MIRA INFORM REPORT

Report Date :

25.09.2012

IDENTIFICATION DETAILS

Name :	BIXOLON CO., LTD.
Registered Office :	685, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea 463-400
Country :	South Korea
Financials (as on) :	30.06.2012
Date of Incorporation :	14.11.2002
Com. Reg. No.:	124-86-02593
Legal Form :	Listed Company
Line of Business :	Manufacture of Computer Printer
No. of Employees :	81

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
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	A1	A1

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	BIXOLON CO., LTD. (Korean Company Name : “(주)빅솔론”)
Registered Address	685, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Zip Code	463-400
Tel	+82-31-218-5500
Fax	+82-31-218-5589
E-mail	sales@bixolon.com
Website	www.bixolon.com;www.samsungminiprinters.com
Trading Address	685, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Tel	+82-31-218-5500
Fax	+82-31-218-5589
Other Address-Factory	773, Yongtan-dong, Chungju-si, Chungbuk, Korea
Type	Export/Import
Industry	Manufacture of Computer Printer
Main Business	POS Printer, Thermal Printer, Inkjet Printer, Label Printer, Card Authorization Terminals Mechanisms
Established (mm/dd/yyyy)	11/14/2002

The Subject owns the premises of registered HQ address and factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Printer and photocopier and facsimile accessories(44101700)
Sell	Thermal tape printers(43212108)
Sell	System Cards(43201400)
Sell	Inkjet printers(43212104)
Sell	Compact disc CD or labeling printers(43212113)

CEO’s

Name	Oh Jin-Seob
Date of Birth	02/09/1959
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

5,100,000,000

Employees

81

Formation

Listed Company (KOSDAQ : 093190) as of 08/20/2007

Bank Details

Woori Bank

Corporate Registered No.

135811-0087297

Business Registered No.

124-86-02593

Permit & Licenses

09/2005 ISO 9001

Int’l Trade No.: 30143225

Shareholder Position

Name	Shares	%
KIM HYUNG-KEUN	3,264,000	32.00
TREASURY STOCK	750,255	7.36
OTHERS	6,185,745	60.64
TOTAL	10,200,000	100.00

Company History

11/14/2002 Incorporated as Korea Printing System Co., Ltd., by spinning off from SAMSUNG ELECTRO-MECHANICS CO., LTD.(130111-0001626)

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

04/29/2004 Designated as a Venture Business

11/30/2004 Awarded US$ 20 Million Export Top Prize

08/09/2005 Changed company name to the present name

06/30/2006 Designated as a Venture Business again

03/02/2007 Changed the financial closing date to March 31from December 31

11/30/2007 Awarded US$ 30 Million Export Top Prize

06/05/2008 Changed the financial closing date to December 31 from March 31

10/01/2011 Moved to the present HQ address from A-507, Digital Empire Bldg., 980-3, Yeongtong 2-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Kim Hyung-Keun	Korean	1958.10.09	Seoul National University, Korea
President & CEO	Mr.	Oh Jin-Seob	Korean	1959.02.09	Hankuk University of Foreign Studies, Korea
Director / R&D Center	Mr.	Kim Jang-Hwan	Korean	1961.09.22	Kyunggi Technical College, Korea
Auditor	Mr.	Park Hoon	Korean	1955,07.22	Sungkyunkwan University, Korea
Outside Director	Mr.	Lee Seung-Do	Korean	1965.03	Hanyang University, Korea
Outside Director	Mr.	Ko Min-Ho	Korean	1969.11	Yonsei University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2012	33,454,350,331	73,416,944,439	4,783,006,630
(*)2011	75,914,337,910	72,044,755,072	11,548,274,527
(*)2010	65,249,359,536	60,593,144,147	10,548,195,153
2009	65,762,102,845	52,057,817,496	10,961,710,704
2008	45,856,310,593	41,945,626,847	6,296,864,026

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

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	5,100,000,000
Total Issues Shares	10,200,000

Balance Sheet
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	73,416,944,439	72,044,755,072	60,593,144,147
Current Assets	51,997,845,172	50,177,832,036	42,932,651,790
Cash & Cash Equivalents	471,742,656	2,107,647,515	3,534,400,868
Trade Receivables	9,170,071,453	7,266,300,105	6,616,087,812
Other Receivables	1,289,142,035	1,913,198,935	1,027,503,922
Current Financial Instruments	24,126,656,135	22,134,159,536	14,478,270,169
Marketable Financial Instruments			1,500,000,000
Derivatives	494,129,400	1,140,398,085	804,589,908
Inventories	15,398,217,162	15,101,261,078	14,104,271,251
Other Current Assets	1,047,886,331	514,866,782	867,527,860
Non-Current Assets	21,419,099,267	21,866,923,036	17,660,492,357
Other Non-Current Assets	691,072,578	674,043,874	434,700,370
Marketable Financial Instruments	7,834,772,658	7,865,522,590	4,819,469,864
Investment_Subsidiaries	1,163,394,000	2,336,670,596	2,336,670,596
Tangibles	9,314,819,926	8,373,391,735	9,653,061,972
Intangibles	595,284,646	247,900,826	127,917,248
Non-Current Assets to be Sold	917,335,711	1,880,911,460
Deferred Income Tax Assets	867,812,360	446,038,931	286,181,745
Assets for Severance & Retirement			2,490,562
Other Assets	34,607,388	42,443,024
Total Liabilities	11,222,334,029	12,104,171,735	10,653,151,724
Current Liabilities	10,468,543,785	11,028,545,825	8,834,097,827
Trade Payables	4,024,385,475	5,719,667,987	4,155,759,516
Other Payables	2,759,076,159	3,174,426,632	2,866,873,238
Short-Term Borrowings	2,000,000,000
Derivatives		19,377,684
Accrued Income Tax	1,219,708,392	1,584,959,031	1,540,066,981
Other Current Liabilities	465,373,759	530,114,491	271,398,092
Non-Current Liabilities	753,790,244	1,075,625,910	1,819,053,897
Other Liabilities	363,529,785	713,262,421	1,356,749,933
Provisions	235,133,625	244,425,099	462,303,964
Derivatives		53,898,874
Provision for Severance & Retirement	155,126,834	64,039,516
Deferred Income Tax Credit
Capital Stock	5,100,000,000	5,100,000,000	3,750,000,000
Capital Surplus	10,026,855,927	10,026,855,927	11,376,855,927
Others	-4,081,180,923	-3,079,275,093	-2,343,409,403
Profit Surplus	51,148,935,406	47,893,002,503	37,156,545,899
Total Equity	62,194,610,410	59,940,583,337	49,939,992,423
Liab. & Shareholder’s Equity	73,416,944,439	72,044,755,072	60,593,144,147

Income Statement
Unit : Korean Won	01/01/2012~06/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	33,454,350,331	75,914,337,910	65,249,359,536
Cost of Sold Goods	25,237,921,088	57,857,757,259	49,857,914,095
Gross Profit	8,216,429,243	18,056,580,651	15,391,445,441
Selling & Admin. Expenses	3,655,295,848	7,253,223,067	6,427,513,897
Other Operating Income	737,503,332	1,270,955,026	1,062,949,673
Other Operating Expenses	304,491,354	839,509,575	1,340,435,605
Operating Income	4,994,145,373	11,234,803,035	8,686,445,612
Finance Income	2,480,035,833	4,631,213,150	6,289,686,523
Finance Expenses	1,754,575,475	1,857,353,204	2,716,268,719
Profits from Disposal of Investment on Subsidiaries	187,763,404	-	-
Income Before Taxes	5,907,369,135	14,008,662,981	12,259,863,416
Income Taxes Expenses	1,124,362,505	2,460,388,454	1,711,668,263
Net Income	4,783,006,630	11,548,274,527	10,548,195,153

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	105,648,974	9,745,373,052	10,819,910,428
Cash Flows from Operating	1,720,814,210	12,382,808,917	12,328,402,777
Income Taxes	-1,615,165,236	-2,637,435,865	-1,508,492,349
Cash Flows from Investing	-2,291,011,359	-9,305,273,132	-8,773,431,907
Cash Flows from Financing	561,753,189	-1,862,932,230	-1,390,638,815
Increase/Decrease in Cash	-1,635,904,859	-1,426,753,353	654,409,914
Cash at the Beginning of Year	2,107,647,515	3,534,400,868	2,879,990,954
Cash at the End of Year	471,742,656	2,107,647,515	3,534,400,868
Operating Activities Cash Flows	105,648,974	9,745,373,052	10,819,910,428
Cash Flows from Operating	1,720,814,210	12,382,808,917	12,328,402,777
Income Taxes	-1,615,165,236	-2,637,435,865	-1,508,492,349
Cash Flows from Investing	-2,291,011,359	-9,305,273,132	-8,773,431,907
Cash Flows from Financing	561,753,189	-1,862,932,230	-1,390,638,815
Increase/Decrease in Cash	-1,635,904,859	-1,426,753,353	654,409,914

Products, Technologies, Services Description

Main Products & Services

Printers for POS(Point of Sales) Printing Mechanism for CAT(Card Authorization Terminals) Label Printers Mobile Printers Panel Printers Interface Cards Options Accessories Mobile Accessories Brand Name : BIXOLON

Trade Partners & Competitors

Competitors

EPSON(JAPAN) CITIZEN(JAPAN) STAR MICRONICS(JAPAN) IBM(USA) NCR(USA) ZEBRA(USA)

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Overseas Office	BIXOLON AMERICA INC. (100.0% held by the subject company) 3171 FUJITA ST TORRANCE, CA 90505 USA TEL:+1 858 764 4580 FAX:+1 310 257 6869 BIXOLON EUROPE GMBH (100.0% held by the subject company) TIEFENBROICHER WEG 35 40472 DÜSSELDORF, GERMANY TEL:+49-(0)211-68 78 54-0 FAX:+49-(0)211-68 78 54-20 BIXOLON ELECTRONICS (DONGGUAN) CO., LTD. (C3A)#11 LUYI 2 ROAD, TANGXIA TOWN, DONGGUAN CITY, GUANGDONG PROVINCE, P.R. CHINA TEL:+86-769-8262-0704~7 FAX:+86-769-8262-0703 BIXOLON HK (100.0% held by the subject company)
Subsidiary	EVERINT CO., LTD.(151111-0024904) (100.0% held by the subject company) BIXOLON AMERICA INC. (100.0% held by the subject company) BIXOLON EUROPE GMBH (100.0% held by the subject company) BIXOLON HK CO., LTD. (100.0% held by the subject company)
Cooperative Enterprise	-Insured Company DONGBU INSURANCE CO.,LTD.(110111-0095285) HEUNGKUK FIRE & MARINE INSURANCE CO., LTD.(110111-0016728) -Patent Usage from SEIKO EPSON CORPORATION

Sales by Region

(Activity & Markets)

Sales/ Unit :Mil KRW	06/2012	2011	2010
Export	24,639	55,893	46,822
Domestic	8,748	19,888	18,233
Total	33,454	75,914	65,249

The Subject exports to USA, Europe and China.

Court Action

No.

News Clipping

--

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.29
UK Pound	1	Rs.86.43
Euro	1	Rs.68.95

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.