MIRA INFORM REPORT

Report Date :

07.02.2014

IDENTIFICATION DETAILS

Name :	SMK INTERNATIONAL CO., LTD.

Registered Office :	16, Dwitgol 2-ro, Gwacheon-si, Gyeonggi-do, Korea

Country :	Korea (South)

Financials (as on) :	31.12.2012

Date of Incorporation :	18.06.1996

Com. Reg. No.:	214-86-08565

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Shirts and Sports Garments

No. of Employees :	26

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, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Korea (South)

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

KOREA (SOUTH) - 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. 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. 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-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges 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, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

Basic Information

Basic

Company Name	SMK INTERNATIONAL CO., LTD.
Registered Address	16, Dwitgol 2-ro, Gwacheon-si, Gyeonggi-do, Korea
Building	Cabin House
Zip Code	427-060
Tel	+82-2-502-5849
Fax	+82-2-502-5682
E-mail	hyun@smkinter.com
Website	www.smkinter.com
Trading Address	Cabin House, 16, Dwitgol 2-ro, Gwacheon-si, Gyeonggi-do, Korea (Old Address System : Cabin House, 363-16, Gwacheon-dong, Gwacheon-si, Gyeonggi-do, Korea)
Tel	+82-2-502-5849
Fax	+82-2-502-5682
Type	Export
Industry	Manufacture of Shirts and Sports Garments
Main Business	Dress Shirt, Casual Shirt
Established (mm/dd/yyyy)	06/18/1996

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Mens shirts(53101602)

CEO’s

Name	Kim Sung-Min
Address	Suite 122-302, 810, Hannam-dong, Yongsan-gu, Seoul, Korea
Date of Birth	05/25/1963
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

300,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Kookmin Bank-Trade Center Corporate Finance Branch

Corporate Registered No.

110111-1283524

Business Registered No.

214-86-08565

Permit & Licenses

Int’l Trade No.: 11209548

Shareholder Position

Name	Shares	%
KIM SUNG-MIN	43,200	72.00
OTHERS(2)	16,800	28.00
TOTAL	60,000	100.00

Company History

1994 Established as SMK INTERNATIONAL CO.(Sole Proprietorship)

06/18/1996 Incorporated as the present name

11/24/2003 Moved to the present HQ address from 1506-64, Seocho-dong, Seocho-gu, Seoul, Korea

11/2004 Awarded US$ 20 Million Export Top Prize

05/10/2006 Increased capital to 300,000,000 KRW from 200,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kim Sung-Min	Male	Korean	03/31/2011
Director	M/S.	Lee Hee-Soon	Female	Korean	05/12/2005
Auditor	Mr.	Kim Moo-Ok	Male	Korean	03/28/2002

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	29,931,014,781	21,852,865,726	1,014,039,929
2011	36,423,319,566	22,147,369,265	398,703,359
2010	33,263,987,054	20,778,385,708	1,660,425,282
2009	37,443,069,653	20,661,358,348	2,827,794,384
2008	36,787,041,797	20,221,948,383	2,393,079,770

Financial Description

Authorized Capital(KRW)	1,000,000,000
Paid-Up Capital(KRW)	300,000,000
Total Issued Shares	60,000

Balance Sheet
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	21,852,865,726	22,147,369,265	20,778,385,708
Current Assets	14,058,172,674	12,717,452,630	14,179,528,665
-Quick Assets	12,131,713,991	10,875,120,543	13,085,260,591
-Inventories	1,926,458,683	1,842,332,087	1,094,268,074
Fixed Assets	7,794,693,052	9,429,916,635	6,598,857,043
-Investment	1,158,083,006	678,409,077	111,293,337
-Tangibles	4,515,352,499	6,607,229,445	5,075,649,596
-Intangibles	3,384,302	4,354,868	5,325,434
-Others	2,117,873,245	2,139,923,245	1,406,588,676
Total Liabilities	6,580,829,924	7,849,479,192	6,579,198,994
Current Liabilities	6,580,829,924	7,847,110,192	6,564,262,759
Fixed Liabilities	-	2,369,000	14,936,235
Capital Stock	300,000,000	300,000,000	300,000,000
Capital Surplus	-	-	-
Profit Surplus	14,972,035,802	13,997,890,073	13,899,186,714
Capital Adjustment	-	-	-
Total Equity	15,272,035,802	14,297,890,073	14,199,186,714
Liab. & Shareholder’s Equity	21,852,865,726	22,147,369,265	20,778,385,708

Current Liabilities	6,580,829,924	7,847,110,192	6,564,262,759
Trade Payables	1,426,205,826	530,429,864	810,412,584
Account Payables	175,577,919	1,034,409,437	101,485,802
Accrued Expenses	166,890,059	113,421,963	105,560,887
Withholdings	11,247,360	227,570,620	70,857,660
VAT Withhold	335,000,000	335,000,000	303,136,363
Advance Receipts	12,075,215	130,840	322,291,746
Short-Term Borrowings	4,215,074,022	5,593,003,945	4,685,769,601
Accrued Income Tax	238,759,523	13,143,523	164,748,116
Fixed Liabilities	-	2,369,000	14,936,235
Provision for Severance & Retirement	-	2,369,000	14,936,235

Income Statement
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	29,931,014,781	36,423,319,566	33,263,987,054
Cost of Sold Goods	23,061,404,680	28,594,036,880	24,639,225,996
Gross Profit	6,869,610,101	7,829,282,686	8,624,761,058
Selling & Admin. Expenses	5,764,151,166	7,226,565,580	5,795,001,097
Operating Income	1,105,458,935	602,717,106	2,829,759,961
Non-Operating Income	1,419,332,552	1,845,432,927	1,597,404,678
Non-Operating Expenses	1,210,691,853	1,904,867,917	2,044,498,301
Income Before Taxes	1,314,099,634	543,282,116	2,382,666,338
Income Taxes Expenses	300,059,705	144,578,757	722,241,056
Net Income	1,014,039,929	398,703,359	1,660,425,282

Cash Flows
Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	2,413,459,058	-1,039,405,939	-476,176,360
-Net Income	1,014,039,929	398,703,359	1,660,425,282
-Exp. without Cash Outflow	497,407,506	442,703,327	325,825,865
-Revenue without Cash Inflows	-509,167,182	-53,162,239	-56,372,511
-Changes in Asset/ & Liability	1,411,178,805	-1,827,650,386	-2,406,054,996
Cash Flows from Investing	1,485,490,905	-85,096,150	-2,624,206,276
-Cash Inflow from Investing	3,650,919,068	3,082,570,987	72,556,800
-Cash Outflows for Investing	-2,165,428,163	-3,167,667,137	-2,696,763,076
Cash Flows from Financing	-1,171,310,798	487,689,924	-790,548,753
-Cash Inflows from Financing	-	787,689,924	109,451,247
-Cash Outflows from Financing	-1,171,310,798	-300,000,000	-900,000,000
Increase/Decrease in Cash	2,727,639,165	-636,812,165	-3,890,931,389
Cash at the Beginning of Year	1,866,945,947	2,503,758,112	6,394,689,501
Cash at the End of Year	4,594,585,112	1,866,945,947	2,503,758,112

Products, Technologies, Services Description

Main Products & Services

Dress Shirt, Casual Shirt

Trade Partners & Competitors

Competitors

HERMES KOREA LTD.

630-26, SINSA-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-544-7722 FAX:+82-2-545-1224

KOREA OZAKI CO., LTD.

RM. 603, ACE TECHNO TOWER, 55-7, MULLAEDONG 3-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2633-7821 FAX:+82-2-2633-7834

MERKAVA CO., LTD.

1029-28, HOGYE 1-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA

TEL:+82-70-7090-4900 FAX:+82-31-427-4950

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

Overseas Office

S.M.K VIETNAM CO., LTD.

9.6BTH FLOOR. E-TOWN B/D. 364 CONG HOA ST.. WARD 13. TAN BINH DIST.. HCMC

TEL:+84-8-812-1342 FAX:+84-8-812-1342

Sales by Region (Activity & Markets)

The Subject exports to Europe.

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.50
UK Pound	1	Rs.101.92
Euro	1	Rs.84.50

INFORMATION DETAILS

Report Prepared by :

NNA

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.