MIRA INFORM REPORT

Report Date :

20.08.2014

IDENTIFICATION DETAILS

Name :	DAEDONG IM CO., LTD.

Registered Office :	2-1301, Ace Hightech City, 775, Gyeongin-ro, Yeongdeungpo-gu, Seoul 150-972

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	01.09.1998

Com. Reg. No.:	107-81-64755

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesaler of Electrical Machinery and Related Materials

No of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate

Payment Behaviour :	Slow

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	DAEDONG IM CO., LTD. (English Company Name : DAEDONG INDUSTRIAL MACHINERY CO., LTD.) (Korean Company Name : “대동아이엠(주)”)
Registered Address	775, Gyeongin-ro, Yeongdeungpo-gu, Seoul, Korea
Building	2-1301, Ace Hightech City
Zip Code	150-972
Tel	+82-2-2631-4841
Fax	+82-2-2631-4842
E-mail	dimco@dimco.kr
Website	www.dimco.kr
Trading Address	2-1301, Ace Hightech City, 775, Gyeongin-ro, Yeongdeungpo-gu, Seoul, Korea (Old Address System : 2-1301, Ace Hightech City, 55-20, Mullaedong 3-ga, Yeongdeungpo-gu, Seoul, ,Korea)
Tel	+82-2-2631-4841
Fax	+82-2-2631-4842
Type	Export
Industry	Wholesale of Electrical Machinery and Related Materials
Main Business	Diesel Generator
Established (mm/dd/yyyy)	09/01/1998

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Diesel engines(26101504)
Sell	Power generators(26111600)

CEO’s

Name	Park Ji-Soo
Address	Suite 129-402, 810, Hannam-dong, Yongsan-gu, Seoul, Korea
Date of Birth	08/01/1959
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

500,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Kookmin Bank

Industrial Bank of Korea

Korea Exchange Bank

Corporate Registered No.

110111-1581100

Business Registered No.

107-81-64755

Permit & Licenses

Int’l Trade No.: 11520184

Shareholder Position

Name	Shares	%
PARK JI-SOO	45,000	45.00
LEE JI-YOUNG	55,000	55.00
TOTAL	100,000	100.00

Company History

09/01/1998 Incorporated as the present name

09/03/2007 Increased the authorized shares to 2,000,000 shares from 20,000 shares

09/04/2007 Increased capital to 500,000,000 KRW from 50,000,000 KRW

10/07/2007 Split off the par value to 5,000 KRW from 10,000 KRW

04/15/2009 Moved to the present HQ address from 2-1302/1303, Ace Hightech City, 55-20, Mullaedong 3-ga, Yeongdeungpo-gu, Seoul, ,Korea

11/30/2009 Awarded US$ 20 Million Export Top Prize

11/30/2010 Awarded US$ 50 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Park Ji-Soo	Male	Korean	07/19/2007
Director	M/S.	Lee Ji-Young	Female	Korean	07/19/2007
Outside Director	Mr.	Park Kwan-Soo	Male	Korean	03/10/2011
Auditor	Mr.	Lee Jung-Geun	Male	Korean	03/10/2014

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	2,516,854,847	13,571,275,475	-1,437,560,818
2012	6,204,939,265	17,566,794,350	-1,935,669,111
2011	5,455,101,928	23,275,178,404	-4,114,095,017
2010	36,522,514,769	29,880,257,903	1,079,856,579

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	500,000,000
Total Issued Shares	100,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	13,571,275,475	17,566,794,350	23,275,178,404
Current Assets	10,644,580,849	14,534,213,278	16,526,623,942
-Quick Assets	10,621,522,849	14,437,029,478	16,442,633,471
-Inventories	23,058,000	97,183,800	83,990,471
Fixed Assets	2,926,694,626	3,032,581,072	6,748,554,462
-Investment			3,558,053,032
-Tangibles	2,887,533,357	2,992,991,303	3,147,016,221
-Intangibles	39,161,269	39,589,769	43,485,209
Total Liabilities	3,763,942,149	6,321,900,206	10,094,615,149
Current Liabilities	3,491,099,150	5,664,765,616	9,335,615,149
Fixed Liabilities	272,842,999	657,134,590	759,000,000
Capital Stock	500,000,000	500,000,000	500,000,000
Capital Surplus
Profit Surplus	9,307,333,326	10,744,894,144	12,680,563,255
Capital Adjustment
Total Equity	9,807,333,326	11,244,894,144	13,180,563,255
Liab. & Shareholder’s Equity	13,571,275,475	17,566,794,350	23,275,178,404

Current Liabilities	3,491,099,150	5,664,765,616	9,335,615,149
Trade Payables	444,676,065	1,503,703,653	3,546,392,565
Account Payables	9,446,945	518,868,593	1,016,774,421
Withholdings	34,316,132	32,943,942	160,595,912
VAT Withhold	2,323,599
Advance Receipts	206,700,490	639,011,264	70,000
Short-Term Borrowings	2,600,550,914	2,630,000,000	4,075,000,000
Accrued Expenses	6,485,005	13,638,164	315,182,251
Current Portion of Long-Term Debts	186,600,000	326,600,000	221,600,000
Fixed Liabilities	272,842,999	657,134,590	759,000,000
Long-Term Borrowings	40,800,000	612,400,000	729,000,000
Leasehold Deposit Received	25,000,000	-	30,000,000
Provision for Severance & Retirement	687,961,490	468,469,997	273,764,165

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	2,516,854,847	6,204,939,265	5,455,101,928
Cost of Sold Goods	2,074,346,002	5,106,209,744	4,290,401,153
Gross Profit	442,508,845	1,098,729,521	1,164,700,775
Selling & Admin. Expenses	2,059,459,303	2,479,001,964	5,078,766,057
Operating Income	-1,616,950,458	-1,380,272,443	-3,914,065,282
Non-Operating Income	434,190,374	318,387,833	463,222,395
Non-Operating Expenses	254,800,734	1,176,298,438	663,252,130
Income Before Taxes	-1,437,560,818	-2,238,183,048	-4,114,095,017
Income Taxes Expenses	-	-302,513,937	-
Net Income	-1,437,560,818	-1,935,669,111	-4,114,095,017

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	-334,581,428	1,904,201,237	986,176,399
-Net Income	-1,437,560,818	-1,935,669,111	-4,114,095,017
-Exp. without Cash Outflow	364,628,198	1,054,364,294	1,514,742,246
-Revenue without Cash Inflows	-302,298,842	-176,030,504	-112,449,716
-Changes in Asset/ & Liability	1,040,650,034	2,961,536,558	3,697,978,886
Cash Flows from Investing	-124,421,500	660,205,440	-754,440,900
-Cash Inflow from Investing	385,428,500	660,205,440	109,272,241
-Cash Outflows for Investing	-509,850,000	-	-863,713,141
Cash Flows from Financing	-716,049,086	-1,486,600,000	-711,600,000
-Cash Inflows from Financing	25,000,000	210,000,000	-
-Cash Outflows from Financing	-741,049,086	-1,696,600,000	-711,600,000
Increase/Decrease in Cash	-1,175,052,014	1,077,806,677	-479,864,501
Cash at the Beginning of Year	1,218,758,444	140,951,767	620,816,268
Cash at the End of Year	43,706,430	1,218,758,444	140,951,767

Products, Technologies, Services Description

Main Products & Services

Diesel Generator

Trade Partners & Competitors

Suppliers

LS INDUSTRIAL SYSTEMS

KOREA PLANT SERVICE & ENGINEERING

KOREA ELECTRIC POWER CORPORATION (KEPCO)

STX ENGINE

STX ENPACO

Competitors

DOOSAN ENGINE CO., LTD.

69-3, SINCHON-DONG, CHANGWON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-260-6000 FAX:+82-55-282-0588

DOOWON PRECISION INDUSTRY CO., LTD.

180, GEONJI-RI, DAEDEOK-MYEON, ANSEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-670-6000 FAX:+82-31-670-6200

CASCO CO., LTD.

938-2, TAEGOK-RI, BUK-MYEON, JEONGEUP-SI, JEOLLABUK-DO, KOREA

TEL:+82-63-570-6114 FAX:+82-63-570-6198

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.73
UK Pound	1	Rs. 101.48
Euro	1	Rs. 81.04

INFORMATION DETAILS

Report Prepared by :

PDT

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.