MIRA INFORM REPORT

Report Date :

23.12.2014

IDENTIFICATION DETAILS

Name :	UNION TECH CO., LTD.

Registered Office :	98, Wonjeok-ro, Sindun-myeon, Icheon-si, Gyeonggi-do, Korea 467-842

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	27.04.1979

Com. Reg. No.:	126-81-04006

Legal Form :	Co., Ltd by Shares

Line of Business :	Subject is engaged in Tipping Paper

No. of Employees :	30

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

Basic

Company Name	UNION TECH CO., LTD. (Korean Company Name : “(주)유니온테크”)
Registered Address	98, Wonjeok-ro, Sindun-myeon, Icheon-si, Gyeonggi-do, Korea
Building
Zip Code	467-842
Tel	+82-31-632-6041
Fax	+82-31-632-7749
E-mail	bbs2000@paran.com
Website
Trading Address	98, Wonjeok-ro, Sindun-myeon, Icheon-si, Gyeonggi-do, Korea (Old Address System : 381-1, Namjeong-ri, Sindun-myeon, Icheon-si, Gyeonggi-do, Korea)
Tel	+82-31-632-6041
Fax	+82-31-632-7749
Other Address
Tel
Fax
Type	Export
Industry	Other Printing
Main Business	Tipping Paper
Sub Business
Established (mm/dd/yyyy)	04/27/1979

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Cigarette papers or filters(50211607)
Buy	Carbon dioxide gas CO2(12142104)
Buy	Industrial use gases(12142100)
Buy	Paper tubes or cores(24141701)

CEO’s

Name	Yang Yeon-Ho
Address	Suite 107-1302, 24, Jungdae-ro, Songpa-gu, Seoul, Korea
Date of Birth	11/04/1940
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

300,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Shinhan Bank-Icheon Branch

Woori Bank

Industrial Bank of Korea

Corporate Registered No.

134211-0001787

Business Registered No.

126-81-04006

Permit & Licenses

N/A

Shareholder Position

Name	Shares	%
SEOIN TECH CO., LTD.(134511-0152237)	29,000	48.33
WARREN INVEST CO., LTD.(200111-0194723)	29,000	48.33
LEE KYU-SUB	2,000	3.33
TOTAL	60,000	100.00

Company History

04/27/1979 Incorporated as Union Packing Industries Co., Ltd.

04/03/2004 Changed company name to the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Chairman & CEO	Mr.	Yang Yeon-Ho	Male	Korean	03/30/2007
President & CEO	Mr.	Lee Dong-Keun	Male	Korean	09/15/2014
Director	M/S.	Kim Hye-Sook	Female	Korean	03/30/2010
Auditor	Mr.	Jang Byung-Hwan	Male	Korean	03/30/2007

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	18,420,085,704	80,902,748,138	327,965,318
2012	20,367,697,393	80,915,174,936	292,604,922
2011	19,505,253,638	80,867,583,505	79,747,901
2010	18,045,302,101	80,987,090,817	104,567,296
2009	19,003,029,850	81,889,494,350	-241,176,523

Financial Description

Authorized Capital(KRW)	400,000,000
Paid-Up Capital(KRW)	300,000,000
Total Issued 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	80,902,748,138	80,915,174,936	80,867,583,505
Current Assets	2,632,836,497	2,957,905,754	4,160,494,704
-Quick Assets	1,129,522,370	1,531,357,471	2,981,322,307
-Inventories	1,503,314,127	1,426,548,283	1,179,172,397
Fixed Assets	78,269,911,641	77,957,269,182	76,707,088,801
-Investment	2,480,500,000	2,209,635,000	1,127,805,000
-Tangibles	74,903,715,391	75,065,197,432	74,802,847,051
-Intangibles
-Others	885,696,250	682,436,750	776,436,750
Total Liabilities	71,969,441,002	72,309,833,118	72,554,846,609
Current Liabilities	67,304,217,409	67,683,909,866	68,110,598,568
Fixed Liabilities	4,665,223,593	4,625,923,252	4,444,248,041
Capital Stock	300,000,000	300,000,000	300,000,000
Capital Surplus
Profit Surplus	8,633,307,136	8,305,341,818	8,012,736,896
Capital Adjustment
Total Equity	8,933,307,136	8,605,341,818	8,312,736,896
Liab. & Shareholder’s Equity	80,902,748,138	80,915,174,936	80,867,583,505

Current Liabilities	67,304,217,409	67,683,909,866	68,110,598,568
Trade Payables	2,560,340,467	3,204,649,164	3,499,745,796
Short-Term Borrowings	64,150,000,000	64,050,000,000	64,050,000,000
Account Payables	1,078,000	88,000	48,928,000
Accrued Expenses	83,847,763	113,900,165	129,805,902
Accrued Income Tax	51,599,820	47,923,620	5,386,070
Withholdings	44,964,970	32,113,070	52,361,540
VAT Withhold	120,206,891	202,144,560	257,800,280
Current Portion of Long-Term Debts	292,179,498	33,091,287	66,570,980
Fixed Liabilities	4,665,223,593	4,625,923,252	4,444,248,041
Long-Term Borrowings	-	98,000,000	126,000,000
Long-Term Account Payables	556,228,021	17,914,090	-
Leasehold Deposit Received	3,025,000,000	3,463,000,000	3,378,000,000
Provision for Severance & Retirement	1,493,452,369	1,470,002,515	1,337,046,392

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	18,420,085,704	20,367,697,393	19,505,253,638
Cost of Sold Goods	14,354,912,375	15,471,461,799	15,415,617,456
Gross Profit	4,065,173,329	4,896,235,594	4,089,636,182
Selling & Admin. Expenses	1,114,245,525	962,574,651	875,503,641
Operating Income	2,950,927,804	3,933,660,943	3,214,132,541
Non-Operating Income	45,343,287	47,676,458	763,454,912
Non-Operating Expenses	2,565,615,593	3,626,870,339	3,869,308,352
Income Before Taxes	430,655,498	354,467,062	108,279,101
Income Taxes Expenses	102,690,180	61,862,140	28,531,200
Net Income	327,965,318	292,604,922	79,747,901

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	499,406,702	1,690,490,581	-538,675,311
-Net Income	327,965,318	292,604,922	79,747,901
-Exp. without Cash Outflow	1,574,217,687	1,453,183,758	1,560,093,401
-Revenue without Cash Inflows	-7,670,728	-1,197,091	-694,911,591
-Changes in Asset/ & Liability	-1,395,105,575	-54,101,008	-1,483,605,022
Cash Flows from Investing	-1,442,178,654	-2,500,027,615	2,289,731,249
-Cash Inflow from Investing	274,936,728	240,419,091	5,854,425,341
-Cash Outflows for Investing	-1717115382	-2,740,446,706	-3,564,694,092
Cash Flows from Financing	799,402,142	-43,565,603	-171,131,107
-Cash Inflows from Financing	6,936,100,947	26,888,078	-
-Cash Outflows from Financing	-6,136,698,805	-70,453,681	-171,131,107
Increase/Decrease in Cash	-143,369,810	-853,102,637	1,579,924,831
Cash at the Beginning of Year	878,268,692	1,731,371,329	151,446,498
Cash at the End of Year	734,898,882	878,268,692	1,731,371,329

Products, Technologies, Services Description

Main Products & Services	Tipping Paper
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

KT&G CORPORATION(160111-0067804)

Competitors

GIJU CO., LTD.

49-4, NUEUP-DONG, OSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-378-4831 FAX:+82-31-375-4845

JEONG-A IND. CO.

451-3, JEUNGGEO-RI, HYANGNAM-EUP, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-366-3861~3 FAX:+82-31-366-3864

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	VICORY AUTOMOTIVE GROUP LTD(110111-4630566) (33.33% held by the subject company) SEOIN TECH CO., LTD.(134511-0152237) WARREN INVEST CO., LTD.(200111-0194723) UNION INVESTMENT PARTNERS CO., LTD.(110111-1878036)
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured company LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region (Activity & Markets)

The Subject exports to Middle East.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.18
UK Pound	1	Rs.98.85
Euro	1	Rs.77.42

INFORMATION DETAILS

Analysis Done by :	SUM

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.