MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	SCHNEIDER ELECTRIC KOREA LTD.

Registered Office :	1622, Sangam-dong, Mapo-gu, Seoul, Korea 14th Fl., Small & Medium Business DMC Tower 121-904

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	27.12.2001

Com. Reg. No.:	107-86-10346

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Electrical Apparatuses for Switching, Protecting and Connecting Electrical Circuits Used in Power Distribution Systems

No. of Employees :	345

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

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	SCHNEIDER ELECTRIC KOREA LTD.
Registered Address	1622, Sangam-dong, Mapo-gu, Seoul, Korea
Building	14th Fl., Small & Medium Business DMC Tower
Zip Code	121-904
Tel	+82-2-2630-9700
Fax	+82-2-2630-9800~01
E-mail	won -hee.kim@kr.schneider-electric.com
Website	www.schneider-electric.co.kr
Trading Address	14th Fl., Small & Medium Business DMC Tower, 1622, Sangam-dong, Mapo-gu, Seoul, Korea
Tel	+82-2-2630-9700
Fax	+82-2-2630-9800~01
Other Address-Busan Office	559-13, Gwaebeop-dong, Sasang-gu, Busan, Korea
Tel	+82-51-319-7901
Fax	+82-51-319-7900
Other Address	1666, Sangyeok-dong, Buk-gu, Daegu, Korea
Tel	+82-53-604-6028
Fax	+82-53-604-6029
Other Address	724, Buldang-dong, Seobuk-gu, Cheonan-si, Chungcheongnam-do, Korea
Tel	+82-41-552-0501
Fax	+82-41-552-0599
Other Address	1342, Gwanpyeong-dong, Yuseong-gu, Daejeon, Korea
Tel	+82-42-822-3240
Fax	+82-42-822-3241
Other Address	693-11, Seongdong-ri, Tanhyeon-myeon, Paju-si, Gyeonggi-do, Korea
Tel	+82-31-949-2101
Fax	+82-31-949-2102
Type	Export/Import
Industry	Manufacture of Electrical Apparatuses for Switching, Protecting and Connecting Electrical Circuits Used in Power Distribution Systems
Main Business	Motor Protection Relay
Established (mm/dd/yyyy)	12/27/2001

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Switches and controls and relays and accessories(39121500)

CEO’s

Name	Kim Kyung-Rok
Address	Suite 607-301, 430, Mokdongdong-ro, Yangcheon-gu, Seoul, Korea
Date of Birth	03/04/1970
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,537,510,000

Employees

345

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Nonghyup Bank

Corporate Registered No.

110111-2407074

Business Registered No.

107-86-10346

Permit & Licenses

10/2003 ISO 14001

Int’l Trade No.: 53000259

Shareholder Position

Name	Shares	%
SCHNEIDER ELECTRIC INDUSTRIES S.A.(France)	307,502	100.00
TOTAL	307,502	100.00

Company History

12/27/2001 Incorporated as SAMHWA EOCR CO., LTD.

12/29/2001 Registered as a Foreign Direct Investment Corporation

01/31/2002 Increased the authorized shares to 2,000,000 shares from 40,000 shares

02/01/2002 Acquired EOCR Business from SAMHWA KIYEON CO., LTD.

07/01/2010 Increased capital to 1,537,510,000 KRW from 1,537,500,000 KRW

07/01/2010 Acquired SCHNEIDER ELECTRIC IT KOREA LTD.(110111-2141185) and SCHNEIDER ELECTRIC KOREA LTD.(110111-0841927)

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kim Kyung-Rok	Male	Korean	03/31/2013
Director	Mr.	Jelcoco Sanovich	Male	French	03/31/2010
Director	Mr.	Hong Sung-Joon	Male	Korean	03/30/2012
Auditor	Mr.	Chandra Halima	Male	Indonesian	03/31/2009

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	203,910,134,686	100,098,261,305	16,310,986,500
2011	171,267,321,835	66,624,683,079	4,411,920,669
2010	85,178,283,607	92,084,416,044	5,614,766,152

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	1,537,510,000
Total Issued Shares	307,502

Balance Sheet
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	100,098,261,305	66,624,683,079	92,084,416,044
Current Assets	93,190,197,606	61,524,072,035	86,563,709,188
-Quick Assets	84,029,216,395	51,115,371,219	74,951,356,973
-Inventories	9,160,981,211	10,408,700,816	11,612,352,215
Fixed Assets	6,908,063,699	5,100,611,044	5,520,706,856
-Investment	3,700,000	5,700,000	5,700,000
-Tangibles	4,875,707,263	3,946,328,125	4,348,286,263
-Intangibles	14,908,733	38,465,822	280,356,158
-Others	2,013,747,703	1,110,117,097	886,364,435
Total Liabilities	70,473,662,571	48,310,635,215	72,562,288,849
Current Liabilities	70,298,963,775	48,191,656,208	71,877,762,143
Fixed Liabilities	174,698,796	118,979,007	684,526,706
Capital Stock	1,537,510,000	1,537,510,000	1,537,510,000
Capital Surplus	11,450,695,560	11,450,695,560	11,450,695,560
Profit Surplus	16,636,393,174	5,325,842,304	6,533,921,635
Capital Adjustment
Total Equity	29,624,598,734	18,314,047,864	19,522,127,195
Liab. & Shareholder’s Equity	100,098,261,305	66,624,683,079	92,084,416,044

Current Liabilities	70,298,963,775	48,191,656,208	71,877,762,143
Trade Payables	42,320,859,751	34,608,092,704	57,946,905,359
Account Payables	4,516,204,693	1,536,792,187	5,373,178,480
Advance Receipts	6,111,020,510	4,884,978,920	1,975,710,333
Withholdings	502,630,939	396,275,877	358,922,223
Accrued Expenses	9,196,220,817	4,350,685,516	4,918,781,849
Deferred Income Tax	4,722,945,107	596,656,676	567,661,217
Unearned Income			239,599,500
VAT Withhold	1,064,104,150	985,321,274	497,003,182
Provision for Sales Guarantee	1,864,977,808	832,853,054	-
Fixed Liabilities	174,698,796	118,979,007	684,526,706
Provision for Sales Guarantee	174,698,796	118,979,007	684,526,706

Income Statement
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	203,910,134,686	171,267,321,835	85,178,283,607
Cost of Sold Goods	142,116,330,355	130,856,324,556	60,756,610,326
Gross Profit	61,793,804,331	40,410,997,279	24,421,673,281
Selling & Admin. Expenses	40,990,859,949	36,416,019,004	18,130,370,594
Operating Income	20,802,944,382	3,994,978,275	6,291,302,687
Non-Operating Income	4,641,774,761	3,903,248,790	3,322,824,010
Non-Operating Expenses	5,092,999,837	2,342,279,578	2,747,085,195
Income Before Taxes	20,351,719,306	5,555,947,487	6,867,041,502
Income Taxes Expenses	4,040,732,806	1,144,026,818	1,252,275,350
Net Income	16,310,986,500	4,411,920,669	5,614,766,152

Cash Flows
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	30,868,109,087	-7,226,698,590	13,200,041,207
-Net Income	16,310,986,500	4,411,920,669	5,614,766,152
-Exp. without Cash Outflow	2,842,861,209	2,741,900,295	1,743,397,242
-Revenue without Cash Inflows	-617,794,621	-271,650,701	-569,644,696
-Changes in Asset/ & Liability	12,332,055,999	-14,108,868,853	6,411,522,509
Cash Flows from Investing	-2,626,008,623	9,781,536,073	-10,755,294,729
-Cash Inflow from Investing	15,039,636	10,657,725,301	138,040,679
-Cash Outflows for Investing	-2,641,048,259	-876,189,228	-10,893,335,408
Cash Flows from Financing	-4,412,000,000	-5,620,000,000	19,233,995,932
-Cash Inflows from Financing	-	-	23,893,995,932
-Cash Outflows from Financing	-4,412,000,000	-5,620,000,000	-4,660,000,000
Increase/Decrease in Cash	23,830,100,464	-3,065,162,517	21,678,742,410
Cash at the Beginning of Year	23,985,574,208	27,050,736,725	5,371,994,315
Cash at the End of Year	47,815,674,672	23,985,574,208	27,050,736,725

Trade Partners & Competitors

Competitors

ABB LTD.

AFFOLTERNSTRASSE 44 PO BOX 8131 ZURICH, 8050 SWITZERLAND

TEL:+41-43-3177111 FAX:+41-43-3174420

NISSIN ELECTRIC CO., LTD.

47, UMEZU-TAKASECHO, UKYO-KU KYOTO-SHI, KYT 615-8686 JAPAN

TEL:+81-75-8613151 FAX:+81-75-8720742

TAKAOKA ELECTRIC MFG. CO., LTD.

1-7-1 IRIFUNE CHOU-KU, TKY 104-0042 JAPAN

TEL:+81-3-42845700

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	SCHNEIDER ELECTRIC SA 35 RUE JOSEPH MONIER 92500 RUEIL MALMAISON - FRANCE TEL:: +33 (0) 1 41 29 70 00 FAX: +33 (0) 1 41 29 71 00
Corporate Ownership	SCHNEIDER ELECTRIC INDUSTRIES S.A.
Major Shareholders	SCHNEIDER ELECTRIC INDUSTRIES S.A.
Cooperative Enterprise	-Brand Using Agreement with SCHNEIDER ELECTRIC SERVICES INT.

Sales by Region (Activity & Markets)

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

The Subject deals with the companies in France.

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.14

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%)

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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.