MIRA INFORM REPORT

Report Date :

29.10.2013

IDENTIFICATION DETAILS

Name :	FRIEND CO., LTD.

Registered Office :	1218-1, Jisa-dong, Gangseo-gu, Busan, Korea 618-230

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	03.06.2003

Com. Reg. No.:	606-81-79885

Legal Form :	Co., Ltd by Shares Venture Business

Line of Business :	Manufacturer of Boards for Electric Control or Distribution

No. of Employees :	76

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

Company Name	FRIEND CO., LTD.
Registered Address	1218-1, Jisa-dong, Gangseo-gu, Busan, Korea
Zip Code	618-230
Tel	+82-51-831-9456
Fax	+82-51-831-9457
E-mail	master@thefriend.co.kr
Website	www.thefriend.co.kr

Trading Address	1218-1, Jisa-dong, Gangseo-gu, Busan, Korea (New Address System : 9, Gwahaksandan-ro 333beon-gil, Gangseo-gu, Busan, Korea)
Tel	+82-51-831-9456
Fax	+82-51-831-9457

Other Address-Noksan Factory	1500-12, Songjeong-dong, Gangseo-gu, Busan, Korea

Type	Export/Import
Industry	Manufacture of Boards for Electric Control or Distribution
Main Business	Cable Tray Special Coaming Electric Equipment

Established (mm/dd/yyyy)	03/06/2003

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Cable trays(39121201)
Sell	Heavy equipment components(22101700)
Sell	Valves(40141600)

CEO’s

Name	Lee Woo-Gap
Address	Suite 2706, 147, Marine city 1-ro, Haeundae-gu, Busan, Korea
Date of Birth	01/21/1954
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,300,000,000

Employees

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Busan Bank

Industrial Bank of Korea

Korea Development Bank

Corporate Registered No.

180111-0441848

Business Registered No.

606-81-79885

Permit & Licenses

2002 ISO 9001

Int’l Trade No.: 30669723

Shareholder Position

Name	Shares	%
LEE WOO-GAP	130,000	100.00
TOTAL	130,000	100.00

Company History

03/06/2003 Incorporated as TSD CO., LTD.

06/21/2007 Changed company name to the present name

09/01/2010 Moved to the present HQ address from 1489-1, Songjeong-dong, Gangseo-gu, Busan, Korea

12/18/2008 Increased the authorized shares to 520,000 shares from 120,000 shares

12/19/2008 Increased capital to 1,300,000,000 KRW from 300,000,000 KRW

09/01/2010 Moved to the present HQ address from 1489-1, Songjeong-dong, Gangseo-gu, Busan, Korea

11/30/2010 Acquired DONGWON MENIX CO., LTD.(180111-0560408)

03/30/2012 Decreased the authorized shares to 200,000 shares from 520,000 shares

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Woo-Gap	Male	Korean	10/17/2011
Director	Mr.	Lee Hyun-Jung	Male	Korean	01/12/2012
Director	Mr.	Lee Tae-Hoon	Male	Korean	01/12/2012
Director	Mr.	Lee Joo-Haeng	Female	Korean	01/12/2012
Auditor	M/S.	Kim Ok-Kyung	Female	Korean	03/06/2006

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	24,448,695,826	42,844,983,140	538,532,334
2011	16,998,440,007	41,312,390,670	333,737,680
2010	8,347,074,211	32,579,581,785	203,339,963
2009	5,425,035,416	23,512,200,876	-2,609,360,642
2008	12,125,239,805	25,503,743,427	110,798,147
2007	11,018,983,273	10,701,410,419	352,657,264

Financial Description

Authorized Capital(KRW)	2,000,000,000
Paid-Up Capital(KRW)	1,300,000,000
Total Issues Shares	130,000

Balance Sheet
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	42,844,983,140	41,312,390,670	32,579,581,785
Current Assets	15,503,536,124	12,678,106,420	4,789,803,164
-Quick Assets	6,544,300,998	4,285,733,555	1,192,571,135
-Inventories	8,959,235,126	8,392,372,865	3,597,232,029
Fixed Assets	27,341,447,016	28,634,284,250	27,789,778,621
-Investment	104,800,000	37,800,000	57,800,000
-Tangibles	24,044,623,795	24,928,612,855	23,618,900,533
-Intangibles	3,024,833,041	3,470,039,734	3,915,246,427
-Others	167,190,180	197,831,661	197,831,661
Total Liabilities	37,975,153,781	36,964,467,195	30,449,530,990
Current Liabilities	27,290,815,197	28,928,897,157	20,135,107,619
Fixed Liabilities	10,684,338,584	8,035,570,038	10,314,423,371
Capital Stock	1,300,000,000	1,300,000,000	1,300,000,000
Capital Surplus
Profit Surplus	-99,275,641	-621,181,525	-954,919,205
Capital Adjustment	3,669,105,000	3,669,105,000	1,784,970,000
Total Equity	4,869,829,359	4,347,923,475	2,130,050,795
Liab. & Shareholder’s Equity	42,844,983,140	41,312,390,670	32,579,581,785

Current Liabilities	27,290,815,197	28,928,897,157	20,135,107,619
Trade Payables	4,646,445,175	6,230,146,397	2,899,889,504
Account Payables	60,092,267	133,752,801	106,162,180
Withholdings	7,047,520	20,579,190	8,454,200
VAT Withhold	36,939,403	-	-
Short-Term Borrowings	22,402,264,730	19,296,650,479	15,259,573,800
Accrued Expenses	138,026,102	461,500,290	256,227,935
Current Portion of Long-Term Debts	-	2,786,268,000	1,604,800,000
Fixed Liabilities	10,684,338,584	8,035,570,038	10,314,423,371
Long-Term Borrowings	7,970,000,000	7,326,932,000	9,533,200,000
Leasehold Deposit Received	540,000,000	540,000,000	540,000,000
Convertible Bonds	2,000,000,000	-
Provision for Severance & Retirement	203,079,908	196,434,141	253,410,212

Income Statement
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	24,448,695,826	16,998,440,007	8,347,074,211
Cost of Sold Goods	20,809,414,178	13,569,845,393	7,648,480,932
Gross Profit	3,639,281,648	3,428,594,614	698,593,279
Selling & Admin. Expenses	1,797,034,665	1,646,392,067	1,571,649,947
Operating Income	1,842,246,983	1,782,202,547	-873,056,668
Non-Operating Income	495,433,700	430,533,640	4,237,501,096
Non-Operating Expenses	1,799,148,349	1,878,998,507	3,161,104,465
Income Before Taxes	538,532,334	333,737,680	203,339,963
Income Taxes Expenses	-	-	-
Net Income	538,532,334	333,737,680	203,339,963

Cash Flows
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	-377,962,638	-1,673,532,673	-2,669,325,964
-Net Income	538,532,334	333,737,680	203,339,963
-Exp. without Cash Outflow	1,218,236,536	1,391,530,971	2,882,204,045
-Revenue without Cash Inflows	-12,740,723	-3,421,040	-3,950,142,000
-Changes in Asset/ & Liability	-2,121,990,785	-3,395,380,284	-1,804,727,972
Cash Flows from Investing	27,242,150	-714,441,123	8,202,116,186
-Cash Inflow from Investing	1,136,102,131	777,301,766	11,354,869,952
-Cash Outflows for Investing	-1,108,859,981	-1,491,742,889	-3,152,753,766
Cash Flows from Financing	2,971,258,490	3,000,487,569	-5,346,327,927
-Cash Inflows from Financing	28,443,126,443	18,368,565,242	9,035,230,073
-Cash Outflows from Financing	-25,471,867,953	-15,368,077,673	-14,381,558,000
Increase/Decrease in Cash	2,620,538,002	612,513,773	186,462,295
Cash at the Beginning of Year	799,287,028	186,773,255	310,960
Cash at the End of Year	3,419,825,030	799,287,028	186,773,255

Products, Technologies, Services Description

Main Products & Services

Exhaust Valve Spindle

Cable Tray

Wind Tower Accessories

Trade Partners & Competitors

Customers

HYUNDAI SAMHO HEAVY INDUSTRIES CO., LTD.(205411-0003915)

HYUNDAI MIPO DOCKYARD CO., LTD.(181211-0000526)

HYUNDAI HEAVY INDUSTRIES CO., LTD.(181211-0000386)

Competitors

DONG SUNG JIN HEUNG CO., LTD.

630-88, JEONGOK-RI, SEOSIN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-357-2792 FAX:+82-31-357-9575~6

SAMJIN PRECISION INDUSTRY CO.

1495-3, SONGJEONG-DONG, GANGSEO-GU, BUSAN, KOREA

TEL:+82-51-831-3800 FAX:+82-51-831-3803

SHINJEUNG MACHINERY CO., LTD.

764-7, YEHYEON-RI, GUJI-MYEON, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-617-2332 FAX:+82-53-617-2334

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

HARVARD CO., LTD.(180111-0173871)

Subsidiary

DONGWON MENIX CO., LTD.(180111-0560408)

(100.0% held by the subject company)

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.50
UK Pound	1	Rs.99.94
Euro	1	Rs.84.88

INFORMATION DETAILS

Report Prepared by :

NIT

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.