MIRA INFORM REPORT

Report Date :

31.08.2014

IDENTIFICATION DETAILS

Name :	EWHA PHARMTEK CORP.

Formerly Known As :	EWHA PHARMA CORP.

Registered Office :	5, Seoam-ro 183beon-gil, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	25.05.1982

Com. Reg. No.:	136-81-05910

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Animal Medicaments

No of Employees :	40

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 :	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

Company Name	EWHA PHARMTEK CORP. (Korean Company Name : “이화팜텍(주)”)
Registered Address	5, Seoam-ro 183beon-gil, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea
Zip Code	415-866
Tel	+82-31-997-8661
Fax	+82-31-997-8667
E-mail	ewha@ewhap.com
Website	www.ewhap.com
Trading Address	5, Seoam-ro 183beon-gil, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea (Old Address System : 245-4, Seoam-ri, Tongjin-eup, Gimpo-si, Gyeonggi-do, Korea)
Tel	+82-31-997-8661
Fax	+82-31-997-8667
Type	Export
Industry	Manufacture of Animal Medicaments
Main Business	Veterinary Growth Promoter, Veterinary Anthelmintics, Veterinary Disinfectant, Veterinary Antibacterial Agents
Established (mm/dd/yyyy)	05/25/1982

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Cleaning and disinfecting solutions(47131800)
Sell	Veterinary products(42121600)
Sell	Veterinary anthelmintics(51102500)

CEO’s

Name	Lee Jung-Hyup
Address	Suite 504-1502, 1267, Pung-dong, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea
Date of Birth	02/11/1943
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

300,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Gumdan Branch

Kookmin Bank

Hana Bank

Corporate Registered No.

124411-0001222

Business Registered No.

136-81-05910

Permit & Licenses

Int’l Trade No.: 21011508

Shareholder Position

Name	Shares	%
LEE JUNG-HYUP	22,500	37.50
LEE IM-SOOK	3,000	5.00
LEE KYU-HEE	26,000	43.33
LEE SE-HEE	3,500	5.83
LEE MI-SOON	5,000	8.33
TOTAL	60,000	100.00

Company History

07/04/1977 Established as EWHA PHARMA INDUSTRY CO.(Sole Proprietorship)

05/25/1982 Incorporated as EWHA PHARMA CORP.

11/2002 Changed company name to the present name

11/25/2002 Moved to the present HQ address from San 237-1, Geumgok-dong, Seo-gu, Incheon, Korea

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Jung-Hyup	Male	Korean	01/07/2000
Director	Mr.	Lee Kyu-Hee	Male	Korean	03/31/2007
Auditor	Mr.	Jeon Byung-Joon	Male	Korean	03/31/2001

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	7,713,575,276	16,741,747,619	197,504,444
2012	8,992,453,998	12,691,181,543	342,532,089
2011	9,288,611,314	12,218,356,994	415,133,125
2010	9,858,291,488	12,447,481,413	347,167,881
2009	9,280,261,970	11,890,606,343	311,978,940
2008	7,632,385,803	11,140,403,490	306,588,790
2007	5,883,561,464	12,189,729,121

Financial Description

Authorized Capital(KRW)	400,000,000
Paid-Up Capital(KRW)	300,000,000
Total Issues Shares	60,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	16,741,747,619	12,691,181,543	12,218,356,994
Current Assets	7,105,327,703	6,675,097,922	5,789,275,477
-Quick Assets	4,554,162,587	4,085,310,782	3,756,539,245
-Inventories	2,551,165,116	2,589,787,140	2,032,736,232
Fixed Assets	9,636,419,916	6,016,083,621	6,429,081,517
-Investment	788,826,510	798,846,282	1,393,477,920
-Tangibles	8,837,228,740	4,977,385,673	4,884,251,931
-Intangibles
-Others	10,364,666	239,851,666	151,351,666
Total Liabilities	6,592,543,841	2,747,938,448	2,688,166,117
Current Liabilities	2,631,243,841	2,281,306,448	2,238,166,117
Fixed Liabilities	3,961,300,000	466,632,000	450,000,000
Capital Stock	300,000,000	300,000,000	300,000,000
Capital Surplus			-
Profit Surplus	9,818,612,167	9,621,107,723	9,278,575,634
Capital Adjustment	30,591,611	22,135,372	-48,384,757
Total Equity	10,149,203,778	9,943,243,095	9,530,190,877
Liab. & Shareholder’s Equity	16,741,747,619	12,691,181,543	12,218,356,994

Current Liabilities	2,631,243,841	2,281,306,448	2,238,166,117
Trade Payables	268,919,605	516,110,948	493,154,248
Account Payables	1,277,648,666	293,121,236	386,778,974
Withholdings	11,969,830	11,310,990	18,150,267
VAT Withhold	-	17,670,557	93,644,530
Short-Term Borrowings	900,000,000	1,000,000,000	1,100,000,000
Accrued Income Tax	-	958,624	-
Accrued Expenses	8,505,740	2,966,093	3,138,098
Current Portion of Long-Term Debts	58,400,000	333,368,000	37,500,000
Short-Term Borrowings to Shareholders/ Executives/ Employees	105,800,000	105,800,000	105,800,000
Fixed Liabilities	3,961,300,000	466,632,000	450,000,000
Long-Term Borrowings	3,961,300,000	466,632,000	450,000,000
Provision for Severance & Retirement	-	1,714,730	2,347,240

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	7,713,575,276	8,992,453,998	9,288,611,314
Cost of Sold Goods	5,532,814,325	6,628,447,517	6,624,221,529
Gross Profit	2,180,760,951	2,364,006,481	2,664,389,785
Selling & Admin. Expenses	1,963,670,036	1,905,728,876	2,117,689,815
Operating Income	217,090,915	458,277,605	546,699,970
Non-Operating Income	98,512,165	123,216,952	64,923,353
Non-Operating Expenses	118,098,636	234,496,194	196,490,198
Income Before Taxes	197,504,444	346,998,363	415,133,125
Income Taxes Expenses	-	4,466,274	-
Net Income	197,504,444	342,532,089	415,133,125

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,220,503,554	570,173,722	545,282,099
-Net Income	197,504,444	342,532,089	415,133,125
-Exp. without Cash Outflow	349,522,170	308,185,647	361,069,169
-Revenue without Cash Inflows	-	-2,993,441	-919,849
-Changes in Asset/ & Liability	673,476,940	-77,550,573	-230,000,346
Cash Flows from Investing	-4,514,273,325	-470,639,356	-46,260,473
-Cash Inflow from Investing	85,598,556	1,479,084,718	34,517,887
-Cash Outflows for Investing	-4,599,871,881	-1,949,724,074	-80,778,360
Cash Flows from Financing	3,119,700,000	212,500,000	60,000,000
-Cash Inflows from Financing	4,093,068,000	350,000,000	730,000,000
-Cash Outflows from Financing	-973,368,000	-137,500,000	-670,000,000
Increase/Decrease in Cash	-174,069,771	312,034,366	559,021,626
Cash at the Beginning of Year	1,129,851,263	817,816,897	258,795,271
Cash at the End of Year	955,781,492	1,129,851,263	817,816,897

Products, Technologies, Services Description

Main Products & Services

Veterinary Growth Promoter, Veterinary Anthelmintics, Veterinary Disinfectant, Veterinary Antibacterial Agents

Trade Partners & Competitors

Competitors

WOOSUNG CO., LTD.

33-19, TOYANG-RI, EUNJIN-MYEON, NONSAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-741-7836~40 FAX:+82-41-742-6205

GREEN CROSS VETERINARY PRODUCTS CO., LTD.

SINAM NONGGONG DANJI, 254, DUGOK-RI, SINAM-MYEON, YESAN-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-332-6346~7 FAX:+82-41-332-6348

VIXXOL CORPORATION

220-10, ANYANG 7-DONG, MANAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-467-6767 FAX:+82-31-468-1502

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

NONGHYUP PROPERTY & CASUALTY INSURANCE CO., LTD.(110111-4809369)

Sales by Region

(Activity & Markets)

The Subject exports to Bangladeshi, France, Germany, Japan and Netherlands.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	SHG

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.