MIRA INFORM REPORT

Report Date :

27.12.2014

IDENTIFICATION DETAILS

Name :	HAFELE KOREA, INC.

Registered Office :	159, Guksabong-ro, Docheok-myeon, Gwangju-si, Gyeonggi-do, Korea 464-883

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	28.11.1995

Com. Reg. No.:	229-81-06021

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesale of Hardware and Handtools

No. of Employees :	93

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	HAFELE KOREA, INC. (Korean Company Name : “헤펠레코리아(주)”)
Registered Address	159, Guksabong-ro, Docheok-myeon, Gwangju-si, Gyeonggi-do, Korea (Old Address System : 659, Jinu-ri, Docheok-myeon, Gwangju-si, Gyeonggi-do, Korea)
Building
Zip Code	464-883
Tel	+82-31-760-7600
Fax	+82-31-760-7609
E-mail	webmaster@hafeleshop.co.kr
Website	www.hafele.co.kr
Trading Address	Hafele Bldg., 6, Hakdong-ro 38-gil, Gangnam-gu, Seoul, Korea
Tel	+82-2-3446-4101
Fax	+82-2-3444-4101
Other Address
Tel
Fax
Type	Import
Industry	Wholesale of Hardware and Handtools
Main Business	Furniture and Architectural Hardware, Natural Paint
Sub Business	Electronic Commerce Via Internet
Established (mm/dd/yyyy)	11/28/1995

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Paint systems(23153500)
Sell	Paints and primers(31211500)

CEO’s

Name	Park Myung-Kyu
Address	99, Hyeongchon-gil, Seocho-gu, Seoul, Korea
Date of Birth	08/18/1950
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

11,000,000,000

Employees

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Kookmin Bank

Shinhan Bank

Citibank, Korea

Nonghyup Bank-Seoul

Corporate Registered No.

110111-1217276

Business Registered No.

229-81-06021

Permit & Licenses

Int’l Trade No.: 11297570

Shareholder Position

Name	Shares	%
HAFELE HOLDING GMBH & CO(GERMANY)	11,000	100.00
TOTAL	11,000	100.00

Company History

11/28/1995 Incorporated as the present name

11/21/1995 Registered as a Foreign Direct Investment Corporation

03/15/2011 Increased the authorized shares to 11,000 shares from 9,400 shares

03/17/2011 Increased capital to 11,000,000,000 KRW from 9,400,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Park Myung-Kyu	Male	Korean	08/26/1999
Director	Mr.	Civile Sierer	Male	German	09/15/2003
Director	Mr.	Stefan Michael Huber	Male	German	09/15/2003
Auditor	Mr.	Baik Jong-Yeol	Male	Korean	08/26/2002

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	31,930,092,014	28,974,721,891	385,022,319
2012	30,567,664,414	28,367,135,831	165,630,688
2011	30,003,123,910	27,133,567,991	580,011,573
2010	28,682,809,954	23,272,409,199	1,037,191,431
2009	30,832,846,966	22,016,956,661	776,977,872

Financial Description

Authorized Capital(KRW)	11,000,000,000
Paid-Up Capital(KRW)	11,000,000,000
Total Issued Shares	11,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	28,974,721,891	28,367,135,831	27,133,567,991
Current Assets	12,157,388,413	11,202,475,948	12,950,747,902
-Quick Assets	6,353,117,661	5,436,271,418	6,749,452,303
-Inventories	5,804,270,752	5,766,204,530	6,201,295,599
Fixed Assets	16,817,333,478	17,164,659,883	14,182,820,089
-Investment	172,500,000	82,500,000	-
-Tangibles	16,039,032,745	16,500,180,862	13,657,116,547
-Intangibles	44,188,161	49,774,548	20,424,844
-Others	561,612,572	532,204,473	505,278,698
Total Liabilities	14,535,684,946	14,313,121,205	13,018,785,215
Current Liabilities	11,559,619,446	12,901,661,455	11,752,492,965
Fixed Liabilities	2,976,065,500	1,411,459,750	1,266,292,250
Capital Stock	11,000,000,000	11,000,000,000	11,000,000,000
Capital Surplus
Profit Surplus	3,439,036,945	3,054,014,626	3,124,015,596
Capital Adjustment
Total Equity	14,439,036,945	14,054,014,626	14,114,782,776
Liab. & Shareholder’s Equity	28,974,721,891	28,367,135,831	27,133,567,991

Current Liabilities	11,559,619,446	12,901,661,455	11,752,492,965
Trade Payables	2,250,070,664	2,418,938,756	2,736,159,550
Short-Term Borrowings	8,200,000,000	9,571,992,071	7,795,360,619
Account Payables	399,330,472	478,118,932	377,299,577
Accrued Expenses	279,801,290	114,201,920	214,149,593
Accrued Income Tax			123,737,916
Advance Receipts	78,319,641	106,828,544	300,096,630
Withholdings	43,678,435	41,083,505	38,890,590
VAT Withhold	308,418,944	170,497,727	166,798,490
Fixed Liabilities	2,976,065,500	1,411,459,750	1,266,292,250
Long-Term Borrowings	1,300,000,000	-
Provision for Severance & Retirement	1,287,157,000	1,061,551,250	941,383,750
Leasehold Deposit Received	395,000,000	356,000,000	331,000,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	31,930,092,014	30,567,664,414	30,003,123,910
Cost of Sold Goods	22,219,553,969	22,216,878,606	21,316,760,579
Gross Profit	9,710,538,045	8,350,785,808	8,686,363,331
Selling & Admin. Expenses	9,011,491,416	8,087,931,005	7,427,463,530
Operating Income	699,046,629	262,854,803	1,258,899,801
Non-Operating Income	285,079,640	458,703,796	274,822,336
Non-Operating Expenses	610,845,846	655,462,434	682,745,269
Income Before Taxes	373,280,423	66,096,165	850,976,868
Income Taxes Expenses	-11,741,896	-99,534,523	270,965,295
Net Income	385,022,319	165,630,688	580,011,573

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	469,453,459	1,042,700,883	52,272,292
-Net Income	385,022,319	165,630,688	580,011,573
-Exp. without Cash Outflow	1,419,297,796	1,051,191,195	1,052,669,773
-Revenue without Cash Inflows	-32,621,095	-118,080,733	-114,123,950
-Changes in Asset/ & Liability	-1,302,245,561	-56,040,267	-1,466,285,104
Cash Flows from Investing	-210,964,691	-2,702,875,614	-2,841,340,577
-Cash Inflow from Investing	54,359,463	305,233,455	18,008,463
-Cash Outflows for Investing	-265,324,154	-3,008,109,069	-2,859,349,040
Cash Flows from Financing	-71,992,071	1,702,924,845	2,583,328,894
-Cash Inflows from Financing	1,300,000,000	2,000,000,000	3,800,000,000
-Cash Outflows from Financing	-1,371,992,071	-297,075,155	-1,216,671,106
Increase/Decrease in Cash	186,496,697	42,750,114	-205,739,391
Cash at the Beginning of Year	175,671,458	132,921,344	338,660,735
Cash at the End of Year	362,168,155	175,671,458	132,921,344

Products, Technologies, Services Description

Main Products & Services	Furniture and Architectural Hardware, Natural Paint
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

BORNEO INTERNATIONAL FURNITURE CO., LTD.(120111-0004599)

Competitors

SEUNG BO MECHA TECH CO., LTD.

269-1, GWANHO-RI, YAKMOK-MYEON, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-975-6526~7 FAX:+82-54-975-6530

JE-IL PRODUCTION CO., LTD.

889-1, DALSAN-RI, JEONGGWAN-MYEON, GIJANG-GUN, BUSAN, KOREA

TEL:+82-51-727-5525 FAX:+82-51-727-5528

JINHAP CO., LTD.

RM. B-5, INDUSTRIAL COMPLEX Ⅱ, 40-57, DAEHWA-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-70-7430-1800 FAX:+82-70-7442-7785

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	HAFELE HOLDING GMBH & CO(GERMANY) HAFELE AMERICA CO. HAFELE U.K. LTD. HAFELE THAILAND LTD. HAFELE JAPAN K.K. HAFELE ENGINEERING ANTON SCHNEIDER GMBH & CO. SPHINX ELECTRONICS HAFELE SINGAPORE PTE HAFELE BERLIN GMBH & CO HAFELE SAN. VE TIC. HAFELE FRANCE S.A.R HAFELE HARDWARE TECH
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

Sales by Region (Activity & Markets)

The Subject imports from Germany.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.64
UK Pound	1	Rs.98.98
Euro	1	Rs.77.74

INFORMATION DETAILS

Analysis Done by :	RAS

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.