MIRA INFORM REPORT

Report Date :

16.01.2013

IDENTIFICATION DETAILS

Name :	SHINJIN CO., LTD.

Registered Office :	604-36, Namsan-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea 642-090

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	02.11.2004

Com. Reg. No.:	609-81-65624

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Metal Fasteners and Screw Products

No. of Employees :	24

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	SHINJIN CO., LTD. (Korean Company Name : “(주)신진”)
Registered Address	604-36, Namsan-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea
Zip Code	642-090
Tel	+82-55-262-9530
Fax	+82-55-296-9530
Website	www.shinjin.kr
Trading Address	604-36, Namsan-dong, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea
Tel	+82-55-262-9530
Fax	+82-55-296-9530
Type	Export
Industry	Manufacture of Metal Fasteners and Screw Products
Main Business	Bolt, Nut, Plastic Injection Molds
Sub Business
Established (mm/dd/yyyy)	11/02/2004

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Bolts(31161600)
Sell	Nuts(31161700)

CEO’s

Name	Kwak Jong-Suk
Address	Suite 102-604, 121, Daewon-dong, Uichang-gu, Changwon-si, Gyeongsangnam-do, Korea
Date of Birth	12/03/1967
Title	President & CEO
Sex	Female
Nationality	Korean

Profiles

Capital (KRW)

1,000,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Changwon Branch

Gyungnam Bank

Corporate Registered No.

194211-0070160

Business Registered No.

609-81-65624

Permit & Licenses

10/09/2006 ISO 9001

10/19/2007 ISO 14001

Int’l Trade No.: 45287222

Shareholder Position

Name	Shares	%
KWAK JONG-SUK	50,000	50.00
KWAK JAE-WON	30,000	30.00
BAN SOO-HYUN	20,000	20.00
TOTAL	100,000	100.00

Company History

03/03/1999 Established as SHINJIN BOLT CO.(Sole Proprietorship)

11/02/2004 Incorporated as SHINJIN BOLTEC CO., LTD.

01/03/2007 Designated as an INNO-BIZ Company

11/24/2009 Increased the authorized shares to 400,000 shares from 80,000 shares

11/26/2009 Increased capital to 1,000,000,000 KRW from 500,000,000 KRW

12/24/2009 Changed company name to the present name

12/24/2009 Moved to the present HQ address from 28-9, Paryong-dong, Uichang-gu, Changwon-si, Gyeongsangnam-do, Korea

11/16/2009 Designated as a Venture Business

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	M/S.	Kwak Jong-Suk	Female	Korean	11/02/2007
Director	Mr.	Kwak Jae-Won	Male	Korean	11/02/2007
Director	M/S.	Kwak Myung-Sook	Female	Korean	06/04/2012
Auditor	Mr.	Lim Sung-Keun	Male	Korean	11/02/2010
Supervisor	Mr.	Kim Bong-Yeol	Male	Korean	11/02/2010

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	8,540,780,742	11,982,336,532	60,156,667
2010	7,011,893,404	10,836,956,847	196,451,641
2009	6,755,287,218	11,325,976,751	202,635,816

Financial Description

Authorized Capital(KRW)	4,000,000,000
Paid-Up Capital(KRW)	1,000,000,000
Total Issued Shares	100,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	11,982,336,532	10,836,956,847	11,325,976,751
Current Assets	6,407,077,367	4,985,985,805	3,238,923,364
-Quick Assets	3,831,200,618	2,927,991,356	1,751,043,680
-Inventories	2,575,876,749	2,057,994,449	1,487,879,684
Fixed Assets	5,575,259,165	5,850,971,042	8,087,053,387
-Investment	34,143,463	18,743,463	24,362,008
-Tangibles	5,441,500,344	5,688,657,946	7,762,790,356
-Intangibles	67,220,258	108,567,633	181,086,023
-Others	32,395,100	35,002,000	118,815,000
Total Liabilities	10,586,677,186	9,501,454,168	8,983,522,522
Current Liabilities	9,397,831,848	6,021,981,313	6,238,711,666
Fixed Liabilities	1,188,845,338	3,479,472,855	2,744,810,856
Capital Stock	1,000,000,000	1,000,000,000	1,000,000,000
Capital Surplus
Profit Surplus	395,659,346	335,502,679	697,955,689
Capital Adjustment			644,498,540
Total Equity	1,395,659,346	1,335,502,679	2,342,454,229
Liab. & Shareholder’s Equity	11,982,336,532	10,836,956,847	11,325,976,751

Current Liabilities	9,397,831,848	6,021,981,313	6,238,711,666
Trade Payables	1,605,954,261	531,796,945	976,206,783
Account Payables	228,156,746	489,425,929	4,498,025,695
Withholdings	18,381,950	22,272,862	21,075,122
Accrued Income Tax	-	67,999,071	-
Short-Term Borrowings to Shareholders/ Executives/ Employees	295,470,052	120,634,395	-
Advance Receipts	257,007,362	91,414,869	-
Short-Term Borrowings	5,107,500,000	4,166,750,000	695,000,000
Accrued Expenses	100,720,867	101,695,242	48,404,066
Current Portion of Long-Term Debts	199,992,000	369,992,000	-
Current Portion of Foreign Currency Long-Term Debts	-	60,000,000	-
Foreign Currency Short-Term Borrowings	1,584,648,610	-	-
Fixed Liabilities	1,188,845,338	3,479,472,855	2,744,810,856
Long-Term Borrowings	950,900,000	1,856,642,000	900,000,000
Leasehold Deposit Received	160,000,000	110,000,000	-
Provision for Severance & Retirement	138,660,681	131,267,633	5,512,262
Foreign Currency Long-Term Debts	-	1,430,668,265	936,412,921
Long-Term Account Payables	-	-	908,397,935

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	8,540,780,742	7,011,893,404	6,755,287,218
Cost of Sold Goods	7,019,359,320	5,365,468,869	5,063,801,714
Gross Profit	1,521,421,422	1,646,424,535	1,691,485,504
Selling & Admin. Expenses	1,281,648,677	1,599,448,090	1,246,241,904
Operating Income	239,772,745	46,976,445	445,243,600
Non-Operating Income	483,771,092	944,580,030	146,825,676
Non-Operating Expenses	656,976,816	719,487,943	389,433,460
Income Before Taxes	66,567,021	272,068,532	202,635,816
Income Taxes Expenses	6,410,354	75,616,891	-
Net Income	60,156,667	196,451,641	202,635,816

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	-130,551,781	606,247,926	-674,802,865
-Net Income	60,156,667	196,451,641	202,635,816
-Exp. without Cash Outflow	458,539,994	779,700,167	303,402,205
-Revenue without Cash Inflows	-139,126,305	-761,530,979	-
-Changes in Asset/ & Liability	-510,122,137	391,627,097	-1,180,840,886
Cash Flows from Investing	21,909,568	264,951,646	-269,587,757
-Cash Inflow from Investing	1,920,857,156	4,268,532,174	824,383,829
-Cash Outflows for Investing	-1,898,947,588	-4,003,580,528	-1,093,971,586
Cash Flows from Financing	89,843,657	-931,675,855	918,104,089
-Cash Inflows from Financing	1,534,403,291	7,146,520,533	1,929,258,424
-Cash Outflows from Financing	-1,444,559,634	-8,078,196,388	-1,011,154,335
Increase/Decrease in Cash	-18,798,556	-60,476,283	-26,286,533
Cash at the Beginning of Year	20,170,432	80,646,715	106,933,248
Cash at the End of Year	1,371,876	20,170,432	80,646,715

Products, Technologies, Services Description

Main Products & Services

Bolt, Nut, Plastic Injection Molds

Trade Partners & Competitors

Competitors

SEUNG BO MECHA TECH CO., LTD.

269-1, GWANHO-RI, YAKMOK-MYEON, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-975-6526~7 FAX:+82-54-975-6530

JE-IL PRODUCTION CO., LTD.

889-1, DALSAN-RI, JEONGGWAN-MYEON, GIJANG-GUN, BUSAN, KOREA

TEL:+82-51-727-5525 FAX:+82-51-727-5528

JINHAP CO., LTD.

RM. B-5, INDUSTRIAL COMPLEX Ⅱ, 40-57, DAEHWA-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-70-7430-1800 FAX:+82-70-7442-7785

Sales by Region

(Activity & Markets)

The Subject exports to Saudi Arabia, Australia, Thailand and Japan.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.54
UK Pound	1	Rs.87.69
Euro	1	Rs.72.85

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.