MIRA INFORM REPORT

Report Date :

20.12.2014

IDENTIFICATION DETAILS

Name :	KP TECH CO., LTD.

Registered Office :	37, Simigok-ro, Idong-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, 449-831

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	06.01.1988

Com. Reg. No.:	135-81-15211

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Plastic Films, Sheets and Plates

No. of Employees :	65

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 :	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 – 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	KP TECH CO., LTD.
Registered Address	37, Simigok-ro, Idong-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea
Building
Zip Code	449-831
Tel	+82-31-321-4400
Fax	+82-31-321-4407
E-mail	skyhawk@ekptech.co.kr;happy@ekptech.co.kr;kdlim@ekptech.co.kr
Website	www.ekptech.co.kr
Trading Address	37, Simigok-ro, Idong-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea (Old Address System : 251-4, Deokseong-ri, Idong-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea)
Tel	+82-31-321-4400
Fax	+82-31-321-4407
Other Address	173, Hoejuk-ri, Gwanghyewon-myeon, Jincheon-gun, Chungbuk, Korea
Tel
Fax
Type	Export/Import
Industry	Manufacture of Plastic Films, Sheets and Plates
Main Business	PVC Sheet, A-PET Sheet, PVDC Sheet, Alu-Foil Sheet, PLA Sheet
Sub Business
Established (mm/dd/yyyy)	01/06/1988

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Packaging films(24141514)
Sell	Plastic sheet(30102515)
Sell	Films(13111200)

CEO’s

Name	Baik Jong-Doo
Address	Suite 901, 462-2, Dogok-dong, Gangnam-gu, Seoul, Korea
Date of Birth	04/05/1952
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,600,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Korea Development Bank

Industrial Bank of Korea

Corporate Registered No.

110111-0556310

Business Registered No.

135-81-15211

Permit & Licenses

09/22/2005 ISO 9001

09/22/2005 ISO 14001

Int’l Trade No.: 11164964

Shareholder Position

Name	Shares	%
BAIK JONG-DOO	1,800,000	56.25
LIM MYUNG-JA	540,000	16.88
OTHERS	860,000	26.87
TOTAL	3,200,000	100.00

Company History

06/1981 Established as Hyundai Vinyl Company

01/06/1988 Incorporated as Hyundai Vinyl Co., Ltd.

03/30/2002 Increased the authorized shares to 10,000,000 shares from 500,000 shares

04/26/2002 Changed company name to the present name

05/18/2002 Spin off the par value to 500 KRW from 10,000 KRW

11/18/2003 Decreased capital to 1,600,000,000 KRW from 2,000,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Baik Jong-Doo	Male	Korean	02/19/2000
Director	Mr.	Na Jung-Chan	Male	Korean	12/14/2001
Director	Mr.	Cho Young-Ki	Male	Korean	03/30/2002
Director	Mr.	Baik Woo-Soon	Male	Korean	05/01/2012
Auditor	M/S.	Lim Myung-Ja	Female	Korean	03/31/2005

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	51,703,281,609	46,119,095,715	3,846,496,007
2012	51,301,471,974	45,717,651,652	3,273,406,901
2011	50,212,518,882	38,859,262,042	2,290,100,016
2010	40,736,983,107	34,450,197,155	1,714,304,837
2009	36,405,766,963	29,186,464,280	1,780,869,815
2008	30,230,881,235	26,593,965,600	85,990,956
2007	29,127,348,661	24,810,625,983	339,880,081
2006	31,539,390,273	24,567,049,116	2,778,625,880
2005	28,915,243,714	21,065,864,011	2,204,862,048

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	1,600,000,000
Total Issues Shares	3,200,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	46,119,095,715	45,717,651,652	38,859,262,042
Current Assets	29,834,615,193	28,949,417,282	27,292,585,805
-Quick Assets	23,480,134,020	21,731,261,595	21,204,113,039
-Inventories	6,354,481,173	7,218,155,687	6,088,472,766
Fixed Assets	16,284,480,522	16,768,234,370	11,566,676,237
-Investment	722,730,150	618,893,900	636,207,098
-Tangibles	15,474,284,572	16,061,874,670	10,843,003,339
-Intangibles
-Others	87,465,800	87,465,800	87,465,800
Total Liabilities	15,799,138,594	19,244,190,538	15,545,378,652
Current Liabilities	12,016,371,884	11,288,783,828	10,611,931,942
Fixed Liabilities	3,782,766,710	7,955,406,710	4,933,446,710
Capital Stock	1,600,000,000	1,600,000,000	1,600,000,000
Capital Surplus
Profit Surplus	28,719,957,121	24,873,461,114	21,713,883,390
Capital Adjustment
Total Equity	30,319,957,121	26,473,461,114	23,313,883,390
Liab. & Shareholder’s Equity	46,119,095,715	45,717,651,652	38,859,262,042

Current Liabilities	12,016,371,884	11,288,783,828	10,611,931,942
Trade Payables	2,152,408,605	1,731,670,354	2,194,850,155
Account Payables	1,519,124,021	1,333,503,109	887,025,074
Withholdings	93,385,900	154,060,430	148,159,810
VAT Withhold			155,554,800
Advance Receipts	10,801,744	29,460,579	25,574,816
Short-Term Borrowings	6,001,575,867	6,000,675,851	6,023,404,846
Deferred Income Tax	557,678,390	346,574,840	506,194,100
Accrued Expenses	14,757,357	26,198,665	24,528,341
Current Portion of Long-Term Debts	1,666,640,000	1,666,640,000	646,640,000
Fixed Liabilities	3,782,766,710	7,955,406,710	4,933,446,710
Long-Term Borrowings	1,083,320,000	5,699,960,000	2,750,000,000
Leasehold Deposit Received	105,000,000	105,000,000	25,000,000
Provision for Severance & Retirement	2,594,446,710	2,150,446,710	2,158,446,710

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	51,703,281,609	51,301,471,974	50,212,518,882
Cost of Sold Goods	44,061,587,724	42,869,247,027	43,459,272,240
Gross Profit	7,641,693,885	8,432,224,947	6,753,246,642
Selling & Admin. Expenses	2,592,857,694	4,011,215,252	3,398,105,998
Operating Income	5,048,836,191	4,421,009,695	3,355,140,644
Non-Operating Income	309,176,761	301,749,795	189,196,514
Non-Operating expenses	565,359,285	572,915,569	477,351,712
Income Before Taxes	4,792,653,667	4,149,843,921	3,066,985,446
Income Taxes Expenses	946,157,660	876,437,020	776,885,430
Net Income	3,846,496,007	3,273,406,901	2,290,100,016

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	6,485,421,810	2,216,950,374	1,235,089,914
-Net Income	3,846,496,007	3,273,406,901	2,290,100,016
-Exp. without Cash Outflow	2,967,343,854	2,296,140,479	1,757,282,293
-Revenue without Cash Inflows	-34,998,757	-	-23,252,503
-Changes in Asset/ & Liability	-293,419,294	-3,352,597,006	-2,789,039,892
Cash Flows from Investing	-1,076,402,874	-6,954,965,103	-2,348,660,000
-Cash Inflow from Investing	6,182,002,796	9,701,014,814	5,773,536,991
-Cash Outflows for Investing	-7,258,405,670	-16,655,979,917	-8,122,196,991
Cash Flows from Financing	-4,615,739,984	4,027,231,005	1,230,124,846
-Cash Inflows from Financing	1,591,274	6,050,675,851	5,945,673,156
-Cash Outflows from Financing	-4,617,331,258	-2,023,444,846	-4,715,548,310
Increase/Decrease in Cash	793,278,952	-710,783,724	116,554,760
Cash at the Beginning of Year	1,818,301,940	2,529,085,664	2,412,530,904
Cash at the End of Year	2,611,580,892	1,818,301,940	2,529,085,664

Products, Technologies, Services Description

Main Products & Services

PVC Rigid Sheet

A-PET Sheet

PLA

DECO Sheet

Detailed Products Spec.

Technologies Acquired

Trade Partners & Competitors

Suppliers

LG CHEM LTD(110111-2207995)

AUSTRIA PATZ

PERLEN PAPIER AG

PERLENRING 1 CH-6035 PERLEN

TEL:+41 41 455 80 00 FAX:+41 41 455 80 01

Customers

WOOSUN CHEM CO., LTD.(134511-0109874)

Competitors

EUNG SUNG CHEMICAL CO., LTD.

115-2, MAMYEONG-RI, NAECHON-MYEON, POCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-532-8034 FAX:+82-31-532-8039

PLAWOOD KOREA CO., LTD.

286, SAENG-RI, SAENGGEUK-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-878-6961 FAX:+82-43-878-6918

HANSE CORPORATION

A-851, SIGMA 2 OFFICETEL, 18, GUMI-DONG, BUNDANG-GU, SEONGNAM-SI, GYEONGGI-DO, KOREA

TEL:+82-31-711-3100 FAX:+82-31-711-3150

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

WOOSUN CHEM CO., LTD.(134511-0109874)

Cooperative Enterprise

-Insured company

LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region (Activity & Markets)

The Subject deals with the companies in Austria and Switzerland.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.07
UK Pound	1	Rs.98.73
Euro	1	Rs.77.46

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.