MIRA INFORM REPORT

Report Date :

06.10.2014

IDENTIFICATION DETAILS

Name :	NAMYUNG COMMERCIAL CO., LTD.

Registered Office :	65, Sungkyunkwan-ro, Jongno-gu, Seoul, Korea (Old Address System : 10-1, Myeongnyundong 1-ga, Jongno-gu, Seoul, Korea)

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	10.03.1958

Com. Reg. No.:	208-81-11172

Legal Form :	Company Limited By Shares

Line of Business :	Wholesale of Other Prepared Food

No of Employees :	33

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	NAMYUNG COMMERCIAL CO., LTD. (Trade Name : NYC) (Korean Company Name : “남영상사(주)”)
Registered Address	65, Sungkyunkwan-ro, Jongno-gu, Seoul, Korea (Old Address System : 10-1, Myeongnyundong 1-ga, Jongno-gu, Seoul, Korea)
Building
Zip Code	110-521
Tel	+82-2-745-1931
Fax	+82-2-744-0496
E-mail	nycco@chollian.net
Website	www.namyung.com
Trading Address	Bukchang Bldg., 20-6, Bukchang-dong, Jung-gu, Seoul, Korea
Tel	+82-2-777-9351~4
Fax	+82-2-774-7130 +82-2-774-2291
Other Address-Warehouse	276-10, Ssangnim-dong, Jung-gu, Seoul, Korea
Tel	+82-2-2267-9829
Fax	+82-2-2268-0038
Other Address-Busan Branch	24-5, Bupyeongdong 3-ga, Jung-gu, Busan, Korea
Tel	+82-51-247-2094
Fax	+82-51-243-5407
Type	Export/Import
Industry	Wholesale of Other Prepared Food
Main Business	Food Flavors, Olive Oil, Flavor
Sub Business
Established (mm/dd/yyyy)	03/10/1958

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Herbs and spices and extracts(50171500)
Sell	Artificial sweetening agents(50161510)
Sell	Emulsions(12161804)
Sell	Edible vegetable or plant oils(50151513)

CEO’s

Name	Chung Kie-Ryun
Address	118-1, Hwasan-ri, Idong-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, Korea
Date of Birth	09/27/1954
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,500,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Shinhan Bank-Namdaemun Branch

Hana Bank

Woori Bank

Corporate Registered No.

110111-0014152

Business Registered No.

208-81-11172

Permit & Licenses

Int’l Trade No.: 672373

Shareholder Position

Name	Shares	%
CHUNG KIE-RYUN & HIS FAMILY	192,573	64.19
OTHERS	107,427	35.81
TOTAL	300,000	100.00

Company History

03/10/1958 Incorporated as the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Chung Kie-Ryun	Male	Korean	03/20/1992
Director	M/S.	Hong Young-Soon	Female	Korean	12/20/2004
Director	Mr.	Kim Kyung-Soo	Male	Korean	12/20/2004
Auditor	Mr.	Park Soon-Baik	Male	Korean	06/20/1998

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	21,706,284,262	19,232,862,341	1,509,719,991
2012	21,497,031,608	18,007,721,757	938,226,138
2011	20,158,479,391	17,190,013,014	575,510,132
2010	18,871,192,386	17,014,068,388	1,051,801,185
2009	20,520,455,217	16,682,924,896	1,745,760,168
2008	17,573,545,341	14,767,133,242	304,596,890
2007	14,349,761,238	14,462,451,891	670,875,032
2006	12,610,244,832	14,356,925,153	591,445,801
2005	11,949,765,230	14,171,643,602	606,116,326

Financial Description

Authorized Capital(KRW)	1,500,000,000
Paid-Up Capital(KRW)	1,500,000,000
Total Issues Shares	300,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	19,232,862,341	18,007,721,757	17,190,013,014
Current Assets	12,153,681,650	11,112,127,087	10,427,616,152
-Quick Assets	7,434,712,139	5,997,008,669	5,988,533,211
-Inventories	4,718,969,511	5,115,118,418	4,439,082,941
Fixed Assets	7,079,180,691	6,895,594,670	6,762,396,862
-Investment	548,097,679	395,914,489	248,465,871
-Tangibles	5,966,479,809	5,935,076,978	6,015,703,621
-Intangibles			124,167
-Others	564,603,203	564,603,203	498,103,203
Total Liabilities	3,623,020,052	3,566,625,763	3,317,400,078
Current Liabilities	2,005,590,717	1,943,541,642	1,753,377,799
Fixed Liabilities	1,617,429,335	1,623,084,121	1,564,022,279
Capital Stock	1,500,000,000	1,500,000,000	1,500,000,000
Capital Surplus	2,104,481,399	2,104,481,399	2,104,481,399
Profit Surplus	12,027,244,586	10,836,614,595	10,268,131,537
Capital Adjustment	-21,883,696	-
Total Equity	15,609,842,289	14,441,095,994	13,872,612,936
Liab. & Shareholder’s Equity	19,232,862,341	18,007,721,757	17,190,013,014

Current Liabilities	2,005,590,717	1,943,541,642	1,753,377,799
Trade Payables	192,725,929	142,627,413	152,520,748
Short-Term Borrowings	1,000,000,000	1,200,000,000	1,200,000,000
Account Payables	330,667,195	290,359,818	267,741,377
Accrued Expenses	2,384,999	2,686,026	3,010,739
Withholdings	200,362,647	107,320,303	88,908,995
Accrued Income Tax	279,449,947	200,548,082	41,195,940
Fixed Liabilities	1,617,429,335	1,623,084,121	1,564,022,279
Leasehold Deposit Received	1,055,000,000	1,055,000,000	1,080,000,000
Provision for Severance & Retirement	1,935,677,696	1,907,663,600	1,650,373,041

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	21,706,284,262	21,497,031,608	20,158,479,391
Cost of Sold Goods	16,500,550,760	17,098,007,261	16,259,665,084
Gross Profit	5,205,733,502	4,399,024,347	3,898,814,307
Selling & Admin. Expenses	3,385,311,961	3,205,421,561	3,099,147,953
Operating Income	1,820,421,541	1,193,602,786	799,666,354
Non-Operating Income	164,273,183	103,258,055	245,252,135
Non-Operating Expenses	68,123,946	80,378,171	283,144,097
Income Before Taxes	1,916,570,778	1,216,482,670	761,774,392
Income Taxes Expenses	406,850,787	278,256,532	186,264,260
Net Income	1,509,719,991	938,226,138	575,510,132

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	2,559,634,893	1,223,400,177	895,976,529
-Net Income	1,509,719,991	938,226,138	575,510,132
-Exp. without Cash Outflow	428,557,765	458,803,277	628,272,486
-Revenue without Cash Inflows	-8,824,273	-1,440,768	-14,127,104
-Changes in Asset/ & Liability	630,181,410	-172,188,470	-293,678,985
Cash Flows from Investing	-287,038,482	-256,274,186	-1,127,179,151
-Cash Inflow from Investing	8,827,273	76,590,000	28,150,000
-Cash Outflows for Investing	-295,865,755	-332,864,186	-1,155,329,151
Cash Flows from Financing	-519,090,000	-319,090,000	-375,000,000
-Cash Inflows from Financing	-	-	-
-Cash Outflows from Financing	-519,090,000	-319,090,000	-375,000,000
Increase/Decrease in Cash	1,753,506,411	648,035,991	-606,202,622
Cash at the Beginning of Year	1,804,221,207	1,156,185,216	1,762,387,838
Cash at the End of Year	3,557,727,618	1,804,221,207	1,156,185,216

Products, Technologies, Services Description

Main Products & Services	Food Flavors, Olive Oil, Flavor
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

BOLAK CO., LTD.(134811-0004474)

Customers

BOLAK CO., LTD.(134811-0004474)

Competitors

KOREA CARRAGHEEN CO., LTD.

RM. 1022, HAENAM BLDG. ANNEX, 21, BUKCHANG-DONG, JUNG-GU, SEOUL, KOREA

TEL:+82-2-773-6501 FAX:+82-2-774-9740

CHEONG DO AGAR AGAR MFG. CO., LTD.

385, SORA-RI, HWAYANG-EUP, CHEONGDO-GUN, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-372-7701~3 FAX:+82-54-372-7705

FINE AGAR AGAR CO., LTD.

579-52, WONYUL-RI, GEUMSEONG-MYEON, DAMYANG-GUN, JEOLLANAM-DO, KOREA

TEL:+82-61-383-0345 FAX:+82-61-383-2555

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

BOLAK CO., LTD.(134811-0004474)

HWASAN DEVELOPMENT CO., LTD.(134511-0007367)

BIO & GEN CO., LTD.(110111-1466261)

Major Shareholders

Cooperative Enterprise

-Insured Company

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

LIG INSURANCE CO., LTD.(110111-0017859)

Sales by Region (Activity & Markets)

The Subject deals with the companies in USA, China, Japan, Swiss, Singapore and Australia.

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.