MIRA INFORM REPORT

Report Date :

03.09.2014

IDENTIFICATION DETAILS

Name :	SPC CO., LTD.

Registered Office :	386, Pyeongtaekhangman-gil, Poseung-eup, Pyeongtaek-si, Gyeonggi-do, Korea (Old Address System : 1205-12, Wonjeong-ri, Poseung-eup, Pyeongtaek-si, Gyeonggi-do, Korea)

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	27.07.1994

Com. Reg. No.:	113-81-37651

Legal Form :	Company Limited By Shares

Line of Business :	Manufacture of Medicinal Chemical and Antibiotics

No of Employees :	63

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 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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	SPC CO., LTD. (Korean Company Name : “에스피씨(주)”)
Registered Address	386, Pyeongtaekhangman-gil, Poseung-eup, Pyeongtaek-si, Gyeonggi-do, Korea (Old Address System : 1205-12, Wonjeong-ri, Poseung-eup, Pyeongtaek-si, Gyeonggi-do, Korea)
Building
Zip Code	451-822
Tel	+82-31-681-4670
Fax	+82-31-681-4673
E-mail	webmaster@songpo.co.kr
Website	www.spcpharm.co.kr
Trading Address	Rm. 301, Securnet Bldg., 106-8, Guro 5-dong, Guro-gu, Seoul, Korea
Tel	+82-2-861-0331
Fax	+82-2-863-2852
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Medicinal Chemicals and Antibiotics
Main Business	Pharmaceutical Raw Materials, Flame Retardants, Lubricant Additives
Sub Business
Established (mm/dd/yyyy)	07/27/1994

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Flame retardants(12162100)

CEO’s

Name	Lee Keun-Ho
Address	Suite 708-704, 162, Soha-ro, Gwangmyeong-si, Gyeonggi-do, Korea
Date of Birth	03/20/1955
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

500,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Kookmin Bank-Chulsan Branch

Industrial Bank of Korea

Corporate Registered No.

110111-1061566

Business Registered No.

113-81-37651

Permit & Licenses

Int’l Trade No.: 11184887

Shareholder Position

Name	Shares	%
LEE KEUN-HO	69,000	69.00
KIM SUNG-BOK	30,000	30.00
CHOI JIN-SOOK	1,000	1.00
TOTAL	100,000	100.00

Company History

07/27/1994 Incorporated as SUNGPO TRADING CO., LTD.

03/01/2001 Changed company name to SUNGPO CHEMICAL CO., LTD.

12/27/2006 Changed company name to the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Lee Keun-Ho	Male	Korean	01/02/2010
Director	Mr.	Kim Sung-Bok	Male	Korean	01/02/2010
Director	Mr.	Lee Seok-Min	Male	Korean	01/02/2010
Auditor	M/S.	Choi Jin-Sook	Female	Korean	01/02/2010

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	18,192,456,907	18,840,158,609	2,402,636,250
2012	13,527,817,065	11,173,785,131	1,471,224,039
2011	13,816,304,086	11,023,827,620	638,405,642
2010	20,789,060,428	10,317,600,309	2,869,873,309
2009	13,850,137,753	10,758,060,854	718,342,771
2008	13,537,941,021	10,806,355,061	(-)513,887,542
2007	9,047,826,131	9,133,013,672	(-)199,496,397
2006	8,780,886,555	9,013,477,724	(-)238,490,503
2005	10,039,801,666	9,187,118,791	750,579,470

Financial Description

Authorized Capital(KRW)	1,000,000,000
Paid-Up Capital(KRW)	500,000,000
Total Issued Shares	100,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	18,840,158,609	11,173,785,131	11,023,827,620
Current Assets	7,780,801,356	5,965,196,896	5,573,185,567
-Quick Assets	5,793,237,182	4,002,980,455	3,609,008,896
-Inventories	1,987,564,174	1,962,216,441	1,964,176,671
Fixed Assets	11,059,357,253	5,208,588,235	5,450,642,053
-Investment	964,736,500	1,205,157,000	1,269,157,000
-Tangibles	9,704,079,389	3,544,512,016	3,688,557,314
-Intangibles	96,144,064	124,557,919	158,638,439
-Others	294,397,300	334,361,300	334,289,300
Total Liabilities	9,489,724,109	4,125,986,881	5,047,253,409
Current Liabilities	6,796,435,376	2,153,106,233	2,978,296,895
Fixed Liabilities	2,693,288,733	1,972,880,648	2,068,956,514
Capital Stock	500,000,000	500,000,000	500,000,000
Capital Surplus
Profit Surplus	8,850,434,500	6,547,798,250	5,476,574,211
Capital Adjustment
Total Equity	9,350,434,500	7,047,798,250	5,976,574,211
Liab. & Shareholder’s Equity	18,840,158,609	11,173,785,131	11,023,827,620

Current Liabilities	6,796,435,376	2,153,106,233	2,978,296,895
Trade Payables	1,486,009,987	783,802,512	823,663,717
Short-Term Borrowings	3,421,444,608	518,162,298	1,701,020,152
Account Payables	719,024,200	21,918,268	44,552,659
Advance Receipts	2,393,200	1,851,200	2,435,073
Withholdings	19,755,330	29,656,480	86,924,290
Accrued Expenses	310,654,186	265,218,194	142,257,420
Deferred Income Tax Credit	517,153,865	332,497,281	147,643,584
Current Portion of Long-Term Debts	320,000,000	200,000,000	29,800,000
Fixed Liabilities	2,693,288,733	1,972,880,648	2,068,956,514
Long-Term Borrowings	1,360,000,000	700,000,000	711,750,000
Leasehold Deposit Received	-	140,000,000	135,000,000
Provision for Severance & Retirement	1,956,680,253	1,782,456,571	1,680,427,804

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	18,192,456,907	13,527,817,065	13,816,304,086
Cost of Sold Goods	14,597,312,890	10,928,667,870	11,817,350,499
Gross Profit	3,595,144,017	2,599,149,195	1,998,953,587
Selling & Admin. Expenses	765,182,361	802,994,539	1,472,437,302
Operating Income	2,829,961,656	1,796,154,656	526,516,285
Non-Operating Income	206,629,464	161,116,824	211,811,051
Non-Operating Expenses	231,271,746	239,817,334	284,383,590
Income Before Taxes	2,805,319,374	1,717,454,146	453,943,746
Income Taxes Expenses	402,683,124	246,230,107	-184,461,896
Net Income	2,402,636,250	1,471,224,039	638,405,642

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	2,837,436,088	1,691,885,164	691,594,248
-Net Income	2,402,636,250	1,471,224,039	638,405,642
-Exp. without Cash Outflow	1,143,641,474	688,899,198	1,423,303,926
-Revenue without Cash Inflows	-71,153,189	-69,894,452	-44,107,968
-Changes in Asset/ & Liability	-637,688,447	-398,343,621	-1,326,007,352
Cash Flows from Investing	-7,151,468,977	-59,007,021	-371,586,941
-Cash Inflow from Investing	1,033,377,000	650,385,894	418,812,086
-Cash Outflows for Investing	-8,184,845,977	-709,392,915	-790,399,027
Cash Flows from Financing	4,140,093,420	-1,418,670,205	-79,735,550
-Cash Inflows from Financing	11,707,333,926	2,452,415,684	4,238,231,690
-Cash Outflows from Financing	-7,567,240,506	-3,871,085,889	-4,317,967,240
Increase/Decrease in Cash	-173,939,469	214,207,938	240,271,757
Cash at the Beginning of Year	567,929,378	353,721,440	113,449,683
Cash at the End of Year	393,989,909	567,929,378	353,721,440

Products, Technologies, Services Description

Main Products & Services	Pharmaceutical Raw Materials, Flame Retardants, Lubricant Additives
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

Competitors

LION CHEMTECH CO., LTD.

41-5, MUNPYEONG-DONG, DAEDEOK-GU, DAEJEON, KOREA

TEL:+82-42-930-3300 FAX:+82-42-930-3333

CHEMRICH CORP.

160-1, MUNHYEONG-RI, OPO-EUP, GWANGJU SI, GYEONGGI-DO, KOREA

TEL:+82-31-767-2323 FAX:+82-31-767-0557

CONNELL BROS. CO.(KOREA), LTD.

RM. 811, KOREAN REINSURANCE BLDG., 80, SUSONG-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-725-8751 FAX:+82-2-755-3896

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured company SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078) HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.61
UK Pound	1	Rs.100.49
Euro	1	Rs.79.56

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%)

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.