MIRA INFORM REPORT

Report Date :

07.11.2013

IDENTIFICATION DETAILS

Name :	DONGHA STONE CO., LTD.

Registered Office :	77, Sannae-ro, Daeso-myeon, Eumseong-gun, Chungcheongbuk-do, Korea 369-821

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	25.09.1984

Com. Reg. No.:	203-81-42379

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Stone, Construction Materials,

No. of Employees :	14

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

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 Information

Basic

Company Name	DONGHA STONE CO., LTD.
Registered Address	14-1, Naesan-ri, Daeso-myeon, Eumseong-gun, Chungcheongbuk-do, Korea (New Address System : 77, Sannae-ro, Daeso-myeon, Eumseong-gun, Chungcheongbuk-do, Korea)
Zip Code	369-821
Tel	+82-43-877-7850
Fax	+82-43-877-7851
E-mail	njk902@chol.com
Website	www.dongahstone.co.kr
Trading Address	Rm. 209, Seongsu-dong Woolim e-Biz Center, 280-21, 3-dong, Seongsu-dong 2-ga, Seongdong-gu, Seoul, Korea
Tel	+82-2-2024-2600
Fax	+82-2-2024-2605
Other Address-Branch	Rm.209, 280-21, Seongsu-dong 2-ga, Seongdong-gu, Seoul, Korea
Other Address-Branch	681, Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Type	Export/Import
Industry	Manufacture of Stone, Construction Materials,
Main Business	Stone, Construction Materials, Brick Laying and Stone Setting Works
Established (mm/dd/yyyy)	09/25/1984

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Stone(11111600)
Sell	Masonry and stonework and tile setting(72102500)

CEO’s

Name	Nam Seong-Hui
Address	111-37, Nonhyeon-dong, Gangnam-gu, Seoul, Korea
Date of Birth	01/05/1941
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

200,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Woori Bank-Jangchung Dong Branch

Corporate Registered No.

110111-0382096

Business Registered No.

203-81-42379

Permit & Licenses

11/11/1997 ISO 9001

Int’l Trade No.: 45125685

Shareholder Position

Name	Shares	%
NAM SEONG-HUI	22,000	55.00
NAM YONG-HEE	4,000	10.00
PARK KIL-SOON	4,000	10.00
LEE JAE-EUN	2 600	6.50
NAM TAE-HEE	2,400	6.00
SHIN KWANG-JAE	2,000	5.00
NAM KI-HWAN	2,000	5.00
LEE YOUNG-OK	1,000	2.50
TOTAL	40,000	100.00

Company History

12/18/1982 Established as DONGHA STONE INDUSTRY CO.(Sole Proprietorship)

09/25/1984 Incorporated as the present name

07/26/2006 Moved to the present HQ address from 1361-12, Gwanseol-dong, Wonju-si, Gangwon-do, Korea

The premises(198.0m2) at 531-7, Hupyeong-ri, Haseong-myeon, Gimpo-si, Gyeonggi-do, Korea have been owned by Mr. Park Soo-Kwang(DOB : 01/29/1959) since 05/28/2010. It has been pledged as a collateral amounting 260,000,000 KRW under Namdong Industrial Complex Branch of Korea Exchange Bank(110111-0672538, address : 181, Euljiro 2-ga, Jung-gu, Seoul, Korea)

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Nam Seong-Hui	Male	Korean	09/25/1999
Director	Mr.	Nam Jae-Kwang	Male	Korean	03/22/2006
Director	Mr.	Nam Jae-Hyung	Male	Korean	09/18/2012
Auditor	M/S.	Choi Mi-Young	Female	Korean	03/22/2006

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	5,463,423,584	10,049,037,325	-884,332,989
2011	11,442,740,935	11,518,507,584	214,573,986
2010	6,940,040,005	10,164,264,013	148,834,429
2009	10,372,636,226	10,144,337,512	173,859,267
2008	9,241,748,546	10,593,362,686	224,520,439
2007	17,017,885,795	9,626,883,228	515,020,217
2006	10,610,681,902	11,313,781,050	5,266,241,969

Financial Description

Authorized Capital(KRW)	200,000,000
Paid-Up Capital(KRW)	200,000,000
Total Issues Shares	40,000

Balance Sheet
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	10,049,037,325	11,518,507,584	10,164,264,013
Current Assets	5,315,587,844	5,986,514,350	6,398,327,629
-Quick Assets	5,137,757,514	5,840,655,131	6,241,952,480
-Inventories	177,830,330	145,859,219	156,375,149
Fixed Assets	4,733,449,481	5,531,993,234	3,765,936,384
-Investment	762,618,256	1,310,865,781	775,600,546
-Tangibles	3,915,884,713	4,166,123,320	2,937,709,705
-Intangibles	54,946,512	55,004,133	52,626,133
Total Liabilities	1,253,595,606	1,838,732,876	699,063,291
Current Liabilities	629,468,501	1,278,090,049	399,063,291
Fixed Liabilities	624,127,105	560,642,827	300,000,000
Capital Stock	200,000,000	200,000,000	200,000,000
Capital Surplus	-	-	-
Profit Surplus	8,591,755,806	9,476,088,795	9,261,514,809
Capital Adjustment	3,685,913	3,685,913	3,685,913
Total Equity	8,795,441,719	9,679,774,708	9,465,200,722
Liab. & Shareholder’s Equity	10,049,037,325	11,518,507,584	10,164,264,013

Current Liabilities	629,468,501	1,278,090,049	399,063,291
Trade Payables	193,629,160	145,893,210	4,126,087
Account Payables	417,265,481	1,005,114,679	356,359,464
Withholdings	18,573,860	43,165,190	37,027,490
Accrued Income Tax	-	83,916,970	1,550,250
Fixed Liabilities	624,127,105	560,642,827	300,000,000
Leasehold Deposit Received	400,000,000	370,000,000	300,000,000
Provision for Severance & Retirement	224,127,105	190,642,827	-

Income Statement
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	5,463,423,584	11,442,740,935	6,940,040,005
Cost of Sold Goods	4,995,170,063	9,966,857,789	6,052,230,927
Gross Profit	468,253,521	1,475,883,146	887,809,078
Selling & Admin. Expenses	1,183,202,285	1,354,993,353	1,044,136,340
Operating Income	-714,948,764	120,889,793	-156,327,262
Non-Operating Income	313,906,591	238,843,295	323,386,187
Non-Operating Expenses	483,290,816	28,922,592	1,171,676
Income Before Taxes	-884,332,989	330,810,496	165,887,249
Income Taxes Expenses	-	116,236,510	17,052,820
Net Income	-884,332,989	214,573,986	148,834,429

Cash Flows
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	-871,718,157	874,344,827	598,649,184
-Net Income	-884,332,989	214,573,986	148,834,429
-Exp. without Cash Outflow	667,000,341	302,732,221	88,485,582
-Revenue without Cash Inflows	-34,661,325	-92,620,020	-108,183,856
-Changes in Asset/ & Liability	-619,724,184	449,658,640	469,513,029
Cash Flows from Investing	-336,633,320	982,849,726	-833,534,969
-Cash Inflow from Investing	252,420,981	2,941,647,442	323,115,411
-Cash Outflows for Investing	-589,054,301	-1,958,797,716	-1,156,650,380
Cash Flows from Financing	-	-	-
-Cash Inflows from Financing	-	-	-
-Cash Outflows from Financing	-	-	-
Increase/Decrease in Cash	-1,208,351,477	1,857,194,553	-234,885,785
Cash at the Beginning of Year	2,334,106,036	476,911,483	711,797,268
Cash at the End of Year	1,125,754,559	2,334,106,036	476,911,483

Products, Technologies, Services Description

Main Products & Services

Stone, Construction Materials, Brick Laying and Stone Setting Works

Trade Partners & Competitors

Competitors

ILSHIN STONE CO., LTD.

6TH FL., SEOGYEONG BLDG., 539-3, SEONGNAE 1-DONG, GANGDONG-GU, SEOUL, KOREA

TEL:+82-2-487-9009 FAX:+82-2-477-5278

ROLLING STONE CO., LTD. 131-3, GAMIL-DONG, HANAM-SI, GYEONGGI-DO, KOREA

TEL:+82-70-7096-1000 FAX:+82-31-903-1495

DOOEUN MARBLE & STONE CO., LTD.

RM. 607, SESIN COMPLEX, 66-2, UMYEON-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-572-3858 FAX:+82-2-572-4177

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

News Clipping

Not Available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.6192
UK Pound	1	Rs.99.60
Euro	1	Rs.83.74

INFORMATION DETAILS

Report Prepared by :

SDA

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.