MIRA INFORM REPORT

Report Date :

03.01.2014

IDENTIFICATION DETAILS

Name :	INDO KOREAN PETROCHEM LTD.

Registered Office :	443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do

Country :	South Korea

Financials (as on) :	31.12.2012

Date of Incorporation :	29.04.2009

Com. Reg. No.:	513-81-52793

Legal Form :	Co., Ltd by Shares Foreign Direct Investment Corporation

Line of Business :	Manufacture of Synthetic Fibers

No. of Employees :	24

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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)

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. 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	INDO KOREAN PETROCHEM LTD.
Registered Address	443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea
Zip Code	718-833
Tel	+82-54-970-1200
Fax	+82-54-970-1234
Trading Address	443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea (New Address System : 12, 3gongdan-ro, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea)
Tel	+82-54-970-1200
Fax	+82-54-970-1234
Type	Export
Industry	Manufacture of Synthetic Fibers
Main Business	Polyester Yarn, Polyester Chip
Established (mm/dd/yyyy)	04/29/2009

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Synthetic yarn(11151709)
Sell	Yarns(11151700)

CEO’s

Name	Lekhwani Jaikumar Sureshkumar
Address	443, Jung-ri, Seokjeok-eup, Chilgok-gun, Gyeongsangbuk-do, Korea
Date of Birth	05/01/1967
Title	President & CEO
Sex	Male
Nationality	Indian

Profiles

Capital (KRW)

6,408,060,000

Employees

Formation

Co., Ltd by Shares

Foreign Direct Investment Corporation

Bank Details

Indian Overseas Bank-Seoul Branch

Corporate Registered No.

175211-0028865

Business Registered No.

513-81-52793

Permit & Licenses

Int’l Trade No.: 30674619

Shareholder Position

Name	Shares	%
NAKODA LTD	840,876	65.61
GERBACK HOLDINGS PTE.LTD	440,736	34.39
TOTAL	1,281,612	100.00

Company History

04/29/2009 Incorporated as the present name

05/04/2009 Registered as a Foreign Direct Investment Corporation

02/23/2010 Increased the authorized shares to 10,000,000 shares from 400,000 shares

02/09/2012 Increased capital to 6,392,060,000 KRW from 2,980,080,000 KRW

11/22/2012 Increased capital to 6,408,060,000 KRW from 6,392,060,000 KRW

12/31/2012 The Subject has stopped the operation.

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lekhwani Jaikumar Sureshkumar	Male	Indian	07/26/2011
Director	Mr.	Gaisas Madab Padmakar	Male	Indian	07/26/2011
Director	Mr.	Sriniwa Sanvenko Barao	Male	Indian	11/26/2012
Auditor	Mr.	Lekhwani Dipajeikumar	Male	Indian	11/26/2012

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2012	64,287,347,979	64,903,310,674	-4,072,689,536
2011	69,536,521,204	46,002,355,230	-11,952,260,600
2010	23,644,647,039	48,779,006,205	1,014,128,661

Financial Description

Authorized Capital(KRW)	50,000,000,000
Paid-Up Capital(KRW)	6,408,060,000
Total Issues Shares	1,281,612 (Common : 1,188,358 / Preferable : 93,254)

Balance Sheet

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Total Assets	64,903,310,674	46,002,355,230	48,779,006,205
Current Assets	17,303,798,990	10,110,973,408	16,899,912,781
-Quick Assets	9,695,317,515	4,127,135,647	11,378,294,676
-Inventories	7,608,481,475	5,983,837,761	5,521,618,105
Fixed Assets	47,599,511,684	35,891,381,822	31,879,093,424
-Investment	44,507,511,684	32,952,381,822	14,209,001,826
-Tangibles			14,896,091,598
-Intangibles	3,092,000,000	2,939,000,000	2,774,000,000
Total Liabilities	64,845,768,196	45,609,003,216	36,433,393,591
Current Liabilities	47,985,321,710	33,653,147,988	19,300,979,495
Fixed Liabilities	16,860,446,486	11,955,855,228	17,132,414,096
Capital Stock	6,408,060,000	2,980,080,000	2,980,080,000
Capital Surplus	8,864,030,000	8,555,130,000	8,555,130,000
Profit Surplus	-15,214,547,522	-11,141,857,986	810,402,614
Capital Adjustment		-	-
Total Equity	57,542,478	393,352,014	12,345,612,614
Liab. & Shareholder’s Equity	64,903,310,674	46,002,355,230	48,779,006,205

Current Liabilities	47,985,321,710	33,653,147,988	19,300,979,495
Trade Payables	5,521,930,580	6,450,000	250,462,530
Account Payables	987,595,789	1,763,175,811	410,762,997
Withholdings	34,759,710	1,746,013,086	5,375,540
Advance Receipts	4,691,090,301	2,938,966,918	1,309,478,068
Short-Term Borrowings	28,975,220,486	20,957,001,934	15,911,103,182
Accrued Expenses	3,758,099,844	1,916,665,239	1,413,797,178
Current Portion of Long-Term Debts	4,016,625,000	4,324,875,000	-
Fixed Liabilities	16,860,446,486	11,955,855,228	17,132,414,096
Long-Term Borrowings	16,755,421,880	11,893,406,250	17,083,500,000
Provision for Severance & Retirement	105,024,606	62,448,978	42,088,734
Long-Term Account Payables		-	6,825,362

Income Statement

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Sales	64,287,347,979	69,536,521,204	23,644,647,039
Cost of Sold Goods	66,035,319,426	74,628,561,570	24,703,555,687
Gross Profit	1,747,971,447	5,092,040,366	1,058,908,648
Selling & Admin. Expenses	2,651,351,261	1,849,996,681	459,666,471
Operating Income	4,399,322,708	6,942,037,047	1,518,575,119
Non-Operating Income	3,688,603,375	781,514,212	3,282,408,745
Non-Operating expenses	3,361,970,203	5,791,737,765	749,704,965
Income Before Taxes	-4,072,689,536	-11,952,260,600	1,014,128,661
Income Taxes Expenses		-	-
Net Income	-4,072,689,536	-11,952,260,600	1,014,128,661

Cash Flows

Unit : Korean Won	As of 12/31/2012	As of 12/31/2011	As of 12/31/2010
Cash Flows from Operating	-2,687,478,473	-4,576,514,275	-1,444,032,011
-Net Income	-4,072,689,536	-11,952,260,600	1,014,128,661
-Exp. without Cash Outflow	2,875,575,644	4,728,630,081	1,625,490,109
-Revenue without Cash Inflows	-3,303,523,837	-42,720,801	-1,847,014,058
-Changes in Asset/ & Liability	1,813,159,256	2,689,837,045	-2,236,636,723
Cash Flows from Investing	-16,719,411,347	1,185,456,148	-36,534,898,632
-Cash Inflow from Investing	6,325,547,132	9,111,200,000	-
-Cash Outflows for Investing	-23,044,958,479	-7,925,743,852	-36,534,898,632
Cash Flows from Financing	19,347,864,306	3,612,661,334	37,926,402,942
-Cash Inflows from Financing	23,672,739,306	4,687,205,446	37,935,963,249
-Cash Outflows from Financing	-4,324,875,000	-1,074,544,112	-9,560,307
Increase/Decrease in Cash	-59,025,514	221,603,207	-52,527,701
Cash at the Beginning of Year	269,353,717	47,750,510	100,278,211
Cash at the End of Year	210,328,203	269,353,717	47,750,510

(*)The Subject needs to be monitored because Net Income is (-)4,072,000,000 KRW, and Current Liabilities exceed Current Assets as much as 30,682,000,000 KRW.

07/2011 The Subject Company has been damaged by the fire, and it is known that it delayed several times to pay the salaries to the employees.

Products, Technologies, Services Description

Main Products & Services

Polyester Yarn, Polyester Chip

Trade Partners & Competitors

Competitors

N & T GLOBAL INC.

RM. 2109, RENAISSNACE TOWER BLDG., 456, GONGDEOK-DONG, MAPO-GU, SEOUL, KOREA

TEL:+82-2-704-6401 FAX:+82-2-704-6403

GLOBAL KOREA TRADING CO., LTD.

RM. 304, SEOKTOP OFFICETEL, 1588-7, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3472-3751 FAX:+82-2-3472-3752

GATE TRADING CO., LTD.

RM. 302-1, SEONGU BLDG., YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-556-3153 FAX:+82-2-555-7633

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

DONGBU INSURANCE CO., LTD.(110111-0095285)

Sales by Region (Activity & Markets)

The Subject deals with the companies in India.

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.90
UK Pound	1	Rs.102.74
Euro	1	Rs.85.16

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.