MIRA INFORM REPORT

Report Date :

02.08.2014

IDENTIFICATION DETAILS

Name :	KCI LIMITED

Formerly Known As :	Geonchang Chemical Ltd.

Registered Office :	221, Daejuk 1-ro, Daesan-eup, Seosan-si, Chungcheongnam-do, Zip Code 356-874

Country :	South Korea

Financials (as on) :	31.03.2014

Date of Incorporation :	10.02.1985

Com. Reg. No.:	133-81-26385

Legal Form :	Listed Company

Line of Business :	Manufacturer of Surface-Active Agents, Surfactant, polymer, Polyquaternium, Preservative & Resin

No of Employees :	119

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

Company Name	KCI LIMITED (Korean Company Name : “(주)케이씨아이”)
Registered Address	221, Daejuk 1-ro, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea (Old Address System ; 13-7, Daejuk-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea)
Zip Code	356-874
Tel	+82-41-660-7900
Fax	+82-41-668-7901
E-mail	lab@kciltd.com
Website	www.kciltd.com
Trading Address	9th Fl., 2-dong, IT Castle, 376-1, Gasan-dong, Geumcheon-gu, Seoul, Korea
Tel	+82-2-784-1480
Fax	+82-2-784-9018
Type	Export
Main Business	Manufacturer of Surface-Active Agents, Surfactant, polymer, Polyquaternium, Preservative & Resin
Established (mm/dd/yyyy)	02/10/1985

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Preservatives(12164501)
Sell	Surfactants(12161900)
Sell	Resins(13111000)
Buy	Texturing materials(31211602)
Buy	Alcohols or its substitutes(12352104)
Buy	Amines or imines or its substitutes(12352116)
Buy	Organic derivatives and substituted compounds(12352100)
Buy	Chemicals including Bio Chemicals and Gas Materials(12000000)

CEO’s

Name	Yoon Young-Ho
Date of Birth	05/26/1954
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

5,500,000,000

Employees

119

Formation

Listed Company (KOSDAQ : 036670) as of 12/29/2000

Bank Details

Kookmin Bank-Seo Yoido Branch

Industrial Bank of Korea

Corporate Registered No.

110111-0434441

Business Registered No.

133-81-26385

Permit & Licenses

06/10/1999 ISO 9001

10/27/2006 INNO-BIZ

12/16/2010 NET

Int’l Trade No.: 984377

Shareholder Position

Name	Shares	%
YOON YOUNG-HO	2,321,778	21.11
YOON JAE-KOO	1,401,090	12.74
YOON KWANG-HO	1,006,024	9.15
OTHERS	6,271,108	57.01
TOTAL	11,000,000	100.00

Company History

02/10/1985 Established as Geonchang Chemical Co.

07/13/1991 Incorporated as Geonchang Chemical Ltd.

03/23/1999 Designated as a Venture Business

01/28/2000 Changed company name to the present name

09/07/2001 Split off the par value to 500 KRW from 5,000 KRW

11/30/2010 Awarded US$ 20 Million Export Top Prize

11/14/2012 Designated as a Venture Business again

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
President & CEO	Mr.	Yoon Young-Ho	Korean	1954.05.26	Hanyang University, Korea
Chairman & CEO	Mr.	Yoon Jae-Koo	Korean	1933.12.15	Dankuk University, Korea
Director / R&D	Mr.	Han In-Sun	Korean	1954.04.05	Düsseldorf University, Germany
Director	Mr.	Yoon Kwang-Ho	Korean	1962.09.	Berlin Freedom University, Germany
Director	M/S.	Yoon Mi-Ra	Korean	1958.01.	Gyunggi University, Korea
Auditor	Mr.	Wang Se-Kwon	Korean	1949.04.10	-

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)03/2014	9,766,422,207	55,116,135,660	913,151,612
(*)2013	33,252,081,362	54,223,308,809	2,291,429,513
(*)2012	30,028,762,454	53,005,558,109	1,881,511,657
2011	26,841,468,172	51,991,276,978	1,453,099,087
2010	28,766,033,917	49,467,366,154	2,623,191,590
2009	24,674,184,684	49,208,451,032	3,258,618,066

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

Financial Description

Authorized Capital(KRW)	20,000,000,000
Paid-Up Capital(KRW)	5,500,000,000
Total Issued Shares	11,000,000

Balance Sheet
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	55,116,135,660	54,223,308,809	53,005,558,109
Current Assets	20,812,092,865	19,580,882,989	18,159,058,417
Cash & Cash Equivalents	3,130,526,006	2,532,779,964	2,680,255,066
Current Financial Instruments	353,905,000	302,750,000	722,460,000
Trade Receivables & Other Receivables	7,217,968,939	6,387,757,767	4,712,314,279
Other Current Assets	791,959,627	1,022,331,040	1,158,964,777
Inventories	9,317,733,293	9,335,264,218	8,885,064,295
Non-Current Assets	34,304,042,795	34,642,425,820	34,846,499,692
Tangibles	31,838,022,410	32,168,313,353	32,494,200,699
Intangibles	911,965,533	910,715,877	709,891,549
Other Financial Assets	577,938,464	484,852,402	289,160,864
Investment_Related Companies	887,688,065	878,888,065	908,621,683
Deferred Income Tax Assets	88,428,323	199,656,123	444,624,897
Total Liabilities	17,513,526,641	16,629,857,444	19,546,530,376
Current Liabilities	14,586,981,152	13,305,601,117	12,831,871,348
Trade Payables & Other Payables	2,494,559,361	2,020,440,184	952,440,517
Short-Term Borrowings	11,173,560,000	11,173,560,000	11,715,500,000
Deferred Income Tax Credit	0	11,470,500	28,629,980
Other Current Liabilities	918,861,791	100,130,433	135,300,851
Non-Current Liabilities	2,926,545,489	3,324,256,327	6,714,659,028
Long-Term Borrowings	3,392,460,000	3,785,850,000	6,449,270,000
Other Non-Current Liabilities	51,000,000	51,000,000	265,389,028
Capital Stock	5,500,000,000	5,500,000,000	5,500,000,000
Capital Surplus	5,539,887,209	5,539,887,209	4,899,369,278
Capital Adjustment	-161,546,537	-161,546,537	-1,846,644,030
Others	-129,515,214	-46,171,256	-80,399,951
Profit Surplus	26,853,783,561	26,761,281,949	24,986,702,436
Total Equity	37,602,609,019	37,593,451,365	33,459,027,733
Liab. & Shareholder’s Equity	55,116,135,660	54,223,308,809	53,005,558,109

Income Statement
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	9,766,422,207	33,252,081,362	30,028,762,454
Cost of Sold Goods	7,025,153,065	23,748,340,580	21,129,804,397
Gross Profit	2,741,269,142	9,503,740,782	8,898,958,057
Logistics	19,679,954	85,009,036	70,237,672
Selling & Admin. Expenses	1,818,929,034	7,012,164,735	6,587,687,279
Operating Income	902,660,154	2,406,567,011	2,241,033,106
Other Income	309,435,139	1,064,116,197	861,805,808
Other Expenses	51,697,186	555,116,097	661,863,378
Finance Income	9,562,542	37,285,475	91,168,474
Finance Expenses	124,856,027	585,431,041	725,275,872
Income Before Taxes	1,045,104,622	2,367,421,545	1,806,868,138
Income Taxes Expenses	131,953,010	75,992,032	74,643,519
Net Income	913,151,612	2,291,429,513	1,881,511,657

Cash Flows
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	1,507,565,782	1,864,978,183	3,456,901,763
Cash Flows from Operating	1,641,429,728	2,390,550,355	4,126,300,735
Net Income	913,151,612	2,291,429,513	1,881,511,657
Adjustment	1,003,109,376	3,657,196,818	3,566,792,361
Changes in Asset/ & Liability	-274,831,260	-3,558,075,976	-1,322,003,283
Interests Received	3,656,540	29,144,853	15,489,640
Interests Paid	-105,920,786	-554,717,025	-706,214,392
Income Taxes	-31,599,700	0	21,325,780
Cash Flows from Investing	-505,451,697	-278,462,862	-3,350,769,896
Cash Inflow from Investing	93,278,800	1,030,040,933	3,141,545,110
Cash Outflows for Investing	-598,730,497	-1,308,503,795	-6,492,315,006
Cash Flows from Financing	-393,390,000	-1,733,696,000	-444,400,000
Cash Inflows from Financing	0	5,682,414,000	3,500,000,000
Cash Outflows from Financing	-393,390,000	-7,416,110,000	-3,944,400,000
Increase/Decrease in Cash	597,746,042	-147,475,102	-373,350,434
Cash at the Beginning of Year	2,532,779,964	2,680,255,066	3,053,605,500
Cash at the End of Year	3,130,526,006	2,532,779,964	2,680,255,066

Products, Technologies, Services Description

Main Products & Services

Surface-Active Agents, Surfactant, polymer, Polyquaternium, Preservative & Resin

Brand Name : POLYQUTA KC, Polyquaternium-10, BTAC

Trade Partners & Competitors

Customers

AMOREPACIFIC CORP.(110111-3471036)

LG HOUSEHOLD & HEALTH CARE LTD.(110111-2208000)

L'OREAL

P&G

Competitors

HUCHEMS FINE CHEMICAL CORPORATION

5TH FL., KUKDONG BLDG., 60-1, CHUNGMURO 3-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2262-0600 FAX:+82-2-2265-9381

COSMO CHEMICAL CO., LTD.

1534-5, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-32-451-6100 FAX:+82-32-451-6119

FOOSUNG CO., LTD.

427-9, NOHA-RI, PALTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-495-7243 FAX:+82-31-491-1649

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Subsidiary

KCI-JAPAN

(45.0% held by the subject company)

KCI-THAILAND (KEONCHANG CHEMICAL INDUSTRY CO., LIMITED)

(49.0% held by the subject company)

O&O CHEMICAL CO., LTD.(135511-0195103)

(49.0% held by the subject company)

Cooperative Enterprise

-Insured company

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

Sales by Region

(Activity & Markets)

The Subject exports to South America, USA, Middle East, Europe, Japan and China.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.81.46

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	MNL

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.