MIRA INFORM REPORT

Report Date :

26.10.2012

IDENTIFICATION DETAILS

Name :	LAPP KOREA LLC

Registered Office :	759-5, Gumui-ri, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea

Country :	South Korea

Financials (as on) :	30.09.2010

Date of Incorporation :	07.01.2000

Com. Reg. No.:	301-81-44555

Legal Form :	Limited Liability Company

Line of Business :	Manufacture of Other Insulated Wire and Cable

No. of Employees :	91

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

Company Name	LAPP KOREA LLC.
Registered Address	759-5, Gumui-ri, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea
Building	G-block, Jangan Local Industrial Complex
Zip Code	445-941
Tel	+82-31-358-9621
Fax	+82-31-358-9630
Website	www.lappkorea.com
Trading Address	G-block, Jangan Local Industrial Complex, 759-5, Gumui-ri, Jangan-myeon, Hwaseong-si, Gyeonggi-do, Korea
Tel	+82-31-358-9621
Fax	+82-31-358-9630
Type	Export/Import
Industry	Manufacture of Other Insulated Wire and Cable
Main Business	Cable, Connectors
Sub Business
Established (mm/dd/yyyy)	08/23/2011

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Power cable(26121629)
Sell	Connectors(31163100)

CEO’s

Name	Song Sang-Gap(Kevin)
Address	Suite 102-1507, 43-4, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea
Date of Birth	01/08/1963
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

8,418,300,000

Employees

Formation

Limited Liability Company

Foreign Direct Investment Corporation

Bank Details

Kookmin Bank

Landesbank Baden-Wurttemberg-Seoul Branch

Corporate Registered No.

134814-0001333(From 150111-0047618)

Business Registered No.

301-81-44555

Permit & Licenses

11/2003 ISO 9001

12/2009 ISO 9001

Int’l Trade No.: 23102253

Shareholder Position

Name	Shares	%
LAPP HOLDING ASIA PTE., LTD.(SINGAPORE)	15,306	100.00
TOTAL	15,306	100.00

Company History

07/01/2000 Incorporated as Thomas LAPP Cable Korea Co., Ltd.

07/01/2005 Changed company name to LAPP KOREA CO., LTD.

09/13/2006 Moved to the present HQ address from 20-4, Yeocheon-ri, Ochang-eup, Cheongwon-gun, Chungbuk, Korea

12/05/2008 Increased the authorized shares to 100,000 shares from 10,000 shares

04/26/2011 Increased capital to 8,418,300,000 KRW from 7,048,250,000 KRW

08/23/2011 Changed company type to Limited Liability Company from Private Company with Limited Liability, and incorporated as the present name again

The subject has been established since 07.01.2000.

And changed its company type after closing LAPP KOREA CO., LTD, and newly established legally and in real.

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Song Sang-Gap(Kevin)	Male	Korean	12/05/2008
Director	Mr.	Alois Michael Kollet	Male	German	09/10/2006
Director	Mr.	Richard Lee	Male	Singaporean	07/31/2012
Auditor	Mr.	Vernardo Bogle	Male	German	05/03/2007

Financials

Year / Unit : KRW	Sales	Assets	Net Income
09/2011
09/2010	66,700,082,157	31,221,461,676	4,141,353,490
09/2009	33,726,782,420	20,203,618,000	1,113,523,667
09/2008	31,106,568,816	19,942,908,297	576,588,229
09/2007	25,143,031,339	13,135,680,089	657,745,974
09/2006	20,275,196,116	14,026,655,005	50,989,429

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)	55,000,000,000
Paid-Up Capital(KRW)	8,418,300,000
Total Issued Shares	15,306

Balance Sheet

Unit : Korean Won	As of 09/30/2010	As of 09/30/2009	As of 09/30/2008
Total Assets	31,221,461,676	20,203,618,000	19,942,908,297
Current Assets	25,023,998,553	14,845,981,269	14,940,414,070
-Quick Assets	16,063,430,278	9,036,169,522	9,547,105,221
-Inventories	8,960,568,275	5,809,811,747	5,393,308,849
Fixed Assets	6,197,463,123	5,357,636,731	5,002,494,227
-Investment	4,482,739	79,843,480	117,418,440
-Tangibles	5,911,105,494	4,838,317,136	4,604,939,181
-Intangibles	35,136,084	211,320,163	57,105,106
-Others	246,738,806	228,155,952	223,031,500
Total Liabilities	19,055,862,760	11,679,372,574	15,059,636,538
Current Liabilities	17,975,615,785	10,138,647,119	12,814,542,232
Fixed Liabilities	1,080,246,975	1,540,725,455	2,245,094,306
Capital Stock	6,933,850,000	6,933,850,000	4,206,400,000
Capital Surplus
Profit Surplus	5,231,748,916	1,590,395,426	676,871,759
Capital Adjustment
Total Equity	12,165,598,916	8,524,245,426	4,883,271,759
Liab. & Shareholder’s Equity	31,221,461,676	20,203,618,000	19,942,908,297

Current Liabilities	17,975,615,785	10,138,647,119	12,814,542,232
Trade Payables	13,610,517,210	8,007,806,144	6,612,665,942
Account Payables	550,407,664	433,482,731	828,299,496
Short-Term Borrowings	1,500,000,000	-	3,500,000,000
Current Portion of Debts	454,550,758	713,102,228	708,820,799
Other Current Liabilities	1,860,140,153	984,256,016	1,164,755,995
Fixed Liabilities	1,080,246,975	1,540,725,455	2,245,094,306
Debentures	570,000,000	950,000,000	1,330,000,000
Long-Term Borrowings	396,598,950	526,289,607	848,345,898
Provision for Severance & Retirement	113,648,025	64,435,848	55,463,400
Deferred Income Tax Credit			11,285,008

Income Statement

Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	66,700,082,157	33,726,782,420	31,106,568,816
Cost of Sold Goods	54,194,813,918	26,243,717,118	23,858,593,103
Gross Profit	12,505,268,239	7,483,065,302	7,247,975,713
Selling & Admin. Expenses	6,534,172,939	5,772,625,482	5,128,662,020
Operating Income	5,971,095,300	1,710,439,820	2,119,313,693
Non-Operating Income	1,241,451,650	766,958,230	442,209,239
Non-Operating Expenses	2,045,869,124	1,036,045,914	2,019,891,167
Income Before Taxes	5,166,677,826	1,441,352,136	541,631,765
Income Taxes Expenses	1,025,324,336	327,828,469	-34,956,464
Net Income	4,141,353,490	1,113,523,667	576,588,229

Cash Flows

Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	4,561,005,977	2,798,624,960	249,159,616
-Net Income	4,141,353,490	1,113,523,667	576,588,229
-Exp. without Cash Outflow	1,315,001,934	1,381,538,500	1,240,707,667
-Revenue without Cash Inflows	-156,816,053	-240,772,190	-127,622,571
-Changes in Asset/ & Liability	-738,533,394	544,334,983	-1,440,513,709
Cash Flows from Investing	-2,007,714,727	-877,762,604	-1,254,169,715
-Cash Inflow from Investing	121,610,377	118,877,415	224,476,682
-Cash Outflows for Investing	-2,129,325,104	-996,640,019	-1,478,646,397
Cash Flows from Financing	286,897,772	-1,681,370,799	1,734,819,041
-Cash Inflows from Financing	1,500,000,000	2,727,450,000	2,854,628,500
-Cash Outflows from Financing	-1,213,102,228	-4,408,820,799	-1,119,809,459
Increase/Decrease in Cash	2,840,189,022	239,491,557	729,808,942
Cash at the Beginning of Year	1,153,975,874	914,484,317	184,675,375
Cash at the End of Year	3,994,164,896	1,153,975,874	914,484,317

Products, Technologies, Services Description

Main Products & Services

Cable, Connectors

Trade Partners & Competitors

Competitors

LS CABLE LTD.(134111-0168357)

12TH FL., LS TOWER, 1026-6, HOGYE 1-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-2-2189-9114 FAX:+82-2-2189-9259

TAIHAN ELECTRIC WIRE CO.,LTD(110111-0035835)

113-119, SIHEUNG 1-DONG, GEUMCHEON-GU, SEOUL 153-839 KOREA

TEL:+82-2-890-9114 FAX: +82-2-892-9387

GAON CABLE CO.,LTD.(134111-0000567)

166, GEUMJEONG-DONG, GUNPO-SI, GYEONGGI-DO, KOREA

TEL:+82-31-459-6222 FAX:+82-31-454-1916

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	U.I. LAPP GMBH LAPP SERVICE GMBH LAPP GMBH KABELWERKE LAPP LOGISTICS PTE., LTD.
Corporate Ownership	LAPP HOLDING AG LAPP HOLDING ASIA PTE., LTD.
Major Shareholders
Cooperative Enterprise	-Licensing Agreement on brand with LAPP ENGINEERING & CO. -Insured Company HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893) SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	2011	2010	2009
Export
Domestic
Total

The Subject deals with the companies Germany and Singapore.

News Clipping

Not Available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.63
UK Pound	1	Rs.86.17
Euro	1	Rs.69.74

INFORMATION DETAILS

Report Prepared by :

SDA

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.