MIRA INFORM REPORT

Report Date :

18.09.2012

IDENTIFICATION DETAILS

Name :	PUNONG CO., LTD.

Registered Office :	1-1, Moa 1-ri, Cheonbuk-myeon, Gyeongju-si, Gyeongsangbuk-do, Korea, Zip Code 780-874

Country :	South korea

Financials (as on) :	31.12.2011

Date of Incorporation :	16.08.2007

Com. Reg. No.:	505-81-48890

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacturer of other fertilizers and nitrogen compounds

No. of Employees :	41 employees

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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	PUNONG CO., LTD. (Korean Company Name : “(주)부농”)
Registered Address	1-1, Moa 1-ri, Cheonbuk-myeon, Gyeongju-si, Gyeongsangbuk-do, Korea
Zip Code	780-874
Tel	+82-54-745-3501
Fax	+82-54-745-3506
E-mail	punong@punong.co.kr
Website	www.punong.co.kr
Trading Address	1-1, Moa 1-ri, Cheonbuk-myeon, Gyeongju-si, Gyeongsangbuk-do, Korea
Tel	+82-54-745-3501
Fax	+82-54-745-3506
Type	Export/Import
Industry	Manufacture of Other Fertilizers and Nitrogen Compounds
Main Business	Soil Conditioner
Established (mm/dd/yyyy)	08/16/2007

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Soil(11111501)
Sell	Chemical fertilizers and plant nutrients(10171600)
Sell	Organic fertilizers and plant nutrients(10171500)

CEO’s

Name	Kim Sun-Taik
Address	Suite 502-303, 277-6, Hwangseong-dong, Gyeongju-si, Gyeongbuk, Korea
Date of Birth	08/22/1960
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,000,000,000

Employees

Formation

Co., Ltd by shares

Venture Business

A Company of WOONGSOL GROUP

Bank Details

Industrial Bank of Korea

Hana Bank

Nonghyup Bank

Corporate Registered No.

171211-0048297

Business Registered No.

505-81-48890

Permit & Licenses

ISO9001:2000

Shareholder Position

Name	Shares	%
SEOUL AGRICULTURAL MATERIALS CO., LTD.(154511-0005341)	200,000	100.0
TOTAL	200,000	100.0

Company History

05/25/2007 SORIBADA. INC., has been spin off into SORIBADA. INC.(110111-2890469), and the subject company

08/16/2007 Incorporated as the present name

11/28/2008 Designated as a Venture Business

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kim Sun-Taik	Male	Korean	11/05/2007
Director	Mr.	Koo Ja-Kyun	Male	Korean	09/17/2007
Director	Mr.	Kang Koo-Hyun	Male	Korean	09/17/2007
Auditor	Mr.	Hur Joon	Male	Korean	09/17/2007

Financials

Year / Unit : KRW	Sales	Assets	Net Income
06/2011	26,613,738,882	34,322,501,504	445,321,435
06/2010	23,765,851,247	33,036,650,225	805,685,684
06/2009	19,615,917,877	24,069,606,631	179,370,769
06/2008	14,421,851,440	16,199,268,211	358,158,822

Financial Description

Authorized Capital(KRW)	4,000,000,000
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	34,322,501,504	33,036,650,225	24,069,606,631
Current Assets	20,482,812,067	19,095,333,292	15,954,249,086
-Quick Assets	18,515,815,351	17,260,999,057	14,428,953,195
-Inventories	1,966,996,716	1,834,334,235	1,525,295,891
Fixed Assets	13,839,689,437	13,941,316,933	8,115,357,545
-Investment	5,758,908,252	5,624,288,180	2,543,545,018
-Tangibles	7,624,026,655	8,045,274,223	5,349,676,405
-Intangibles	456,754,530	271,754,530	222,136,122
Total Liabilities	21,706,366,184	20,865,836,340	14,113,005,183
Current Liabilities	20,587,737,100	19,674,422,243	13,895,007,151
Fixed Liabilities	1,118,629,084	1,191,414,097	217,998,032
Capital Stock	1,000,000,000	1,000,000,000	1,000,000,000
Capital Surplus	8,419,071,857	8,419,071,857	8,419,071,857
Profit Surplus	1,788,536,710	1,343,215,275	537,529,591
Capital Adjustment	1,408,526,753	1,408,526,753	-
Total Equity	12,616,135,320	12,170,813,885	9,956,601,448
Liab. & Shareholder’s Equity	34,322,501,504	33,036,650,225	24,069,606,631

Current Liabilities	20,587,737,100	19,674,422,243	13,895,007,151
Trade Payables	5,722,785,173	6,444,566,604	5,254,970,270
Account Payables	1,424,636,419	1,166,258,813	117,142,974
Withholdings	4,508,291	13,409,590	16,633,222
Guarantee Deposit Withhold	42,000,000	42,000,000	32,000,000
Advance Receipts	17,945,621	10,429,045	23,261,905
Short-Term Borrowings	12,720,405,413	11,500,000,000	6,800,000,000
Accrued Expenses	44,859,570	34,629,115	1,527,980,715
Accrued Income Tax	299,866,613	282,195,450	123,018,065
Current Portion of Long-Term Debts	310,730,000	168,750,000	-
Current Portion of Deferred Income Tax Credit	-	12,183,626	-
Fixed Liabilities	1,118,629,084	1,191,414,097	217,998,032
Long-Term Borrowings	720,520,000	831,250,000	-
Provision for Severance & Retirement	676,211,967	579,878,886	515,018,579
Non-Current Portion of Deferred Income Tax Credit	359,942,174	359,121,148	-

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	26,613,738,882	23,765,851,247	19,615,917,877
Cost of Sold Goods	18,524,898,260	16,041,659,119	12,132,863,659
Gross Profit	8,088,840,622	7,724,192,128	7,483,054,218
Selling & Admin. Expenses	6,552,196,999	6,010,004,005	6,833,785,085
Operating Income	1,536,643,623	1,714,188,123	649,269,133
Non-Operating Income	219,393,702	211,137,345	276,924,671
Non-Operating Expenses	994,043,379	787,701,207	650,341,531
Income Before Taxes	761,993,946	1,137,624,261	275,852,273
Income Taxes Expenses	316,672,511	331,938,577	96,481,504
Net Income	445,321,435	805,685,684	179,370,769

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	-2,170,233,904	2,476,668,003	3,230,178,511
-Net Income	445,321,435	805,685,684	179,370,769
-Exp. without Cash Outflow	697,637,680	696,242,624	711,380,459
-Sale without Cash Inflows	-2,089,909	-90,301,025	-3,458,600
-Changes in Asset/ & Liability	-3,311,103,110	1,065,040,720	2,342,885,883
Cash Flows from Investing	-6,165,017,509	-5,300,157,548	-481,969,975
-Cash Inflow from Investing	16,799,582,962	17,545,521,060	7,813,852,742
-Cash Outflows for Investing	-22,964,600,471	-22,845,678,608	-8,295,822,717
Cash Flows from Financing	1,251,655,413	5,700,000,000	4,300,000,000
-Cash Inflows from Financing	6,270,405,413	6,050,000,000	6,200,000,000
-Cash Outflows from Financing	-5,018,750,000	-350,000,000	-1,900,000,000
Increase/Decrease in Cash	-7,083,596,000	2,876,510,455	7,048,208,536
Cash at the Beginning of Year	13,072,722,043	10,196,211,588	3,148,003,052
Cash at the End of Year	5,989,126,043	13,072,722,043	10,196,211,588

Products, Technologies, Services Description

Main Products & Services

Soil Conditioner

Rice Nursery Media

Trade Partners & Competitors

Competitors

ISOLITE INSULATING PRODUCTS CO., LTD.

RM. 1602, RENAISSANCE BLDG., 1598-3, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-535-1437 FAX:+82-2-523-7139

GREEN BIOTECH CO., LTD.

737-28, SANGJISEOK-RI, GYOHA-EUP, PAJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-946-5614 FAX:+82-31-946-5615

SENONG CO., LTD.

491, BONGGANG-RI, DONG-EUP, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-298-1048 FAX:+82-55-299-1309

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic	SEOUL AGRICULTURAL MATERIALS CO., LTD.(154511-0005341) GREEN AGRO CO., LTD. SHTECH ELECTRONICS CO., LTD.(135811-0153155) SEHWA ELECTRONICS CO., LTD.(135811-0149823) ISAN S&C CO., LTD.(110111-3835810) DAEWON CHEMICAL CO., LTD.(KOREA) DO CHEMICAL CO., LTD.(KOREA) BIOMASS PCB CO., LTD.(120111-0452805) MEISTER CO., LTD.(KOREA)
Affiliates-Overseas	SEHWA SK NITRIANSKA 16, 942 01 SURANY, SLOVAKIA TEL:+421-35-6507-750 FAX:+421-35-6507-751 SEHWA MA P.T. 17947, & P.T. 17948 MUKIM AMPANGAN, TUANKU JAAFAR INDUSTRIAL PARK, 71450 SEREMBAN, NEGERI SEMBILAN, MALAYSIA TEL:+606-679-679-1012 FAX:+606-677-1001 SAHA SEHWA 662/2 MOO 11 SUKHAPIBAN 8 RD., NONGSHAM SNIRACHA CHONBURI 20230 TEL:+66-38-763-064 FAX:+66-38-763-068
Corporate Ownership	SEOUL AGRICULTURAL MATERIALS CO., LTD.(154511-0005341)
Cooperative Enterprise	-Insured Company DONGBU INSURANCE CO., LTD.(110111-0095285)

Sales by Region

(Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.73
UK Pound	1	Rs.88.61
Euro	1	Rs.71.34

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.