MIRA INFORM REPORT

Report Date :

18.08.2014

IDENTIFICATION DETAILS

Name :	CLEAN & SCIENCE CO., LTD.

Registered Office :	511, Yeongdong-Daero, Gangnam-Gu, Seoul, Korea

Country :	South Korea

Financials (as on) :	31.03.2014

Date of Incorporation :	31.12.1979

Com. Reg. No.:	404-81-00477

Legal Form :	Limited company

Line of Business :	Manufacturer of Other Paper and Paperboard

No. of Employees :	134

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

Company Name	CLEAN & SCIENCE CO., LTD.
Registered Address	511, Yeongdong-daero, Gangnam-gu, Seoul, Korea
Building	Rm.903-1, Korea Trade Tower
Zip Code	135-729
Tel	+82-2-551-0221~4
Fax	+82-2-551-0225
E-mail	mjchun@cands.co.kr;dsseo@cands.co.kr;krlee@cands.co.kr
Website	www.cands.co.kr

Trading Address	Rm.903-1, Korea Trade Tower, 511, Yeongdong-daero, Gangnam-gu, Seoul, Korea (Old Address System : Rm.903-1, Korea Trade Tower, 159-1, Samseong 1-dong, Gangnam-gu, Seoul, Korea)
Tel	+82-2-551-0221~4
Fax	+82-2-551-0225

Other Address-Jeongeup Factory	15B, Jeongeup Ⅲ Industrial Complex, 934, Taegok-ri, Buk-myeon, Jeongeup-si, Jeollabuk-do, Korea
Tel	+82-63-535-7881
Fax	+82-63-535-7885

Other Address-Hanam Factory	301-15, Deokpung 3-dong, Hanam-si, Gyeonggi-do, Korea
Tel	+82-31-794-0221
Fax	+82-31-794-0225

Type	Export/Import
Industry	Manufacture of Other Paper and Paperboard
Main Business	Air Filter, Oil Filter, Fuel Filter, Carbon Filter, Cabin Filter, Industrial Filter

Established (mm/dd/yyyy)	12/31/1979

The Subject owns the premises of Jeongeup Factory (33,771.1㎡).

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Filter papers(40161803)
Sell	Fuel filters(40161513)
Sell	Nonwoven fabrics(11162200)
Buy	Polypropylene PP(13102022)
Buy	Wood pulp(11121607)

CEO’s

Name	Kwag Gyu-Beom
Address	--
Date of Birth	09/10/1959
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

3,650,000,000

Employees

134

Formation

Listed Company (KOSDAQ : 045520) as of 12/02/2000

Bank Details

Shinhan Bank-Cheonho-Dong Branch

Corporate Registered No.

211211-0000553

Business Registered No.

404-81-00477

Permit & Licenses

12/1996 ISO 9002

12/2000 QS 9000

Int’l Trade No.: 894199

Shareholder Position

Name	Shares	%
CHOI JAE-HO	1,500,000	23.08
CHOI JAE-WON	1,100,000	16.92
KWAG GYU-BEOM	8,527	0.13
OTHERS	3,891,473	59.87
TOTAL	6,500,000	100.00

Company History

03/1973 Established as Jeonil Engineering Co.

12/31/1979 Incorporated as JEONIL FILTER PAPER LTD.

07/01/2000 Changed company name to the present name

11/2003 Awarded US$5 Million Export Top Prize

11/2005 Awarded US$10 Million Export Top Prize

Management

Job Description	Title	Name	Nationality	Date of Birth	Education/Career
President & CEO	Mr.	Kwag Gyu-Beom	Korean	1959.09.10	Wonkwang University
Director	Mr.	Choi Jae-Ho	Korean	1969.07.13	Yonsei University, Korea
Director	Mr.	Choi Jae-Won	Korean	1972.06.18	Sungsil University, Korea
Auditor	Mr.	Song Byung-Ki	Korean	1950.09.26	Dongwon Paper Mfg., Co., Ltd.
Outside Director	Mr.	Kang Seung-Won	Korean	1952.05.	Chunbuk National University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)03/2014	13,932,455,768	41,059,015,532	739,294,726
(*)2013	53,948,569,636	39,438,343,866	1,372,030,802
(*)2012	46,929,231,882	38,657,011,834	1,032,717,389
(*)2011	44,770,108,721	41,024,264,481	1,087,950,441
(*)2010	39,541,440,207	40,773,150,706	-869,562,853
2009	34,217,363,898	40,637,280,465	2,021,765,348
2008	31,305,324,736	41,301,724,270	273,932,862
2007	30,264,443,534	35,744,271,618	11,868,075
2006	27,590,485,421	36,148,628,087	706,175,052
2005	26,738,986,904	35,998,394,305	1,617,193,947
2004	28,268,919,374	24,995,562,130	2,126,418,199

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

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	3,650,000,000
Total Issues Shares	6,500,000

Balance Sheet
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	41,059,015,532	39,438,343,866	38,657,011,834
Current Assets	26,461,221,327	25,003,911,818	22,921,242,949
Cash & Cash Equivalents	3,260,721,141	2,125,974,140	3,518,481,647
Current Financial Instruments	2,200,000,000	2,140,000,000	1,319,983,456
Trade Receivables	11,606,921,526	11,750,943,965	10,535,574,168
Other Receivables	474,098,254	372,997,398	198,481,547
Inventories	8,302,631,776	7,764,284,059	6,755,594,784
Other Current Assets	616,848,630	849,712,256	593,127,347
Non-Current Assets	14,597,794,205	14,434,432,048	15,735,768,885
Non-Current Financial Instruments	74,850,636	69,504,162	48,118,266
Marketable Financial Instruments	434,000,000	434,000,000	449,875,000
Investment_Subsidiaries	75,695,400	75,695,400	75,695,400
Tangibles	9,715,403,037	9,801,367,061	10,896,211,987
Intangibles	596,357,327	609,910,034	649,283,668
Deferred Income Tax Assets	1,022,008,727	762,794,564	933,036,160
Other Non-Current Assets	2,679,479,078	2,681,160,827	2,683,548,404
Total Liabilities	21,069,331,580	20,164,111,526	20,827,233,803
Current Liabilities	17,404,003,367	15,931,136,049	18,618,199,457
Trade Payables	6,250,018,007	5,818,446,184	5,829,084,919
Other Payables	2,160,545,084	2,291,143,737	2,245,385,010
Short-Term Borrowings	5,770,529,742	5,239,821,569	9,202,550,898
Current Portion of Long-Term Debts	2,774,750,000	2,049,500,000	849,000,000
National Subsidies	4,349,189	4,349,189	4,349,189
Other Current Liabilities	161,534,425	245,598,450	201,326,258
Provisions	282,276,920	282,276,920	286,503,183
Non-Current Liabilities	3,665,328,213	4,232,975,477	2,209,034,346
Long-Term Borrowings	3,000,000,000	4,000,000,000	2,049,500,000
Provision for Severance & Retirement	665,328,213	232,975,477	159,534,346
Capital Stock	3,650,000,000	3,650,000,000	3,650,000,000
Capital Surplus	3,435,811,759	3,435,811,759	3,435,811,759
Others	3,020,330,577	3,020,330,577	3,020,330,577
Installments	119,049,834	142,892,948
Profit Surplus	9,764,491,782	9,025,197,056	7,723,635,695
Total Equity	19,989,683,952	19,274,232,340	17,829,778,031
Liab. & Shareholder’s Equity	41,059,015,532	39,438,343,866	38,657,011,834

Income Statement
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	13,932,455,768	53,948,569,636	46,929,231,882
Cost of Sold Goods	11,277,686,116	43,713,000,968	37,158,548,131
Gross Profit	2,654,769,652	10,235,568,668	9,770,683,751
Selling & Admin. Expenses	2,245,529,505	8,241,500,878	7,890,475,490
Operating Income	409,240,147	1,994,067,790	1,880,208,261
Other Income	47,453,994	496,028,634	436,569,973
Other Expenses	13,624,046	364,204,025	439,360,150
Finance Income	396,113,321	1,004,499,062	755,931,702
Finance Expenses	352,377,873	1,621,082,653	1,690,889,014
Income Before Taxes	486,805,543	1,509,308,808	942,460,772
Income Taxes Expenses	-252,489,183	137,278,006	-90,256,617
Net Income	739,294,726	1,372,030,802	1,032,717,389

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	1,298,261,142	819,857,905	2,438,390,417
Net Income	739,294,726	1,372,030,802	1,032,717,389
Adjustment	831,122,155	3,604,119,726	3,357,696,531
Changes in Asset/ & Liability	-249,171,887	-3,861,385,958	-1,440,726,048
Interests Received	101,560,605	240,668,067	288,763,572
Interests Paid	-114,780,427	-558,315,607	-789,807,866
Income Taxes	-9,764,030	22,740,875	-10,253,161
Cash Flows from Investing	-418,163,830	-1,419,637,136	-1,099,652,250
Cash Flows from Financing	254,649,689	-793,740,693	-942,752,646
Increase/Decrease in Cash	1,134,747,001	-1,393,519,924	395,985,521
Cash at the Beginning of Year	2,125,974,140	3,518,481,647	3,122,496,126
Cash at the End of Year	3,260,721,141	2,124,961,723	3,518,481,647

Products, Technologies, Services Description

Main Products & Services

Manufacture of below items;

Auto Filter Paper

Industrial Filter Paper

Air Conditioning Non-Woven Fabric

Synthetic Paper including Filter Paper & Non-Woven Fabric

Non-Woven Fabric for Auto Air-Filters

Membrane System for Wastewater Treatment

Brand Name : JAF, QA, HPFT

Detailed Products Spec.

Item	2010	2009	2008
Filter Paper	9,125	7,925	7,856
M.B	694	657	751
Total	9,819	8,582	8,608

Trade Partners & Competitors

Customers

HYUNDAI MOTOR CO.(110111-0085450)

Competitors

AHLSTROM KOREA CO., LTD.(174111-0002531)

7, GEUM-RI, YUGA-MYEON, DALSEONG-GUN, DAEGU, KOREA

TEL:+82-53-611-0491 FAX:+82-53-611-0493

MOTONIC CORPORATION

8TH FL., SEOHEUNG BLDG., 68-5, GYEONJI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-730-8711 FAX:+82-2-720-9292

MAHLE DONGHYUN FILTER SYSTEMS CO., LTD.

433-1, BUGYANG-DONG, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-831-3300 FAX:+82-31-831-3301

CARLFREUDENBURG

BBA

DUPONT

KIMBERLY-CLARK

CAMBRIDGE

AAF KOREA

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Subsidiary	CLEAN AND SCIENCE USA CO., LTD. (100.0% held by the subject company) 2400 EAST DEVON AVE.,SUITE 210, DES PLAINESS, IL 60018, USA CLEAN AND SCIENCE CHINA (100.0% held by the subject company) ROOM 908, 9F.#3998, HONGXIN ROAD,MINHANG DISTRICT, SHANGHAI CITY, CHINA
Corporate Ownership	--
Major Shareholders	--
Cooperative Enterprise	-Technical Support from AAF INTERNATIONAL(USA) -Insured Company LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	09/2012	2011	2010
Export	16,962	22,768	18,733
Domestic	17,645	22,002	20,808
Total	34,607	44,770	39,541

The Subject exports to China, Indonesia, Japan, Malaysia, Pakistan and USA.

Court Action

No.

News Clipping

------

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Analysis Done by :	KAR

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%)

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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.