MIRA INFORM REPORT

Report Date :

20.09.2012

IDENTIFICATION DETAILS

Name :	OSUNG LST CO., LTD.

Registered Office :	139-13, Sandong-ri, Eumbong-myeon, Asan-si, Chungcheongnam-do, Korea

Country :	South Korea

Financials (as on) :	30.06.2012

Date of Incorporation :	22.06.1994

Com. Reg. No.:	122-81-28215

Legal Form :	Listed Company

Line of Business :	Manufacture of Material Testing, Measuring and Checking Instruments

No. of Employees :	315

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	OSUNG LST CO., LTD. (Korean Company Name : “오성엘에스티(주)”)
Registered Address	139-13, Sandong-ri, Eumbong-myeon, Asan-si, Chungcheongnam-do, Korea
Zip Code	336-863
Tel	+82-41-583-8780
Fax	+82-41-583-8781
E-mail	8shin@osunglst.com
Website	www.osunglst.com
Trading Address	139-13, Sandong-ri, Eumbong-myeon, Asan-si, Chungcheongnam-do, Korea
Tel	+82-41-583-8780
Fax	+82-41-583-8781
Other Address	862-2, Palbong-dong, Iksan-si, Jeollabuk-do, Korea
Tel	+82-63-839-5000
Fax	+82-63-831-6018
Type	Export/Import
Industry	Manufacture of Material Testing, Measuring and Checking Instruments
Main Business	TFT-LCD Aging System, LCD Pan Driving System, Test Chamber, LCD Luminance Tester System, PET Protective Film, Optical Film
Established (mm/dd/yyyy)	06/22/1994

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Semiconductor testers(41113706)

CEO’s

Name	Youn Soon-Kwang
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

13,467,611,000

Employees

315

Formation

Listed Company (KOSDAQ : 052420) as of 08/07/2011

Bank Details

Korea Development Bank-Bucheon Jungdong Branch

Corporate Registered No.

120111-0097940

Business Registered No.

122-81-28215

Permit & Licenses

10/30/1999 ISO 9001

01/21/2003 CE Mark

Shareholder Position

Name	Shares	%
YOUN SOON-KWANG	2,585,320	9.60
PARK JIN-HEE	1,508,063	5.60
SUSUNGTECH CO., LTD.(121111-0138818)	5,813,368	21.58
SHIM MAN-SHIK	77,287	0.29
OTHERS	16,951,184	62.93
TOTAL	26,935,222	100.00

Company History

08/25/1991 Established as OSUNG SCIENCE CO.(Sole Proprietorship)

06/22/1994 Incorporated as OSUNG SCIENCE CO., LTD.

12/29/1999 Changed company name to the present name

11/30/2005 Awarded US$ 20 Million Export Top Prize

02/18/2006 Designated as a Venture Business again

03/23/2007 Moved to the present HQ address from 104, Banwol-dong, Hwaseong-si, Gyeonggi-do, Korea

11/2010 Awarded US$ 30 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Date of Birth
President & CEO	Mr.	Youn Soon-Kwang	Male	Korean	1962.05.
President	Mr.	Shim Man-Shik	Male	Korean	1958.08.
Sr. Executive Director	Mr.	Park Jin-Hee	Male	Korean	1968.02.
Outside Director	Mr.	Song Ki-Seok	Male	Korean	1949.01.
Auditor	Mr.	Oh Young-Bok	Male	Korean	1955.04.

Financials

Year / Unit : KRW	Sales	Assets	Net Income
06/2012	43,558,590,207	379,461,486,516	-13,610,985,088
2011	115,180,847,240	371,871,785,021	-20,261,224,563
2010	145,043,274,338	267,667,165,160	2,671,699,602

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	20,000,000,000
Paid-Up Capital(KRW)	13,467,611,000
Total Issued Shares	26,935,222

Balance Sheet

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	379,461,486,516	371,871,785,021	267,667,165,160
Current Assets	81,925,992,244	87,663,293,550	82,176,047,347
Cash & Cash Equivalents	17,373,757,082	14,445,775,675	21,795,505,559
Trade Receivables	23,250,365,586	15,510,632,615	26,966,720,813
Marketable Financial Instruments	307,260,000	304,545,000	19,250,000
Other Financial Assets	10,157,645,024	26,036,481,448	7,684,427,531
Inventories	19,065,735,404	18,403,754,469	7,774,971,859
Other Assets	11,660,290,628	12,807,963,716	17,935,171,585
Deferred Income Tax Assets	110,938,520	154,140,627	0
Non-Current Assets	297,535,494,272	284,208,491,471	185,491,117,813
Marketable Financial Instruments	1,642,185,000	1,297,966,740	1,939,825,000
Other Finance Assets	12,605,184,868	12,586,115,665	2,651,975,359
Tangibles	171,902,997,353	158,200,033,389	91,994,849,952
Intangibles	24,057,796,189	23,349,044,310	22,525,755,732
Investment_Subsidiaries	25,680,473,462	25,680,473,462	48,180,473,462
Investment_Joint Venture	47,500,000,000	47,500,000,000	0
Other Assets	14,146,857,400	15,594,857,905	18,198,238,308
Total Liabilities	236,083,109,161	226,308,661,106	131,173,605,062
Current Liabilities	62,522,778,307	56,822,439,737	94,568,608,925
Trade Payables	18,040,772,570	7,565,611,709	13,249,246,585
Short-Term Borrowings	20,889,030,000	16,205,880,000	31,797,774,640
Debenture	1,194,245,055	9,997,584,620	0
Convertible Bonds	0	175,657,111	1,913,426,490
Bond With Warrant	4,755,404,169	7,633,903,172	31,298,605,450
Other Finance Debts	11,257,507,224	8,885,063,901	11,053,549,880
Other Debts	6,385,819,289	6,358,739,224	5,041,400,981
Accrued Income Tax	0	0	214,604,899
Non-Current Liabilities	173,560,330,854	169,486,221,369	36,604,996,137
Long-Term Borrowings	66,220,140,000	64,046,230,000	17,152,110,000
Debenture	6,981,251,301	3,178,590,505	13,949,479,829
Convertible Bonds	53,152,998,738	51,618,155,546	0
Bond With Warrant	22,441,627,965	21,210,651,738	674,311,245
Other Finance Debts	20,503,872,920	25,332,930,925	58,480,000
Deferred Income Tax Credit	1,436,943,628	1,436,943,628	2,433,065,929
Provision for Severance & Retirement	2,685,854,354	2,460,270,725	2,085,562,628
Provision for Sales Gurantee	137,641,948	202,448,302	251,986,506
Capital Stock	13,467,611,000	12,571,031,000	10,985,832,000
Capital Surplus	97,190,587,119	85,340,759,906	60,695,266,801
Others	9,900,907,275	11,221,075,960	8,121,021,277
Profit Surplus	22,819,271,961	36,430,257,049	56,691,440,020
Total Equity	143,378,377,355	145,563,123,915	136,493,560,098
Liab. & Shareholder’s Equity	379,461,486,516	371,871,785,021	267,667,165,160

Income Statement

Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	43,558,590,207	115,180,847,240	145,043,274,338
Cost of Sold Goods	50,415,187,804	108,717,999,285	121,335,234,050
Gross Profit	-6,856,597,597	6,462,847,955	23,708,040,288
Selling & Admin. Expenses	6,310,620,242	17,500,302,382	9,471,093,355
Other Operating Income	2,399,699,401	5,194,512,730	2,932,218,610
Other Operating Expenses	657,578,080	6,816,703,771	4,226,605,324
Operating Income	-11,425,096,518	-12,659,645,468	12,942,560,219
Finance Income	5,932,716,004	5,707,898,700	490,093,717
Finance Expenses	8,118,604,574	18,088,366,862	9,502,347,163
Income Before Taxes	-13,610,985,088	-25,040,113,630	3,930,306,773
Income Taxes Expenses	0	-4,778,889,067	-1,914,532,124
Income from Continuous Business	-13,610,985,088	-20,261,224,563	5,844,838,897
Income from Stopped Business	0	0	-3,173,139,295
Net Income	-13,610,985,088	-20,261,224,563	2,671,699,602

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	-293,956,326	19,332,706,336	18,992,574,925
Cash Flows from Operating	3,184,286,768	20,962,209,046	21,289,131,176
Interests Received	796,440,796	2,258,054,133	323,503,929
Interests Paid	-4,317,885,997	-3,203,789,786	-2,573,735,126
Income Taxes	43,202,107	-683,767,057	-46,325,054
Cash Flows from Investing	-6,056,880,158	-123,919,804,931	-49,866,675,742
Cash Flows from Financing	9,392,812,195	97,176,744,741	35,509,250,108
Increase/Decrease in Cash	2,927,981,407	-7,349,729,884	4,632,673,100
Cash at the Beginning of Year	14,445,775,675	21,795,505,559	17,162,832,459
Cash at the End of Year	17,373,757,082	14,445,775,675	21,795,505,559

Products, Technologies, Services Description

Main Products & Services

TFT-LCD Aging System, LCD Pan Driving System, Test Chamber, LCD Luminance Tester System, PET Protective Film, Optical Film

Brand Name : OS-AGS08, OS-AGC02, OS-THB04, OS-TST06, OS-CRT01

Trade Partners & Competitors

Suppliers

ILSUNG FA CO., LTD.(134811-0099425)

KICHO TECH CO., LTD.(120111-0190885)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

HANKOOK SILICON CO., LTD.(131111-0203289)

(34.07% held by the subject company)

SHINWHA INTERTEK CORP.(134811-0011677)

(23.20% held by the subject company)

Subsidiary

OSUNG SCIENCE(SUZHOU) CO., LTD.

(100.00% held by the subject company)

CHINA, JIANGSU, SUZHOU, SIP, 6-B-1

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	06/2012	2011	2010
Export	12,705	93,708	82,344
Domestic	57,231	173,288	129,931
Others	91,805	335,884	242,992
Total	48,067	198,078	181,558

The Subject deals with the companies in China and Japan.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.25
UK Pound	1	Rs.88.14
Euro	1	Rs.71.03

INFORMATION DETAILS

Report Prepared by :

PDT

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%)

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