MIRA INFORM REPORT

Report Date :

10.05.2014

IDENTIFICATION DETAILS

Name :	KOREA BIO-CHEM PHARMACEUTICAL INC.

Registered Office :	204, Sandan-gil, Jeonui-myeon, Sejong-si, Korea

Country :	Korea (South)

Financials (as on) :	31.12.2013

Date of Incorporation :	30.09.2009

Com. Reg. No.:	307-81-30710

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Medicinal Chemicals and Antibiotics

No. of Employees :	37

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
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)

Korea (South)

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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. 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	KOREA BIO-CHEM PHARMACEUTICAL INC.
Registered Address	204, Sandan-gil, Jeonui-myeon, Sejong-si, Korea
Zip Code	339-853
Tel	+82-41-8650-5030
Fax	+82-41-8650-0057
Trading Address	204, Sandan-gil, Jeonui-myeon, Sejong-si, Korea (Old Address System : 617, Sinjeong-ri, Jeonui-myeon, Sejong, Korea)
Tel	+82-41-8650-5030
Fax	+82-41-8650-0057
Type	Export/Import
Industry	Manufacture of Medicinal Chemicals and Antibiotics
Main Business	Drug, Pharmaceuticals, Fine Chemical, Detergent, Food, Health Aid Food
Established (mm/dd/yyyy)	09/30/2009

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Pharmaceuticals

CEO’s

Name	Song Won-Ho
Address	Suite 103-904, 47, Saemal 1-gil, Dongnam-gu, Cheonan-si, Chungcheongnam-do, Korea
Date of Birth	01/31/1962
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

6,400,000,000

Employees

Formation

Co., Ltd by Shares

A Company of KOREA UNITED PHARM INC.(134211-0002769)

Bank Details

Industrial Bank of Korea

Korea Development Bank

Woori Bank

Corporate Registered No.

164711-0019750

Business Registered No.

307-81-30710

Permit & Licenses

N/A

Shareholder Position

Name	Shares	%
KOREA UNITED PHARM INC.(134211-0002769)	1,152,000	90.0
KANG DUK-YOUNG	128,000	10.0
TOTAL	1,280,000	100.0

Company History

09/30/2009 Incorporated as UNITED SAENGMYUNG GONGHAK INC.

10/27/2009 Changed company name to KOREA DOUGLAS PHARMACEUTICAL INC.

06/23/2010 Changed company name to UNITED BIO-CHEM PHARMACEUTICAL INC.

06/30/2010 Changed company name to KOREA UNITED BIO-CHEM PHARMACEUTICAL INC.

04/16/2012 Changed company name to the present name

01/13/2014 Increased the authorized shares to 3,000,000 shares from 960,000 shares

01/14/2014 Increased capital to 6,400,000,000 KRW from 2,400,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Song Won-Ho	Male	Korean	09/30/2009
Director	Mr.	Lee Yong-Ho	Male	Korean	09/30/2012
Director	Mr.	Kim Kwang-Hyun	Male	Korean	09/30/2012
Auditor	M/S.	Moon Jung-Ah	Female	Korean	05/31/2013

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	7,141,504,897	12,240,563,281	-701,528,908
2012	3,744,227,832	10,620,901,083	-1,746,212,540
2011	3,329,615,273	8,894,506,199	-1,203,851,786

Financial Description

Authorized Capital(KRW)	15,000,000,000
Paid-Up Capital(KRW)	6,400,000,000
Total Issued Shares	1,280,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	12,240,563,281	10,620,901,083	8,894,506,199
Current Assets	4,661,413,355	3,066,182,495	778,307,001
Cash & Cash Equivalents	18,915,506	134,945,767	105,682,463
Trade Receivables & Other Receivables	2,218,587,522	883,521,383	102,453,170
Marketable Financial Instruments	510,000	19,100,000	19,715,000
Prepaid Expenses	49,851,986	13,973,830	26,429,490
Advance Payments	1,801,510	-	-
Deferred Income Tax Assets	278,300	41,210	-
Inventories	2,371,468,531	2,014,600,305	524,026,878
Non-Current Assets	7,579,149,926	7,554,718,588	8,116,199,198
Other Financial Assets	18,000,000	-	424,962,731
Tangibles	7,270,418,806	7,264,718,588	7,401,236,467
Intangibles	290,731,120	290,000,000	290,000,000
Total Liabilities	14,248,005,479	11,926,814,373	9,630,367,618
Current Liabilities	2,386,904,040	2,502,200,817	5,567,318,349
Trade Payables & Other Payables	1,829,404,040	1,054,700,817	619,618,349
Short-Term Borrowings	-	300,000,000	4,650,000,000
Current Portion of Long-Term Debts	557,500,000	1,147,500,000	262,500,000
Other Current Liabilities	-	-	35,200,000
Non-Current Liabilities	11,861,101,439	9,424,613,556	4,063,049,269
Long-Term Borrowings	11,820,000,000	9,377,500,000	4,025,000,000
Deferred Income Tax Credit	41,101,439	47,113,556	38,049,269
Capital Stock	2,400,000,000	2,400,000,000	1,200,000,000
Others	4,407,442,198	3,705,913,290	1,935,861,419
Total Equity	-2,007,442,198	-1,305,913,290	-735,861,419
Liab. & Shareholder’s Equity	12,240,563,281	10,620,901,083	8,894,506,199

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	7,141,504,897	3,744,227,832	3,329,615,273
Cost of Sold Goods	6,890,045,031	3,645,906,037	2,668,398,539
Gross Profit	251,459,866	98,321,795	661,216,734
Selling & Admin. Expenses	547,402,073	1,321,184,935	1,804,485,702
Operating Income	-295,942,207	-1,222,863,140	-1,143,268,968
Other Income	93,634,826	86,946,831	293,089,408
Other Expenses	3,566,982	154,627,877	90,676,633
Finance Income	2,518,204	853,738	229,574
Finance Expenses	504,184,866	447,457,805	280,295,556
Income Before Taxes	-707,541,025	-1,737,148,253	-1,220,922,175
Income Taxes Expenses	-6,012,117	9,064,287	-17,070,389
Net Income	-701,528,908	-1,746,212,540	-1,203,851,786

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Operating Activities Cash Flows	-149,665,146	-2,897,767,043	-1,020,601,233
Net Income	-701,528,908	-1,746,212,540	-1,203,851,786
Adjustment	1,139,874,315	1,140,242,186	106,724,728
Changes in Asset/ & Liability	-171,525,390	-1,843,808,727	352,698,392
Interests Received	2,270,704	853,738	229,574
Interests Paid	-418,518,777	-448,800,490	-276,402,141
Income Taxes	-237,090	-41,210
Cash Flows from Investing	-674,481,608	-158,812,053	-3,945,625,453
Cash Flows from Financing	708,116,493	3,085,842,400	4,936,071,737
Increase/Decrease in Cash	-116,030,261	29,263,304	-30,154,949
Cash at the Beginning of Year	134,945,767	105,682,463	135,837,412
Cash at the End of Year	18,915,506	134,945,767	105,682,463

Products, Technologies, Services Description

Main Products & Services

Drug, Pharmaceuticals, Fine Chemical, Detergent, Food, Health Aid Food

Trade Partners & Competitors

Competitors

JEIL PHARMACEUTICAL CO., LTD.(110111-0026652)

745-5, BANPO 1-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-549-7451 FAX:+82-2-549-7478

BORYUNG PHARM CO., LTD.(110111-0012560)

15TH FL., BORYEONG BLDG., 66-21, WONNAM-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-708-8000 FAX:+82-2-742-6362

KWANGDONG PHARMACEUTICAL CO., LTD(110111-0152134)

4TH FL., GASAN BLDG., 1577-4, SEOCHO 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-6006-7777 FAX:+82-2-6006-702

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	KOREA UNITED PHARM GLOBAL INC.(110111-3513680) KOREA UNITED PHARM INC.(134211-0002769) UNITED GST CO., LTD.(110111-3634155) GALELUB MULTILAB CO., LTD.(110111-3739450) UNITED INTERPHRAM CO., LTD.(110111-0408644)
Affiliates-Overseas	UNITED DOUGLAS PHARM, INC. (LUVERNE. ALABAMA. USA) 72, JANE DR, LUVERNE, AL 36049, USA TEL:+1-334-335-4842 FAX:+1-334-335-2062 CSKIM@KUP.CO.KR KOREA UNITED PHARM. INT'L JSC. (BINH DOUNG, VIETNAM) 2A DAI LO TU DO BOULVARD, VSIP, THUAN AN DISTRICT, BINH DUONG, VIETNAM DIST.10, HOCHIMINH CITY, VIETNAM TEL:+84-650-782-980 FAX:+84-650-782-981 KUP.REP@HCM.VNN.VN
Corporate Ownership	KOREA UNITED PHARM INC.(134211-0002769)
Major Shareholders	KOREA UNITED PHARM INC.(134211-0002769)
Cooperative Enterprise	-Insured Company LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region (Activity & Markets)

Not Available.

News Clipping

Not Available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.05
UK Pound	1	Rs.101.65
Euro	1	Rs.83.07

INFORMATION DETAILS

Analysis Done by :	DIV

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.