MIRA INFORM REPORT

Report Date :

15.10.2014

IDENTIFICATION DETAILS

Name :	WONIL METAL CO., LTD.
Registered Office :	39, Neungheodae-ro 577beon-gil, Namdong-gu, Incheon, Korea
Country :	South Korea
Financials (as on) :	31.12.2013
Date of Incorporation :	19.02.1982
Com. Reg. No.:	139-81-20905
Legal Form :	Company Limited By Shares
Line of Business :	Manufacture of Smelting, Refining and Alloys of Lead, Zinc and Tin.
No of Employees :	34

RATING & COMMENTS

MIRA’s Rating :

Ba

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	A1	A1

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	WONIL METAL CO., LTD. (Korean Company Name : “원일금속(주)”)
Registered Address	39, Neungheodae-ro 577beon-gil, Namdong-gu, Incheon, Korea
Building	133B-3L, Namdong Industrial Complex
Zip Code	405-821
Tel	+82-32-817-6101~7
Fax	+82-32-817-6108~9
E-mail	wim@chol.com
Website	www.wimcast.co.kr
Trading Address	133B-3L, Namdong Industrial Complex, 39, Neungheodae-ro 577beon-gil, Namdong-gu, Incheon, Korea (Old Address System : 133B-3L, Namdong Industrial Complex, 704-2, Gojan-dong, Namdong-gu, Incheon, Korea)
Tel	+82-32-817-6101~7
Fax	+82-32-817-6108~9
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Smelting, Refining and Alloys of Lead, Zinc and Tin
Main Business	Zinc Alloy Ingots, Non-Ferrous Metals
Sub Business
Established (mm/dd/yyyy)	02/19/1982

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Zinc ingots(30103404)
Sell	Aluminum ingots(30103401)
Buy	Iron(11101713)
Buy	Tin(11101716)
Buy	Lead(11101714)
Buy	Aluminum(11101705)
Buy	Magnesium(11101707)
Buy	Copper(11101715)

CEO’s

Name	Seo Weon-Soo
Address	Suite 104-1504, 109, Yangjae-daero 2-gil, Seocho-gu, Seoul, Korea
Date of Birth	05/10/1966
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,000,000,000

Employees

34

Formation

Co., Ltd by shares

Bank Details

Industrial Bank of Korea-Namdong 2 Danji Corporate Finance Branch

Kookmin Bank

Corporate Registered No.

110111-0313504

Business Registered No.

139-81-20905

Permit & Licenses

06/21/1995 KS Mark

11/22/2002 ISO 9001 by QMS

Int’l Trade No.: 11023841

Shareholder Position

Name	Shares	%
RA DONG-IL	70,600	35.30
RA DONG-IL’S FAMILY	129,400	64.70
TOTAL	200,000	100.00

Company History

07/03/1975 Established as WONILYEON INDUSTRIES CO.(Sole Proprietorship0

08/04/1981 Changed company name to Wonil Metal Co.

02/19/1982 Incorporated as the present name

11/26/2004 Awarded US$ 3 Million Export Top Prize

11/30/2006 Awarded US$ 10 Million Export Top Prize

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Seo Weon-Soo	Male	Korean	05/10/1966
Director	Mr.	Ra Dong-Il	Male	Korean	08/19/1998
Director	M/S.	Na Sung-Min	Female	Korean	11/28/2011
Auditor	Mr.	Lee In-Soo	Male	Korean	03/02/2007

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	34,273,683,208	12,889,073,666	532,896,439
2012	34,477,836,108	14,443,991,672	1,547,421,861
2011	39,627,631,231	14,731,894,570	1,580,314,550
2010	36,554,419,762	11,673,860,068	-1,065,094,065
2009	23,458,261,380	9,996,483,625	20,775,334
2008	23,669,634,208	6,154,798,028	-1,751,755,875
2007	35,060,016,037	10,679,846,056	-639,424,232
2006	47,883,271,868	14,810,658,572	1,990,043,698
2005	45,000,000,000
2004	22,398,000,000
2003	19,963,000,000

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	1,000,000,000
Total Issued Shares	200,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	12,889,073,666	14,443,991,672	14,731,894,570
Current Assets	10,094,896,228	11,708,760,946	12,069,547,181
-Quick Assets	7,271,253,485	6,592,175,783	7,708,903,157
-Inventories	2,823,642,743	5,116,585,163	4,360,644,024
Fixed Assets	2,794,177,438	2,735,230,726	2,662,347,389
-Investment	128,034,216	53,867,899	80,930,532
-Tangibles	2,644,119,008	2,664,155,733	2,558,552,840
-Intangibles	5,251,364	5,952,894	6,654,424
-Others	16,772,850	11,254,200	16,209,593
Total Liabilities	8,807,657,618	10,645,472,063	12,480,796,822
Current Liabilities	8,336,915,214	10,004,701,493	11,683,194,118
Fixed Liabilities	470,742,404	640,770,570	797,602,704
Capital Stock	1,000,000,000	1,000,000,000	1,000,000,000
Capital Surplus	627,436,689	627,436,689	627,436,689
Profit Surplus	2,453,979,359	2,171,082,920	623,661,059
Capital Adjustment
Total Equity	4,081,416,048	3,798,519,609	2,251,097,748
Liab. & Shareholder’s Equity	12,889,073,666	14,443,991,672	14,731,894,570

Current Liabilities	8,336,915,214	10,004,701,493	11,683,194,118
Trade Payables	1,383,030	1,258,727,704	6,034,780,664
Short-Term Borrowings	7,904,503,328	8,203,337,536	5,321,447,007
Current Portion of Long-Term Debts	174,800,000	144,800,000	100,000,000
Account Payables	69,927,111	138,865,751	162,852,367
Advance Receipts	-	336,769	-
Withholdings	18,222,600	29,366,530	14,924,595
Deferred Income Tax Credit	86,642,480	71,441,450	-
Accrued Expenses	81,436,665	157,825,753	49,189,485
Fixed Liabilities	470,742,404	640,770,570	797,602,704
Long-Term Borrowings	254,400,000	429,200,000	574,000,000
Provision for Severance & Retirement	277,301,940	238,322,340	197,053,510
Leasehold Deposit Received	100,000,000	100,000,000	100,000,000

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	34,273,683,208	34,477,836,108	39,627,631,231
Cost of Sold Goods	32,255,679,903	32,094,759,963	36,410,491,543
Gross Profit	2,018,003,305	2,383,076,145	3,217,139,688
Selling & Admin. Expenses	1,332,695,150	1,350,568,203	1,303,165,706
Operating Income	685,308,155	1,032,507,942	1,913,973,982
Non-Operating Income	908,397,036	1,286,196,915	906,842,588
Non-Operating Expenses	906,268,052	691,696,516	1,240,502,020
Income Before Taxes	687,437,139	1,627,008,341	1,580,314,550
Income Taxes Expenses	154,540,700	79,586,480	-
Net Income	532,896,439	1,547,421,861	1,580,314,550

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,324,647,866	-5,428,741,694	6,958,132,449
-Net Income	532,896,439	1,547,421,861	1,580,314,550
-Exp. without Cash Outflow	479,516,360	399,032,955	526,509,326
-Revenue without Cash Inflows	-380,368,105	-604,869,974	-184,783,846
-Changes in Asset/ & Liability	692,603,172	-6,770,326,536	5,036,092,419
Cash Flows from Investing	24,678,411	197,014,713	-179,406,544
-Cash Inflow from Investing	352,159,175	689,160,332	926,202,857
-Cash Outflows for Investing	-327,480,764	-492,145,619	-1,105,609,401
Cash Flows from Financing	-639,174,909	2,900,649,631	-3,483,196,592
-Cash Inflows from Financing	-	3,000,649,631	-
-Cash Outflows from Financing	-639,174,909	-100,000,000	-3,483,196,592
Increase/Decrease in Cash	710,151,368	-2,331,077,350	3,295,529,313
Cash at the Beginning of Year	1,702,940,962	4,034,018,312	738,488,999
Cash at the End of Year	2,413,092,330	1,702,940,962	4,034,018,312

Products, Technologies, Services Description

Main Products & Services	Zinc Alloy Ingots, Non-Ferrous Metals Brand Name : WIM
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers
Customers
Competitors	SANGSHIN METALLIC CO., LTD. 4MA-402-2, SIHWA INDUSTRIAL COMPLEX, 701-3, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA TEL:+82-31-499-4011 FAX:+82-31-499-4016 HWAJIN METAL CO., LTD. 608B-28L, BANWOL INDUSTRIAL COMPLEX, 632-5, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA TEL:+82-31-491-1125 FAX:+82-31-494-7489 SORIN CORPORATION 10TH FL., YOUNGPOONG BLDG., 142, NONHYEON 1-DONG, GANGNAM-GU, SEOUL, KOREA TEL:+82-2-519-3391 FAX:+82-2-542-0013

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates
Overseas Office	WONIL CHEMTECH CO., LTD.(120111-0514457)
Liaison Office
Overseas Branch
Joint Venture
Subsidiary
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

Sales by Region (Activity & Markets)

The Subject deals with the companies in Australia, China, Hong Kong, Indonesia, Japan, Pakistan and Vietnam.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.11
UK Pound	1	Rs.98.15
Euro	1	Rs.77.68

INFORMATION DETAILS

Analysis Done by :	DIV
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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