MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	NESSCAP CO., LTD.

Registered Office :	750-8, Gomae-dong, Giheung-gu, Yongin-si, Gyeonggi-do, Korea 446-901

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	27.09.2000

Com. Reg. No.:	124-81-77099

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Electronic Capacitors

No. of Employees :	81

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 :	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	NESSCAP CO., LTD. (Korean Company Name : “(주)네스캡”)
Registered Address	750-8, Gomae-dong, Giheung-gu, Yongin-si, Gyeonggi-do, Korea
Zip Code	446-901
Tel	+82-31-289-0721~5
Fax	+82-31-286-6767~8
E-mail	marketing@nesscap.com
Website	www.nesscap.com
Trading Address	750-8, Gomae-dong, Giheung-gu, Yongin-si, Gyeonggi-do, Korea
Tel	+82-31-289-0721~5
Fax	+82-31-286-6767~8
Type	Export/Import
Industry	Manufacture of Electronic Capacitors
Main Business	Electric Double Layer Capacitor, Pseudo Capacitor, Condensers
Established (mm/dd/yyyy)	09/27/2000

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Capacitors(32121500)
Buy	Connecting leads or wires(39121435)
Buy	Foil(30102000)
Buy	Aluminum(11101705)

CEO’s

Name	Kim Young-Ho
Address	Suite 1102-1201, 121, Sucheong-ro, Osan-si, Gyeonggi-do, Korea
Date of Birth	10/01/1964
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

9,136,640,000

Employees

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Industrial Bank of Korea

Korea Exchange Bank-Shingal Branch

Woori Bank-Seo Suwon Branch

Corporate Registered No.

130111-0064294

Business Registered No.

124-81-77099

Permit & Licenses

03/2002 KT Mark

08/2003 ISO 9001

10/2006 ISO 1001

04/2007 CE Mark

Int’l Trade No.: 21051919

Shareholder Position

Name	Shares	%
NESSCAP, INC.(USA)	1,197,328	100.00
TOTAL	1,197,328	100.00

(*)The list is based as of 12/31/2011.

Company History

09/27/2000 Incorporated as NESSCAPACITOR CO., LTD.

07/26/2001 Registered as a Foreign Direct Investment Corporation

04/2002 Changed company name to the present name

07/19/2003 Designated as a Venture Business

07/15/2004 Moved to the present HQ address from 29-9, Woncheon-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea

07/19/2007 Designated as a Venture Business again

07/26/2012 Increased the authorized shares to 5,000,000 shares from 1,400,000 shares

08/08/2012 Increased capital to 9,136,640,000 KRW from 5,986,640,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kim Young-Ho	Male	Korean	09/17/2010
Director	Mr.	Kim Sun-Wook	Male	Korean	04/03/2002
Director	Mr.	Kim Young-Ho	Male	Korean	03/28/2003
Director	Mr.	Cho Myung-Rae	Male	Korean	12/30/2011
Auditor	Mr.	Hwang Soo-Hyuck	Male	Korean	03/27/2009

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	17,955,249,896	13,563,648,514	1,086,076,613
2010	15,327,966,206	11,572,230,158	1,240,231,296
2009	11,605,060,631	8,743,059,247	414,707,269

Financial Description

Authorized Capital(KRW)	25,000,000,000
Paid-Up Capital(KRW)	9,136,640,000
Total Issued Shares	1,827,328

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	13,563,648,514	11,572,230,158	8,743,059,247
Current Assets	8,476,194,656	6,426,902,507	5,693,093,640
-Quick Assets	4,568,478,731	3,642,495,277	3,764,506,529
-Inventories	3,907,715,925	2,784,407,230	1,928,587,111
Fixed Assets	5,087,453,858	5,145,327,651	3,049,965,607
-Investment	461,320,000	683,340,000	-
-Tangibles	4,138,353,645	3,894,424,918	2,758,641,194
-Intangibles	199,754,213	295,615,533	132,325,813
-Others	288,026,000	271,947,200	158,998,600
Total Liabilities	10,044,756,760	9,139,415,017	7,550,475,402
Current Liabilities	4,573,716,077	7,602,386,885	3,973,672,710
Fixed Liabilities	5,471,040,683	1,537,028,132	3,576,802,692
Capital Stock	5,986,640,000	5,986,640,000	5,986,640,000
Capital Surplus	16,264,351,328	16,264,351,328	16,264,351,328
Profit Surplus	-18,732,099,574	-19,818,176,187	21,058,407,483
Capital Adjustment
Total Equity	3,518,891,754	2,432,815,141	1,192,583,845
Liab. & Shareholder’s Equity	13,563,648,514	11,572,230,158	8,743,059,247

Current Liabilities	4,573,716,077	7,602,386,885	3,973,672,710
Trade Payables	628,135,602	397,834,962	514,889,939
Short-Term Borrowings	591,600,000	2,244,080,000	1,142,670,002
Account Payables	1,622,915,278	1,294,139,550	1,155,164,781
Advance Receipts	-	-	12,178,215
Withholdings			47,616,204
Accrued Expenses	1,329,347,023	775,773,374	327,868,832
Current Portion of Long-Term Account Payables	227,670,634	494,301,959	714,784,512
Current Portion of Long-Term Debts	-	2,289,189,000	-
Provision for Sales Guarantee	-	-	58,500,225
Other Current Liabilities	174,047,540	107,068,040
Fixed Liabilities	5,471,040,683	1,537,028,132	3,576,802,692
Provision for Severance & Retirement	1,357,605,430	1,123,698,116	951,637,758
Long-Term Account Payables	207,350,305	391,247,092	873,764,934
Long-Term Borrowings	3,805,890,000	-	1,751,400,000
Provision for Sales Guarantee	100,194,948	22,082,924	-

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	17,955,249,896	15,327,966,206	11,605,060,631
Cost of Sold Goods	11,889,364,712	10,098,792,464	7,406,819,176
Gross Profit	6,065,885,184	5,229,173,742	4,198,241,455
Selling & Admin. Expenses	4,394,982,857	3,384,956,710	3,669,185,971
Operating Income	1,670,902,327	1,844,217,032	529,055,484
Non-Operating Income	371,834,440	793,652,987	796,349,992
Non-Operating Expenses	956,660,154	1,397,638,723	910,698,207
Income Before Taxes	1,086,076,613	1,240,231,296	414,707,269
Income Taxes Expenses	-	-	-
Net Income	1,086,076,613	1,240,231,296	414,707,269

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	368,959,441	1,785,861,870	-4,798,330,253
-Net Income	1,086,076,613	1,240,231,296	414,707,269
-Exp. without Cash Outflow	1,605,101,174	1,558,560,829	1,225,412,354
-Revenue without Cash Inflows	-47,357,613	-452,018,844	-417,654,117
-Changes in Asset/ & Liability	-2,274,860,733	-560,911,411	-6,020,795,759
Cash Flows from Investing	-783,692,892	-3,016,755,956	-1,136,604,686
-Cash Inflow from Investing	1,122,414,400	28,327,020	12,144,400
-Cash Outflows for Investing	-1,906,107,292	-3,045,082,976	-1,148,749,086
Cash Flows from Financing	-193,727,000	1,785,139,998	6,445,908,432
-Cash Inflows from Financing	892,160,000	2,390,000,000	9,430,976,522
-Cash Outflows from Financing	-1,085,887,000	-604,860,002	-2,985,068,090
Increase/Decrease in Cash	-608,460,451	554,245,912	510,973,493
Cash at the Beginning of Year	1,077,928,214	523,682,302	12,708,809
Cash at the End of Year	469,467,763	1,077,928,214	523,682,302

Trade Partners & Competitors

Competitors

SAMSUNG ELECTRO-MECHANICS CO.,LTD.(130111-0001626)

314, MAETAN 3-DONG, YEONGTONG-GU, SUWON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-210-5114 FAX:+82-31-210-6363

HANSUNG ELCOMTEC CO.,LTD.(134811-0015546)

110-1, GALGOT-RI, JINWI-MYEON, PYEONGTAEK-SI, GYEONGGI-DO, KOREA

TEL:+82-31-372-6740 FAX:+82-31-372-6746

DONG IL ELECTRONICS CO., LTD.

24, GAHEUNG-RI, GAGEUM-MYEON, CHUNGJU-SI, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-855-7800 FAX:+82-43-855-7803

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates

NESSCAP, INC.

NESSCAP ENERGY INC.

NESSCAP ENERGY EASTERN EUROPE (NEEE)

Sales by Region

(Activity & Markets)

The Subject deals with the companies in Germany, USA and Japan.

Court Action

Not Available.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

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.