MIRA INFORM REPORT

Report Date :

05.10.2012

IDENTIFICATION DETAILS

Name :	KOREA CARRAGHEEN CO., LTD.

Registered Office :	Rm. 1022, Haenam Bldg. Annex 21, Bukchang-dong, Jung-gu, Seoul, Korea 100-080

Country :	South Korea

Financials (as on) :	31.12.2009

Date of Incorporation :	01.11.1978

Com. Reg. No.:	104-81-24166

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Other Food Additive Products

No. of Employees :	25

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 :	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	KOREA CARRAGHEEN CO., LTD. (Korean Company Name : “(주)한국카라겐”)
Registered Address	21, Bukchang-dong, Jung-gu, Seoul, Korea
Building	Rm. 1022, Haenam Bldg. Annex
Zip Code	100-080
Tel	+82-2-773-6501~3
Fax	+82-2-774-9740
E-mail	webmaster@kocara.com
Website	www.kocara.com
Trading Address	Rm. 1022, Haenam Bldg. Annex, 21, Bukchang-dong, Jung-gu, Seoul, Korea (C. P.O.BOX 5834)
Tel	+82-2-773-6501~3
Fax	+82-2-774-9740
Other Address-Suncheon Factory	253, Seonpyeong-ri, Seo-myeon, Suncheon-si, Jeollanam-do, Korea
Tel	+82-61-755-9455~7
Fax	+82-61-755-9945~8
Type	Export/Import
Industry	Manufacture of Other Food Additive Products
Main Business	Carrageenan, Xanthan-Gum, Locust Bean Gum, Tamarind Gum
Sub Business
Established (mm/dd/yyyy)	11/01/1978

The Subject Company occupies the premises of registered HQ address by leasing base.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Food or drug additives(12164500)
Sell	Seasonings and preservatives(50170000)
Sell	Additives(12160000)
Sell	Gels(12161801)
Sell	Pigment paints(31211503)
Buy	Forestry byproducts(11121700)
Buy	Biochemicals(12352200)
Buy	Settling tanks(47101532)
Buy	Filters(40161500)
Buy	Washing or dewatering machines(23151903)
Buy	Carbohydrates or its derivatives(12352201)
Buy	Combinational fructose Dextrose and phosphoric acid(51171811)
Buy	Cereal flour(50221102)

CEO’s

Name	Kim Jin-Sun
Address	166-123, Nusang-dong, Jongno-gu, Seoul, Korea
Date of Birth	08/07/1948
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	1,000,000,000
Employees	25
Formation	Co., Ltd by shares Foreign Direct Investment Corporation
Bank Details	Shinhan Bank-Myungdong Corporate Finance Branch
Corporate Registered No.	110111-0241119
Business Registered No.	104-81-24166
Permit & Licenses	11/2003 ISO 9001 Int’l Trade No.: 87706
Shareholder Position	N/A
Company History	11/01/1978 Incorporated as the present name 03/1980 Registered as a Foreign Direct Investment Corporation 12/31/1994 Moved to the present HQ address from 70-1, Bukchang-dong, Jung-gu, Seoul, Korea 03/2005 Designated as a Promising SME Company 10/06/2010 Increased capital to 1,000,000,000 KRW from 355,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Chairman	Mr.	Kim Moung-Gon	Male	Korean	02/25/1994
President & CEO	Mr.	Kim Jin-Sun	Male	Korean	06/22/1996
Director	M/S.	Kim Jung-Hee	Female	Korean	07/01/1996
Director	M/S.	Kim Young-Hee	Female	Korean	07/01/2005
Director	Mr.	Jung Soon-Keun	Male	Korean	12/15/2009
Auditor	M/S.	Kim Kwang-Ran	Female	Korean	03/30/2004

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	7,938,000,000	6,058,000,000	865,000,000
2010	8,226,000,000	5,319,000,000	677,000,000
2009	5,140,000,000	4,258,000,000	230,000,000
2008
2007	4,793,000,000	4,158,000,000	307,000,000
2006	4,725,000,000	3,812,000,000	292,000,000
2005	4,699,000,000	3,814,000,000	308,000,000
2004	5,066,000,000
2003	4,542,000,000

Financial Description

Authorized Capital(KRW)	2,500,000,000
Paid-Up Capital(KRW)	1,000,000,000
Total Issued Shares	200,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets			4,258,000,000
Current Assets			2,364,000,000
-Quick Assets			1,287,000,000
-Inventories			1,077,000,000
Fixed Assets			1,894,000,000
-Investment			1,810,000,000
-Tangibles			-
-Intangibles			84,000,000
Total Liabilities			1,766,000,000
Current Liabilities			1,055,000,000
Fixed Liabilities			711,000,000
Capital Stock			355,000,000
Capital Surplus			839,000,000
Profit Surplus			1,299,000,000
Capital Adjustment
Total Equity			2,492,000,000
Liab. & Shareholder’s Equity			4,258,000,000

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales			5,140,000,000
Cost of Sold Goods			3,893,000,000
Gross Profit			1,247,000,000
Selling & Admin. Expenses			876,000,000
Operating Income			371,000,000
Non-Operating Income			15,000,000
Non-Operating Expenses			115,000,000
Income Before Taxes			271,000,000
Income Taxes Expenses			42,000,000
Net Income			230,000,000

Products, Technologies, Services Description

Main Products & Services

Carrageenan, Xanthan-Gum, Locust Bean Gum, Tamarind Gum, Pectin

Trade Partners & Competitors

Competitors

MSC CO., LTD.

439-13, SOJU-DONG, YANGSAN-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-389-1001~20 FAX:+82-55-366-0478

CHEONG DO AGAR AGAR MFG. CO., LTD.

385, SORA-RI, HWAYANG-EUP, CHEONGDO-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-372-7701~3 FAX:+82-54-372-7705

SONG EUN COMMERCIAL CO., LTD.

60-2, OGEUM-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-406-2700 FAX:+82-2-406-2662

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Overseas Office

JAPAN OFFICE

20-9, 1-CHOME, SAKURAMODO, KAWASAKI-KU, KAWASAKI, JAPAN

Sales by Region

(Activity & Markets)

The Subject deals with the companies in Austria, Japan and Spain.

Court Action

Not Available.

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.