MIRA INFORM REPORT

Report Date :

31.08.2013

IDENTIFICATION DETAILS

Name :	TAESUNG CHEMICAL CO. LTD.

Registered Office :	11, Samjeon-dong, Songpa-gu, Seoul, Korea

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	19.06.1991

Com. Reg. No.:	219-81-12579

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesale of Synthetic Rubber and Plastics Materials.

No. of Employees :	13

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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 is currently the world's 12th largest economy. 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. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

Company name and address

Company Name	TAESUNG CHEMICAL CO., LTD. (Korean Company Name)
Registered Address	11, Samjeon-dong, Songpa-gu, Seoul, Korea
Building	2nd Fl., Taeseong Bldg.
Zip Code	138-837
Tel	+82-2-425-0252
Fax	+82-2-421-9146
E-mail	tsc@tschem.com
Website	www.tschem.com
Trading Address	2nd Fl., Taeseong Bldg., 11, Samjeon-dong, Songpa-gu, Seoul, Korea (New Address System : 12, Samjeon-ro 8-gil, Songpa-gu, Seoul, Korea)
Tel	+82-2-425-0252
Fax	+82-2-421-9146
Type	Export/Import
Industry	Wholesale of Synthetic Rubber and Plastics Materials
Main Business	PP, LDPE, HDPE, ABS, PS, EPS, PVC, SAN, EVA, Machinery
Established (mm/dd/yyyy)	06/19/1991

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Compounded resin(13111037)
Sell	Polypropylene PP(13102022)
Sell	Thermoplastic plastics(13102000)

CEO’s

Name	Baik Young-Chul
Address	Suite 13-1002, 637, Achasan-ro, Guri-si, Gyeonggi-do, Korea
Date of Birth	06/23/1959
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

800,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Samjeon Dong Branch

Hana Bank

Corporate Registered No.

110111-0784177

Business Registered No.

219-81-12579

Permit & Licenses

Int’l Trade No.: 11231525

Shareholder Position

Name	Shares	%
BAIK YOUNG-CHUL	44,000	55.00
OTHERS(5)	36,000	45.00
TOTAL	80,000	100.00

Company History

07/01/1986 Established as TAESUNG RESIN CO.(Sole Proprietorship)

01/1983 Changed company name to CHANGJIN RESIN CO.

06/1987 Changed company name to TAESUNG RESIN CO. again

06/19/1991 Incorporated as the present name

10/14/2002 Increased the authorized shares to 200,000 shares from 40,000 shares

11/2010 Awarded US$ 30 Million Export Top Prize

12/22/2009 Increased capital to 800,000,000 KRW from 550,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Baik Young-Chul	Male	Korean	06/19/1994
Director	M/S.	Jung Kyung-Mi	Female	Korean	03/31/2009
Director	Mr.	Baik Young-Sik	Male	Korean	03/31/2009
Auditor	M/S.	Joo Ae-Ja	Female	Korean	03/31/2009

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	66,360,706,571	16,486,908,762	1,863,240,165
2011	46,273,831,996	14,311,455,718	741,898,757
2010	35,390,641,725	9,501,974,083	451,713,432

Financial Description

Authorized Capital(KRW)	2,000,000,000
Paid-Up Capital(KRW)	800,000,000
Total Issued Shares	80,000

Balance Sheet

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	16,486,908,762	14,311,455,718	9,501,974,083
Current Assets	14,952,913,803	13,000,577,474	8,274,820,652
-Quick Assets	14,312,896,717	12,809,275,264	7,964,171,997
-Inventories	640,017,086	191,302,210	310,648,655
Fixed Assets	1,533,994,959	1,310,878,244	1,227,153,431
-Investment	747,387,144	625,687,509	560,052,599
-Tangibles	99,844,515	53,610,435	38,770,832
-Intangibles	686,763,300	631,580,300	628,330,000
Total Liabilities	8,768,292,910	8,524,779,666	4,470,331,698
Current Liabilities	8,741,292,910	7,498,754,566	3,444,783,368
Fixed Liabilities	27,000,000	1,026,025,100	1,025,548,330
Capital Stock	800,000,000	800,000,000	800,000,000
Capital Surplus
Profit Surplus	6,750,984,878	4,887,744,713	4,217,572,411
Capital Adjustment	167,630,974	98,931,339	14,069,974
Total Equity	7,718,615,852	5,786,676,052	5,031,642,385
Liab. & Shareholder’s Equity	16,486,908,762	14,311,455,718	9,501,974,083

Current Liabilities	8,741,292,910	7,498,754,566	3,444,783,368
Trade Payables	5,671,374,162	4,380,636,233	1,946,715,568
Short-Term Borrowings	945,650,000	2,397,300,000	1,150,800,000
Current Portion of Debentures	1,000,000,000	-	-
Account Payables	396,435,204	284,780,511	75,755,890
Accrued Expenses	8,576,049	13,873,958	30,099,258
Advance Receipts	22,878,696	47,268,163	14,760,058
Withholdings	283,954,720	106,657,713	45,907,898
Accrued Income Tax	412,896,513	268,237,988	180,744,696
Fixed Liabilities	27,000,000	1,026,025,100	1,025,548,330
Debentures	-	1,000,000,000	1,000,000,000
Leasehold Deposit Received	27,000,000	27,000,000	27,000,000

Income Statement

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	66,360,706,571	46,273,831,996	35,390,641,725
Cost of Sold Goods	58,821,620,211	41,580,826,125	30,765,162,524
Gross Profit	7,539,086,360	4,693,005,871	4,625,479,201
Selling & Admin. Expenses	4,424,138,102	3,405,274,453	3,489,488,459
Operating Income	3,114,948,258	1,287,731,418	1,135,990,742
Non-Operating Income	940,081,836	1,058,409,716	902,443,590
Non-Operating Expenses	1,630,575,863	1,274,980,685	1,352,043,354
Income Before Taxes	2,424,454,231	1,071,160,449	686,390,978
Income Taxes Expenses	561,214,066	329,261,692	234,677,546
Net Income	1,863,240,165	741,898,757	451,713,432

Cash Flows

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	1,997,438,360	-1,056,683,285	1,192,817,158
-Net Income	1,863,240,165	741,898,757	451,713,432
-Exp. without Cash Outflow	550,252,181	600,939,857	216,817,744
-Revenue without Cash Inflows	-66,037,837	-120,072,406	-28,317,864
-Changes in Asset/ & Liability	-350,016,149	-2,279,449,493	552,603,846
Cash Flows from Investing	-445,863,424	-224,578,738	-392,503,935
-Cash Inflow from Investing	2,842,878,540	2,530,713,387	2,150,818,737
-Cash Outflows for Investing	-3,288,741,964	-2,755,292,125	-2,543,322,672
Cash Flows from Financing	-1,451,650,000	1,176,500,000	-800,050,000
-Cash Inflows from Financing	3,431,500,000	4,646,000,000	5,533,100,000
-Cash Outflows from Financing	-4,883,150,000	-3,469,500,000	-6,333,150,000
Increase/Decrease in Cash	99,924,936	-104,762,023	263,223
Cash at the Beginning of Year	4,218,995	108,981,018	108,717,795
Cash at the End of Year	104,143,931	4,218,995	108,981,018

Products, Technologies, Services Description

Main Products & Services

PP, LDPE, HDPE, ABS, PS, EPS, PVC, SAN, EVA, Machinery

Trade Partners & Competitors

Customers

TS INTERTRADE (PTY)LTD.

Competitors

WORLDCHEM CORPORATION

RM.2009, DAELIM ACROVILE, 13, EONJU-RO 30-GIL, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-572-3987 FAX:+82-2-572-3981

HANYONG CORPORATION

RM. 814, MILLIANA 2-CHA OFFICETEL, 79-5, GARAKBON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-3401-9850 FAX:+82-2-3401-9870

JW & Y CORPORATION

RM. 903, HYODEOK BLDG., 32, EULJIRO 1-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-773-4062 FAX:+82-2-773-4063

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

TS INTERTRADE (PTY)LTD.

Sales by Region

(Activity & Markets)

The Subject deals with the companies in Malawi, Mozambique, Angola, Zambia, Zimbabwe, Kenya and Tanzania.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 66.57
UK Pound	1	Rs. 103.34
Euro	1	Rs. 88.16

INFORMATION DETAILS

Report Prepared by :

NIS

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.