MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	MYUNG MOON PHARM. CO., LTD.

Registered Office :	901-1, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

Country :	South Korea

Financials (as on) :	30.06.2013

Date of Incorporation :	01.19.1983

Com. Reg. No.:	124-81-35615

Legal Form :	Listed Company

Line of Business :	Manufacture of Pharmaceutical Goods Other Than Medicaments

No. of Employees :	428

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	MYUNG MOON PHARM. CO., LTD. (Korean Company Name : “명문제약(주)”)
Registered Address	901-1, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea
Zip Code	445-937
Tel	+82-31-350-4000 +82-31-353-3519
Fax	+82-31-353-7111
E-mail	mmpharm@mmpharm.co.kr
Website	www.mmpharm.co.kr
Trading Address	Myung Moon Bldg., 946-18, Dogok-dong, Gangnam-gu, Seoul, Korea
Tel	+82-2-553-5805 +82-2-6711-2000
Fax	+82-2-572-5137
Other Address-Incheon Branch	Rm.601, 534-2, Sang-dong, Wonmi-gu, Bucheon-si, Gyeonggi-do, Korea
Tel	+82-32-547-4178
Fax	+82-32-547-0136
Other Address-Gyeonggi Branch	6FL., ASK Bldg., 975-11, Yeongtong-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do, Korea
Tel	+82-31-202-4914~7
Fax	+82-31-202-4857
Type	Export/Import
Industry	Manufacture of Pharmaceutical Goods Other Than Medicaments
Established (mm/dd/yyyy)	09/01/1983

The Subject owns the premises of registered HQ address and trading address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Antibiotics(51101500)
Sell	Antispasmodics(51172100)
Sell	Drugs used for gallbladder disease(51172000)
Sell	Cough and cold and antiallergy products(51161800)
Sell	Thrombolytic drugs and platelet aggregation inhibitors(51131700)
Sell	Gonadotropic hormones and ovarian stimulants and inhibitors(51181900)
Sell	Antiulcer and related gastrointestinal GI drugs(51171900)

CEO’s

Name	Lee Kyu-Huok
Date of Birth	10/05/1949
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

8,500,000,000

Employees

428

Formation

Listed Company (Korea Stock Exchange : 017180) as of 07/10/2008

Bank Details

Industrial Bank of Korea-Gangnam Branch

Korea Exchange Bank

Hana Bank

Corporate Registered No.

134111-0013180

Business Registered No.

124-81-35615

Permit & Licenses

Patent

- A process for solubilizing aceclofenac (Registration No. 10-069154, 2006.11.16)

- Novel Intermediate Compound for Valsartan and Preparation Process of Valsartan Using thereof (Open 10-2006-85073, 2006. 7. 26)

- Process for Manufacturing of Glimepiride (Open 10-2005-17776, 2005.2.23)

- Novel Intermediate Compound for Amlodipine Besylate and Preparation Process of Amlodipine Besylate Using thereof (Open 10-2005-122481, 2005. 12. 29)

- Preparation Process of Lacidipine (Application 10-2006-31654, 2006. 4. 6)

- Novel Intermediate Compound for Preparing Amlodipine, its Preparation

- Process and Preparation Process of Amlodipine Using it (Application 10-2006-103049, 2006. 10. 23)

Int’l Trade No.: 592611

Shareholder Position

Name	Shares	%
WOO SEOK-MIN	4,701,527	27.66
PARK BANG-HONG	1,255,181	7.38
LEE KYU-HUOK	240,709	1.42
TREASURY STOCK	127,448	0.75
OTHERS	10,675,135	62.79
TOTAL	17,000,000	100.00

Company History

09/01/1983 Incorporated as the present name

04/20/1988 Moved to the present HQ address from Kwanyang-dong, Anyang City, Gyeonggi-do, Korea

05/01/2007 Spin off the par value to 500 KRW from 5,000 KRW

06/26/2008 Designated as an INNO-BIZ Company

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education/Career
Chairman & CEO	Mr.	Lee Kyu-Huok	Korean	1949.10.05	Kyungbuk National University, Korea
President & CEO	Mr.	Woo Seok-Min	Korean	1968.03.26	Western Illinois University, USA
Outside Director	Mr.	Jung Yong-Jin	Korean	1965.02	Chungang University, Korea
Auditor	Mr.	Bae Sang-Jin	Korean	1952.02	Seoul National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2013	51,609,720,874	165,224,419,096	2,367,782,230
(*)2012	96,381,820,368	155,915,528,133	-11,547,463,326
(*)2011	115,039,065,268	167,007,575,531	4,996,048,032
2010	100,914,504,158	127,419,866,825	3,067,853,316
2009	92,246,558,947	117,479,467,493	2,940,980,537
2008	77,390,429,527	97,456,771,754	4,863,328,968
2007	60,927,940,077	59,369,319,393	6,583,194,839
2006	47,862,609,855	43,501,511,091	5,105,209,568
2005	40,345,904,690	35,675,186,707	4,387,839,760
2004	33,248,158,389	27,437,995,737	3,207,108,831

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	50,000,000,000
Paid-Up Capital(KRW)	8,500,000,000
Total Issues Shares	17,000,000

Balance Sheet

Unit : Korean Won	01/01/2013~06/30/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	165,224,419,096	155,915,528,133	167,007,575,531
Current Assets	106,177,019,306	99,697,245,440	105,941,678,026
Cash & Cash Equivalents	2,949,141,021	2,847,069,939	2,028,375,035
Current Financial Instruments	7,784,422,137	5,973,464,689	3,948,035,274
Marketable Financial Instruments	1,884,877,500	1,217,035,000	-
Trade Receivables	75,168,377,461	71,315,872,988	83,373,367,467
Other Receivables	1,757,736,762	1,643,933,213	1,814,288,375
Uneraned Income	214,224,146	131,678,949	182,595,484
Short-Term Receivables	850,000,000	220,000,000	850,000,000
Advance Payments	71,160,370	115,190,000	798,214,000
Prepaid Expenses	565,336,267	308,095,029	367,361,149
Deferred Income Tax Assets		44,512,694	-
Inventories	17,159,590,026	18,033,214,180	14,374,378,823
Non-Current Assets	59,047,399,790	56,218,282,693	61,065,897,505
Non-Current Financial Instruments	1,359,539,086	2,022,276,965	4,537,220,454
Advance Payments	478,284,932	667,715,068	1,241,500,000
Marketable Financial Instruments	147,776,602	147,776,602	147,776,602
Investment_Related Companies	15,706,970,000	12,306,970,000	12,791,872,477
Tangibles	36,123,170,227	35,763,928,912	36,083,853,287
Intangibles	4,828,463,313	4,903,979,516	5,773,027,055
Guarantees	403,195,630	405,635,630	430,647,630
Long-Term Receivables	-	-	60,000,000
Total Liabilities	92,624,724,292	85,774,995,444	88,947,564,214
Current Liabilities	85,702,141,473	78,175,179,785	80,219,303,610
Trade Payables	11,536,618,455	10,157,276,359	11,500,418,600
Account Payables	788,270,957	1,046,468,201	1,132,085,074
Accrued Expenses	2,210,393,538	3,524,185,741	3,277,742,078
Short-Term Borrowings	64,963,888,596	56,965,137,624	56,151,950,158
Current Portion of Long-Term Debts	511,828,800	975,445,810	1,224,941,890
Deferred Income Tax Credit	402,245,739	-	828,741,732
Withholdings	207,056,239	180,591,057	222,902,195
VAT Withhold	1,433,347,970	1,291,536,580	1,547,532,720
Advance Receipts	488,286,358	579,543,192	28,300,435
Provisions for Refund	2,681,919,889	2,787,280,153	3,063,188,728
Finance Guarantee Debts	478,284,932	667,715,068	1,241,500,000
Non-Current Liabilities	6,922,582,819	7,599,815,659	8,728,260,604
Long-Term Borrowings	203,277,750	350,011,200	1,325,457,110
Provision for Severance & Retirement	3,503,262,114	3,600,937,971	2,779,118,562
Guarantee Deposit Withhold	568,228,000	725,874,535	839,235,692
Leasehold Deposit Received	-	-	25,000,000
Deferred Income Tax Credit	2,647,814,955	2,922,991,953	3,759,449,240
Capital Stock	8,500,000,000	8,500,000,000	8,165,817,000
Capital Surplus	21,134,793,902	21,134,793,902	20,702,668,223
Others	324,566,831	324,566,831	-1,235,964,677
Profit Surplus	42,640,334,071	40,181,171,956	50,427,490,771
Total Equity	72,599,694,804	70,140,532,689	78,060,011,317
Liab. & Shareholder’s Equity	165,224,419,096	155,915,528,133	167,007,575,531

Income Statement

Unit : Korean Won	01/01/2013~06/30/2013	As of 12/31/2012	As of 12/31/2011
Sales	51,609,720,874	96,381,820,368	115,039,065,268
Cost of Sold Goods	26,227,376,562	52,743,666,084	52,026,885,626
Gross Profit	25,382,344,312	43,638,154,284	63,012,179,642
Selling & Admin. Expenses	21,748,273,155	48,009,214,254	53,001,047,741
Operating Income	3,634,071,157	-4,371,059,970	10,011,131,901
Finance Income	159,656,740	201,589,698	352,303,198
Other Operating Income	215,095,804	479,431,292	270,832,787
Finance Expenses	1,478,910,865	2,967,391,134	3,274,089,708
Other Operating Expenses	23,303,235	1,637,097,899	652,238,204
Income Before Taxes	2,506,609,601	-8,294,528,013	6,707,939,974
Income Taxes Expenses	138,827,371	3,252,935,313	1,711,891,942
Net Income	2,367,782,230	-11,547,463,326	4,996,048,032

Cash Flows

Unit : Korean Won	01/01/2013~06/30/2013	As of 12/31/2012	As of 12/31/2011
Operating Activities Cash Flows	-51,761,573	1,878,298,541	-25,461,283
Cash Flows from Operating	1,003,706,564	9,513,298,596	4,052,066,075
Net Income	2,367,782,230	-11,547,463,326	4,996,048,032
Adjustment	3,747,986,715	11,725,336,366	10,146,203,426
Changes in Asset/ & Liability	-5,112,062,381	9,335,425,556	-11,090,185,383
Interests Received	57,293,369	252,956,233	765,641,643
Interests Paid	-1,101,002,876	-2,967,391,134	-3,283,978,168
Income Taxes	-11,758,630	-4,920,565,154	-1,559,190,833
Cash Flows from Investing	-7,234,567,857	-2,009,719,985	-875,684,134
Cash Flows from Financing	7,388,400,512	83,512,693	442,105,420
Increase/Decrease in Cash	102,071,082	818,694,904	-459,039,997
Cash at the Beginning of Year	2,847,069,939	2,028,375,035	2,487,415,032
Cash at the End of Year	2,949,141,021	2,847,069,939	2,028,375,035

Products, Technologies, Services Description

Main Products & Services

Manufacture, wholesale, export and import of pharmaceuticals

Selling of chemicals (with exception of a poison and chemical class)

A wholesale business of non-pharmaceuticals

The publication of a document definite promise about sale and delivery

Division of labor of pharmaceuticals

The business articles of food (health food)

All the business attached to each an item

ETC

Anesthetic agent Analgesic agent

Circulatory sys

Anti-depressants

Digestive sys Respiratory sys

Hormone

Dermatology/Uroloy

Muscle relaxant Antibiotics

Narcotics

Anti rheumarthritis

Anti osteoarthritis

Anti-diabetics

Anti inflammatory enzymes

Anti-osteoporosis

Anti-epileptics steroids

appetite suppressant

OTC

Eye nutrition Antinausant

Hepatics

Immunologics

Antidiarrheal agent Skin external preparation

Digestive sys

Calcium

Cold drugs Cathartic

Antiallergic agent

Muscle relaxant

Parasiticide Health supplement

Genitourinary sys.

Antidiarrheal agent

Trade Partners & Competitors

Suppliers

TRB CHEMEDICA INTERNATIONAL SA.

ISHIMOTO BIO CHEMICAL LAB.

PROTHERICS INC.

CKD BIO CO., LTD.(110111-2373308)

DAE HE CHAMICAL CO., LTD.(134511-0005767)

Customers

CLARIS

Competitors

DAEWOONG PHARMACEUTICAL CO., LTD.(134811-0075342)

SHINPOONG PHARMACEUTICAL CO.,LTD.(130111-0011815)

BOEHRINGER INGELHEIM KOREA LTD.(110111-0359342)

SAMJIN PHARMACEUTICAL CO., LTD.(110111-0088652)

DONGWHA PHARM IND CO., LTD.(110111-0043870)

DONGA PHARMACEUTICAL CO.,LTD.(110111-0017990)

YUHAN CORPORATION(110111-0014409)

HANMI PHAM CO., LTD.(134811-0003187)

GREEN CROSS CORPORATION(110111-0109854)

CHOONGWAE PHARMA CORP.(110111-0019342)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

MYUNGJI PHARMACEUTICALS CO., LTD.(110111-0541036)

(100.0% held by the subject company)

MYUNGMOON INVESTMENT DEVELOPMENT CO., LTD.(134411-0040301)

(57.0% held by the subject company)

BIO R&D CO., LTD.(KOREA)

(23.0% held by the subject company)

Subsidiary

MYUNGJI PHARMACEUTICALS CO., LTD.(110111-0541036)

(100.0% held by the subject company)

Cooperative Enterprise

-Licensed with;

TRANS BUSSAN S.A

CLARIS-INDIA

MACROMED-USA

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD(110111-0005078)

HANWHA NON-LIFE INSURANCE CO., LTD.(110111-0006456)

DONGBU INSURANCE CO., LTD.(110111-0095285)

-Collaborated R&D with

MEDICHEM KOREA CO., LTD.(135811-0158543)

Sales by Region (Activity & Markets)

Sales/ Unit :Thousand KRW	09/2010	2009	2008
Export	614,512	1,003,990	761,410
Domestic	75,572,613	91,242,569	76,629,019
Total	76,187,125	92,246,559	77,390,429

The Subject deals with the companies in China, Dominica, Guatemala, Hong Kong, Nigeria, Pakistan and Vietnam.

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (Million KRW)	Status
	-	National Health Insurance Corp.	The Subject Company & Others(22)	Claim for Compensation from Damages	-	2^nd round is proceeding.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.12

INFORMATION DETAILS

Report Prepared by :

PDT

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.