MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	BN STEELA CO., LTD.

Registered Office :	1817, Jungang-daero, Geumjeong-gu, Busan, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	11.12.2008

Com. Reg. No.:	621-81-77891

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Guilt, Coloration, Surface Processing Steel Materials

No. of Employees :	191

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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	BN STEELA CO., LTD.
Registered Address	1817, Jungang-daero, Geumjeong-gu, Busan, Korea (Old Address System : 84-18, Guseo 1-dong, Geumjeong-gu, Busan, Korea)
Building	BN Bldg.
Zip Code	609-854
Tel	+82-51-519-2000
Fax	+82-51-519-2015
E-mail	webmaster@bn-korea.com
Website	www.steela.com

Trading Address	2FL., Gasan Bldg., 85, Seochojungang-ro, Seocho-gu, Seoul, Korea (Old Address System : 2FL., Gasan Bldg., 1577-4, Seocho 3-dong, Seocho-gu, Seoul, Korea)
Tel	+82-2-598-6611
Fax	+82-2-3474-6700

Other Address-Asan Factory	587, Dongam-ri, Eumbong-myeon, Asan-si, Chungcheongnam-do, Korea
Tel	+82-41-541-9911
Fax	+82-41-541-9929

Other Address-Noksan Factory	96, Noksansaneopbuk-ro 313beon-gil, Gangseo-gu, Busan, Korea (Old Address System : 1597-1, Songjeong-dong, Gangseo-gu, Busan, Korea)
Tel	+82-51-600-8300
Fax	+82-51-600-8338

Other Address-Junam Branch	63, Sojugongdan 1-gil, Yangsan-si, Gyeongsangnam-do, Korea (Old Address System : 540-2, Junam-dong, Yangsan-si, Gyeongsangnam-do, Korea)

Type	Export/Import
Industry	Manufacture of Guilt, Coloration, Surface Processing Steel Materials
Main Business	PCM, VCM, Construction Materials, Metal Furniture, Steel Panel

Established (mm/dd/yyyy)	12/11/2008

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Steel plate(30102204)
Sell	Surface treatment services(73181020)

CEO’s

Name	Cho Eui-Je
Address	Suite 102-403, 261, Geumsaem-ro, Geumjeong-gu, Busan, Korea
Date of Birth	10/12/1952
Title	Co-President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

4,500,000,000

Employees

191

Formation

Co., Ltd by Shares

Bank Details

Korea Development Bank

Busan Bank

Citibank, Korea

Corporate Registered No.

180111-0654954

Business Registered No.

621-81-77891

Permit & Licenses

Int’l Trade No.: 30653265

Shareholder Position

Name	Shares	%
BN STEEL CO., LTD.(184511-0012910)	9,000,000	100.00
TOTAL	9,000,000	100.00

Company History

12/11/2008 Incorporated as the present name after spin off from BN STEEL CO., LTD.

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Co-President & CEO	Mr.	Cho Eui-Je	Male	Korean	01/02/2013
Co-President & CEO	Mr.	Lee Dong-Oh	Male	Korean	03/05/2010
Director	Mr.	Cho Seong-Je	Male	Korean	03/14/2013
Outside Director	Mr.	Lee Woo-Bong	Male	Korean	03/17/2011
Auditor	Mr.	Ha Sun-Kyu	Male	Korean	03/17/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	151,985,977,185	126,665,771,923	3,048,401,772
2012	152,732,136,633	138,489,458,233	4,941,340,456
2011	146,055,359,871	136,072,426,057	-4,487,436,760
2010	159,191,157,340	65,945,084,776	7,285,109,196
2009	139,674,167,556	63,665,600,255	8,604,184,849
2008	10,253,358,809	62,085,313,121	2,284,146,788

Financial Description

Authorized Capital(KRW)	18,000,000,000
Paid-Up Capital(KRW)	4,500,000,000
Total Issues Shares	9,000,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	126,665,771,923	138,489,458,233	136,072,426,057
Current Assets	29,742,221,174	39,970,710,701	29,494,313,251
-Quick Assets	18,244,614,050	24,038,955,552	11,881,301,289
-Inventories	11,497,607,124	15,931,755,149	17,613,011,962
Fixed Assets	96,923,550,749	98,518,747,532	106,578,112,806
-Investment	71,533,375,250	73,330,493,428	75,490,623,701
-Tangibles	21,392,604,437	21,655,730,157	26,362,700,902
-Intangibles	30,163,695	36,298,683	42,433,671
-Others	3,967,407,367	3,496,225,264	4,682,354,532
Total Liabilities	84,554,931,778	99,427,019,860	101,951,306,195
Current Liabilities	26,442,510,552	99,185,892,248	30,310,005,553
Fixed Liabilities	58,112,421,226	241,127,612	71,641,300,642
Capital Stock	4,500,000,000	4,500,000,000	4,500,000,000
Capital Surplus	17,060,093,844	17,060,093,844	17,060,093,844
Profit Surplus	20,550,746,301	17,502,344,529	12,561,004,073
Capital Adjustment			21,945
Total Equity	42,110,840,145	39,062,438,373	34,121,119,862
Liab. & Shareholder’s Equity	126,665,771,923	138,489,458,233	136,072,426,057

Current Liabilities	26,442,510,552	99,185,892,248	30,310,005,553
Trade Payables	9,570,658,898	10,682,205,498	11,484,393,427
Short-Term Borrowings	13,037,280,000	14,980,000,000	16,881,280,000
Account Payables	447,815,937	503,348,853	387,686,581
Advance Receipts	-	10,298,545	-
Withholdings	86,134,522	56,526,386	56,213,722
Current Portion of Long-Term Debts	1,620,000,000	70,000,000,000	-
Accrued Expenses	1,025,895,124	1,198,015,210	1,321,725,616
Deferred Income Tax	3,347,153	13,517,464	2,511,905
Leasehold Deposit Received	5,000,000	-	10,000,000
Deferred Income Tax Credit	646,378,918	1,741,980,292	166,194,302
Fixed Liabilities	58,112,421,226	241,127,612	71,641,300,642
Long-Term Borrowings	57,880,000,000	-	71,188,437,900
Provision for Severance & Retirement	1,913,852,977	1,524,407,859	1,152,248,652
Withholdings	3,000,000	3,000,000	3,000,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	151,985,977,185	152,732,136,633	146,055,359,871
Cost of Sold Goods	135,287,468,864	133,497,252,064	130,558,731,624
Gross Profit	16,698,508,321	19,234,884,569	15,496,628,247
Selling & Admin. Expenses	8,161,717,410	7,887,404,664	9,325,795,787
Operating Income	8,536,790,911	11,347,479,905	6,170,832,460
Non-Operating Income	2,636,423,220	2,561,018,153	762,664,899
Non-Operating Expenses	7,099,491,685	7,385,904,452	12,483,483,307
Income Before Taxes	4,073,722,446	6,522,593,606	-5,549,985,948
Income Taxes Expenses	1,025,320,674	1,581,253,150	-1,062,549,188
Net Income	3,048,401,772	4,941,340,456	-4,487,436,760

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	3,609,653,862	9,707,675,953	5,625,471,850
-Net Income	3,048,401,772	4,941,340,456	-4,487,436,760
-Exp. without Cash Outflow	4,461,813,139	3,999,804,705	10,420,909,036
-Revenue without Cash Inflows	-1,948,072,927	-2,090,239,772	-97,667,713
-Changes in Asset/ & Liability	-1,952,488,122	2,856,770,564	-210,332,713
Cash Flows from Investing	5,023,917,159	-3,524,118,870	-81,082,809,137
-Cash Inflow from Investing	11,189,808,239	9,281,153,153	6,505,607,790
-Cash Outflows for Investing	-6,165,891,080	-12,805,272,023	-87,588,416,927
Cash Flows from Financing	-10,495,000,000	-1,198,437,900	72,696,108,726
-Cash Inflows from Financing	32,405,000,000	2,376,875,800	122,088,437,900
-Cash Outflows from Financing	-42,900,000,000	-3,575,313,700	-49,392,329,174
Increase/Decrease in Cash	-1,861,428,979	4,985,119,183	-2,761,228,561
Cash at the Beginning of Year	5,788,674,162	803,554,979	3,564,783,540
Cash at the End of Year	3,927,245,183	5,788,674,162	803,554,979

Products, Technologies, Services Description

Main Products & Services

PCM, VCM, Construction Materials, Metal Furniture, Steel Panel

Trade Partners & Competitors

Suppliers

LG CHEM LTD.(110111-2207995)

POSCO(174611-0000741)

Customers

LG HAUSYS,LTD.(110111-4071207)

Competitors

SEIL STEEL CO., LTD.

RM. 514, WOOLIM LION`S VALLEY 2-CHA, 680, GASAN-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-864-1011 FAX:+82-2-864-2267

SINJIN SM

262-5, JUNGDAE-DONG, GWANGJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-761-7871 FAX:+82-31-761-7869

HANSHIN COLOR STEEL CO., LTD.

2-213, SIHEUNG CHEOLJAE COMPLEX, 966, SIHEUNG 3-DONG, GEUMCHEON-GU, SEOUL, KOREA

TEL:+82-2-807-7515 FAX:+82-2-807-7514

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	BN STEEL CO., LTD.(184511-0012910) BIP INDUSTRIES CO., LTD.(180111-0031326) COSMO CO., LTD.(180111-0124246) BIPEX CO., LTD.(180111-0557752) BN CHEMICAL CO., LTD.(180111-0743799) BAUM CREATIVE CO., LTD.(180111-0772508) BUSAN REPAIRING SHIPS CO., LTD.(180111-0835950) (32.50% held by the subject company) BIP INTERNATIONAL INC BIP CO., LTD
Subsidiary	DAESUN DISTILLING CO., LTD.(180111-0004894) (50.0% held by the subject company)
Corporate Ownership	BN STEEL CO., LTD.(184511-0012910)
Major Shareholders	BN STEEL CO., LTD.(184511-0012910)
Cooperative Enterprise	-Insured Company LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Analysis Done by :	DIV

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.