MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	MISUNG TRADING CO., LTD.

Registered Office :	3rd Fl., Samsung Bldg., 369, Pyeongchon-daero, Dongan-gu, Anyang-si, Gyeonggi-do 431-824

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	04.01.1989

Com. Reg. No.:	138-81-00532

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesaler of Other Chemical Materials and Chemical Products

No of Employees :	21

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. South 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. South 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-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge 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, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP.

Source : CIA

Basic Information

Basic

Company Name	MISUNG TRADING CO., LTD. (Korean Company Name : “미성통상(주)”)
Registered Address	369, Pyeongchon-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea
Building	3rd Fl., Samsung Bldg.
Zip Code	431-824
Tel	+82-31-388-6333
Fax	+82-31-387-2511
E-mail	misung@mwc.co.kr
Website	www.mschem.co.kr
Trading Address	3rd Fl., Samsung Bldg., 369, Pyeongchon-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Korea (Old Address System : 3rd Fl., Samsung Bldg., 1026-13, Bisan 3-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea)
Tel	+82-31-388-6333
Fax	+82-31-387-2511
Other Address
Tel
Fax
Type	Export/Import
Industry	Wholesale of Other Chemical Materials and Chemical Products
Main Business	Chemicals
Sub Business
Established (mm/dd/yyyy)	01/04/1989

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

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Inorganic acids(12352301)
Sell	Sorbitol(51211613)
Sell	Edible animal fats(50151605)
Sell	Organic acids or its substitutes(12352106)

CEO’s

Name	Kim Jung-Man
Address	Suite 906, 612, Daechi-dong, Gangnam-gu, Seoul, Korea
Date of Birth	07/26/1955
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

279,000,000

Employees

Formation

Co., Ltd by Shares

A Company of MIWON COMMERCIAL GROUP

Bank Details

Industrial Bank of Korea

Citibank, Korea

Woori Bank

Corporate Registered No.

134111-0025929

Business Registered No.

138-81-00532

Permit & Licenses

Int’l Trade No.: 540962

Shareholder Position

Name	Shares	%
KIM JUNG-MAN	12,979	23.26
OTHERS	42,821	76.74
TOTAL	55,800	100.00

Company History

01/04/1989 Incorporated as the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kim Jung-Man	Male	Korean	02/24/2006
Director	Mr.	Park Min-Ki	Male	Korean	02/24/2006
Auditor	Mr.	Nam Yoon-Keun	Male	Korean	02/24/2006

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	38,928,118,132	21,556,882,255	2,305,131,688
2012	37,879,609,129	16,825,342,101	1,429,140,380
2011	33,131,048,055	13,890,198,906	1,272,182,798
2010	31,014,540,276	14,203,767,730	2,918,796,758
2009	23,520,232,729	12,608,544,506	708,462,539
2008	23,638,763,058	9,892,492,025	243,764,993
2007	21,726,017,205	9,869,568,251	472,738,695
2006	19,860,131,881	8,096,745,555	518,227,273
2005	19,182,708,611	8,716,882,311	1,074,870,308

Financial Description

Authorized Capital(KRW)	740,000,000
Paid-Up Capital(KRW)	279,000,000
Total Issued Shares	55,800

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	21,556,882,255	16,825,342,101	13,890,198,906
Current Assets	7,937,948,618	7,080,303,370	6,457,277,966
-Quick Assets	4,961,942,260	4,252,203,589	3,843,908,877
-Inventories	2,976,006,358	2,828,099,781	2,613,369,089
Fixed Assets	13,618,933,637	9,745,038,731	7,432,920,940
-Investment	13,076,201,000	9,317,677,000	6,933,815,500
-Tangibles	164,627,384	86,277,998	72,408,890
-Intangibles	378,105,253	341,083,733	426,696,550
Total Liabilities	2,646,146,691	1,840,485,383	2,301,053,396
Current Liabilities	2,079,411,435	1,396,728,978	1,826,518,628
Fixed Liabilities	566,735,256	443,756,405	474,534,768
Capital Stock	279,000,000	279,000,000	279,000,000
Capital Surplus
Profit Surplus	12,549,340,030	10,244,208,342	8,840,677,272
Capital Adjustment	6,082,395,534	4,461,648,376	2,469,468,238
Total Equity	18,910,735,564	14,984,856,718	11,589,145,510
Liab. & Shareholder’s Equity	21,556,882,255	16,825,342,101	13,890,198,906

Current Liabilities	2,079,411,435	1,396,728,978	1,826,518,628
Trade Payables	1,268,506,827	564,273,019	618,114,166
Short-Term Borrowings	76,866,892	344,023,930	965,164,705
Account Payables	292,978,471	254,373,429	105,647,349
Advance Receipts	22,451,479	34,220,380	9,622,813
Withholdings	9,549,110	8,098,130	79,952,855
Accrued Expenses	7,769,570	7,390,830	6,689,065
Accrued Income Tax	401,289,086	184,349,260	41,327,675
Fixed Liabilities	566,735,256	443,756,405	474,534,768
Provision for Severance & Retirement	566,735,256	443,756,405	474,534,768

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	38,928,118,132	37,879,609,129	33,131,048,055
Cost of Sold Goods	33,814,356,761	33,346,945,474	28,907,210,315
Gross Profit	5,113,761,371	4,532,663,655	4,223,837,740
Selling & Admin. Expenses	3,254,009,428	2,987,429,410	2,834,885,772
Operating Income	1,859,751,943	1,545,234,245	1,388,951,968
Non-Operating Income	1,163,083,286	511,052,842	544,333,644
Non-Operating Expenses	141,675,495	249,999,497	199,747,380
Income Before Taxes	2,881,159,734	1,806,287,590	1,733,538,232
Income Taxes Expenses	576,028,046	377,147,210	461,355,434
Net Income	2,305,131,688	1,429,140,380	1,272,182,798

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,451,418,852	1,236,111,506	-103,676,277
-Net Income	2,305,131,688	1,429,140,380	1,272,182,798
-Exp. without Cash Outflow	325,462,741	416,014,349	529,683,020
-Revenue without Cash Inflows	-756,461,216	-71,131,682	-147,721,101
-Changes in Asset/ & Liability	-422,714,361	-537,911,541	-1,757,820,994
Cash Flows from Investing	-1,601,122,338	-195,546,043	-210,616,545
-Cash Inflow from Investing	1,037,340,906	341,420,404	1,106,245,903
-Cash Outflows for Investing	-2,638,463,244	-536,966,447	-1,316,862,448
Cash Flows from Financing	-265,941,155	-614,596,560	320,224,906
-Cash Inflows from Financing	11,544,088,180	11,582,899,133	10,341,136,253
-Cash Outflows from Financing	-11,810,029,335	-12,197,495,693	-10,020,911,347
Increase/Decrease in Cash	-415,644,641	425,968,903	5,932,084
Cash at the Beginning of Year	535,309,131	109,340,228	103,408,144
Cash at the End of Year	119,664,490	535,309,131	109,340,228

Products, Technologies, Services Description

Main Products & Services

Chemicals

Trade Partners & Competitors

Competitors

HAN KYUNG CHEMICAL CO., LTD.

25B-10L, NAMDONG INDUSTRIAL COMPLEX, 446-9, NONHYEON-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-818-0146 FAX:+82-32-819-7298

SBI CORPORATION

RM. 204, 418-3, SINDORIM-DONG, GURO-GU, SEOUL, KOREA

TEL:+82-2-2633-2585 FAX:+82-2-2633-2596

KUKJAE CHEMICAL CO., LTD.

36-3, SEGOK-RI, BONGDAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-227-0672 FAX:+82-31-298-0671

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

MIWON COMMERCIAL CO., LTD.(130111-0007707)

MISUNG GENERAL TRADING CO., LTD.(180111-0167832)

(21.33% held by the subject company)

MIHWA LOGISTICS CO., LTD.(230111-0072014)

TAETWANG FINE CHEMICAL CO., LTD.(120111-0052142)

ASIA STABILIZERS CO., LTD.(ASCL: 134711-0016596)

MISUNG TOTAL CORPORATION(180111-0167832)

MIWOO CORPORATION(KOREA)

QIDONG QINGYUN FINE CHEMICAL CO., LTD.(CHINA)

MIWON NORTH AMERICA INC.

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.24
UK Pound	1	Rs. 101.92
Euro	1	Rs. 80.69

INFORMATION DETAILS

Analysis Done by :	RSM

Report Prepared by :	DPT

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.