390,200	5,444,322,400	2,527,622,200
Other Current Assets	692,196,834	60,828,472	251,312,322
Non-Current Assets	81,057,019,877	80,282,412,089	82,233,567,795
Non-Current Financial Instruments	10,910,000	4,970,000	952,000,000
Marketable Financial Instruments	13,574,800	13,574,800	3,000,000
Other Financial Assets	73,000,000	188,000,000	22,000,000
Investment_Related Companies	54,600,342,913	52,583,575,768	51,663,155,154
Tangibles	26,281,882,164	27,414,981,521	29,394,689,041
Intangibles	77,310,000	77,310,000	198,723,600
Total Liabilities	33,072,758,146	36,518,280,558	36,917,899,041
Current Liabilities	13,181,357,236	15,671,071,561	14,034,189,171
Trade Payables & Other Payables	3,652,031,853	3,094,633,508	4,422,787,762
Short-Term Borrowings	2,600,000,000	7,800,000,000	8,600,000,000
Current Portion of Long-Term Debts	5,609,800,000	4,411,600,000	638,100,000
Deferred Income Tax Credit	685,831,541	301,883,429	307,867,809
Other Current Financial Debts			54,108,290
Other Current Liabilities	633,693,842	62,954,624	11,325,310
Non-Current Liabilities	19,891,400,910	20,847,208,997	22,883,709,870
Long-Term Borrowings	11,282,200,000	12,987,100,000	15,611,700,000
Confirmed Salaries	776,702,925	976,863,641	758,938,172
Deferred Income Tax Credit	7,832,497,985	6,883,245,356	6,513,071,698
Capital Stock	4,500,000,000	4,500,000,000	4,500,000,000
Profit Surplus	71,405,912,289	64,111,709,540	61,039,707,404
Others	-3,494,053	-8,370,339	-39,645,280
Total Equity	75,902,418,236	68,603,339,201	65,500,062,124
Liab. & Shareholder’s Equity	108,975,176,382	105,121,619,759	102,417,961,165

Income Statement
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	38,344,143,589	78,530,514,237	70,306,509,627
Cost of Sold Goods	29,617,911,483	71,502,237,908	63,505,584,305
Gross Profit	8,726,232,106	7,028,276,329	6,800,925,322
Selling & Admin. Expenses	2,040,034,172	3,666,920,449	3,512,520,809
Other Operating Income	213,574,829	344,385,654	570,461,777
Operating Income	6,899,772,763	3,705,741,534	3,858,866,290
Profits from Investment on Related Companies	2,059,499,738	978,293,018	1,391,225,708
Finance Income	125,771,951	195,705,290	154,498,090
Finance Expenses	380,663,794	920,682,252	893,044,312
Income Before Taxes	8,704,380,658	3,959,057,590	4,511,545,776
Income Taxes Expenses	1,600,337,712	722,049,945	855,729,591
Net Income	7,104,042,946	3,237,007,645	3,655,816,185

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	11,613,227,438	1,023,470,353	-1,466,683,608
Cash Flows from Operating	12,149,755,058	2,116,993,787	-698,442,580
Net Income	7,104,042,946	3,237,007,645	3,655,816,185
Adjustment	3,228,774,455	3,156,312,922	2,898,553,952
Changes in Asset/ & Liability	1,816,937,657	-4,276,326,780	-7,252,812,717
Interests Received	179,722,234	147,779,680	127,558,667
Interests Paid	-384,701,534	-921,161,325	-885,520,175
Income Taxes	-331,548,320	-320,141,789	-10,279,520
Cash Flows from Investing	993,960,000	-1,281,484,800	-3,596,258,937
Cash Flows from Financing	-5,706,700,000	348,900,000	2,335,700,000
Increase/Decrease in Cash	6,900,487,438	90,885,553	-2,727,458,696
Cash at the Beginning of Year	142,226,955	51,341,402	2,778,800,098
Cash at the End of Year	7,042,714,393	142,226,955	51,341,402

Products, Technologies, Services Description

Main Products & Services

Corrugated Medium Paper, Liners, Container Board

Brand Name : S120, B150

Trade Partners & Competitors

Customers

SAMBO CORRUGATED BOARD CO., LTD.(124311-0011322)

SEOSIN PAPERBOARD IND. CO. LTD.( 134511-0015815)

DONGJIN PAPER BOARD CO., LTD.(134211-0001620)

HANCHEONG CORRUGATED BOARD CO., LTD.(150111-0003610)

Competitors

DONGIL PAPER MFG. CO., LTD.

17-51, BANWOL INDUSTRIAL COMPLEX, 492-1, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-491-0010 FAX:+82-31-491-0023

SHINDAEYANG PAPER CO., LTD.(130111-0008789)

ASIA PAPER MANUFACTURING CO., LTD.(110111-0006274)

ASIA PAPERTEC INC.(134111-0000939)

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

SAMBO CORRUGATED BOARD CO., LTD.(124311-0011322)

KOREA PAPER MFG CO., LTD(134811-0000604)

(40.0% held by the subject company)

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

Sales by Region

(Activity & Markets)

Sales/ Unit :Thousand KRW	06/2012	2011	2010
Export	1,240,314	1,681,187	5,627,847
Domestic	37,103,830	76,849,327	64,678,663
Total	38,344,144	78,530,514	70,306,510

The Subject deals with the companies in Bangladeshi and Malaysia.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.97
UK Pound	1	Rs.83.67
Euro	1	Rs.67.19

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.