MIRA INFORM REPORT

Report Date :

06.12.2014

IDENTIFICATION DETAILS

Name :	TARA DISTRIBUTION CO., LTD.
Formerly Known As :	TARA PAPER DISTRIBUTION CO.LTD. HAYAN DISTRIBUTION CO., LTD.
Registered Office :	34, Sangamsan-Ro, Mapo-Gu, Seoul
Country :	South Korea
Financials (as on) :	31.12.2013
Date of Incorporation :	28.02.1998
Com. Reg. No.:	218-81-22088
Legal Form :	Co., Ltd by Shares
Line of Business :	Wholesale of Materials for Recycling and Other Specialized Goods n.e.c.
No. of Employees :	60

RATING & COMMENTS

MIRA’s Rating :

Ba

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
South Korea	A1	A1

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	TARA DISTRIBUTION CO., LTD.
Registered Address	34, Sangamsan-ro, Mapo-gu, Seoul, Korea
Building	9FL., Digital Cube Bldg.
Zip Code	121-904
Tel	82-2-846-6001
Fax	82-2-847-1700
E-mail	tarapaper@tarapaper.co.kr
Website	www.tarapaper.co.kr
Trading Address	9FL., Digital Cube Bldg., 34, Sangamsan-ro, Mapo-gu, Seoul, Korea (Old Address System : 9FL., Digital Cube Bldg., 1647, Sangam-dong, Mapo-gu, Seoul, Korea)
Tel	82-2-846-6001
Fax	82-2-847-1700
Other Address	397-7, Osan-ri, Jori-eup, Paju-si, Gyeonggi-do, Korea
Type	Export/Import
Industry	Wholesale of Materials for Recycling and Other Specialized Goods n.e.c.
Main Business	Printing Paper, Board
Established (mm/dd/yyyy)	02/28/1998

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Art or craft paper(14111606)
Sell	Unbleached paperboard(14121502)
Sell	Printing and writing paper(14111500)

CEO’s

Name	Kang Kyung-Joong
Address	46, Daesagwan-ro 11na-gil, Seongbuk-gu, Seoul, Korea
Date of Birth	09/06/1952
Title	Co-President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

800,000,000

Employees

60

Formation

Co., Ltd by Shares

Bank Details

Woori Bank-Boramae Branch

Shinhan Bank

Corporate Registered No.

110111-1517931

Business Registered No.

218-81-22088

Permit & Licenses

Int’l Trade No.: 11624558

Shareholder Position

Name	Shares	%
KANG KYUNG-JOONG	132,788	83.00
OTHERS(30)	27,212	17.00
TOTAL	160,000	100.00

Company History

02/28/1998 Incorporated as Hayan Distribution Co., Ltd.

03/30/1999 Increased the authorized shares to 200,000 shares from 40,000 shares

04/02/1999 Increased capital to 800,000,000 KRW from 200,000,000 KRW

06/30/1999 Changed company name to TARA PAPER DISTRIBUTION CO., LTD.,

03/31/2011 Changed company name to the present name

10/10/2014 Moved to the present HQ address from 30, World Cup buk-ro 6-gil, Mapo-gu, Seoul, Korea

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Co-President & CEO	Mr.	Kang Kyung-Joong	Male	Korean	01/10/2014
Co-President & CEO	Mr.	Park Woo-Wan	Male	Korean	03/31/2010
Director	Mr.	Park Kyung-Joo	Male	Korean	10/10/2014
Auditor	Mr.	Park Young-Ho	Male	Korean	04/24/2012

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	144,186,842,542	45,086,936,904	736,803,312
2012	149,371,951,952	47,285,617,073	851,756,876
2011	153,750,467,210	47,927,135,645	-2,053,348,552
2010	152,492,676,556	45,702,110,518	1,960,976,689
2009	127,162,590,724	48,490,150,069	3,197,416,958

Financial Description

Authorized Capital(KRW)	1,000,000,000
Paid-Up Capital(KRW)	800,000,000
Total Issued Shares	160,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	45,086,936,904	47,285,617,073	47,927,135,645
Current Assets	36,913,311,919	39,859,794,091	40,013,811,362
-Quick Assets	30,389,116,311	33,106,706,534	32,864,888,581
-Inventories	6,524,195,608	6,753,087,557	7,148,922,781
Fixed Assets	8,173,624,985	7,425,822,982	7,913,324,283
-Investment	613,005,893	694,423,493	1,250,189,168
-Tangibles	3,505,418,071	3,603,950,662	3,729,827,724
-Intangibles	29,703,333	54,633,333	84,433,333
-Others	4,025,497,688	3,072,815,494	2,848,874,058
Total Liabilities	23,503,419,093	26,356,617,172	27,872,777,628
Current Liabilities	23,134,164,259	26,008,454,069	27,400,097,587
Fixed Liabilities	369,254,834	348,163,103	472,680,041
Capital Stock	800,000,000	800,000,000	800,000,000
Capital Surplus	244,184,700	245,399,100	245,399,100
Profit Surplus	20,762,486,028	20,176,123,716	19,403,066,218
Capital Adjustment	-223,152,917	-292,522,915	-394,107,301
Total Equity	21,583,517,811	20,928,999,901	20,054,358,017
Liab. & Shareholder’s Equity	45,086,936,904	47,285,617,073	47,927,135,645

Current Liabilities	23,134,164,259	26,008,454,069	27,400,097,587
Trade Payables	20,441,076,283	23,161,045,809	24,600,314,729
Short-Term Borrowings	2,000,000,000	1,900,000,000	2,000,000,000
Account Payables	107,191,600	75,906,434	88,348,099
Withholdings	18,008,970	11,942,042	44,121,793
VAT Withhold	248,947,194	308,812,203	331,016,180
Guarantee Deposit Withhold	100,000,000	-
Advance Receipts	45,849,935	37,439,439	-
Accrued Expenses	83,065,689	177,079,481	47,962,389
Accrued Income Tax	90,024,588	336,228,661	288,334,397
Fixed Liabilities	369,254,834	348,163,103	472,680,041
Provision for Severance & Retirement	71,304,834	50,213,103	174,730,041
Leasehold Deposit Received	297,950,000	297,950,000	297,950,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	144,186,842,542	149,371,951,952	153,750,467,210
Cost of Sold Goods	137,218,907,920	141,573,150,578	146,691,298,786
Gross Profit	6,967,934,622	7,798,801,374	7,059,168,424
Selling & Admin. Expenses	5,868,166,075	5,061,440,711	4,963,143,733
Operating Income	1,099,768,547	2,737,360,663	2,096,024,691
Non-Operating Income	99,051,398	169,421,648	441,378,001
Non-Operating Expenses	265,655,371	1,129,049,137	5,115,994,746
Income Before Taxes	933,164,574	1,777,733,174	-2,578,592,054
Income Taxes Expenses	196,361,262	925,976,298	-525,243,502
Net Income	736,803,312	851,756,876	-2,053,348,552

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	-565,653,601	-1,303,642,685	1,275,883,387
-Net Income	736,803,312	851,756,876	-2,053,348,552
-Exp. without Cash Outflow	1,398,941,049	1,711,147,910	5,729,981,836
-Revenue without Cash Inflows	-44,726,978	-123,290,747	-12,920,973
-Changes in Asset/ & Liability	-2,656,670,984	-3,743,256,724	-2,387,828,924
Cash Flows from Investing	-126,551,084	-1,286,477	-379,048,940
-Cash Inflow from Investing	453,964,362	367,181,818	212,800,000
-Cash Outflows for Investing	-580,515,446	-368,468,295	-591,848,940
Cash Flows from Financing	18,559,000	-100,000,000	-703,141,000
-Cash Inflows from Financing	169,000,000	-	17,880,000,000
-Cash Outflows from Financing	-150,441,000	-100,000,000	-18,583,141,000
Increase/Decrease in Cash	-673,645,685	-1,404,929,162	193,693,447
Cash at the Beginning of Year	1,166,174,575	2,571,103,737	2,377,410,290
Cash at the End of Year	492,528,890	1,166,174,575	2,571,103,737

Products, Technologies, Services Description

Main Products & Services	Printing Paper, Board
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers	HANKUK PAPER MFG. CO., LTD.(110111-0002818)
Customers	TARA TPS CO., LTD.(110111-0965090) DAEKYO CO.,LTD.(110111-0514029)
Competitors	HANSOL PAPER CO.,LTD.(110111-0017867) ARTONE PAPER MFG. CO.,LTD. (134811-0000034) HANKUK PAPER MFG CO., LTD.(110111-0002818) HONG WON PAPER MFG CO., LTD.(110111-0239221)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

TARA TPS CO., LTD.(110111-0965090) TARA GRAPHICS CO., LTD.(110111-2040907) (30.0% held by the subject company) ORAEDEON MIRA CO., LTD.(110111-4813352) (27.27% held by the subject company)

Sales by Region (Activity & Markets)

The Subject deals with the companies in Norway and Japan.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

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.