MIRA INFORM REPORT

Report Date :

22.11.2014

IDENTIFICATION DETAILS

Name :	PACO CORP.

Registered Office :	94, Yeojunam-ro, Yeoju-si, Gyeonggi-do

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	07.05.2000

Com. Reg. No.:	126-81-46705

Legal Form :	Company Limited by Shares

Line of Business :	Manufacture of Abrasive Articles

No. of Employees :	70

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

Summery

Company Name	PACO CORP.
Registered Address	94, Yeojunam-ro, Yeoju-si, Gyeonggi-do, Korea
Building
Zip Code	469-109
Tel	+82-31-885-6573
Fax	+82-31-885-6574
E-mail	sales@paco.co.kr
Website	www.paco.co.kr
Trading Address	94, Yeojunam-ro, Yeoju-si, Gyeonggi-do, Korea (Old Address System 345-1, Wolsong-dong, Yeoju-si, Gyeonggi-do, Korea)
Tel	+82-31-885-6573
Fax	+82-31-885-6574
Type	Export
Industry	Manufacture of Abrasive Articles
Main Business	Wood Abrasive Papers, Metal Abrasive Papers, Non-Ferrous Metal Abrasive Papers, Wheel Abrasive Papers, Heavy Metal Abrasive Papers
Established (mm/dd/yyyy)	07/05/2000

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Abrasive papers(31191501)
Buy	Specialty fabrics or cloth(11162100)
Buy	Grinding and sanding and polishing equipment and supplies(23131500)

CEO’s

Name	Choi Jin
Address	Suite 120-804, 151, Apgujeong-ro, Gangnam-gu, Seoul, Korea
Date of Birth	11/17/1972
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,000,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Korea Exchange Bank-Icheon Branch

157-1, Changjeon-dong, Icheon-si, Gyeonggi-do, Korea

Tel:+82-31-638-0265~8

Corporate Registered No.

1312110-011721

Business Registered No.

126-81-46705

Permit & Licenses

Int’l Trade No.: 12040661

Shareholder Position

Name	Shares	%
CHOI CHUL-KYUN	68,039	68.03
HA YOUNG-SOOK	19,216	19.22
CHOI JIN	10,196	10.20
CHOI JONG	2,549	2.55
TOTAL	100,000	100.00

Company History

07/05/2000 Incorporated as the present name

11/27/2002 Increased capital to 1,000,000,000 KRW from 255,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Choi Jin	Male	Korean	03/31/2006
Director	Mr.	Choi Chul-Kyun	Male	Korean	03/31/2006
Director	Mr.	Choi Kyu-Pal	Male	Korean	03/31/2009
Auditor	Mr.	Choi Jong	Male	Korean	03/31/2012

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	14,639,473,246	14,405,971,421	111,203,748
2012	14,051,386,952	13,587,143,304	239,373,688
2011	11,841,346,550	7,758,189,344	55,383,070

Financial Description

Authorized Capital(KRW)	1,000,000,000
Paid-Up Capital(KRW)	1,000,000,000
Total Issued Shares	100,000

Balance Sheet

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	14,405,971,421	13,587,143,304	7,758,189,344
Current Assets	5,737,908,754	4,973,740,509	4,723,081,117
-Quick Assets	2,185,650,932	2,150,762,967	2,014,115,900
-Inventories	3,552,257,822	2,822,977,542	2,708,965,217
Fixed Assets	8,668,062,667	8,613,402,795	3,035,108,227
-Investment	3,000,000	3,000,000	3,000,000
-Tangibles	8,400,647,147	8,409,221,562	2,966,477,084
-Intangibles	248,154,101	148,419,814	14,369,724
-Others	16,261,419	52,761,419	51,261,419
Total Liabilities	7,928,299,190	7,220,674,821	7,042,092,772
Current Liabilities	7,212,815,024	6,658,603,730	6,599,983,001
Fixed Liabilities	715,484,166	562,071,091	442,109,771
Capital Stock	1,000,000,000	1,000,000,000	1,000,000,000
Capital Surplus	-	3,600,589,008	3,600,589,008
Profit Surplus	66,674,008	-3,645,118,748	-3,884,492,436
Capital Adjustment	5,410,998,223	5,410,998,223	-
Total Equity	6,477,672,231	6,366,468,483	716,096,572
Liab. & Shareholder’s Equity	14,405,971,421	13,587,143,304	7,758,189,344

Current Liabilities	7,212,815,024	6,658,603,730	6,599,983,001
Trade Payables	1,978,050,153	1,952,262,929	2,033,394,967
Short-Term Borrowings	4,517,000,000	3,883,694,518	3,830,228,344
Short-Term Borrowings to Shareholders/ Executives/ Employees	119,633,055	136,613,949	106,009,650
Account Payables	258,772,384	383,695,341	360,103,132
Advance Receipts	68,186,810	53,392,988	42,870,400
Withholdings	630,946	682,470	271,000
Accrued Expenses	180,541,676	158,261,535	137,105,508
Leasehold Deposit Received	90,000,000	90,000,000	90,000,000
Fixed Liabilities	715,484,166	562,071,091	442,109,771
Long-Term Borrowings	21,604,180	23,181,600	24,590,500
Provision for Severance & Retirement	935,126,588	839,445,417	711,909,006

Income Statement

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	14,639,473,246	14,051,386,952	11,841,346,550
Cost of Sold Goods	12,552,805,123	11,970,884,958	9,980,067,222
Gross Profit	2,086,668,123	2,080,501,994	1,861,279,328
Selling & Admin. Expenses	1,855,193,063	1,633,244,656	1,548,458,927
Operating Income	231,475,060	447,257,338	312,820,401
Non-Operating Income	226,273,706	185,883,847	126,894,415
Non-Operating Expenses	346,545,018	393,767,497	384,331,746
Income Before Taxes	111,203,748	239,373,688	55,383,070
Income Taxes Expenses	-	-	-
Net Income	111,203,748	239,373,688	55,383,070

Cash Flows

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	-316,276,386	128,893,353	206,098,395
-Net Income	111,203,748	239,373,688	55,383,070
-Exp. without Cash Outflow	494,496,504	355,537,478	80,214,126
-Revenue without Cash Inflows	-11,999,917	-9,367,935	-
-Changes in Asset/ & Liability	-909,976,721	-456,649,878	70,501,199
Cash Flows from Investing	-221,876,748	-294,767,051	-172,457,137
-Cash Inflow from Investing	41,630,000	72,705,513	131,500,000
-Cash Outflows for Investing	-263,506,748	-367,472,564	-303,957,137
Cash Flows from Financing	614,747,168	82,661,573	-35,071,348
-Cash Inflows from Financing	2,664,691,533	2,182,684,868	1,835,228,344
-Cash Outflows from Financing	-2,049,944,365	-2,100,023,295	-1,870,299,692
Increase/Decrease in Cash	76,594,034	-83,212,125	1,430,090
Cash at the Beginning of Year	71,482,806	154,694,931	156,125,021
Cash at the End of Year	148,076,840	71,482,806	154,694,931

Products, Technologies, Services Description

Main Products & Services	Wood Abrasive Papers, Metal Abrasive Papers, Non-Ferrous Metal Abrasive Papers, Wheel Abrasive Papers, Heavy Metal Abrasive Papers
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Competitors

SUN ABRASIVES CO., LTD.

609B-3L, BANWOL INDUSTRIAL COMPLEX, 628-4, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-495-6076 FAX:+82-31-494-6848

PYUNG RIM P & P CO., LTD.

498-1, DOCHEONG-RI, GEUMWANG-EUP, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-881-4144 FAX:+82-43-881-4147

DAE SUNG ABRASIVE CO., LTD.

184-1, BEONAM-RI, JOCHIWON-EUP, YEONGI-GUN, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-862-3368 FAX:+82-41-865-2532

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

GREEN NON-LIFE INSURANCE CO., LTD.(110111-0007082)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.97.01
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	VNT

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.