MIRA INFORM REPORT

Report Date :

19.11.2014

IDENTIFICATION DETAILS

Name :	SEUN STEEL CO., LTD.

Registered Office :	23, Hwangnyeong-daero, Busanjin-gu, Busan, Korea, 3rd Fl., Seun Inoville, 614-828

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	31.05.1978

Com. Reg. No.:	606-81-31799

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products like Cold Rolled, Hot Galvanized Coil, Continuous Galvanized Coil, Electrolytic Galvanized Coil, Pickled & Oiled Coil

No of Employees :	182

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 :	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 – 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

Company Name	SEUN STEEL CO., LTD. (Korean Company Name : “세운철강(주)”)
Registered Address	23, Hwangnyeong-daero, Busanjin-gu, Busan, Korea
Building	3rd Fl., Seun Inoville
Zip Code	614-828
Tel	+82-51-639-3200
Fax	+82-51-324-5846
E-mail	ken102@seunsteel.co.kr
Website	www.seunsteel.co.kr
Trading Address	3rd Fl., Seun Inoville, 23, Hwangnyeong-daero, Busanjin-gu, Busan, Korea (Old Address System : 3rd Fl., Seun Inoville, 859-16, Beomcheon 1-dong, Busanjin-gu, Busan, Korea)
Tel	+82-51-639-3200
Fax	+82-51-324-5846
Other Address-Andong Factory	160-14, An-dong, Gimhae-si, Gyeongsangnam-do, Korea
Tel	+82-55-333-8766
Fax	+82-55-334-5337
Type
Industry	Manufacture of Cold Rolled, Drawn and Extruded Iron or Steel Products
Main Business	Cold Rolled, Hot Galvanized Coil, Continuous Galvanized Coil, Electrolytic Galvanized Coil, Pickled & Oiled Coil
Sub Business
Established (mm/dd/yyyy)	05/31/1978

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Steel(11101704)
Sell	Coil(30101900)
Sell	Steel plate(30102204)

CEO’s

Name	Shin Jong-Taek
Address	Suite 102-201, 55, Baegyanggwanmun-ro 77beon-gil, Busanjin-gu, Busan, Korea
Date of Birth	12/27/1956
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

4,203,000,000

Employees

182

Formation

Co., Ltd by Shares

Bank Details

Busan Bank

Hana Bank

Shinhan Bank

Corporate Registered No.

180111-0030261

Business Registered No.

606-81-31799

Permit & Licenses

01/2004 ISO 9001

Int’l Trade No.: 900076

Shareholder Position

Name	Shares	%
SHIN JONG-TAEK	5,332,766	63.44
OTHERS	3,073,234	36.56
TOTAL	8,406,000	100.00

Company History

05/31/1978 Incorporated as the present name

05/14/2002 Increased the authorized shares to 14,400,000 shares from 1,440,000 shares

05/14/2002 Split off the par value to 500 KRW from 5,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Shin Jong-Taek	Male	Korean	03/30/2010
Director	Mr.	Byun Ki-Kyu	Male	Korean	03/30/2007
Director	Mr.	Shin Jae-Woo	Male	Korean	03/30/2007
Director	Mr.	Shin Jung-Taek	Male	Korean	03/30/2010
Auditor	Mr.	Cha Soo-Chang	Male	Korean	03/25/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	742,004,963,857	329,423,216,369	4,909,738,060
2012	813,330,794,760	363,297,950,328	7,065,782,572
2011	857,559,405,131	383,357,920,669	12,535,474,069
2010	715,434,019,911	302,195,815,300	8,480,522,723

Financial Description

Authorized Capital(KRW)	7,200,000,000
Paid-Up Capital(KRW)	4,203,000,000
Total Issued Shares	8,406,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	329,423,216,369	363,297,950,328	383,357,920,669
Current Assets	165,220,946,593	192,374,741,424	201,597,672,513
-Quick Assets	87,621,929,633	99,845,253,232	103,771,013,876
-Inventories	77,599,016,960	92,529,488,192	97,826,658,637
Fixed Assets	164,202,269,776	170,923,208,904	181,760,248,156
-Investment	69,039,888,899	66,811,326,551	72,749,125,227
-Tangibles	92,527,274,105	101,761,815,438	107,052,923,125
-Intangibles
-Others	2,635,106,772	2,350,066,915	1,958,199,804
Total Liabilities	248,804,886,635	286,068,281,097	308,530,637,781
Current Liabilities	222,286,817,112	257,144,118,666	278,315,862,203
Fixed Liabilities	26,518,069,523	28,924,162,431	30,214,775,578
Capital Stock	4,203,000,000	4,203,000,000	4,203,000,000
Capital Surplus
Profit Surplus	78,622,846,070	74,974,008,010	70,721,394,592
Capital Adjustment	-2,207,516,336	-1,947,338,779	-97,111,704
Total Equity	80,618,329,734	77,229,669,231	74,827,282,888
Liab. & Shareholder’s Equity	329,423,216,369	363,297,950,328	383,357,920,669

Current Liabilities	222,286,817,112	257,144,118,666	278,315,862,203
Trade Payables	77,204,729,392	84,801,101,405	93,030,006,483
Short-Term Borrowings	135,948,942,617	157,993,526,472	164,158,075,526
Account Payables	1,163,455,138	1,811,347,606	11,032,623,186
Advance Receipts	129,690	866,521	6,500,687,089
Withholdings	83,651,010	153,340,523	87,739,184
Guarantee Deposit Withhold	10,000,000	476,000,000	-
VAT Withhold	1,343,794,330	1,944,699,190	70,373,870
Accrued Expenses	1,441,226,893	7,720,845,849	884,455,509
Deferred Income Tax Credit	1,363,364,303	-	2,199,966,481
Current Portion of Long-Term Debts	3,680,782,200	2,242,391,100	339,777,000
Deferred Income Tax Credit	46,741,539	-	12,157,875
Fixed Liabilities	26,518,069,523	28,924,162,431	30,214,775,578
Long-Term Borrowings	22,145,737,700	25,826,519,900	27,166,911,000
Leasehold Deposit Received	460,000,000	280,000,000	305,000,000
Provision for Severance & Retirement	6,593,627,356	5,617,042,864	5,524,086,095

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	742,004,963,857	813,330,794,760	857,559,405,131
Cost of Sold Goods	715,232,201,452	779,326,313,696	821,786,025,128
Gross Profit	26,772,762,405	34,004,481,064	35,773,380,003
Selling & Admin. Expenses	11,884,237,659	17,109,103,175	11,347,685,899
Operating Income	14,888,524,746	16,895,377,889	24,425,694,104
Non-Operating Income	3,911,908,185	6,702,048,143	3,881,798,130
Non-Operating Expenses	12,210,992,313	13,512,523,386	12,361,448,696
Income Before Taxes	6,589,440,618	10,084,902,646	15,946,043,538
Income Taxes Expenses	1,679,702,558	3,019,120,074	3,410,569,469
Net Income	4,909,738,060	7,065,782,572	12,535,474,069

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	22,272,688,591	241,273,701	2,099,061,003
-Net Income	4,909,738,060	7,065,782,572	12,535,474,069
-Exp. without Cash Outflow	8,189,541,152	7,198,132,300	4,591,829,665
-Revenue without Cash Inflows	-2,505,497,773	-4,837,915,165	-2,475,326,988
-Changes in Asset/ & Liability	11,678,907,152	-9,184,726,006	-12,552,915,743
Cash Flows from Investing	2,422,692,070	8,555,111,159	-43,039,854,465
-Cash Inflow from Investing	16,624,881,823	14,771,616,876	7,248,832,113
-Cash Outflows for Investing	-14,202,189,753	-6,216,505,717	-50,288,686,578
Cash Flows from Financing	-25,367,874,955	-8,359,276,054	41,162,944,377
-Cash Inflows from Financing	769,261,401,545	838,465,276,950	898,581,209,846
-Cash Outflows from Financing	-794,629,276,500	-846,824,553,004	-857,418,265,469
Increase/Decrease in Cash	-672,494,294	437,108,806	222,150,915
Cash at the Beginning of Year	830,177,134	393,068,328	170,917,413
Cash at the End of Year	157,682,840	830,177,134	393,068,328

Products, Technologies, Services Description

Main Products & Services	Cold Rolled, Hot Galvanized Coil, Continuous Galvanized Coil, Electrolytic Galvanized Coil, Pickled & Oiled Coil
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Competitors

TS METAL CO., LTD.

2B-23L, BANWOL INDUSTRIAL COMPLEX, 391, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-508-0740 FAX:+82-31-508-0743

DAEHAN STEEL CO., LTD.

370-16, SINPYEONG 1-DONG, SAHA-GU, BUSAN, KOREA

TEL:+82-51-220-3300 FAX:+82-51-220-3398

KOREA STEEL SHAPES CO., LTD.

727-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-323-2611 FAX:+82-51-325-5713

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Subsidiary

DAIRYEN SEUN STEEL CO., LTD.(CHINA)

(90.56% held by the subject company)

SEUN STEEL(M) SDN.BHD.

(100.00% held by the subject company)

SEUN BNC CO., LTD.( 110111-1717391)

(77.5% held by the subject company)

Cooperative Enterprise

-Insured Company

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

HEUNGKUK FIRE & MARINE INSURANCE CO., LTD.(110111-0016728)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.81
UK Pound	1	Rs.96.77
Euro	1	Rs.77.09

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SMN

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.