MIRA INFORM REPORT

Report Date :

07.02.2013

IDENTIFICATION DETAILS

Name :	GB INDUSTRIES CO., LTD.

Registered Office :	642-9, Gahyeon-ri, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea 415-861

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	20.08.1998

Com. Reg. No.:	136-81-28500

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Civil Engineering and Similar Machine Equipment

No. of Employees :	25

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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

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	GB INDUSTRIES CO., LTD. (Korean Company Name : “(주)지비”)
Registered Address	642-9, Gahyeon-ri, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea
Zip Code	415-861
Tel	+82-31-988-2206
Fax	+82-31-988-2208
E-mail	info@gbhammer.com
Website	www.gbhammer.com
Trading Address	642-9, Gahyeon-ri, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea
Tel	+82-31-988-2206
Fax	+82-31-988-2208
Type	Export/Import
Industry	Manufacture of Civil Engineering and Similar Machine Equipment
Main Business	Hydraulic Breaker, Crushers, Shears, Vibro Hammer, Core Drill, Quick Coupler
Established (mm/dd/yyyy)	08/20/1998

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Rock breakers(20101711)
Sell	Clamps(31162900)
Buy	Steel(11101704)

CEO’s

Name	Jo Jae-Ryong
Address	Suite 106-2802, 373, Gwongwang-ro, Gwonseon-gu, Suwon-si, Gyeonggi-do, Korea
Date of Birth	12/27/1952
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

3,000,000,000

Employees

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Industrial Bank of Korea-Gimpo Branch

Kookmin Bank

Corporate Registered No.

124411-0033928

Business Registered No.

136-81-28500

Permit & Licenses

Int’l Trade No.: 11574877

Shareholder Position

Name	Shares	%
JO JAE-RYONG	51,495	51.50
OTHERS(4)	48,495	48.50
TOTAL	99,990	100.00

(*)The list is based as of 12/31/2012.

Company History

08/20/1998 Incorporated as GENERAL BREAKER CO., LTD.

12/2003 Awarded US$ 5 million Export Top Prize

03/31/2005 Changed company name to the present name

03/31/2007 Moved to the present HQ address from 793-11, Dosa-ri, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea

02/29/2008 Increased the authorized shares to 500,000 shares from 80,000 shares

03/01/2008 Increased capital to 499,950,000 KRW from 300,000,000 KRW

03/09/2008 Designated as a Venture Business

03/09/2009 Designated as a Venture Business again

08/22/2012 Increased the authorized shares to 2,400,000 shares from 500,000 shares

08/23/2012 Increased capital to 3,000,000,000 KRW from 499,950,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Representative Director	Mr.	Jo Jae-Ryong	Male	Korean	03/31/2001
Director	Mr.	Kim Jung-Hwan	Male	Korean	08/22/2012
Director	Mr.	Lee Moon-Sik	Male	Korean	08/22/2012
Director	Mr.	Kwon Oh-Yoon	Male	Korean	08/22/2012
Auditor	M/S.	Lee Jung-Nyeo	Female	Korean	03/31/2007

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	16,203,628,777	16,393,332,218	-1,452,450,172
2010	15,309,163,265	17,130,731,861	-393,275,016
2009	13,040,875,051	13,723,260,228	11,328,355
2008	15,140,844,385	11,773,687,923	1,446,095,671
2007	10,871,227,107	10,096,531,735	532,215,670

Financial Description

Authorized Capital(KRW)	12,000,000,000
Paid-Up Capital(KRW)	3,000,000,000
Total Issues Shares	600,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	16,393,332,218	17,130,731,861	13,723,260,228
Current Assets	10,907,051,715	11,056,221,338	8,489,264,413
-Quick Assets	8,331,029,016	7,353,509,690	5,749,201,878
-Inventories	2,576,022,699	3,702,711,648	2,740,062,535
Fixed Assets	5,486,280,503	6,074,510,523	5,233,995,815
-Investment	1,907,574,607	2,329,900,567	2,175,574,888
-Tangibles	3,417,434,538	3,594,106,408	2,905,152,145
-Intangibles	7,390,753	6,208,568	4,820,332
-Others	153,880,605	144,294,980	148,448,450
Total Liabilities	14,541,308,662	13,825,849,029	10,025,043,971
Current Liabilities	12,433,374,792	11,685,498,615	7,634,273,370
Fixed Liabilities	2,107,933,870	2,140,350,414	2,390,770,601
Capital Stock	499,950,000	499,950,000	499,950,000
Capital Surplus
Profit Surplus	1,251,596,682	2,704,046,854	3,097,321,870
Capital Adjustment	100,476,874	100,885,978	100,944,387
Total Equity	1,852,023,556	3,304,882,832	3,698,216,257
Liab. & Shareholder’s Equity	16,393,332,218	17,130,731,861	13,723,260,228

Current Liabilities	12,433,374,792	11,685,498,615	7,634,273,370
Trade Payables	4,861,540,765	3,246,841,543	1,677,219,265
Short-Term Borrowings	5,760,369,295	6,263,598,571	4,626,378,917
Current Portion of Long-Term Debts	429,210,000	218,160,000	341,200,000
Account Payables	10,341,502	-	57,380,000
Accrued Expenses	895,313,382	1,325,486,057	823,855,549
Accrued Income Tax			11,314,220
Advance Receipts	62,375,930	87,381,684	69,343,109
Withholdings	14,223,918	41,394,950	21,266,500
Short-Term Borrowings to Shareholders/ Executives/ Employees	400,000,000	502,635,810	6,315,810
Fixed Liabilities	2,107,933,870	2,140,350,414	2,390,770,601
Debentures	500,000,000	500,000,000	-
Long-Term Borrowings	1,366,150,000	1,168,080,000	1,873,420,000
Provision for Severance & Retirement	457,410,325	638,501,409	611,235,699

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	16,203,628,777	15,309,163,265	13,040,875,051
Cost of Sold Goods	14,591,104,613	12,303,506,072	9,929,505,933
Gross Profit	1,612,524,164	3,005,657,193	3,111,369,118
Selling & Admin. Expenses	2,704,086,330	2,894,679,240	2,548,918,165
Operating Income	-1,091,562,166	110,977,953	562,450,953
Non-Operating Income	485,250,894	325,950,631	640,143,098
Non-Operating Expenses	846,138,900	954,660,025	1,066,809,266
Income Before Taxes	-1,452,450,172	-517,731,441	135,784,785
Income Taxes Expenses	-	-124,456,425	124,456,430
Net Income	-1,452,450,172	-393,275,016	11,328,355

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	640,757,410	-856,486,749	110,847,435
-Net Income	-1,452,450,172	-393,275,016	11,328,355
-Exp. without Cash Outflow	677,511,651	562,917,165	706,787,849
-Revenue without Cash Inflows	-196,882,996	-13,447,322	-395,841,687
-Changes in Asset/ & Liability	1,612,578,927	-1,012,681,576	-211,427,082
Cash Flows from Investing	-252,572,690	-1,027,401,159	-1,227,695,574
-Cash Inflow from Investing	1,026,259,000	968,182,512	949,190,080
-Cash Outflows for Investing	-1,278,831,690	-1,995,583,671	-2,176,885,654
Cash Flows from Financing	-94,109,276	1,308,839,654	1,461,161,355
-Cash Inflows from Financing	6,237,649,295	3,257,219,654	2,246,521,355
-Cash Outflows from Financing	-6,331,758,571	-1,948,380,000	-785,360,000
Increase/Decrease in Cash	294,075,444	-575,048,254	344,313,216
Cash at the Beginning of Year	3,122,126	578,170,380	233,857,164
Cash at the End of Year	297,197,570	3,122,126	578,170,380

Products, Technologies, Services Description

Main Products & Services

Hydraulic Breaker, Crushers, Shears, Vibro Hammer, Core Drill, Quick Coupler

Trade Partners & Competitors

Competitors

EVERDIGM CORP.

332-3, JANGGWAN-RI, JINCHEON-EUP, JINCHEON-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-530-3300 FAX:+82-43-530-3318

DAEMO ENGINEERING CO., LTD.

2BA-515, SIHWA INDUSTRIAL COMPLEX, 2178-5, JEONGWANG 2-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-488-6011 FAX:+82-31-496-0067

MSB CORPORATION

123B-4L, NAMDONG INDUSTRIAL COMPLEX, 693-3, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-821-6980~3 FAX:+82-32-818-1698

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

GB SHANGHAI MACHINERY CO.

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

FIRST FIRE & MARINE INSURANCE CO., LTD.(110111-0017586)

Sales by Region

(Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.08
UK Pound	1	Rs.83.12
Euro	1	Rs.72.02

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.