MIRA INFORM REPORT

Report Date :

08.01.2013

IDENTIFICATION DETAILS

Name :	DCM CORPORATION

Registered Office :	89-14, Deokgye-dong, Yangsan-si, Gyeongsangnam-do, Korea 626-841

Country :	South Korea

Financials (as on) :	30.09.2012

Date of Incorporation :	01.01.1987

Com. Reg. No.:	621-81-16744

Legal Form :	Listed Company

Line of Business :	Manufacture of Basic Cut Products of Iron or Steel to Non-rectangular Shapes

No. of Employees :	150

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 – 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	DCM CORPORATION (Korean Company Name : “디씨엠(주)”)
Registered Address	89-14, Deokgye-dong, Yangsan-si, Gyeongsangnam-do, Korea
Zip Code	626-841
Tel	+82-55-366-9991~5
Fax	+82-55-366-9996
E-mail	dcm@dcmcorp.co.kr
Website	www.dcmcorp.co.kr
Trading Address	89-14, Deokgye-dong, Yangsan-si, Gyeongsangnam-do, Korea
Tel	+82-55-366-9991~5
Fax	+82-55-366-9996
Other Address-Busan Factory	139-10, Sajik-dong, Dongnae-gu, Busan, Korea
Tel	+82-51-501-4133
Type	Export
Industry	Manufacture of Basic Cut Products of Iron or Steel to Non-rectangular Shapes
Main Business	Laminate Steel Sheet, Industrial Film, Masking Film
Sub Business	Wholesale of Metal Plates, Bars, Pipes, and Basic Metals
Established (mm/dd/yyyy)	01/01/1987

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Steel plate(30102204)
Buy	Films(13111200)
Buy	Coil(30101900)
Buy	Plastic sheet(30102515)
Buy	Iron plate(30102203)
Buy	Other adhesives and sealants(31201600)

CEO’s

Name	Jung Yeon-Taek
Date of Birth	04/20/1951
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

6,000,000,000

Employees

150

Formation

Listed Company(Korea Stock Exchange: 024090) as of 08/18/1999

Bank Details

Busan Bank- Deokgye Branch

Corporate Registered No.

180111-0071794

Business Registered No.

621-81-16744

Permit & Licenses

02/25/1998 ISO 9002

12/2003 ISO 9001

11/2008 ISO 9001

Int’l Trade No.: 370833

Shareholder Position

Name	Shares	%
JUNG YEON-TAEK	2,133,000	17.78
JUNG DONG-WOO	1,298,990	10.82
MOON JUNG-HYE	809,090	6.74
JUNG DONG-EUN	806,550	6.72
TREASURY STOCK	1,610,800	13.42
OTHERS	5,341,570	44.51
TOTAL	12,000,000	100.00

Company History

04/1972 Established as DAERIM CHEMICAL COMPANY(Sole Proprietorship)

01/01/1987 Incorporated as Daelim Co., Ltd.

05/14/1999 Changed company name to the present name

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Jung Yeon-Taik	Korean	1951.04.20	Yonsei University, Korea
Sr. Executive Director	M/S.	Moon Jung-Hye	Korean	1957.09.26	Ehwa Women's University, Korea
Executive Director	Mr.	Sohn Kyung-Tae	Korean	1956.01.24	Youngnam University, Korea
Outside Director	Mr.	Lim Jung-Tae	Korean	1950.07.26	Busan National University, Korea
Auditor	Mr.	Yoon Kwon-Cheol	Korean	1950.01.01	Dongah University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)09/2012	122,570,000,000	178,950,000,000	13,822,000,000
(*)2011	174,851,000,000	155,110,000,000	15,125,000,000
(*)2010	154,111,000,000	148,043,000,000	22,413,000,000
2009	111,680,006,051	121,786,808,308	13,484,883,426
2008	106,278,612,573	105,984,641,281	10,513,450,345
2007	80,388,750,632	88,762,196,189	13,070,531,901
2006	64,415,776,328	73,167,869,638	6,303,851,169
2005	56,399,193,392	66,321,584,988	5,490,160,575
2004	46,926,812,720	61,192,031,246	4,867,162,532
2003	39,725,945,441	55,684,239,369	4,129,510,970

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	20,000,000,000
Paid-Up Capital(KRW)	6,000,000,000
Total Issued Shares	12,000,000

Balance Sheet
Unit : Million Korean Won	01/01/2012~09/30/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	178,950	155,110	148,043
Current Assets	130,648	112,173	111,471
Cash & Cash Equivalents	6,626	5,980	11,570
Current Financial Instruments	6,952	6,097	12,565
Finance Assets from this year's Income	27,077	29,291	27,981
Marketable Financial Instruments	4,729	4,068	2,015
Trade Receivables & Other Receivables	22,260	23,984	24,903
Other Current Assets	33,446	13,947	1,423
Inventories	29,558	28,806	31,014
Non-Current Assets	48,302	42,937	36,572
Non-Current Financial Instruments	69	1,434	2,494
Finance Assets from this year's Income	0	997	0
Marketable Financial Instruments	2,216	4,460	6,542
Other Financial Assets	96	100	45
Investment_Subsidiaries	869	869	869
Tangibles	23,607	17,163	14,773
Intangibles	100	100	100
Investment_Real Estates	21,345	17,814	11,749
Total Liabilities	44,582	28,230	32,458
Current Liabilities	43,150	27,139	30,402
Trade Payables & Other Payables	23,571	16,711	16,848
Loans based on Interests	17,641	6,847	7,314
Other Current Liabilities	631	309	2,187
Deferred Income Tax Credit	1,307	3,272	4,053
Non-Current Liabilities	1,432	1,091	2,056
Provision for Severance & Retirement	842	707	89
Deferred Income Tax Credit	590	384	1,967
Capital Stock	6,000	6,000	6,000
Capital Surplus	14,979	14,979	14,979
Profit Surplus	117,421	109,653	98,349
Installments	189	150	159
Others	-4,221	-3,902	-3,902
Total Equity	134,368	126,880	115,585
Liab. & Shareholder’s Equity	178,950	155,110	148,043

Income Statement
Unit : Million Korean Won	01/01/2012~09/30/2012	As of 12/31/2011	As of 12/31/2010
Sales	122,570	174,851	154,111
Cost of Sold Goods	102,890	143,787	125,600
Gross Profit	19,680	31,064	28,511
Selling & Admin. Expenses	6,278	9,188	6,780
Other Operating Income	3,777	2,840	5,056
Other Operating Expenses	1,186	6,385	863
Operating Income	15,993	18,331	25,924
Finance Income	1,553	2,136	3,965
Finance Expenses	422	1,265	1,437
Income Before Taxes	17,124	19,202	28,452
Income Taxes Expenses	3,302	4,077	6,039
Net Income	13,822	15,125	22,413

Cash Flows
Unit : Million Korean Won	01/01/2012~09/30/2012	As of 12/31/2011	As of 12/31/2010
Operating Activities Cash Flows	-440	7,335	12,565
Cash Flows from Operating	3,022	12,757	11,665
Interests Received	1,540	938	3,212
Interests Paid	-390	-414	-362
Dividends Received	460	399	309
Income Taxes	-5,072	-6,345	-2,259
Cash Flows from Investing	-3,348	-8,935	-14,722
Cash Flows from Financing	4,437	-3,976	-1,758
Increase/Decrease in Cash	647	-5,590	-3,915
Cash at the Beginning of Year	5,979	11,570	15,485
Cash at the End of Year	6,626	5,980	11,570

Products, Technologies, Services Description

Main Products & Services

-Steel Division

CR(Cold Rolled) steel sheet

EGI(Electro-Galvanized Iron) steel sheet

GI(Galvanized Iron) steel sheet

Laminating Steel Sheet

-Film Division

Eva Film

Functional Film

Masking Film

PET Film

Trade Partners & Competitors

Suppliers

POSCO(174611-0000741)

LG CHEM LTD(110111-2207995)

HANWHA L&C CORPORATION(110111-1725930)

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.(161411-0013066)

DORIM CORP.

Customers

LG ELECTRONICS INC.(110111-2487050)

SAMSUNG ELECTRONICS CO,.LTD(130111-0006246)

DAEWOO ELECTRONICS CORP.(110111-0546452)

Competitors

HAEWON ST CO., LTD.

546-7, OSEON-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-958-7000 FAX:+82-62-958-7095

HAN YANG STEEL IND. CO., LTD.

472-2, JAKJEON 2-DONG, GYEYANG-GU, INCHEON, KOREA

TEL:+82-32-547-5540 FAX:+82-32-549-7914

DANIL INDUSTRY CO., LTD.

656-1, SEONJEONG-RI, SAMSEONG-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-883-5400 FAX:+82-43-883-5403

(*) The Subject accounts for about 50.0% domestic market share.

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

DORIM CORP.(184511-0015386)

(58.57% held by the subject company)

Sales by Region

(Activity & Markets)

Sales/ Unit :Mil KRW	09/2012	2011	2010
Export	52,657	76,069	72,481
Domestic	69,913	98,782	81,630
Total	122,570	174,851	154,111

The Subject exports to China & Japan.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.98
UK Pound	1	Rs.88.11
Euro	1	Rs.71.67

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%)

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.