MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	KPIC CORPORATION

Registered Office :	471, Gongdeok-dong, Mapo-gu, Seoul, Korea 4FL., S-Oil Bldg.

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	28.03.2005

Com. Reg. No.:	104-81-93116

Legal Form :	Co., Ltd by shares

Line of Business :	Wholesale of other chemical materials and chemical products.

No. of Employees :	54

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 Information

Basic

Company Name	KPIC CORPORATION (Korean Company Name :
Registered Address	471, Gongdeok-dong, Mapo-gu, Seoul, Korea
Building	4FL., S-Oil Bldg.
Zip Code	121-805
Tel	+82-2-757-7121
Fax	+82-2-757-6167~8
E-mail	mykim@kpicc.com;yhjeon@kpicc.com
Trading Address	4FL., S-Oil Bldg., 471, Gongdeok-dong, Mapo-gu, Seoul, Korea
Tel	+82-2-3706-0841
Fax	+82-2-3706-0864
Type	Export
Industry	Wholesale of Other Chemical Materials and Chemical Products
Main Business	Petrochemicals, Polypropylene Resin
Sub Business	Freight Transport Brokerage, Agency and Other Supporting Transport Services
Established (mm/dd/yyyy)	03/28/2005

The Subject Company occupies the premises of registered HQ address by leasing base.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Transport arrangements(78141500)
Sell	International trade services(80151600)
Sell	Freight forwarders services(78141501)
Sell	Chemistry reagents or solutions(41116105)
Sell	Polyethylene(13111016)

CEO’s

Name	Han Sang-Ho
Address	Suite 103-205, 615, Irwon-dong, Gangnam-gu, Seoul, Korea
Date of Birth	05/05/1952
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

295,590,000

Employees

Formation

Co., Ltd by shares

A Company of KOREA PETRO CHEMICAL IND.

Bank Details

Kookmin Bank-Taepyungro Branch

Woori Bank

Korea Exchange Bank

Corporate Registered No.

110111-3196056

Business Registered No.

104-81-93116

Permit & Licenses

Int’l Trade No.: 45348169

Shareholder Position

Name	Shares	%
LEE SOON-KYU	53,118	89.85
KIM MI-HYUN	6,000	10.15
TOTAL	59,118	100.00

Company History

03/28/2005 Incorporated as the present name

07/02/2010 Decreased capital to 295,590,000 KRW from 300,000,000 KRW

07/18/2011 Moved to the present HQ address from Rm. 1226, Haenam Bldg., 21, Bukchang-dong, Jung-gu, Seoul, Korea

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Han Sang-Ho	Male	Korean	03/28/2005
Director	Mr.	Jang Seok-San	Male	Korean	03/28/2005
Auditor	M/S.	Kim Mi-Hyun	Female	Korean	03/28/2005

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	765,912,980,006	143,349,295,841	9,642,431,575
2011	742,486,336,618	121,312,220,519	11,571,308,239
2010	755,052,552,862	90,804,644,988	9,977,009,865
2009	779,171,990,911	53,459,189,570	6,960,056,898
2008	442,942,534,295	30,264,084,448	2,007,149,085
2007	90,468,443,880	26,389,479,623	920,146,637
2006	101,036,720,764	16,109,014,087	7,099,901,080

Financial Description

Authorized Capital(KRW)	1,200,000,000
Paid-Up Capital(KRW)	295,590,000
Total Issued Shares	59,118

Balance Sheet

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	143,349,295,841	121,312,220,519	90,804,644,988
Current Assets	53,596,888,737	33,360,807,901	31,610,065,989
-Quick Assets	49,736,384,593	29,667,684,125	30,002,850,309
-Inventories	3,860,504,144	3,693,123,776	1,607,215,680
Fixed Assets	89,752,407,104	87,951,412,618	59,194,578,999
-Investment	84,184,296,167	86,117,444,266	58,461,409,189
-Tangibles	3,714,674,779	152,164,523	92,998,358
-Intangibles	11,791,667	14,881,667	1,214,371
-Others	1,841,644,491	1,666,922,162	638,957,081
Total Liabilities	42,893,562,158	26,872,918,369	22,851,656,701
Current Liabilities	34,122,018,988	16,413,638,816	22,851,656,701
Fixed Liabilities	8,771,543,170	10,459,279,553	-
Capital Stock	295,590,000	295,590,000	295,590,000
Capital Surplus
Profit Surplus	104,184,602,476	52,980,828,993	25,469,579,028
Capital Adjustment	-4,024,458,793	41,162,883,157	42,187,819,259
Total Equity	100,455,733,683	94,439,302,150	67,952,988,287
Liab. & Shareholder’s Equity	143,349,295,841	121,312,220,519	90,804,644,988

Current Liabilities	34,122,018,988	16,413,638,816	22,851,656,701
Trade Payables	31,117,185,549	12,670,216,805	21,063,465,101
Withholdings	53,338,110	40,962,430	34,110,180
Advance Receipts	1,428,741,939	1,420,424,981	958,021,515
Account Payables	383,118,395	151,656,633	123,622,891
Accrued Income Tax	965,149,319	2,067,264,704	656,311,513
Accrued Expenses	174,485,676	53,221,150	16,125,501
Deferred Income Tax Credit	-	9,892,113
Fixed Liabilities	8,771,543,170	10,459,279,553	-
Leasehold Deposit Received	-	51,898,500	-
Deferred Income Tax Credit	8,771,543,170	10,407,381,053

Income Statement

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	765,912,980,006	742,486,336,618	755,052,552,862
Cost of Sold Goods	749,482,285,748	725,219,478,819	741,634,884,354
Gross Profit	16,430,694,258	17,266,857,799	13,417,668,508
Selling & Admin. Expenses	6,906,398,783	6,260,659,725	5,627,653,243
Operating Income	9,524,295,475	11,006,198,074	7,790,015,265
Non-Operating Income	7,981,253,734	11,836,915,297	13,168,256,818
Non-Operating Expenses	5,685,734,602	7,595,970,115	9,605,761,771
Income Before Taxes	11,819,814,607	15,247,143,256	11,352,510,312
Income Taxes Expenses	2,177,383,032	3,675,835,017	1,375,500,447
Net Income	9,642,431,575	11,571,308,239	9,977,009,865

Cash Flows

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	16,607,194,764	-4,163,289,051	8,136,404,042
-Net Income	9,642,431,575	11,571,308,239	9,977,009,865
-Exp. without Cash Outflow	808,610,450	145,503,509	467,255,778
-Revenue without Cash Inflows	-2,566,980,596	-3,235,881,817	-2,706,771,179
-Changes in Asset/ & Liability	8,723,133,335	-12,644,218,982	398,909,578
Cash Flows from Investing	-5,071,914,731	-1,290,393,999	411,421,879
-Cash Inflow from Investing	5,378,716,535	105,296,500	675,164,543
-Cash Outflows for Investing	-10,450,631,266	-1,395,690,499	-263,742,664
Cash Flows from Financing	-	-	-3,999,508,860
-Cash Inflows from Financing	-	-	-
-Cash Outflows from Financing	-	-	-3,999,508,860
Increase/Decrease in Cash	11,535,280,033	-5,453,683,050	4,548,317,061
Cash at the Beginning of Year	14,933,832,383	20,387,515,433	15,839,198,372
Cash at the End of Year	26,469,112,416	14,933,832,383	20,387,515,433

Products, Technologies, Services Description

Main Products & Services

Petrochemicals

Polypropylene Resin

Freight Transport Brokerage

Agency and Other Supporting Transport Services

Detailed Products Spec.

Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

KOREA PETRO CHEMICAL IND CO.,LTD.(110111-0024698)

UNI-PEPP. LTD.(110111-1933913)

Competitors

YOUNG CHEON LOGISTICS CO., LTD.

4TH FL., YEONGCHEON BLDG., 33-2, GONGHANG-DONG, GANGSEO-GU, SEOUL, KOREA

TEL:+82-2-3663-9009 FAX:+82-2-3665-3004

AGILITY LTD.

2ND FL., YEOLRIN BLDG., 1666-3, SEOCHO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-539-9411 FAX:+82-2-539-2071

AIRSTAR INTERNATIONAL CO., LTD.

2ND FL., SEOYEONG BLDG., 367-9, SEOGYO-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-333-3933 FAX:+82-2-323-5700

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	KOREA PETRO CHEMICAL IND CO.,LTD.(110111-0024698) (3.66% held by the subject company) UNI-PEPP. LTD.(110111-1933913) (38.05% held by the subject company) KOREA AIR-TECH CO., LTD.(230111-0114452)
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary	ATMAN PTE.LTD. (100.0% held by the subject company)
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Report Prepared by :

NIS

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.