MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	HANBAL MASSTECH LIMITED

Registered Office :	102-32, Seobu-ro 1499beon-gil, Juchon-myeon, Gimhae-si, Gyeongsangnam-do, Korea 621-841

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	15.03.2004

Com. Reg. No.:	615-81-35557

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of containers cleaning, packing and wrapping machinery and charger.

No. of Employees	86

RATING & COMMENTS

MIRA’s Rating :

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
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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	HANBAL MASSTECH LIMITED (Korean Company Name : “한발매스테크(주)”)
Registered Address	102-32, Seobu-ro 1499beon-gil, Juchon-myeon, Gimhae-si, Gyeongsangnam-do, Korea
Building
Zip Code	621-841
Tel	+82-55-338-1911
Fax	+82-55-338-1917
E-mail	sykeum@hanbalmasstech.com
Website	www.hanbal.kr
Trading Address	102-32, Seobu-ro 1499beon-gil, Juchon-myeon, Gimhae-si, Gyeongsangnam-do, Korea (Old Address System : 1080-4, Naesam-ri, Juchon-myeon, Gimhae-si, Gyeongsangnam-do, Korea)
Tel	+82-55-310-2100
Fax	+82-55-338-1917
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Containers Cleaning, Packing and Wrapping Machinery and Charger
Main Business	Tower Internal, Tower Trays, Packings, Wire Mesh Demister, Mist Eliminators
Sub Business
Established (mm/dd/yyyy)	03/15/2004

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Petroleum distilling and processing machinery and equipment(23111500)
Sell	Packings(31181701)

CEO’s

Name	Lee Sung-Won
Address	Suite 203-505, 16, Myeongji ocean city 10-ro, Gangseo-gu, Busan, Korea
Date of Birth	06/02/1948
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

4,821,000,000

Employees

Formation

Co., Ltd by Shares

Venture Business

Bank Details

Hana Bank-Gimhae Branch

Corporate Registered No.

195511-0070816

Business Registered No.

615-81-35557

Permit & Licenses

01/07/2013 OHSAS 18001

01/07/2013 ISO 14001

Int’l Trade No.: 12034835

Shareholder Position

Name	Shares	%
LEE SUNG-WON	394,213	81.77
OTHERS	87,887	18.23
TOTAL	482,100	100.00

Company History

07/01/1971 Established and Hanbal Metal Industries Co.(Sole Proprietorship)

06/1995 Changed company name to Norton Hanbal Korea Co.

07/2000 Changed company name to HANBAL MASSTECH CO.

03/15/2004 Incorporated as the present name

08/17/2005 Decreased capital to 4,821,000,000 KRW from 7,321,000,000 KRW

03/16/2012 Designated as an INNO-BIZ Company

03/22/2012 Designated as a Venture Business

12/2012 Awarded US$ 30 Million Export Top Prize

03/31/2014 Designated as a Venture Business again

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Sung-Won	Male	Korean	03/22/2010
Director	M/S.	Hwangbo Kang	Female	Korean	03/29/2013
Director	M/S.	Lee Hye-Min	Female	Korean	03/29/2013
Auditor	Mr.	Park Hee-Wook	Male	Korean	03/29/2013

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	25,137,951,095	39,553,282,157	2,357,284,022
2012	59,529,494,396	36,306,062,933	4,297,314,421
2011	30,752,213,849	46,182,148,147	1,285,390,220
2010	24,720,360,049	18,844,763,180	896,293,646
2009	30,782,737,347	15,413,740,780	1,304,277,227

Financial Description

Authorized Capital(KRW)	30,000,000,000
Paid-Up Capital(KRW)	4,821,000,000
Total Issued Shares	482,100

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	39,553,282,157	36,306,062,933	46,182,148,147
Current Assets	15,354,340,117	19,716,320,551	29,659,439,574
-Quick Assets	12,078,953,097	16,245,921,911	13,971,661,224
-Inventories	3,275,387,020	3,470,398,640	15,687,778,350
Fixed Assets	24,198,942,040	16,589,742,382	16,522,708,573
-Investment	285,117,200	190,392,200	190,392,200
-Tangibles	23,700,041,840	16,185,567,182	16,033,326,373
-Intangibles	213,783,000	213,783,000	298,990,000
Total Liabilities	24,974,263,058	24,084,327,856	38,257,727,491
Current Liabilities	12,221,263,058	24,084,327,856	31,981,919,491
Fixed Liabilities	12,753,000,000	-	6,275,808,000
Capital Stock	4,821,000,000	4,821,000,000	4,821,000,000
Capital Surplus
Profit Surplus	9,758,019,099	7,400,735,077	3,103,420,656
Capital Adjustment
Total Equity	14,579,019,099	12,221,735,077	7,924,420,656
Liab. & Shareholder’s Equity	39,553,282,157	36,306,062,933	46,182,148,147

Current Liabilities	12,221,263,058	24,084,327,856	31,981,919,491
Trade Payables	3,613,297,917	10,336,968,382	14,064,572,661
Short-Term Borrowings	3,810,000,000	2,000,000,000	2,000,000,000
Account Payables	1,166,457,679	250,131,554	669,540,161
Withholdings	76,170,232	66,622,620	80,448,740
Advance Receipts	2,610,485,282	4,076,986,446	14,549,007,385
Accrued Expenses	686,453,313	322,213,194	390,931,114
Accrued Income Tax	133,398,635	755,597,660	227,419,430
Current Portion of Long-Term Debts	125,000,000	6,275,808,000	-
Fixed Liabilities	12,753,000,000	-	6,275,808,000
Long-Term Borrowings	12,753,000,000	-	6,275,808,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	25,137,951,095	59,529,494,396	30,752,213,849
Cost of Sold Goods	19,571,216,248	44,768,287,091	21,454,718,475
Gross Profit	5,566,734,847	14,761,207,305	9,297,495,374
Selling & Admin. Expenses	3,050,520,098	9,781,659,997	8,186,114,264
Operating Income	2,516,214,749	4,979,547,308	1,111,381,110
Non-Operating Income	977,363,535	959,731,669	863,722,389
Non-Operating Expenses	593,406,057	741,922,076	342,073,737
Income Before Taxes	2,900,172,227	5,197,356,901	1,633,029,762
Income Taxes Expenses	542,888,205	900,042,480	347,639,542
Net Income	2,357,284,022	4,297,314,421	1,285,390,220

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	-8,119,109,944	7,564,979,422	7,253,266,355
-Net Income	2,357,284,022	4,297,314,421	1,285,390,220
-Exp. without Cash Outflow	882,014,905	974,376,805	852,977,167
-Revenue without Cash Inflows	-82,230,135	-88,640,713	-91,869,623
-Changes in Asset/ & Liability	-11,276,178,736	2,381,928,909	5,206,768,591
Cash Flows from Investing	-8,345,190,986	-1,149,497,974	-11,911,446,811
-Cash Inflow from Investing	478,239,421	165,207,000	794,699,681
-Cash Outflows for Investing	-8,823,430,407	-1,314,704,974	-12,706,146,492
Cash Flows from Financing	9,328,518,125	-419,408,607	5,889,246,390
-Cash Inflows from Financing	15,604,326,125	-	8,659,246,390
-Cash Outflows from Financing	-6,275,808,000	-419,408,607	-2,770,000,000
Increase/Decrease in Cash	-7,135,782,805	5,996,072,841	1,231,065,934
Cash at the Beginning of Year	7,316,988,310	1,320,915,469	89,849,535
Cash at the End of Year	181,205,505	7,316,988,310	1,320,915,469

Products, Technologies, Services Description

Main Products & Services	Tower Internal, Tower Trays, Packings, Wire Mesh Demister, Mist Eliminators
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

Competitors

AMT PACIFIC CO., LTD.

1ST FL., HANARO BLDG., 194-4, INSA-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-6356-2550 FAX:+82-2-6356-2565

SAMSUNG INDUSTRY CO.

13-1, YANGPYEONGDONG 6-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2677-3400 FAX:+82-2-2677-6363

YJ INDUSTRY CO., LTD.

11-119, INDUSTRIALS GOODS CENTER, 578, GWAEBEOP-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-319-2851 FAX:+82-51-319-2850

Sales by Region (Activity & Markets)

Sales/ Unit : KRW	2013	2012	2011
Export	11,944,203,484	42,328,913,577	17,480,707,742
Domestic	13,193,747,611	17,200,580,819	13,271,506,107
Total	25,137,951,095	59,529,494,396	30,752,213,849

The Subject deals with the companies in USA and Japan.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.43
UK Pound	1	Rs.100.23
Euro	1	Rs.80.35

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIS

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.