MIRA INFORM REPORT

Report Date :

27.09.2012

IDENTIFICATION DETAILS

Name :	SH POLYCHEM CORP.

Registered Office :	467-24, Dogok 2-dong, Gangnam-gu, Seoul, Korea, Rm. 302, Woosung Character 199 Officetel, Zip Code 135-856

Country :	South Korea

Financials (as on) :	31.12.2009

Date of Incorporation :	18.02.2008

Com. Reg. No.:	105-87-18029

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesaler of other chemical materials and chemical products

No. of Employees :	01 employee

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 :	Unknown
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

(31.03.2012)

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	SH POLYCHEM CORP. (Korean Company Name : “(주)에스에이치폴리켐”)
Registered Address	467-24, Dogok 2-dong, Gangnam-gu, Seoul, Korea
Building	Rm. 302, Woosung Character 199 Officetel
Zip Code	135-856
Tel	+82-2-3143-1406
Fax	+82-2-3143-1407
E-mail	stanley@shcorp.kr
Website	www.shcorp.kr
Trading Address	Rm. 302, Woosung Character 199 Officetel, 467-24, Dogok 2-dong, Gangnam-gu, Seoul, Korea
Tel	+82-2-3143-1406
Fax	+82-2-3143-1407
Type	Export/Import
Industry	Wholesale of Other Chemical Materials and Chemical Products
Main Business	Polyurethane Hardener, Paint Material, Paint Additives
Established (mm/dd/yyyy)	02/18/2008

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Resins(13111000)
Sell	Chemistry reagents or solutions(41116105)
Sell	Polyurethane resins(13111061)
Sell	Chemicals including Bio Chemicals and Gas Materials(12000000)

CEO’s

Name	Chung Sang-Hoon(Stanly)
Address	Suite 120-1003, 54, Sunae-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Date of Birth	02/17/1966
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	50,000,000
Employees	1
Formation	Co., Ltd by Shares
Bank Details	Suhyup Bank
Corporate Registered No.	110111-3842469
Business Registered No.	105-87-18029
Permit & Licenses	N/A
Shareholder Position	N/A
Company History	02/18/2008 Incorporated as the present name 04/16/2010 Moved to the present HQ address from 200-30, Donggyo-dong, Mapo-gu, Seoul, Korea

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Chung Sang-Hoon (Stanly)	Male	Korean	02/18/2008
Director	Mr.	Lee Chan-Joo	Male	Korean	02/18/2008
Director	M/S.	Seo Moon-Ja	Female	Korean	02/18/2008
Auditor	M/S.	Lee Soo-Mi	Female	Korean	02/18/2008

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2009	1,772,000,000	381,000,000	25,000,000
2008	900,000,000	67,000,000	14,000,000

The 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)	200,000,000
Paid-Up Capital(KRW)	50,000,000
Total Issues Shares	10,000

Balance Sheet
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Total Assets		381,000,000	67,000,000
Current Assets		271,000,000	57,000,000
-Quick Assets		254,000,000	57,000,000
-Inventories		17,000,000	-
Fixed Assets		110,000,000	10,000,000
-Investment
-Tangibles		-	-
-Intangibles		-	-
Total Liabilities		293,000,000	3,000,000
Current Liabilities		291,000,000	2,000,000
Fixed Liabilities		1,000,000	1,000,000
Capital Stock		50,000,000	50,000,000
Capital Surplus		-	-
Profit Surplus		39,000,000	14,000,000
Capital Adjustment		-	-
Total Equity		89,000,000	64,000,000
Liab. & Shareholder’s Equity		381,000,000	67,000,000

Income Statement
Unit : Korean Won	As of 12/31/2010	As of 12/31/2009	As of 12/31/2008
Sales		1,772,000,000	900,000,000
Cost of Sold Goods		1,656,000,000	839,000,000
Gross Profit		116,000,000	61,000,000
Selling & Admin. Expenses		90,000,000	56,000,000
Operating Income		26,000,000	5,000,000
Non-Operating Income		30,000,000	39,000,000
Non-Operating Expenses		28,000,000	28,000,000
Income Before Taxes		28,000,000	16,000,000
Income Taxes Expenses		3,000,000	2,000,000
Net Income		25,000,000	14,000,000

Products, Technologies, Services Description

Main Products & Services

Chemicals, Food Additives and Toxic Chemicals

Polyurethane Hardner

Trade Partners & Competitors

Customers

PENINSULA POLYMERS LLC.

920 EAST 14TH AVE SUITE 201 NORTH KANSAS CI, USA

Competitors

YEEYOUNG CERACHEM CO., LTD.

RM. 722, SUSEO HYUNDAI VENTURE VILLE, 713, SUSEO-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-420-0331 FAX:+82-2-424-1877

HAXION SPECIALTY CHEMICALS KOREA CO., LTD.

580-3, HWASAN-RI, ONSAN-EUP, ULJU-GUN, ULSAN, KOREA

TEL:+82-52-231-5174 FAX:+82-52-231-5028

YOUNG-HI CHEMICALS LTD.

RM. 401, JUNGANG BLDG., 411-18, DOGOK 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-572-8516 FAX:+82-2-572-8516

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Overseas Office

SH POLYCHEM CORP.(CANADA OFFICE)

NO.902, 28, WILLIAM CARSON CRES. TORONTO, ON, CANAADA, M2P 2HI

TEL:+1-647-350-7334

Sales by Region

(Activity & Markets)

The Subject deals with the companies in Singapore and USA.

Court Action

Not Available.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.58
UK Pound	1	Rs.86.60
Euro	1	Rs.68.94

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%)

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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.