MIRA INFORM REPORT

Report Date :

12.07.2014

IDENTIFICATION DETAILS

Name :	SAMIL ELTEC CO., LTD.
Formerly Known As :	SAMIL INSTRUMENT INCORPORATION
Registered Office :	29, Sicheong-ro 940 beon-gil, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Zip Code 445-915
Country :	South korea
Financials (as on) :	31.12.2013
Date of Incorporation :	24.02.1992
Com. Reg. No.:	138-81-10699
Legal Form :	Co., Ltd by shares
Line of Business :	Manufacturer of Elevator Controller, Elevator System, Elevator Inverter, Boards for Electric Control, Control Panel, Synchronous Motor & Display
No of Employees :	75

RATING & COMMENTS

MIRA’s Rating :

Ba

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
South Korea	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 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, and heavy reliance on exports - which comprise about half of GDP.

Source : CIA

Basic

Company Name	SAMIL ELTEC CO., LTD. (Korean Company Name : “(주)삼일엘텍”)
Registered Address	29, Sicheong-ro 940beon-gil, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Korea
Zip Code	445-915
Tel	+82-31-353-3131
Fax	+82-31-354-3153
E-mail	xiexie@samileltec.co.kr springtown@naver.com
Website	www.samileltec.co.kr
Trading Address	29, Sicheong-ro 940beon-gil, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Korea (Old Address System : 127-6, Gujang-ri, Paltan-myeon, Hwaseong-si, Gyeonggi-do, Korea)
Tel	+82-31-353-3131
Fax	+82-31-354-3153
Type	Export/Import
Main Business	Manufacturer of Elevator Controller, Elevator System, Elevator Inverter, Boards for Electric Control, Control Panel, Synchronous Motor & Display
Established (mm/dd/yyyy)	02/24/1992

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Renovation of buildings or landmarks or monuments(72102801)
Sell	Inverters(32121705)
Sell	Forklift or elevator accessories or supplies(24101629)
Sell	Synchronous motors(26101609)
Buy	Switches and controls and relays and accessories(39121500)
Buy	Power supply transformers(39121002)
Buy	Capacitors(32121500)
Buy	Magnetic coils(39121010)
Buy	Diodes(32111500)
Buy	Light emitting diodes LEDs(32111503)
Buy	Circuit protection devices and accessories(39121600)
Buy	Electrical insulators(39121721)
Buy	Central processing unit CPU processors(43201503)
Buy	System boards processors interfaces or modules(43201500)

CEO’s

Name	Lee Yang-Won
Address	Suite 1201-1101, 1088, Sanbon-dong, Gunpo-si, Gyeonggi-do, Korea
Date of Birth	12/28/1953
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,799,985,000

Employees

75

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea

Corporate Registered No.

110111-0837463

Business Registered No.

138-81-10699

Permit & Licenses

10/2000 ISO9001

Int’l Trade No.: 11178936

Shareholder Position

Name	Shares	%
LEE YANG-WON	299,338	83.15
OTHERS(4)	60,659	16.85
TOTAL	359,997	100.00

Company History

02/24/1992 Incorporated as SAMIL INSTRUMENT INCORPORATION

03/2000 Changed company name to the present name

11/2001 Designated as an INNO-BIZ Company

03/28/2003 Moved to the present HQ address from 889-1, Gwanyang 2-dong, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

06/02/2005 Designated as a Venture Business

11/2005 Awarded US$3 Million Export Top Prize

11/2006 Awarded US$5 Million Export Top Prize

03/30/2007 Increased capital to 1,471,490,000 KRW from 1,350,000,000 KRW

03/30/2008 Increased capital to 1,799,985,000 KRW from 1,471,490,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Yang-Won	Male	Korean	03/30/2005
Director	M/S.	Jung Young-Ae	Female	Korean	03/30/2005
Director	Mr.	You Soong-Yeol	Male	Korean	03/30/2005
Director	Mr.	Lee Seok-Keun	Male	Korean	03/31/2014
Auditor	Mr.	Kwon Moon-Ho	Male	Korean	10/24/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	26,740,622,867	20,297,480,968	3,868,497,430
2012	20,777,610,433	15,733,014,256	2,682,318,501
2011	14,801,348,744	13,339,272,525	1,572,576,997
2010	14,341,242,908	12,402,228,176	828,843,793
2009	13,860,127,470	12,321,045,021	868,922,366
2008	13,660,149,726	12,684,392,927	1,782,660,507
2007	12,472,547,885	10,532,622,233	1,830,992,753
2006	10,830,015,666	9,880,004,523	1,223,602,271
2005	10,655,109,841	7,830,531,809	776,968,676
2004	10,119,675,643	7,656,568,423	1,260,669,003

Financial Description

Authorized Capital(KRW)	2,400,000,000
Paid-Up Capital(KRW)	1,799,985,000
Total Issued Shares	359,997

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	20,297,480,968	15,733,014,256	13,339,272,525
Current Assets	15,645,867,199	11,408,203,720	8,791,084,048
-Quick Assets	10,849,884,012	9,652,359,717	7,550,861,769
-Inventories	4,795,983,187	1,755,844,003	1,240,222,279
Fixed Assets	4,651,613,769	4,324,810,536	4,548,188,477
-Investment	1,885,121,051	1,454,442,756	1,693,636,430
-Tangibles	2,678,935,314	2,798,747,860	2,800,416,216
-Intangibles	31,144,404	33,972,920	24,123,831
-Others	56,413,000	37,647,000	30,012,000
Total Liabilities	7,065,633,072	5,322,930,691	4,976,559,391
Current Liabilities	6,239,452,887	4,803,046,074	4,844,635,443
Fixed Liabilities	826,180,185	519,884,617	131,923,948
Capital Stock	1,799,985,000	1,799,985,000	1,799,985,000
Capital Surplus
Profit Surplus	11,039,749,606	8,071,244,676	5,928,921,675
Capital Adjustment	392,113,290	538,853,889	633,806,459
Total Equity	13,231,847,896	10,410,083,565	8,362,713,134
Liab. & Shareholder’s Equity	20,297,480,968	15,733,014,256	13,339,272,525

Current Liabilities	6,239,452,887	4,803,046,074	4,844,635,443
Trade Payables	5,405,461,969	2,679,679,064	2,288,531,263
Account Payables	140,336,092	214,778,745	129,555,175
Withholdings	76,711,169	68,887,830	59,274,140
VAT Withhold			48,445,704
Advance Receipts	110,032,612	44,148,227	24,507,886
Short-Term Borrowings	-	1,600,000,000	2,292,084,560
Accrued Expenses	-	3,202,136	2,236,715
Current Portion of Long-Term Debts	506,911,045	192,350,072	-
Fixed Liabilities	826,180,185	519,884,617	131,923,948
Provision for Severance & Retirement	826,180,185	519,884,617	131,923,948

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	26,740,622,867	20,777,610,433	14,801,348,744
Cost of Sold Goods	17,676,187,886	13,474,577,625	9,556,111,519
Gross Profit	9,064,434,981	7,303,032,808	5,245,237,225
Selling & Admin. Expenses	4,780,776,030	4,320,888,708	3,520,263,674
Operating Income	4,283,658,951	2,982,144,100	1,724,973,551
Non-Operating Income	772,944,799	546,264,227	433,588,175
Non-Operating Expenses	583,482,485	643,822,874	580,229,479
Income Before Taxes	4,473,121,265	2,884,585,453	1,578,332,247
Income Taxes Expenses	604,623,835	202,266,952	5,755,250
Net Income	3,868,497,430	2,682,318,501	1,572,576,997

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,681,877,295	3,219,497,497	1,397,708,015
-Net Income	3,868,497,430	2,682,318,501	1,572,576,997
-Exp. without Cash Outflow	816,912,221	1,048,770,026	1,037,078,719
-Revenue without Cash Inflows	-394,310,367	-86,262,646	-76,933,728
-Changes in Asset/ & Liability	-2,609,221,989	-425,328,384	-1,135,013,973
Cash Flows from Investing	280,868,640	-1,763,783,359	-101,779,119
-Cash Inflow from Investing	6,130,000,000	6,226,414,637	31,003,960
-Cash Outflows for Investing	-5,849,131,360	-7,990,197,996	-132,783,079
Cash Flows from Financing	-2,499,992,500	-1,232,080,060	-1,441,510,620
-Cash Inflows from Financing	-	-	-
-Cash Outflows from Financing	-2,499,992,500	-1,232,080,060	-1,441,510,620
Increase/Decrease in Cash	-537,246,565	223,634,078	-145,581,724
Cash at the Beginning of Year	1,450,635,722	1,227,001,644	1,372,583,368
Cash at the End of Year	913,389,157	1,450,635,722	1,227,001,644

Products, Technologies, Services Description

Main Products & Services

Elevator Controller, Elevator System, Elevator Inverter, Boards for Electric Control, Control Panel, Synchronous Motor & Display

Trade Partners & Competitors

Customers

DAIRYEN SAMIL ELECTRONICS CO., LTD.(CHINA) SAMIL ELTEC JAPAN SIGMA OTIS(CHINA)

Competitors

BLUETEM CO. C-3407, DONG-IL TECHNO TOWN, 889-1, GWANYANG 2-DONG, DONGAN-GU, ANYANG-SI, GYEONGGI-DO, KOREA TEL:+82-31-425-2391 FAX:+82-31-425-2396 TECHMOVE ELECTRONICS RM. 620, HANSHIN CORE OFFICETEL, 11-9, SINCHEON-DONG, SONGPA-GU, SEOUL, KOREA TEL:+82-2-412-8088 FAX:+82-2-419-5469 HYEON DAE CO., LTD 102-705, CHUNUI TECHNO PARK 1-CHA, 200-1, CHUNUI-DONG, WONMI-GU, BUCHEON-SI, GYEONGGI-DO, KOREA TEL:+82-32-662-9644~5 FAX:+82-32-662-9646

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Affiliates	SAMIL ELTEC JAPAN (15.0% held by the subject company) DAIRYEN SAMIL ELECTRONICS CO., LTD.(CHINA) (51.7% held by the subject company) SAMIL ELTEC(M) SDN BHD (70.0% held by the subject company)
Subsidiary	DAIRYEN SAMIL ELECTRONICS CO., LTD.(CHINA) (51.7% held by the subject company)
Cooperative Enterprise	-Insured Company HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

Sales by Region

(Activity & Markets)

Sales/ Unit : KRW	2013	2012	2011
Export	7,350,511,679	6,844,780,443	5,686,117,281
Domestic	19,390,111,188	13,932,829,990	9,115,231,463
Total	26,740,622,867	20,777,610,433	14,801,348,744

The Subject deals with the companies in China, Japan, Saudi Arabia and South East Asia.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.103.15
Euro	1	Rs.81.87

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	MNL

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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