MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	TAEKWANG FINE CHEMICAL CO., LTD.

Registered Office :	1357, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea 1Ma-401, Sihwa Industrial Complex 429-915

Country :	South Korea

Financials (as on) :	30.06.2013

Date of Incorporation :	26.06.1989

Com. Reg. No.:	133-81-23466

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Other Basic Organic Chemicals n.e.c.

No. of Employees :	73

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	TAEKWANG FINE CHEMICAL CO., LTD.
Registered Address	1357, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea
Building	1Ma-401, Sihwa Industrial Complex
Zip Code	429-915
Tel	+82-31-499-4451~3
Fax	+82-31-499-4454
E-mail	dsjeon@mwc.co.kr
Website	www.tfc.co.kr
Trading Address	1Ma-401, Sihwa Industrial Complex ,1357, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea
Tel	+82-31-499-4451~3
Fax	+82-31-499-4454
Type	Export
Industry	Manufacture of Other Basic Organic Chemicals n.e.c.
Main Business	Cobalt Salts, Cobalt Carboxylates, Salicylic Acid Derivatives
Established (mm/dd/yyyy)	06/26/1989

The subject owns the premises at 1357, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea, located in the Sihwa Industrial Complex.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Chemistry reagents or solutions(41116105)

CEO’s

Name	Lee Young-Man
Address	Suite 19-1603, 70-125, Bupyeong-dong, Bupyeong-gu, Incheon, Korea
Date of Birth	08/13/2002
Title	Co-President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

740,000,000

Employees

Formation

Co., Ltd by shares

A Company of MIWON COMMERCIAL CO., LTD.(130111-0007707)

Bank Details

Korea Exchange Bank

Anyang Branch

Corporate Registered No.

120111-0052142

Business Registered No.

133-81-23466

Permit & Licenses

08/2000 KS A 9001

08/07/2010 ISO 9001

Int’l Trade No.: 300951

Shareholder Position

Name	Shares	%
MIWON COMMERCIAL CO., LTD.(130111-0007707)	620,720	41.94
MISUNG GENERAL CORPORATION(180111-0167832)	109,070	7.37
CHOI JOONG-KYU	134,400	9.08
LEE YOUNG-MAN	107,960	7.29
EMPLOYEE STOCK OWNERSHIP ASSOCIATION	138,420	9.35
OTHERS	369,430	24.96
TOTAL	1,480,000	100.00

Company History

02/1975 Started the business as The Institute of Taekwang Pure Chemical

06/26/1989 Incorporated as TAEKWANG PURE CHEMICAL CO., LTD.

11/1997 Complete Cobalt Chemical Plant

01/20/2003 Changed company name to the present name

01/20/2003 Increased the authorized shares to 10,000,000 shares from 500,000 shares

02/24/2003 Split off the par value to 500 KRW from 10,000 KRW

11/2003 Awarded US$5 Million Export Top Prize

09/2004 Designated as a Promising SMEs by Gyunggi Province

11/30/2005 Awarded US10 Million Export Top Prize

08/2006 Registered the trade mark of Corebond at Korea’ Intellectual Property Office

09/02/2008 Increased capital to 740,000,000 KRW from 670,000,000 KRW

12/02/2008 Awarded US$ 30 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Co-President & CEO	Mr.	Lee Young-Man	Male	Korean	08/13/2002
Co-President & CEO	Mr.	Jeon Dae-Sung	Male	Korean	06/28/2012
Director	Mr.	Kim Jeong-Don	Male	Korean	08/19/2003
Director	Mr.	Kim Hyun-Woong	Male	Korean	08/20/2013
Director	Mr.	Jeon Dae-Sung	Male	Korean	08/18/2004
Auditor	Mr.	Lee Hyun-Jong	Male	Korean	04/06/2012

Financials

Year / Unit : KRW	Sales	Assets	Net Income
06/2013	47,790,846,839	42,104,959,765	4,452,859,663
06/2012	52,490,371,464	38,787,712,299	6,445,731,696
06/2011	50,753,675,685	25,977,738,131	4,937,990,625

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	740,000,000
Total Issued Shares	1,480,000

Balance Sheet
Unit : Korean Won	As of 06/30/2013	As of 06/30/2012	As of 06/30/2011
Total Assets	42,104,959,765	38,787,712,299	25,977,738,131
Current Assets	21,506,242,057	20,797,835,714	20,189,713,340
Cash & Cash Equivalents	58,519,582	2,183,142	2,116,073,257
Marketable Financial Instruments	2,752,378,000	2,347,329,600	1,661,631,200
Trade Receivables & Other Receivables	10,705,307,883	10,936,302,777	12,064,286,453
Other Current Assets	62,701,304	32,133,190	10,791,068
Inventories	7,927,335,288	7,479,887,005	4,336,931,362
Non-Current Assets	20,598,717,708	17,989,876,585	5,788,024,791
Tangibles	19,906,587,011	17,610,657,242	5,514,056,791
Intangibles	273,160,554	157,000,000	225,000,000
Long-Term Trade Receivables & Other Receivables	418,970,143	222,219,343	48,968,000
Total Liabilities	19,163,925,291	18,232,390,760	12,080,519,699
Current Liabilities	14,635,972,868	16,840,685,918	11,298,576,286
Trade Payables & Other Payables	2,674,364,017	4,105,723,651	89,690,155
Short-Term Borrowings	11,566,261,209	11,945,404,012	10,220,941,421
Other Current Liabilities	326,943,944	789,558,255	987,944,710
Other Provisions	68,403,698	-
Non-Current Liabilities	4,527,952,423	1,391,704,842	781,943,413
Long-Term Borrowings	3,300,000,000	300,000,000	-
Provision for Severance & Retirement	488,225,031	214,349,066	282,537,935
Deferred Income Tax Credit	709,727,392	877,355,776	499,405,478
Other Non-Current Liabilities	30,000,000	-
Capital Stock	740,000,000	740,000,000	740,000,000
Capital Surplus	1,648,322,765	1,648,322,765	1,648,322,765
Others	-254,180,000	-
Other General Accumulated Amounts	-36,131,822	1,277,771,549	271,233,075
Profit Surplus	20,843,023,531	16,889,227,225	11,237,662,592
Total Equity	22,941,034,474	20,555,321,539	25,977,738,131
Liab. & Shareholder’s Equity	42,104,959,765	38,787,712,299	25,977,738,131

Income Statement
Unit : Korean Won	As of 06/30/2013	As of 06/30/2012	As of 06/30/2011
Sales	47,790,846,839	52,490,371,464	50,753,675,685
Cost of Sold Goods	39,438,098,956	41,232,845,053	-41,565,557,859
Gross Profit	8,352,747,883	11,257,526,411	9,188,117,826
Selling & Admin. Expenses	3,028,372,038	3,252,380,773	-3,320,735,221
Operating Income	5,324,375,845	8,005,145,638	5,964,982,654
Other Income	336,430,605	107,535,851	104,577,871
Other Expenses	9,267,643	92,342,163	-6,977,822
Finance Income	803,935,442	1,174,119,058	1,570,491,278
Finance Expenses	1,136,553,883	1,587,217,793	-1,249,098,012
Income Before Taxes	5,318,920,366	7,607,240,591	6,286,375,920
Income Taxes Expenses	866,060,703	1,161,508,895	-1,348,385,295
Net Income	4,452,859,663	6,445,731,696	4,937,990,625

Cash Flows
Unit : Korean Won	As of 06/30/2013	As of 06/30/2012	As of 06/30/2011
Operating Activities Cash Flows	4,924,146,240	7,425,384,066	970,907,680
Cash Flows from Operating	6,378,198,887	8,984,378,768	1,397,216,347
Income Taxes	-1,030,871,540	-1,275,488,320	-228,131,765
Interests Received	14,925,915	16,639,779	38,076,933
Interests Paid	-452,593,222	-315,139,761	-284,072,135
Dividends Received	14,486,200	14,993,600	47,818,300
Cash Flows from Investing	-6,853,731,321	-10,578,396,772	-1,563,982,760
Cash Flows from Financing	1,985,921,521	1,039,122,591	1,497,308,807
Increase/Decrease in Cash	56,336,440	-2,113,890,115	904,233,727
Cash at the Beginning of Year	2,183,142	2,116,073,257	1,206,955,908
Cash at the End of Year	58,519,582	2,183,142	2,116,073,257

Products, Technologies, Services Description

Main Products & Services

Cobalt Salts, Cobalt Carboxylates, Salicylic Acid Derivatives

Brand Name : Corebond™

Trade Partners & Competitors

Competitors

IDEAL CHEM CO., LTD.

101-202, BANPO DOOSAN HEALESVILLE, 54-5, BANPO 4-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-535-8641 FAX:+82-2-592-8643

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	MIWON COMMERCIAL CO., LTD.(130111-0007707) ASIA STABILIZERS CO., LTD.(ASCL: 134711-0016596) MIWON CHEMICALS CO., LTD.(230111-0172244) MIWON SPECIALTY CHEMICAL CO., LTD.(210111-0063190) MIWON COMMERCIAL CO., LTD.(130111-0007707) MISUNG TRADING CO., LTD.(134111-0025929) MISUNG GENERAL CORPORATION(180111-0167832) MIWHA LOGISTICS CO., LTD.(230111-0072014) MIWOO SILUP CO., LTD.(KOREA) MIWON EOD CO., LTD.(161411-0023544) QIDONG QINGYUN FINE CHEMICAL CO., LTD.(CHINA) MIWON NORTH AMERICA. INC.(USA)
Corporate Ownership	MIWON COMMERCIAL CO., LTD.(130111-0007707)
Major Shareholders	MIWON COMMERCIAL CO., LTD.(130111-0007707)
Cooperative Enterprise	-Insured Company MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	2012	2011	2010
Export
Domestic
Total

Not Available.

News Clipping

No.

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 :

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.