MIRA INFORM REPORT

Report Date :

26.07.2014

IDENTIFICATION DETAILS

Name :	BASF COMPANY LTD.

Registered Office :	284, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do - 555-280

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	15.12.1988

Com. Reg. No.:	417-81-04858

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Basic Organic Petrochemicals

No of Employees :	1,023

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 :	Good

Payment Behaviour :	Regular

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

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. 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	BASF COMPANY LTD. (Korean Company Name : “한국바스프(주)”)
Registered Address	284, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea (Old Address System : 373-15, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea)
Building
Zip Code	555-280
Tel	+82-61-680-7000
Fax	+82-61-684-7260
E-mail	nari.kim@partners.basf.com
Website	www.basf.co.kr;www.basf-korea.co.kr
Trading Address	14th Fl, Korea Chamber of Commerce & Industry, 39, Sejong-daero, Jung-gu, Seoul, Korea (Old Address System : 14th Fl, Korea Chamber of Commerce & Industry, 45, Namdaemunno 4-ga, Jung-gu, Seoul, Korea)
Tel	+82-2-3707-3100
Fax	+82-2-3707-3122
Other Address-Ulsan Site-Plastics Factory Ⅰ	472-1, Sanggae-dong, Nam-gu, Ulsan, Korea
Tel	+82-52-279-5800
Fax	+82-52-272-4801
Other Address-Ulsan Site-Plastics Factory Ⅱ	569-30, Yongyeon-dong, Nam-gu, Ulsan, Korea
Tel	+82-52-279-9500
Fax	+82-52-279-9501
Other Address-Ansan Factory	607B-22, Banwol Industrial Complex, 631-3, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea
Tel	+82-31-599-7513
Fax	+82-31-599-7506
Other Address-Hwaseong Factory	870, Yeocheon-dong, Nam-gu, Ulsan, Korea
Tel	+82-52-278-2000
Fax	+82-52-278-2001
Type	Export/Import
Industry	Manufacture of Basic Organic Petrochemicals
Main Business	Styrofoam, L-Lysine, EPS, PS, ABS, MPI, TPI
Sub Business
Established (mm/dd/yyyy)	12/15/1988

The Subject owns the premises of registered address/factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Polyurethane resins(13111061)
Sell	Polystyrene foam(13111308)
Sell	Acrylonitrile butadiene styrene resin(13111004)
Sell	Chemicals including Bio Chemicals and Gas Materials(12000000)
Sell	Organic derivatives and substituted compounds(12352100)
Sell	Surfactants(12161900)
Sell	Inorganic compounds(12352300)
Sell	Pigments(12171600)
Sell	Other adhesives and sealants(31201600)
Sell	Drugs and Pharmaceutical Products(51000000)
Sell	Plasticizers(12162000)
Sell	Inorganic compounds(12352300)
Sell	Organic peroxides(12352120)

CEO’s

Name	Shin Woo-Sung
Address	Suite 12-1306, 844, Sindang-dong, Jung-gu, Seoul, Korea
Date of Birth	09/12/1957
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

516,625,420,000

Employees

1,023

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Korea Exchange Bank –Sales 1 Division

Corporate Registered No.

110111-0600860

Business Registered No.

417-81-04858

Permit & Licenses

05/1999 ISO 9001

Int’l Trade No.: 429296

Shareholder Position

Name	Shares	%
BASF BETEILIGUNGSGESELLSCHAFT GMBH (GERMANY)	96,345,800	100.00
TOTAL	96,345,800	100.00

(*)The list is based as of 12/341/2013.

Company History

1954 Entered Korea as FOHAG(Far East Trading Company)

1980 Established as Hyosung BASF

1982 Established BASF KOREA CO., LTD.

12/1988 Established HANYANG BASF URETHANE CO., LTD.

12/1997 Changed company name to BASF URETHANE KOREA CO., LTD.

03/1998 Changed company name to BASF KOREA STILENIX CO., LTD.

05/1998 Acquired Lysine Business Division from Daesang Corporation

12/1998 Acquired Polyol Business Division from Dong Sung Chemical Co., Ltd.

12/1998 Changed company name to the present name with the acquisition of BASF URETHANE KOREA CO., LTD., BASF KOREA STILENIX CO., LTD. and BASF KOREA CO., LTD.

11/2000 Awarded US$500 Million Export Top Prize

06/2001 Acquired SK Evertech's SM Factory

10/2001 Increased capital to 404,650,000,000 KRW from 354,650,000,000 KRW

05/2003 Acquired Engineering Plastic Business Division from Honeywell

04/2005 Acquired BASF AGRO KOREA CO., LTD.

10/2006 Acquired the operation part of BASF Resin Co., Ltd.

07/31/2007 Increased the authorized shares to 94,930,000 shares from 80,930,000 KRW

01/2008 Sold Gunsan Factory(Lysine: 228, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea) to PAIKKWANG INDUSTRIAL CO., LTD.(110111-0003709) at USD27,000,000.

05/21/2009 increased capital to 464,650,000,000 KRW from 404,650,000,000 KRW

08/03/2009 Decided to sell Ulsan SM Factory to SK ENERGY CO., LTD.(110111-3710385)

02/01/2010 Acquired CIBA SPECIALTY CHEMICALS KOREA LTD.(110111-0714406) and DAIHAN SWISS CHEMICAL CORP.(110111-0307325)

01/01/2011 Split off KS Divisions, and transferred to STYROLUTION KOREA LTD.(230111-0148328)

01/01/2012 Acquired COGNIS KOEA LTD.(110111-2865090)

08/31/2012 Increased the authorized shares to 100,930,000 shares from 94,930,000 shares

09/14/2012 Increased capital to 481,729,000,000 KRW from 464,650,000,000 KRW

03/18/2014 Increased the authorized shares to 106,930,000 shares from 100,930,000 shares

03/26/2014 Increased capital to 516,625,420,000 KRW from 481,729,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Shin Woo-Sung	Male	Korean	03/02/2009
Director	Mr.	Goparan Philei	Male	South African	06/01/2013
Director	Mr.	Jacob Nielson	Male	Swedish	05/01/2011
Auditor	Mr.	Wolfro Light	Male	German	05/01/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	2,261,893,521,253	1,233,955,057,956	135,851,823,567
2012	2,052,377,984,864	1,150,358,533,984	111,286,722,605
2011	1,981,901,124,110	1,314,309,031,536	228,920,128,968
2010	2,905,643,816,960	1,328,755,510,275	277,702,346,311
2009	2,182,467,001,023	1,131,492,742,826	252,650,621,415
2008	2,409,606,875,106	1,005,708,769,659	90,382,545,153
2007	2,154,041,355,519	1,154,047,696,907	179,289,618,386
2006	1,908,768,117,693	1,236,191,744,609	169,881,499,330
2005	2,088,248,977,659	1,326,167,222,613	128,075,379,460
2004	1,960,457,253,117	1,454,917,869,412	47,803,170,535
2003	1,383,330,951,764	1,461,689,186,845	(-)24,016,453,546

Financial Description

Authorized Capital(KRW)	534,650,000,000
Paid-Up Capital(KRW)	516,625,420,000
Total Issues Shares	103,325,084

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	1,233,955,057,956	1,150,358,533,984	1,314,309,031,536
Current Assets	805,777,285,936	733,480,244,193	909,231,830,642
-Quick Assets	604,457,541,370	532,811,522,898	751,182,225,062
-Inventories	201,319,744,566	200,668,721,295	158,049,605,580
Fixed Assets	428,177,772,020	416,878,289,791	405,077,200,894
-Investment	18,581,204,621	19,923,515,839	31,850,827,515
-Tangibles	386,998,646,835	372,134,317,612	347,097,818,824
-Intangibles	8,726,529,733	9,991,760,513	10,971,470,483
-Others	13,871,390,831	14,828,695,827	15,157,084,072
Total Liabilities	425,706,310,045	376,830,567,640	460,653,502,597
Current Liabilities	346,569,623,325	334,706,478,453	436,177,268,194
Fixed Liabilities	79,136,686,720	42,124,089,187	24,476,234,403
Capital Stock	481,729,000,000	481,729,000,000	464,650,000,000
Capital Surplus	57,849,361,812	57,849,361,812	57,935,544,012
Profit Surplus	268,262,203,099	233,580,079,532	330,402,565,927
Capital Adjustment	408,183,000	369,525,000	667,419,000
Total Equity	808,248,747,911	773,527,966,344	853,655,528,939
Liab. & Shareholder’s Equity	1,233,955,057,956	1,150,358,533,984	1,314,309,031,536

Current Liabilities	346,569,623,325	334,706,478,453	436,177,268,194
Trade Payables	304,299,123,117	287,354,397,962	242,470,695,355
Account Payables	2,424,105,407	4,662,309,452	116,214,759,233
Advance Receipts	563,291,693	1,843,913,009	446,362,714
Withholdings	2,252,204,142	1,260,573,010	1,310,981,636
Accrued Expenses	20,933,738,291	21,944,818,162	24,951,556,559
Accrued Income Tax	15,507,638,369	17,173,593,590	45,104,155,333
Unearned Income	368,850,396	368,850,396	-
Derivatives	220,671,910	98,022,872	5,477,255,014
Deferred Income Tax			201,502,350
Fixed Liabilities	79,136,686,720	42,124,089,187	24,476,234,403
Long-Term Borrowings	68,007,342,000	32,007,476,000	15,986,870,000
Other Provisions	4,805,658,000	4,673,658,000	5,807,530,000
Provision for Severance & Retirement	27,295,981,270	23,642,436,985	23,631,657,139
Leasehold Deposit Received	130,000,000	130,000,000	130,000,000
Long-Term Unearned Income	2,766,377,970	3,135,228,366	-
Derivatives	436,120,084	398,994,668	-

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	2,261,893,521,253	2,052,377,984,864	1,981,901,124,110
Cost of Sold Goods	1,925,163,609,291	1,746,507,466,982	1,706,808,999,316
Gross Profit	336,729,911,962	305,870,517,882	275,092,124,794
Selling & Admin. Expenses	199,893,291,280	171,945,940,033	172,039,598,822
Operating Income	136,836,620,682	133,924,577,849	103,052,525,972
Non-Operating Income	81,685,110,879	62,405,518,956	252,726,394,423
Non-Operating Expenses	62,985,850,492	58,566,220,523	60,518,204,766
Income Before Taxes	155,535,881,069	137,763,876,282	295,260,715,629
Income Taxes Expenses	19,684,057,502	26,477,153,677	66,340,586,661
Net Income	135,851,823,567	111,286,722,605	228,920,128,968

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	211,616,158,072	-25,528,481,332	188,317,496,165
-Net Income	135,851,823,567	111,286,722,605	228,920,128,968
-Exp. without Cash Outflow	55,723,653,168	64,810,500,865	60,162,295,649
-Revenue without Cash Inflows	-7,436,567,873	-7,822,627,368	-177,893,546,952
-Changes in Asset/ & Liability	27,477,249,210	-193,803,077,434	77,128,618,500
Cash Flows from Investing	-55,871,854,405	-71,556,717,355	265,015,351,640
-Cash Inflow from Investing	2,080,267,964	13,668,352,606	317,884,392,187
-Cash Outflows for Investing	-57,952,122,369	-85,225,069,961	-52,869,040,547
Cash Flows from Financing	-66,516,792,000	-173,726,587,200	-236,118,634,000
-Cash Inflows from Financing	34,652,908,000	34,382,621,800	16,338,044,000
-Cash Outflows from Financing	-101,169,700,000	-208,109,209,000	-252,456,678,000
Increase/Decrease in Cash	89,227,511,667	-270,811,785,887	217,214,213,805
Cash at the Beginning of Year	95,717,726,889	366,529,512,776	149,315,298,971
Cash at the End of Year	184,945,238,556	95,717,726,889	366,529,512,776

Products, Technologies, Services Description

Main Products & Services

-Thermoplastics Business

EPS, PS, ABS, SM, Engineering plastics production and sales

-Polyurethane Business

MDI, TDI, Polyol production and sales

-Chemicals & Performance Products Business

PolyTHK, BDO/THF, Fiber raw materials, Petrochemicals, Intermediates, Textile Chemicals, Leather Chemicals, Pigment & Dyestuff for industry, Specialty Chemicals, Acrylic Monomer & Polymer, Paper Chemicals

-Fine Chemicals Business

Animal Nutrition, Lysine Byproducts, Cosmetics, Pharmaceuticals, Food Ingredients, Aroma Chemicals for flavor and fragrance, Agro chemical products

Trade Partners & Competitors

Suppliers

BASF AKTIENGESELLSCHAFT(CATALYST)

HANWHA PETROCHEMICALS CO., LTD.(CHLORINE, NITRIC ACID & CAUSTIC SODA)

PAIKKWANG INDUSTRIAL CO.,LTD.(110111-0003709: CHLORINE, CAUSTIC SODA)

HUCHEMSFINECHEMICALCORPORATION(110111-2611906 : NITRIC ACID)

AIR LIQUIDE KOREA CO., LTD.(110111-1232216 : CARBON MONOXIDE, HYDROGEN)

HEIN CORPORATION(180111-0049915 : FORMALDEHYDE)

SAMYANG CHEMICAL CO., LTD.(110111-0568878 : FORMALDEHYDE)

SKC(ETHYLENE)

Customers

BASF AKTIENGESELLSCHAFT

BASF SOUTH EAST ASIA PTE. LTD.

Competitors

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.

411-1, DOKGOT-RI, DAESAN-EUP, SEOSAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-660-6114 FAX:+82-41-681-4812

HONAM PETROCHEMICAL CORPORATION

11TH FL., LOTTE GWANAK TOWER, 395-67, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-829-4114 FAX:+82-2-843-1010

SAM NAM PETROCHEMICAL CO., LTD.

4TH FL., SAMYANG CO. BLDG., 263, YEONJI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-740-7450~1 FAX:+82-2-745-4225

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	BASF SE BASF SOUTH EAST ASIA PTE. LTD.
Subsidiary	CIBA SPECIALTY CHEMICALS KOREA LTD.(110111-0714406) (100.0% held by the subject company) DAIHAN SWISS CHEMICAL CORP.(110111-0307325) (100.0% held by the subject company) COGNIS KOEA LTD.(110111-2865090) (100.0% held by the subject company)
Corporate Ownership	BASF SE BETEILIGUNGSGESELLSCHAFT GMBH
Major Shareholders	BASF BETEILIGUNGSGESELLSCHAFT GMBH CARL-BOSCH STRAßE 38, 67056 LUDWIGSHAFEN, GERMANY TEL: 49-621-60-0 FAX: 49-621-60-42525
Cooperative Enterprise	-Technical Support & Engineering Support MITSUBISHI CHEMICAL CORPORATION BASF SE

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.14
UK Pound	1	Rs. 102.21
Euro	1	Rs. 81.01

INFORMATION DETAILS

Analysis Done by :	SMT

Report Prepared by :	DPT

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.