MIRA INFORM REPORT

Report Date :

26.11.2014

IDENTIFICATION DETAILS

Name :	WHAWON PHARM CO., LTD.

Registered Office :	26, Barangongdan-ro 1-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	12.02.1998

Com. Reg. No.:	213-86-34148

Legal Form :	Company Limited By Shares

Line of Business :	Wholesale of Other Chemical Materials and Chemical Products

No of Employees :	28

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

Company Name	WHAWON PHARM CO., LTD. (Korean Company Name : “(주)화원약품”)
Registered Address	26, Barangongdan-ro 1-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea
Building
Zip Code	445-938
Tel	+82-31-353-3717
Fax	+82-31-353-3135
E-mail	webmaster@whawon.co.kr
Website	www.whawon.co.kr
Trading Address	26, Barangongdan-ro 1-gil, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea (Old Address System : 34-6b Balan Industrial Complex, 1407-5, Hagil-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea)
Tel	+82-2-573-1858,
Fax	+82-2-573-2786
Other Address-Yangjae Branch	3FL., Dongsan Bldg., 7-21, Gangnam-daero 27-gil, Seocho-gu, Seoul, Korea (Old Address System : 3FL., Dongsan Bldg., 67-7, Yangjae 1-dong, Seocho-gu, Seoul, Korea)
Tel
Fax
Type	Export/Import
Industry	Wholesale of Other Chemical Materials and Chemical Products
Main Business	Chemicals, Medical Supplies, Medicine Raw Materials
Sub Business	Wholesale of Pharmaceuticals
Established (mm/dd/yyyy)	02/12/1998

The Subject owns the premises of registered HQ address(5,402.1㎡).

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Drugs and Pharmaceutical Products(51000000)

CEO’s

Name	Won Young-Hee
Address	Rm. 102-103, 391, Yatap-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Date of Birth	09/01/1944
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,512,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Citibank, Korea

Industrial Bank of Korea

Shinhan Bank

Corporate Registered No.

110111-1511628

Business Registered No.

213-86-34148

Permit & Licenses

Int’l Trade No.: 11557038

Shareholder Position

Name	Shares	%
WON YOUNG-HEE	48,825	46.50
CHANG YONG-KAP	45,675	43.50
OTHERS	10,500	10.00
TOTAL	105,000	100.00

Company History

02/12/1998 Incorporated as the present name

04/01/2006 Moved to the present HQ address from 751-10, Yeoksam-dong, Gangnam-gu, Seoul, Korea

03/11/2011 Increased capital to 1,512,000,000 KRW from 1,260,000,000 KRW

03/11/2011 Increased the authorized shares to 500,000 shares from 130,000 shares

04/08/2014 Increased the authorized shares to 5,000,000 shares from 500,000 shares

05/13/2014 Spit off the par value to 500 KRW from 10,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Won Young-Hee	Male	Korean	02/12/1998
Director	M/S.	Hwang Dong-Sook	Female	Korean	02/12/1998
Director	Mr.	Chang Yong-Kap	Male	Korean	02/12/1998
Director	M/S.	Lee Myung-Soon	Female	Korean	02/12/1998
Auditor	Mr.	Chang Keuk-Chae	Male	Korean	02/12/1998

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	41,335,919,240	21,827,322,632	3,707,606,203
2012	40,021,411,537	19,647,165,347	3,603,500,586
2011	34,086,660,815	16,827,604,047	2,946,312,907
2010	31,573,125,979	15,553,629,211	2,279,679,411
2009	32,980,834,883	15,634,425,772	2,182,293,010
2008	28,172,818,114	13,373,055,763	1,501,043,418
2007	22,947,666,358	11,562,423,412	1,200,482,902
2006	18,575,644,721	10,543,880,896	1,144,002,175
2005	16,882,034,108	9,284,447,613	604,993,545

Financial Description

Authorized Capital(KRW)	2,500,000,000
Paid-Up Capital(KRW)	1,512,000,000
Total Issued Shares	3,024,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	21,827,322,632	19,647,165,347	16,827,604,047
Current Assets	17,724,031,630	15,558,252,264	13,097,467,362
-Quick Assets	12,792,576,977	10,890,441,085	9,747,108,775
-Inventories	4,931,454,653	4,667,811,179	3,350,358,587
Fixed Assets	4,103,291,002	4,088,913,083	3,730,136,685
-Investment	672,042,430	554,881,894	601,993,080
-Tangibles	2,663,132,693	2,765,915,310	2,816,437,445
-Intangibles	768,115,879	768,115,879	311,706,160
Total Liabilities	3,012,476,148	3,879,181,066	4,088,560,352
Current Liabilities	3,012,476,148	3,879,181,066	3,888,120,352
Fixed Liabilities	-	-	200,440,000
Capital Stock	1,512,000,000	1,512,000,000	1,512,000,000
Capital Surplus
Profit Surplus	17,302,846,484	14,255,984,281	11,227,043,695
Capital Adjustment
Total Equity	18,814,846,484	15,767,984,281	12,739,043,695
Liab. & Shareholder’s Equity	21,827,322,632	19,647,165,347	16,827,604,047

Current Liabilities	3,012,476,148	3,879,181,066	3,888,120,352
Trade Payables	651,125,580	1,144,924,560	971,210,045
Short-Term Borrowings	840,000,000	1,340,000,000	1,340,000,000
Account Payables	700,000	14,557,000	700,000
Short-Term Borrowings to Shareholders/ Executives/ Employees	600,000,000	400,000,000	500,000,000
Accrued Expenses	41,482,882	43,106,945	95,036,959
Deferred Income Tax Credit	627,182,000	634,771,997	479,441,110
Withholdings	41,807,165	35,574,755	27,520,358
VAT Withhold	210,178,521	65,805,809	183,331,880
Current Portion of Long-Term Debts	-	200,440,000	290,880,000
Fixed Liabilities	-	-	200,440,000
Long-Term Borrowings	-	-	200,440,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	41,335,919,240	40,021,411,537	34,086,660,815
Cost of Sold Goods	31,677,548,674	30,376,251,356	26,020,984,951
Gross Profit	9,658,370,566	9,645,160,181	8,065,675,864
Selling & Admin. Expenses	4,542,255,139	4,604,476,125	3,983,674,030
Operating Income	5,116,115,427	5,040,684,056	4,082,001,834
Non-Operating Income	294,231,126	338,510,788	379,267,616
Non-Operating Expenses	496,966,057	706,461,551	615,117,005
Income Before Taxes	4,913,380,496	4,672,733,293	3,846,152,445
Income Taxes Expenses	1,205,774,293	1,069,232,707	899,839,538
Net Income	3,707,606,203	3,603,500,586	2,946,312,907

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,507,316,491	2,347,220,009	1,847,284,854
-Net Income	3,707,606,203	3,603,500,586	2,946,312,907
-Exp. without Cash Outflow	659,194,993	1,085,757,167	678,002,556
-Revenue without Cash Inflows	-13,105,111	-23,651,549	-10,988,166
-Changes in Asset/ & Liability	-2,846,379,594	-2,318,386,195	-1,766,042,443
Cash Flows from Investing	-190,290,215	-1,041,718,457	251,086,279
-Cash Inflow from Investing	967,928,182	650,826,910	1,243,702,146
-Cash Outflows for Investing	-1,158,218,397	-1,692,545,367	-992,615,867
Cash Flows from Financing	-1,161,184,000	-965,440,000	-2,172,824,000
-Cash Inflows from Financing	500,000,000	500,000,000	-
-Cash Outflows from Financing	-1,661,184,000	-1,465,440,000	-2,172,824,000
Increase/Decrease in Cash	155,842,276	340,061,552	-74,452,867
Cash at the Beginning of Year	652,227,006	312,165,454	386,618,321
Cash at the End of Year	808,069,282	652,227,006	312,165,454

Products, Technologies, Services Description

Main Products & Services	Chemicals, Medical Supplies, Medicine Raw Materials
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

JRS-USA

INNOPHOS-USA

COLORCON-USA

ROQUETTE-FRANCE

NUTRINOVA-GERMANY

ZHEJIANG KANGLE-CHINA

RHODIA-FRANCE

RHODIA-THAILAND

TRANSCHEM-INDIA

PANINKRET-GERMANY

NISSHIN-JAPAN

SHAOXING YAMEI-CHINA

DSM-SCOTLAND

Customers

Major Domestic Pharmaceutical Companies

Competitors

HIGH TECH PHARM. CO., LTD.

576-1, SEONGBON-RI, DAESO-MYEON, EUMSEONG-GUN, CHUNGCHEONGBUK-DO, KOREA

TEL:+82-43-883-0012 FAX:+82-43-883-0014

HANSEO CHEM CO., LTD.

2-DANJI, POSEUNG NATIONAL INDUSTRIAL COMPLEX, 1206-14, WONJEONG-RI, POSEUNG-EUP, PYEONGTAEK-SI, GYEONGGI-DO, KOREA

TEL:+82-31-682-8655 FAX:+82-31-682-8656

DAEBONG LS CO., LTD.

122B-9L, NAMDONG INDUSTRIAL COMPLEX, 692-8, GOJAN-DONG, NAMDONG-GU, INCHEON, KOREA

TEL:+82-32-817-8800~7 FAX:+82-32-817-8808

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

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

Sales by Region (Activity & Markets)

The Subject imports from China, Thailand, France, Germany and USA.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.97.12
Euro	1	Rs.76.93

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	TPT

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.