MIRA INFORM REPORT

Report Date :

19.02.2013

IDENTIFICATION DETAILS

Name :	DOOWON STEEL CO., LTD.

Registered Office :	366-1, Taehwa-ri, Bongsan-myeon, Kimcheon-si, Gyeongsangbuk-do, Korea 740-823

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	18.02.2003

Com. Reg. No.:	510-81-13597

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Guilt, Coloration, Surface Processing Steel Materials

No. of Employees :	30

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 :	Slow but correct
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	DOOWON STEEL CO., LTD. (Korean Company Name : “두원스틸(주)”)
Registered Address	366-1, Taehwa-ri, Bongsan-myeon, Kimcheon-si, Gyeongsangbuk-do, Korea
Zip Code	740-823
Tel	+82-54-433-2860
Fax	+82-54-433-2866
E-mail	santada2@hanmail.net
Website	www.doowonsteel.com
Trading Address	366-1, Taehwa-ri, Bongsan-myeon, Kimcheon-si, Gyeongsangbuk-do, Korea
Tel	+82-54-433-2860
Fax	+82-54-433-2866
Type	Export
Industry	Manufacture of Guilt, Coloration, Surface Processing Steel Materials
Main Business	Electrolytic Galvanized Iron(EGI), Electrolytic Galvanized Steels, EG Coil
Established (mm/dd/yyyy)	02/18/2003

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Steel plate(30102204)

CEO’s

Name	Jung Young-Chool
Address	Suite 108-502, 1090-6, Suseong-dong 4-ga, Suseong-gu, Daegu, Korea
Date of Birth	09/29/1959
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

6,000,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Kookmin Bank

Korea Exchange Bank

Shinhan Bank

Corporate Registered No.

171311-0010913

Business Registered No.

510-81-13597

Permit & Licenses

05/14/2003 ISO 9001

05/09/2007 ISO 14001

Shareholder Position

Name	Shares	%
JEONG AN STEEL CO., LTD.(170111-0038126)	1,200,000	100.00
TOTAL	1,200,000	100.00

Company History

11/05/2001 Established as DOOWON STEEL CO.(Sole Proprietorship)

02/18/2003 Incorporated as the present name

11/30/2004 Awarded US$ 10 Million Export Top prize

11/01/2006 Designated as an INNO-BIZ Company

12/22/2009 Increased the authorized shares to 4,800,000 shares from 1,200,000 shares

12/23/2009 Increased capital to 6,000,000,000 KRW from 3,500,000,000 KRW

11/2010 Agreed with Financial Institutes Creditors on Management Normalizing Plan

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Jung Young-Chool	Male	Korean	02/18/2006
Director	Mr.	Lee jong-Jin	Male	Korean	03/08/2012
Director	Mr.	Jang Myung-Joong	Male	Korean	02/18/2009
Auditor	Mr.	Yoon Hee-Sub	Male	Korean	02/18/2006

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	78,897,418,290	91,107,612,615	817,255,120
2010	70,223,890,751	86,875,434,028	-943,002,388
2009	46,643,512,459	79,354,749,406	-13,158,040,964
2008	113,615,257,048	75,145,232,879	-5,309,670,391

Financial Description

Authorized Capital(KRW)	24,000,000,000
Paid-Up Capital(KRW)	6,000,000,000
Total Issued Shares	1,200,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	91,107,612,615	86,875,434,028	79,354,749,406
Current Assets	7,435,211,018	11,336,232,975	13,040,070,532
-Quick Assets	4,358,724,746	2,980,482,007	6,627,238,358
-Inventories	3,076,486,272	8,355,750,968	6,412,832,174
Fixed Assets	83,672,401,597	75,539,201,053	66,314,678,874
-Investment	79,972,573,228	71,088,261,546	61,734,260,979
-Tangibles	3,523,144,411	3,968,193,549	4,529,551,527
-Intangibles	176,683,958	482,745,958	50,866,368
Total Liabilities	74,027,234,323	74,717,553,051	66,796,963,224
Current Liabilities	36,213,317,513	40,462,839,190	38,984,347,112
Fixed Liabilities	37,813,916,810	34,254,713,861	27,812,616,112
Capital Stock	6,000,000,000	6,000,000,000	6,000,000,000
Capital Surplus
Profit Surplus	-1,980,059,917	-2,797,315,037	-1,854,312,649
Capital Adjustment	13,060,438,209	8,955,196,014	8,412,098,831
Total Equity	17,080,378,292	12,157,880,977	12,557,786,182
Liab. & Shareholder’s Equity	91,107,612,615	86,875,434,028	79,354,749,406

Current Liabilities	36,213,317,513	40,462,839,190	38,984,347,112
Trade Payables	8,789,609,622	12,888,393,997	7,432,937,967
Short-Term Borrowings	26,893,219,896	26,893,219,896	27,952,000,000
Account Payables	360,528,789	515,432,988	872,210,313
Withholdings	3,487,110	2,206,050	7,542,570
Advance Receipts	398,267	-	2,733,631
Accrued Expenses	166,073,829	163,586,259	208,672,631
Current Portion of Long-Term Debts	-	-	2,508,250,000
Fixed Liabilities	37,813,916,810	34,254,713,861	27,812,616,112
Long-Term Borrowings	37,813,916,810	34,254,713,861	27,741,867,550
Provision for Severance & Retirement	219,874,776	246,600,729	391,209,519

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	78,897,418,290	70,223,890,751	46,643,512,459
Cost of Sold Goods	73,754,557,873	66,920,246,905	43,055,129,738
Gross Profit	5,142,860,417	3,303,643,846	3,588,382,721
Selling & Admin. Expenses	2,452,931,170	2,625,977,896	2,527,715,805
Operating Income	2,689,929,247	677,665,950	1,060,666,916
Non-Operating Income	4,933,978,289	10,115,736,845	18,867,047,713
Non-Operating Expenses	6,806,652,416	11,736,405,183	33,085,755,593
Income Before Taxes	817,255,120	-943,002,388	-13,158,040,964
Income Taxes Expenses	-	-	-
Net Income	817,255,120	-943,002,388	-13,158,040,964

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	-3,718,773,024	-4,662,068,744	-26,022,617,654
-Net Income	817,255,120	-943,002,388	-13,158,040,964
-Exp. without Cash Outflow	822,202,830	700,104,991	1,151,950,298
-Revenue without Cash Inflows	-4,744,175,738	-9,714,700,320	-14,703,465,426
-Changes in Asset/ & Liability	-614,055,236	5,295,528,973	686,938,438
Cash Flows from Investing	95,444,545	1,825,253,314	-53,179,332
-Cash Inflow from Investing	145,684,545	1,982,411,405	219,007,031
-Cash Outflows for Investing	-50,240,000	-157,158,091	-272,186,363
Cash Flows from Financing	3,559,202,949	2,945,816,207	26,011,671,653
-Cash Inflows from Financing	3,568,652,260	4,772,561,700	27,894,200,767
-Cash Outflows from Financing	-9,449,311	-1,826,745,493	-1,882,529,114
Increase/Decrease in Cash	-64,125,530	109,000,777	-64,125,333
Cash at the Beginning of Year	246,918,973	137,918,196	202,043,529
Cash at the End of Year	182,793,443	246,918,973	137,918,196

Products, Technologies, Services Description

Main Products & Services

Electrolytic Galvanized Iron(EGI), Electrolytic Galvanized Steels, EG Coil

Trade Partners & Competitors

Suppliers

DONGBU STEEL CO., LTD.(110111-0393308)

POSCO(174611-0000741)

HYUNDAI HYSCO CO., LTD.(110111-0302416)

Competitors

KOSTEEL CO., LTD.

4TH FL., HOUSTORY, 32-4, JEONNONG 2-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2106-0200 FAX:+82-2-581-8800

JEIL TECHNOS CO., LTD.

1850, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-278-2841~4 FAX:+82-54-278-2883

GUM SUNG INDUSTRIAL CO., LTD.

649-1, NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-977-0047 FAX:+82-54-977-0049

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	JEONG AN STEEL CO., LTD.(170111-0038126) JEONG AN HI-TUBE CO., LTD.(170111-0006511)
Subsidiary	JEONG AN ASIA DEVELOPMENT CO., LTD.(VIETNAM) (100.00% held by the subject company) GWANZHOU DOOWON STEEL CO., LTD.(CHINA) (100.00% held by the subject company)
Corporate Ownership	JEONG AN STEEL CO., LTD.(170111-0038126)
Major Shareholders	JEONG AN STEEL CO., LTD.(170111-0038126)
Cooperative Enterprise	-Insured company LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region

(Activity & Markets)

The Subject exports to China and Singapore.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.29
UK Pound	1	Rs.84.09
Euro	1	Rs.72.44

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.