MIRA INFORM REPORT

Report Date :

29.07.2014

IDENTIFICATION DETAILS

Name :	MIWON CHEMICALS CO., LTD.

Registered Office :	247, Jangsaengpo-ro, Nam-gu, Ulsan, Korea

Country :	South Korea

Financials (as on) :	31.03.2014

Date of Incorporation :	01.01.2011

Com. Reg. No.:	610-86-04700

Legal Form :	Listed Company

Line of Business :	Manufacture of Surface-Active Agents

No. of Employees	130

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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	MIWON CHEMICALS CO., LTD.
Registered Address	247, Jangsaengpo-ro, Nam-gu, Ulsan, Korea (Old Address System : 410-1, Maeam-dong, Nam-gu, Ulsan, Korea)
Zip Code	680-050
Tel	+82-52-261-7988
Fax	+82-52-269-8413
E-mail	pcbu@mwc.co.kr
Website	www.miwonchemicals.com
Trading Address	464, Anyang-ro, Manan-gu, Anyang-si, Gyeonggi-do, Korea (Old Address System : 325-1, Seoksu-dong, Manan-gu, Anyang-si, Gyeonggi-do, Korea)
Tel	+82-31-479-9200
Fax	+82-31-472-9233
Type	Export
Industry	Manufacture of Surface-Active Agents
Main Business	Surface-Active Agents
Established (mm/dd/yyyy)	01/01/2011

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Inorganic compounds(12352300)
Sell	Surfactants(12161900)
Sell	Wetting agents(12161906)
Sell	Inorganic acids(12352301)

CEO’s

Name	Kim Jung-Man
Date of Birth	07/1955
Title	Co-President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

2,332,285,000

Employees

130

Formation

Listed Company (Korea stock Exchange : 134380) as of 02/15/2011

A Company of MIWON COMMERCIAL GROUP

Bank Details

Korea Exchange Bank-Beomgye Station Branch

Corporate Registered No.

230111-0172244

Business Registered No.

610-86-04700

Permit & Licenses

Int’l Trade No.: 30682759

Shareholder Position

Name	Shares	%
KIM JUNG-DON	200,000	8.58
JUNG KYUNG-SOON	68,240	2.93
KIM SO-YOUNG	52,450	2.25
KIM TAE-JOON	67,600	2.90
KIM MYUNG-HEE	80,800	3.46
MISUNG TRADING CO., LTD.(134111-0025929)	490,305	21.02
MIWON COMMERCIAL CO., LTD.(130111-0007707)	100,415	4.31
OTHERS	1,272,475	54.56
TOTAL	2,332,285	100.00

Company History

01/01/2011 Incorporated as the present name, after split off from MIWON COMMERCIAL CO., LTD.(130111-0007707)

04/06/2011 Split off the par value to 1,000 KRW from 5,000 KRW

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Co-President & CEO	Mr.	Kim Jung-Man	Korean	1955.07	Chungang University, Korea
Co-President & CEO	Mr.	Jung Kyu-Sik	Korean	1957.03	Aju University, Korea
Outside Director	Mr.	Kim Sun-Wook	Korean	1954.12	Seoul National University, Korea
Auditor	Mr.	Sohn Eung-Joo	Korean	1961.03	Chungang University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)03/2014	37,426,680,033	88,012,950,330	2,849,591,612
(*)2013	144,246,653,549	82,110,790,074	10,490,229,815
(*)2012	121,285,087,025	73,859,719,429	7,750,840,263
(*)2011	121,172,921,431	73,108,212,925	9,702,941,322

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	9,100,000,000
Paid-Up Capital(KRW)	2,332,285,000
Total Issued Shares	2,332,285

Balance Sheet
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	88,012,950,330	82,110,790,074	73,859,719,429
Current Assets	45,515,706,258	42,920,235,679	35,462,327,574
Cash & Cash Equivalents	5,426,398,827	7,918,989,609	3,153,684,348
Current Financial Instruments	69,421,012	49,484,681	0
Trade Receivables & Other Receivables	20,041,796,331	17,634,165,490	16,766,829,010
Marketable Financial Instruments	4,384,623,350	4,135,581,850	4,840,053,000
Inventories	15,472,717,746	13,086,261,528	10,634,830,328
Other Current Assets	120,748,992	95,752,521	66,930,888
Non-Current Assets	42,497,244,072	39,190,554,395	38,397,391,855
Long-Term Trade Receivables & Other Receivables	704,715,496	687,379,029	468,116,488
Marketable Financial Instruments	8,625,000,000	8,500,000,000	9,062,500,000
Tangibles	32,071,349,694	28,906,878,706	27,808,989,047
Intangibles	567,310,832	567,428,610	528,918,270
Investment_Real Estates	528,868,050	528,868,050	528,868,050
Total Liabilities	23,409,339,959	20,699,620,261	22,335,120,099
Current Liabilities	18,611,257,750	16,224,702,359	18,385,268,945
Trade Payables & Other Payables	13,667,715,698	10,751,334,061	9,283,892,104
Short-Term Borrowings	1,959,316,913	3,036,141,624	7,446,440,424
Deferred Income Tax Credit	1,865,424,701	1,907,078,653	1,053,061,328
Provisions	0	102,136,845	80,853,600
Other Current Liabilities	1,118,800,438	428,011,176	521,021,489
Non-Current Liabilities	4,798,082,209	4,474,917,902	3,949,851,154
Long-Term Trade Payables & Other Payables	1,420,000,000	1,294,500,000	1,275,000,000
Confirmed Salaries	1,071,962,230	925,275,146	308,168,284
Deferred Income Tax Credit	2,306,119,979	2,255,142,756	2,366,682,870
Capital Stock	2,332,285,000	2,332,285,000	2,316,835,000
Capital Surplus	31,636,131,162	31,636,131,162	31,138,448,662
Others	-31,361,959	-31,361,959	-31,361,959
Installments	180,545,898	-162,311,274	789,855,659
Profit Surplus	30,486,010,270	27,636,426,884	17,310,821,968
Total Equity	64,603,610,371	61,411,169,813	51,524,599,330
Liab. & Shareholder’s Equity	88,012,950,330	82,110,790,074	73,859,719,429

Income Statement
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	37,426,680,033	144,246,653,549	121,285,087,025
Cost of Sold Goods	30,982,666,740	118,847,019,588	100,840,740,715
Gross Profit	6,444,013,293	25,399,633,961	20,444,346,310
Selling & Admin. Expenses	3,089,890,518	12,283,773,073	11,579,402,475
Operating Income	3,354,122,775	13,115,860,888	8,864,943,835
Other Income	91,176,833	416,392,291	1,106,430,461
Other Expenses	40,452,287	71,428,001	86,930,969
Finance Income	332,510,306	712,332,368	846,090,992
Finance Expenses	113,681,434	1,033,629,086	861,623,216
Income Before Taxes	3,623,676,193	13,139,528,460	9,868,911,103
Income Taxes Expenses	774,084,581	2,649,298,645	2,118,070,840
Net Income	2,849,591,612	10,490,229,815	7,750,840,263

Cash Flows
Unit : Korean Won	01/01/2014~03/31/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	2,807,574,846	14,220,282,625	7,797,307,812
Net Income	2,849,591,612	10,490,229,815	7,750,840,263
Adjustment	1,800,345,372	7,269,586,372	5,208,567,926
Changes in Asset/ & Liability	-1,152,093,757	-3,068,638,036	-4,200,086,775
Cash Flows from Operating	3,497,843,227	14,691,178,151	8,759,321,414
Income Taxes	-847,050,439	-538,767,538	-733,669,456
Interests Received	16,854,861	41,862,663	17,699,286
Interests Paid	-2,038,903	-113,477,651	-375,254,232
Dividends Received	141,966,100	139,487,000	129,210,800
Cash Flows from Investing	-4,208,321,756	-5,339,880,964	-2,306,755,543
Cash Flows from Financing	-1,076,824,711	-4,105,586,800	-4,014,121,804
Increase/Decrease in Cash	-2,477,571,621	4,774,814,861	1,476,430,465
Cash at the Beginning of Year	7,918,989,609	3,153,684,348	1,678,432,958
Cash at the End of Year	5,426,398,827	7,918,989,609	3,153,684,348

Products, Technologies, Services Description

Main Products & Services

Surface Active Agent

Brand Name : MIDAS, MICOLIN, LAS, IP CLEAN LX

Trade Partners & Competitors

Suppliers

NAMHAE CHEMICAL CORPORATION(110111-0164717)

Customers

Competitors

HUCHEMS FINE CHEMICAL CORPORATION

5TH FL., KUKDONG BLDG., 60-1, CHUNGMURO 3-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2262-0600 FAX:+82-2-2265-9381

COSMO CHEMICAL CO., LTD.

1534-5, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-32-451-6100 FAX:+82-32-451-6119

FOOSUNG CO., LTD.

427-9, NOHA-RI, PALTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-495-7243 FAX:+82-31-491-1649

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

MIWON COMMERCIAL CO., LTD.(130111-0007707)

TAEKWANG FINE CHEMICAL CO., LTD.(120111-0052142)

ASIA STABILIZERS CO., LTD.(ASCL: 134711-0016596)

MIWON CHEMICALS CO., LTD.(230111-0172244)

MIWON SPECIALTY CHEMICAL CO., LTD.(210111-0063190)

MIWON COMMERCIAL CO., LTD.(130111-0007707)

MISUNG TRADING CO., LTD.(134111-0025929)

MISUNG TOTAL CORPORATION(180111-0167832)

MIWHA LOGISTICS CO., LTD.(230111-0072014)

MIWOO SILUP CO., LTD.(KOREA)

MIWON EOD CO., LTD.(161411-0023544)

QIDONG QINGYUN FINE CHEMICAL CO., LTD.(CHINA)

MIWON NORTH AMERICA. INC.(USA)

MIWON EUROPE GMBH

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	03/2014	2013	2012
Export	21,334	56,599	55,643
Domestic	16,093	64,686	65,530
Total	37,427	121,285	121,173

News Clipping

Not Available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.102.04
Euro	1	Rs.80.74

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SDA

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.