MIRA INFORM REPORT

Report Date :

02.10.2014

IDENTIFICATION DETAILS

Name :	CENTURY PRECISION CO., LTD.

Registered Office :	254, Seunggicheon-ro, Namdong-gu, Incheon, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	14.05.1996

Com. Reg. No.:	139-81-27873

Legal Form :	Company Limited By Shares

Line of Business :	Manufacture of Saws, Saw Blades and Interchangeable Tools

No of Employees :	36

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 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	CENTURY PRECISION CO., LTD. (Korean Company Name : “(주)세기정공”)
Registered Address	254, Seunggicheon-ro, Namdong-gu, Incheon, Korea
Building	23B-10L, Namdong Industrial Complex
Zip Code	405-849
Tel	+82-32-819-5051~4
Fax	+82-32-819-5055
E-mail	century@cty.co.kr
Website	www.cty.co.kr
Trading Address	23B-10L, Namdong Industrial Complex, 254, Seunggicheon-ro, Namdong-gu, Incheon, Korea (Old Address System : 23B-10L, Namdong Industrial Complex, 453-10, Nonhyeon-dong, Namdong-gu, Incheon, Korea)
Tel	+82-32-819-5051~4
Fax	+82-32-819-5055
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Saws, Saw Blades and Interchangeable Tools
Main Business	Standard HOB, Spline HOB, Worm Gear HOB, Chain(Sprocket) HOB, Timing Pulley HOB, Ratchet HOB, Pinion Cutter, Involute Gear Cutter, Milling Cutter
Sub Business
Established (mm/dd/yyyy)	05/14/1996

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Castings(31100000)
Sell	Hobs(23171613)
Sell	Cutting tools(23153300)
Sell	Gear units(26111524)

CEO’s

Name	Shin Tae-Ki
Address	Suite C-903, 1685-3, Seocho-dong, Seocho-gu, Seoul, Korea
Date of Birth	02/16/1970
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

25,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea

Hana Bank-Yeokgok Branch

Corporate Registered No.

120111-0133348

Business Registered No.

139-81-27873

Permit & Licenses

Int’l Trade No.: 14105229

Shareholder Position

Name	Shares	%
SHIN TAE-KI	3,500	70.00
SHIN HO-KI	1,300	26.00
SHIN EUN-YOUNG	200	4.00
TOTAL	5,000	100.00

Company History

05/14/1996 Incorporated as the present name

11/2010 Awarded US$ 1 Million Export Top Prize

12/31/2010 Decreased capital to 25,000,000 KRW from 50,000,000 KRW

12/31/2010 Decreased the authorized shares to 20,000 shares from 40,000 shares

12/31/2010 Split off and established Samyang Machinery Co., Ltd.

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Shin Tae-Ki	Male	Korean	07/09/2003
Director	Mr.	Shin Ho-Ki	Male	Korean	05/14/1999
Director	Mr.	Shin Yong-Jo	Male	Korean	03/27/2004
Auditor	M/S.	Lee Byung-Koon	Female	Korean	03/27/2004

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	6,410,322,963	13,414,360,927	-364,132,845
2012	6,302,283,565	13,346,386,603	-218,486,126
2011	6,953,289,854	14,089,562,105	311,169,020
2010	5,739,602,453	18,518,256,922	41,269,071

Financial Description

Authorized Capital(KRW)	100,000,000
Paid-Up Capital(KRW)	25,000,000
Total Issued Shares	5,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	13,414,360,927	13,346,386,603	14,089,562,105
Current Assets	3,966,280,166	3,212,441,201	3,824,604,481
-Quick Assets	2,402,840,733	1,498,064,907	1,995,705,187
-Inventories	1,563,439,433	1,714,376,294	1,828,899,294
Fixed Assets	9,448,080,761	10,133,945,402	10,264,957,624
-Investment	-	94,000,000	46,000,000
-Tangibles	9,434,799,161	10,032,827,402	10,207,376,124
-Intangibles	2,902,500	5,313,000	9,776,500
-Others	10,379,100	1,805,000	1,805,000
Total Liabilities	9,274,198,327	8,842,091,158	9,366,780,534
Current Liabilities	7,917,576,644	6,890,139,138	7,085,697,046
Fixed Liabilities	1,356,621,683	1,951,952,020	2,281,083,488
Capital Stock	25,000,000	25,000,000	25,000,000
Capital Surplus
Profit Surplus	950,796,267	1,314,929,112	1,533,415,238
Capital Adjustment	3,164,366,333	3,164,366,333	3,164,366,333
Total Equity	4,140,162,600	4,504,295,445	4,722,781,571
Liab. & Shareholder’s Equity	13,414,360,927	13,346,386,603	14,089,562,105

Current Liabilities	7,917,576,644	6,890,139,138	7,085,697,046
Trade Payables	171,016,029	191,746,330	203,450,397
Short-Term Borrowings	2,695,823,364	2,452,709,461	2,378,065,645
Short-Term Borrowings to Shareholders/ Executives/ Employees	3,034,274,860	3,244,274,860	3,604,274,860
Account Payables	252,066,381	213,547,402	279,614,527
Advance Receipts	33,904,309	60,317,192	39,030,373
Withholdings	17,462,420	23,878,160	26,384,490
Accrued Expenses	42,829,281	38,765,733	38,276,754
Current Portion of Long-Term Debts	1,670,200,000	664,900,000	516,600,000
Fixed Liabilities	1,356,621,683	1,951,952,020	2,281,083,488
Long-Term Borrowings	833,800,000	1,464,000,000	1,726,900,000
Leasehold Deposit Received	318,782,800	320,150,000	267,900,000
Provision for Severance & Retirement	421,294,671	314,860,899	434,458,492

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	6,410,322,963	6,302,283,565	6,953,289,854
Cost of Sold Goods	5,273,230,627	4,963,840,383	5,058,567,288
Gross Profit	1,137,092,336	1,338,443,182	1,894,722,566
Selling & Admin. Expenses	1,433,282,998	1,543,066,242	1,537,086,890
Operating Income	-296,190,662	-204,623,060	357,635,676
Non-Operating Income	201,846,946	248,948,801	278,286,883
Non-Operating Expenses	269,789,129	262,811,867	324,753,539
Income Before Taxes	-364,132,845	-218,486,126	311,169,020
Income Taxes Expenses	-	-	-
Net Income	-364,132,845	-218,486,126	311,169,020

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	477,522,534	1,484,348,168	158,500,942
-Net Income	-364,132,845	-218,486,126	311,169,020
-Exp. without Cash Outflow	1,143,984,857	1,281,817,684	1,146,521,257
-Revenue without Cash Inflows	-6,915,711	-11,236,826	-46,168,528
-Changes in Asset/ & Liability	-295,413,767	432,253,436	-1,253,020,807
Cash Flows from Investing	-285,748,972	-1,064,179,677	4,132,575,147
-Cash Inflow from Investing	134,005,000	39,181,818	5,724,084,652
-Cash Outflows for Investing	-419,753,972	-1,103,361,495	-1,591,509,505
Cash Flows from Financing	406,846,703	-347,706,184	-874,434,355
-Cash Inflows from Financing	1,283,113,903	1,267,622,065	3,965,565,645
-Cash Outflows from Financing	-876,267,200	-1,615,328,249	-4,840,000,000
Increase/Decrease in Cash	598,620,265	72,462,307	-174,370,738
Cash at the Beginning of Year	299,279,036	226,816,729	401,187,467
Cash at the End of Year	897,899,301	299,279,036	226,816,729

Products, Technologies, Services Description

Main Products & Services	Standard HOB, Spline HOB, Worm Gear HOB, Chain(Sprocket) HOB, Timing Pulley HOB, Ratchet HOB, Pinion Cutter, Involute Gear Cutter, Milling Cutter
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

Competitors

HWACHEON MACHINERY WORKS CO., LTD.

1022-7, BANGBAE 3-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-523-7766 FAX:+82-2-523-7767

DAEHWA INDUSTRIAL MACHINERY CO., LTD.

676-1, NAKSAN-RI, WAEGWAN-EUP, CHILGOK-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-979-3000 FAX:+82-54-979-3030

FUSO INDUSTRIAL MACHINERY CO., LTD.

385-3, DEOKPO 2-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-302-1771 FAX:+82-51-302-3112

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.100.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Analysis Done by :	KAR

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%)

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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.