MIRA INFORM REPORT

Report Date :

04.10.2014

IDENTIFICATION DETAILS

Name :	DAE LIM PAPER CO., LTD.

Registered Office :	169, Hwangsae-ro, Osan-si, Gyeonggi-do

Country :	South Korea

Financials (as on) :	30.06.2014

Date of Incorporation :	21.03.1984

Com. Reg. No.:	124-81-32409

Legal Form :	Listed Company

Line of Business :	Manufacture of Pulp

No. of Employees :	71

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	DAE LIM PAPER CO., LTD. (Korean Company Name : “(주)대림제지”)
Registered Address	169, Hwangsae-ro, Osan-si, Gyeonggi-do, Korea
Zip Code	447-160
Tel	+82-31-373-7670~5
Fax	+82-31-373-0662
E-mail	webmaster@dealimpaper.co.kr
Website	www.daelimpaper.co.kr
Trading Address	169, Hwangsae-ro, Osan-si, Gyeonggi-do, Korea (Old Address System : 7, Nueup-dong, Osan-si, Gyeonggi-do, Korea)
Tel	+82-31-373-7670~5
Fax	+82-31-373-0662
Type	Export/Import
Industry	Manufacture of Pulp
Main Business	Corrugated Medium Paper, Liners, Container Board
Established (mm/dd/yyyy)	03/21/1984

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Machine finished or glazed kraft paper(14122102)
Sell	Paper making and paper processing machinery and equipment and supplies(23151900)
Buy	Felt(60121902)
Buy	Paper wastes(11141604)

CEO’s

Name	Ryu Chang-Seung
Date of Birth	07/18/1975
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

4,500,000,000

Employees

Formation

Listed Company (KOSDAQ : 017650) as of 11/07/1994

Bank Details

Industrial Bank of Korea-Osan Branch

Corporate Registered No.

134811-0003020

Business Registered No.

124-81-32409

Permit & Licenses

03/02/1988 KS Mark

12/05/2003 ISO 9001

12/05/2006 ISO 9001

Int’l Trade No.: 189897

Shareholder Position

Name	Shares	%
RYU CHANG-SEUNG	2,012,025	22.36
RYU JONG-WOO	1,381,300	15.35
KWON HYUCK-JOON	1,129,020	12.54
KWON JI-YOUNG	1,023,520	11.37
RYU DONG-WON	254,800	2.83
RYU JONG-WOOK	230,000	2.56
KWON OH-DAL	14,276	0.16
RYU JONG-KYU	10,000	0.11
OTHERS	2,945,059	32.72
TOTAL	9,000,000	100.00

Company History

03/21/1984 Incorporated as the present name

06/25/2002 Spin off the par value to 500 KRW from 5,000 KRW

11/30/2003 Awarded US$ 5 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education/Career
President & CEO	Mr.	Ryu Chang-Seung	Korean	1975. 07. 18	California State University, USA
Vice Chairman	Mr.	Kwon Oh-Dal	Korean	1938. 03. 03	-
Advisor	Mr.	Ryu Jong-Kyu	Korean	1953. 02. 05	Present Vice Chairman of Korea Paper Mfg Co., Ltd
Vice Chairman	Mr.	Ryu Jong-Woo	Korean	1944.03.	-
Outside Director	Mr.	Choi Joong-Eung	Korean	1945. 03. 28	-
Outside Director	Mr.	Chung Yong-Joong	Korean	1975.11.	Hankuk University of Foreign Studies, korea
Auditor	Mr.	Maeng Joong-Kil	Korean	1943.11.	-

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2014	29,457,932,401	108,050,810,874	4,123,406,256
(*)2013	61,342,988,827	104,616,684,974	7,123,618,288
(*)2012	76,851,210,567	100,891,437,318	12,614,158,094
2011	78,530,514,237	105,121,619,759	3,237,007,645
2010	70,306,509,627	102,417,961,165	3,655,816,185
2009	35,309,295,612	70,760,035,404	3,994,901,086
2008	50,550,745,039	54,436,559,924	2,898,873,151
2007	39,086,241,529	45,237,000,262	4,271,098,115
2006	42,210,555,425	40,395,170,257	4,667,542,167
2005	44,823,303,767	35,950,448,671	407,716,656

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	60,000,000,000
Paid-Up Capital(KRW)	4,500,000,000
Total Issues Shares	9,000,000

Balance Sheet
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	108,050,810,874	104,616,684,974	100,891,437,318
Current Assets	27,821,814,084	25,583,300,519	21,159,934,940
Cash & Cash Equivalents	11,460,048,775	6,188,708,399	7,620,126,695
Current Financial Instruments	5,000,000,000	5,000,000,000	1,854,545,925
Trade Receivables & Other Receivables	9,302,333,327	11,006,795,420	9,212,787,910
Inventories	2,059,431,982	3,387,796,700	2,377,742,100
Other Current Assets			94,732,310
Non-Current Assets	80,228,996,790	79,033,384,455	79,731,502,378
Non-Current Financial Instruments	32,670,000	26,730,000	14,850,000
Marketable Financial Instruments	13,574,800	13,574,800	13,574,800
Other Financial Assets	60,629,647	86,629,647	226,000,000
Investment_Related Companies	58,544,746,932	56,436,991,726	54,195,505,674
Tangibles	21,426,103,411	22,392,148,282	25,204,261,904
Intangibles	151,272,000	77,310,000	77,310,000
Total Liabilities	16,104,513,676	16,768,780,632	19,739,218,738
Current Liabilities	4,875,278,021	5,236,896,533	6,255,881,832
Trade Payables & Other Payables	2,686,978,221	3,093,701,954	3,141,634,787
Current Portion of Long-Term Debts	1,200,450,000	1,157,400,000	1,409,800,000
Deferred Income Tax Credit	655,643,191	580,205,828	1,637,896,380
Other Current Financial Debts	252,273,328	259,396,201	54,100,455
Other Current Liabilities	79,933,281	146,192,550	12,450,210
Non-Current Liabilities	11,229,235,655	11,531,884,099	13,483,336,906
Long-Term Borrowings	1,565,050,000	2,186,800,000	4,382,300,000
Confirmed Salaries	1,077,256,212	877,334,822	1,023,871,295
Deferred Income Tax Credit	8,586,929,443	8,467,749,277	8,077,165,611
Capital Stock	4,500,000,000	4,500,000,000	4,500,000,000
Profit Surplus	87,446,297,198	83,347,904,342	76,657,792,101
Others			-5,573,521
Total Equity	91,946,297,198	87,847,904,342	81,152,218,580
Liab. & Shareholder’s Equity	108,050,810,874	104,616,684,974	100,891,437,318

Income Statement
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Sales	29,457,932,401	61,342,988,827	76,851,210,567
Cost of Sold Goods	24,267,413,181	53,827,185,066	58,257,111,373
Gross Profit	5,190,519,220	7,515,803,761	18,594,099,194
Selling & Admin. Expenses	2,137,519,950	4,366,104,974	4,984,779,943
Operating Income	3,052,999,270	3,149,698,787	13,609,319,251
Profits from Investment on Related Companies	2,122,867,477	2,386,372,837	1,659,788,569
Finance Income	187,196,430	349,503,148	341,732,591
Finance Expenses	28,827,316	96,249,113	596,851,324
Other Profits	43,680,076	2,981,994,345	556,358,983
Income Before Taxes	5,377,915,937	8,771,320,004	15,570,348,070
Income Taxes Expenses	1,254,509,681	1,647,701,716	2,956,189,976
Net Income	4,123,406,256	7,123,618,288	12,614,158,094

Cash Flows
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	5,860,415,419	992,156,550	24,898,070,931
Cash Flows from Operating	6,753,754,492	3,035,104,190	25,550,038,242
Net Income	4,123,406,256	7,123,618,288	12,614,158,094
Adjustment	215,922,610	-1,141,712,215	4,678,112,192
Changes in Asset/ & Liability	2,414,425,626	-2,946,801,883	8,257,767,956
Interests Received	185,546,292	371,073,776	356,772,999
Interests Paid	-26,048,275	-92,988,658	-600,895,484
Income Taxes	-1,052,837,090	-2,321,032,758	-407,844,826
Cash Flows from Investing	-8,377,318	477,009,172	2,011,737,723
Cash Flows from Financing	-578,700,000	-2,897,900,000	-19,406,600,000
Increase/Decrease in Cash	5,271,340,376	-1,431,418,296	7,477,899,740
Cash at the Beginning of Year	6,188,708,399	7,620,126,695	142,226,955
Cash at the End of Year	11,460,048,775	6,188,708,399	7,620,126,695

Products, Technologies, Services Description

Main Products & Services

Corrugated Medium Paper, Liners, Container Board

Brand Name : S120, B150

Trade Partners & Competitors

Customers

SAMBO CORRUGATED BOARD CO., LTD.(124311-0011322)

SEOSIN PAPERBOARD IND. CO. LTD.( 134511-0015815)

DONGJIN PAPER BOARD CO., LTD.(134211-0001620)

HANCHEONG CORRUGATED BOARD CO., LTD.(150111-0003610)

Competitors

DONGIL PAPER MFG. CO., LTD.

17-51, BANWOL INDUSTRIAL COMPLEX, 492-1, MONGNAE-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-491-0010 FAX:+82-31-491-0023

SHINDAEYANG PAPER CO., LTD.(130111-0008789)

ASIA PAPER MANUFACTURING CO., LTD.(110111-0006274)

ASIA PAPERTEC INC.(134111-0000939)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

KOREA PAPER MFG CO., LTD(134811-0000604)

(40.0% held by the subject company)

Cooperative Enterprise

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

Sales by Region (Activity & Markets)

Sales/ Unit :Thousand KRW	06/2012	2011	2010
Export	1,240,314	1,681,187	5,627,847
Domestic	37,103,830	76,849,327	64,678,663
Total	38,344,144	78,530,514	70,306,510

The Subject deals with the companies in Bangladeshi and Malaysia.

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 :	DIV

Report Prepared by :	SHG

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.