MIRA INFORM REPORT

Report Date :

04.12.2013

IDENTIFICATION DETAILS

Name :	DAEMYUNG OPTICAL CO., LTD.

Registered Office :	1673-4, Sinil-dong, Daedeok-gu, Daejeon, Korea

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	13.11.1998

Com. Reg. No.:	306-81-32850

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Optical Lens and Elements

No. of Employees :	354

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

Basic Information

Basic

Company Name	DAEMYUNG OPTICAL CO., LTD.
Registered Address	1673-4, Sinil-dong, Daedeok-gu, Daejeon, Korea
Zip Code	306-230
Tel	+82-42-939-1000
Fax	+82-42-939-1005
E-mail	webmaster@dmo.co.kr
Website	www.dmo.co.kr
Trading Address	1673-4, Sinil-dong, Daedeok-gu, Daejeon, Korea (New Address System : 100, Sinilseo-ro 18beon-gil, Daedeok-gu, Daejeon, Korea)
Tel	+82-42-939-1000
Fax	+82-42-939-1005
Other Address	587-20, Gwahaksaneop 2-ro, Ochang-eup, Cheongwon-gun, Chungcheongbuk-do, Korea
Other Address	6FL., 53, Gangnam-daero 99-gil, Seocho-gu, Seoul, Korea
Type	Export/Import
Industry	Manufacture of Optical Lens and Elements
Main Business	Optical Lenses
Established (mm/dd/yyyy)	11/13/1998

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Eyeglass lenses(42142902)

CEO’s

Name	Lee Kyung-Suk
Address	Suite 808-501, 34, Eungubinam-ro, Yuseong-gu, Daejeon, Korea
Date of Birth	05/11/1947
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

2,455,000,000

Employees

354

Formation

Co., Ltd by Shares

Bank Details

Woori Bank

Corporate Registered No.

160111-0075633

Business Registered No.

306-81-32850

Permit & Licenses

Int’l Trade No.: 16003217

Shareholder Position

Name	Shares	%
LEE KYUNG-SUK	216,775	88.30
KIM KYUNG-SOOK	9,898	4.03
LEE IN-SEOK	4,810	1.96
OTHERS	14,017	5.71
TOTAL	245,500	100.00

Company History

05/20/1985 Established as DAEMYUNG INDUSTRIES CO.(Sole Proprietorship)

11/13/1998 Incorporated as the present name

11/2005 Awarded US$ 10 Million Export Top Prize

12/2012 Awarded US$ 50 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Kyung-Suk	Male	Korean	03/30/2007
Director	M/S.	Kim Kyung-Sook	Female	Korean	03/30/2007
Director	Mr.	Lee Hong-Seok	Male	Korean	03/30/2010
Auditor	Mr.	Lee In-Seok	Male	Korean	12/07/1998

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	89,891,150,083	98,752,380,964	12,885,686,343
2011	86,836,730,570	99,374,702,830	11,526,196,221
2010	75,834,353,359	81,867,583,654	12,186,772,948

Financial Description

Authorized Capital(KRW)	7,220,000,000
Paid-Up Capital(KRW)	2,455,000,000
Total Issued Shares	245,500

Balance Sheet

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	98,752,380,964	99,374,702,830	81,867,583,654
Current Assets	38,539,927,224	38,788,187,644	30,578,451,729
-Quick Assets	22,897,589,123	24,757,172,897	16,738,119,667
-Inventories	15,642,338,101	14,031,014,747	13,840,332,062
Fixed Assets	60,212,453,740	60,586,515,186	51,289,131,925
-Investment	33,514,600,857	31,598,875,199	20,569,115,166
-Tangibles	26,295,267,901	28,542,365,863	30,010,664,361
-Intangibles	312,075,682	354,860,824	376,119,398
-Others	90,509,300	90,413,300	333,233,000
Total Liabilities	12,730,032,606	21,981,765,648	21,813,535,329
Current Liabilities	12,300,407,360	21,749,320,500	20,803,078,851
Fixed Liabilities	429,625,246	232,445,148	1,010,456,478
Capital Stock	2,455,000,000	2,455,000,000	2,455,000,000
Capital Surplus
Profit Surplus	74,473,696,228	63,860,246,188	48,238,048,375
Capital Adjustment	9,093,652,130	11,077,690,994	9,360,999,950
Total Equity	86,022,348,358	77,392,937,182	60,054,048,325
Liab. & Shareholder’s Equity	98,752,380,964	99,374,702,830	81,867,583,654

Current Liabilities	12,300,407,360	21,749,320,500	20,803,078,851
Trade Payables	1,634,553,735	2,433,591,496	1,527,528,775
Short-Term Borrowings	7,497,000,000	14,693,676,551	16,433,101,912
Account Payables	1,905,372,859	1,792,228,220	1,783,308,090
Advance Receipts	211,697,358	242,384,401	158,195,067
Withholdings	110,714,041	110,158,671	91,331,230
Accrued Expenses	8,112,986	10,537,310	14,189,727
Accrued Income Tax	932,956,381	1,966,743,851	795,424,050
Current Portion of Long-Term Debts	-	500,000,000	-
Fixed Liabilities	429,625,246	232,445,148	1,010,456,478
Long-Term Borrowings			500,000,000
Leasehold Deposit Received			110,000,000
Provision for Severance & Retirement	3,526,907,030	3,034,643,480	2,821,029,144

Income Statement

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	89,891,150,083	86,836,730,570	75,834,353,359
Cost of Sold Goods	72,682,839,457	69,502,385,892	61,703,893,943
Gross Profit	17,208,310,626	17,334,344,678	14,130,459,416
Selling & Admin. Expenses	6,515,401,537	6,654,863,603	6,391,314,622
Operating Income	10,692,909,089	10,679,481,075	7,739,144,794
Non-Operating Income	6,292,941,811	5,068,946,646	7,603,048,539
Non-Operating Expenses	2,089,225,437	1,460,095,149	1,760,377,038
Income Before Taxes	14,896,625,463	14,288,332,572	13,581,816,295
Income Taxes Expenses	2,010,939,120	2,762,136,351	1,395,043,347
Net Income	12,885,686,343	11,526,196,221	12,186,772,948

Cash Flows

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	8,217,209,402	10,093,647,360	10,759,281,400
-Net Income	12,885,686,343	11,526,196,221	12,186,772,948
-Exp. without Cash Outflow	5,213,940,854	5,544,265,454	5,310,032,895
-Revenue without Cash Inflows	-5,255,713,264	-3,701,085,350	-6,362,531,204
-Changes in Asset/ & Liability	-4,626,704,531	-3,275,728,965	-374,993,239
Cash Flows from Investing	1,743,814,675	-4,809,202,284	-5,649,570,035
-Cash Inflow from Investing	3,798,625,466	3,460,846,864	471,455,469
-Cash Outflows for Investing	-2,054,810,791	-8,270,049,148	-6,121,025,504
Cash Flows from Financing	-9,411,484,551	-2,600,000,000	-3,952,391,692
-Cash Inflows from Financing	-	-	4,515,417,317
-Cash Outflows from Financing	-9,411,484,551	-2,600,000,000	-8,467,809,009
Increase/Decrease in Cash	549,539,526	2,684,445,076	1,157,319,673
Cash at the Beginning of Year	8,003,537,862	5,319,092,786	4,161,773,113
Cash at the End of Year	8,553,077,388	8,003,537,862	5,319,092,786

Products, Technologies, Services Description

Main Products & Services

Optical Lenses

Trade Partners & Competitors

Competitors

A.G. OPTICS CO., LTD.

731-8, ANCHEONG-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-956-0765 FAX:+82-62-956-0764

MICROPTICS CO., LTD.

RM. 501, YUNMIN TECHNO TOWN, 473-4, BORA-DONG, GIHEUNG-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-289-9000 FAX:+82-31-285-7900

HANMI SWISS OPTICAL CO., LTD.

26-18, HO-DONG, JUNG-GU, DAEJEON, KOREA

TEL:+82-42-273-8972 FAX:+82-42-274-0819

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Subsidiary

DAEJEON DAEMYUNG OPTICAL(GWANGZHOU) CO., LTD.(CHINA)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

Sales by region (Activity & Markets)

The subject deals with the companies in Taiwan, USA, Singapore, Europe, Japan and China.

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.34
UK Pound	1	Rs.102.06
Euro	1	Rs.84.46

INFORMATION DETAILS

Report Prepared by :

NNA

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.