MIRA INFORM REPORT

Report Date :

27.07.2013

IDENTIFICATION DETAILS

Name :	DTR CORPORATION

Registered Office :	36B-11L, Namdong Industrial Complex 610-10, Namchon-dong, Namdong-gu, Incheon, Korea 405-846

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	16.03.1976

Com. Reg. No.:	139-81-15566

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Saws, Saw Blades and Interchangeable Tools

No. of Employees :	166

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

Company Name	DTR CORPORATION (Korean Company Name : “디티알(주)”)
Registered Address	610-10, Namchon-dong, Namdong-gu, Incheon, Korea
Building	36B-11L, Namdong Industrial Complex
Zip Code	405-846
Tel	+82-32-814-1540~6
Fax	+82-32-814-5381
E-mail	webmaster@dragon.co.kr
Website	www.dtr.kr
Trading Address	36B-11L, Namdong Industrial Complex, 610-10, Namchon-dong, Namdong-gu, Incheon, Korea (New Address System : 85, Namdong-daero 370beon-gil, Namdong-gu, Incheon, Korea)
Tel	+82-32-814-1540~6
Fax	+82-32-814-5381
Type	Export/Import
Industry	Manufacture of Saws, Saw Blades and Interchangeable Tools
Main Business	Gear Hob Cutter, Milling Cutter, Roughing End Mill, Gear Shaper Cutter
Established (mm/dd/yyyy)	03/16/1976

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Hobs(23171613)
Sell	Milling cutters(23171612)

CEO’s

Name	Chun Yong-Bae
Address	434-35, Yeonhui-dong, Seodaemun-gu, Seoul, Korea
Date of Birth	05/18/1944
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,500,000,000

Employees

166

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Namdong Industrial Complex Branch

Corporate Registered No.

110111-0193188

Business Registered No.

139-81-15566

Permit & Licenses

Int’l Trade No.: 421270

Shareholder Position

Name	Shares	%
CHUN YONG-BAE & HIS FAMILY(5)	300,000	100.00
TOTAL	300,000	100.00

Company History

03/16/1976 Incorporated as DRAGON PRECISION TOOLS CO., LTD.

06/20/2001 Increased the authorized shares to 1,200,000 shares from 400,000 shares

06/28/2001 Increased capital to 1,500,000,000 KRW from 1,300,000,000 KRW

03/16/2008 Changed company name to the present name

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Chun Yong-Bae	Male	Korean	03/28/1999
Director	M/S.	Lee Kyung-Ja	Female	Korean	01/06/2001
Director	Mr.	Chun Jong-Yoon	Male	Korean	10/02/1999
Director	Mr.	Chun Jong-Hoon	Male	Korean	12/23/2004
Director	Mr.	Chun Jong-Bum	Male	Korean	01/06/2013
Auditor	M/S.	Song Yoo-Jin	Female	Korean	03/31/2006

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	25,041,059,197	68,458,169,233	7,527,698,930
2011	25,777,539,365	66,085,838,004	-24,723,868
2010	21,956,806,638	63,741,362,034	424,896,651

Financial Description

Authorized Capital(KRW)	6,000,000,000
Paid-Up Capital(KRW)	1,500,000,000
Total Issued Shares	300,000

Balance Sheet
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	68,458,169,233	66,085,838,004	63,741,362,034
Current Assets	21,246,222,444	18,127,648,059	18,379,790,107
-Quick Assets	14,557,673,753	12,517,237,519	13,133,266,403
-Inventories	6,688,548,691	5,610,410,540	5,246,523,704
Fixed Assets	47,211,946,789	47,958,189,945	45,361,571,927
-Investment	1,411,280,713	3,352,317,977	2,207,235,327
-Tangibles	45,674,135,402	44,380,537,754	42,962,951,616
-Intangibles	8,070,674	12,225,104	14,673,784
-Others	118,460,000	213,109,110	176,711,200
Total Liabilities	43,999,966,035	48,981,495,320	46,611,239,232
Current Liabilities	29,831,364,670	20,308,934,574	22,688,997,150
Fixed Liabilities	14,168,601,365	28,672,560,746	23,922,242,082
Capital Stock	1,500,000,000	1,500,000,000	1,500,000,000
Capital Surplus	2,183,191,443	2,183,191,443	2,183,191,443
Profit Surplus	7,910,787,359	556,816,995	581,540,863
Capital Adjustment	12,864,224,396	12,864,334,246	12,865,390,496
Total Equity	24,458,203,198	17,104,342,684	17,130,122,802
Liab. & Shareholder’s Equity	68,458,169,233	66,085,838,004	63,741,362,034

Current Liabilities	29,831,364,670	20,308,934,574	22,688,997,150
Trade Payables	259,235,864	446,757,348	104,857,125
Account Payables	1,489,269,047	1,511,501,010	2,937,017,432
Short-Term Borrowings	3,350,000,000	1,700,000,000	2,000,000,000
Withholdings	129,070,190	117,150,260	82,191,810
Advance Receipts	87,175,813	163,534,866	22,748,878
Accrued Expenses	32,694,624	37,304,544	23,612,578
Accrued Income Tax	24,403,382	17,342,590	613,600,719
Current Portion of Long-Term Debts	24,444,515,750	16,300,343,956	16,889,968,608
Guarantee Deposit Withhold	15,000,000	15,000,000	15,000,000
Fixed Liabilities	14,168,601,365	28,672,560,746	23,922,242,082
Long-Term Borrowings	11,479,331,750	26,315,284,804	21,859,895,272
Provision for Severance & Retirement	2,618,269,615	2,276,275,942	2,005,346,810
Leasehold Deposit Received	71,000,000	81,000,000	57,000,000

Income Statement
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	25,041,059,197	25,777,539,365	21,956,806,638
Cost of Sold Goods	16,744,012,697	16,381,321,079	13,043,061,160
Gross Profit	8,297,046,500	9,396,218,286	8,913,745,478
Selling & Admin. Expenses	6,043,385,259	5,804,046,706	5,627,629,464
Operating Income	2,253,661,241	3,592,171,580	3,286,116,014
Non-Operating Income	7,098,325,194	650,192,372	3,468,105,193
Non-Operating Expenses	1,732,017,633	4,034,685,887	5,456,553,737
Income Before Taxes	7,619,968,802	207,678,065	1,297,667,470
Income Taxes Expenses	92,269,872	232,401,933	872,770,819
Net Income	7,527,698,930	-24,723,868	424,896,651

Cash Flows
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	3,481,880,528	1,334,060,751	3,217,275,837
-Net Income	7,527,698,930	-24,723,868	424,896,651
-Exp. without Cash Outflow	2,811,535,800	4,867,187,518	5,982,907,108
-Revenue without Cash Inflows	-6,415,049,666	-33,065,904	-2,711,589,679
-Changes in Asset/ & Liability	-442,304,536	-3,475,336,995	-478,938,243
Cash Flows from Investing	-4,966,764,016	-2,731,866,081	346,214,843
-Cash Inflow from Investing	12,890,581,098	7,384,213,864	25,655,096,303
-Cash Outflows for Investing	-17,857,345,114	-10,116,079,945	-25,308,881,460
Cash Flows from Financing	1,544,520,000	1,211,451,090	-3,539,403,837
-Cash Inflows from Financing	19,428,750,000	21,170,411,090	24,338,656,163
-Cash Outflows from Financing	-17,884,230,000	-19,958,960,000	-27,878,060,000
Increase/Decrease in Cash	59,636,512	-186,354,240	24,086,843
Cash at the Beginning of Year	49,017,714	235,371,954	211,285,111
Cash at the End of Year	108,654,226	49,017,714	235,371,954

Products, Technologies, Services Description

Main Products & Services

Gear Hob Cutter, Milling Cutter, Roughing End Mill, Gear Shaper Cutter

Trade Partners & Competitors

Competitors

HWACHEON MACHINERY WORKS CO., LTD.

1022-7, BANGBAE 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-523-7766 FAX:+82-2-523-7767

DAEHWA INDUSTRIAL MACHINERY CO., LTD.

676-1, NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-979-3000 FAX:+82-54-979-3030

FUSO INDUSTRIAL MACHINERY CO., LTD.

385-3, DEOKPO 2-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-302-1771 FAX:+82-51-302-3112

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

DTR USA CORPORATION

DTR JAPAN CO., LTD.

JINYONG PRECISION CO., LTD.(120111-0103507)

Sales by Region

(Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.58.91
UK Pound	1	Rs.90.68
Euro	1	Rs.78.22

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.