MIRA INFORM REPORT

Report Date :

05.09.2014

IDENTIFICATION DETAILS

Name :	ZYLE COMMERCIAL VEHICLE COMPANY

Registered Office :	215, Ojeong-ro, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea, 421-814

Country :	South (Korea)

Financials (as on) :	31.12.2013

Date of Incorporation :	18.04.2007

Com. Reg. No.:	130-86-26912

Legal Form :	Co., Ltd by shares

Line of Business :	Sale of New Motor Vehicles

No. of Employees :	59

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

Company Name	ZYLE COMMERCIAL VEHICLE COMPANY (Ex. Company Name : ZYLE MOTOR COMPANY, “자일자동차(주)”) (Korean Company Name : “자일상용차(주)”)
Registered Address	215, Ojeong-ro, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea
Zip Code	421-814
Tel	+82-32-680-6692
Fax	+82-32-680-6610
E-mail	boxtree78@daewoobus.co.kr
Trading Address	215, Ojeong-ro, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea (Old Address System : 202-1, Ojeong-dong, Ojeong-gu, Bucheon-si, Gyeonggi-do, Korea)
Tel	+82-32-680-6692
Fax	+82-32-680-6610
Type	Export
Industry	Sale of New Motor Vehicles
Main Business	Bus, Bus Parts
Established (mm/dd/yyyy)	04/18/2007

Mr. Baik Sung-Hak owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Busses(25101502)

CEO’s

Name	Baik Byung-Soo
Address	12, Daesagwan-ro 11na-gil, Seongbuk-gu, Seoul, Korea
Date of Birth	06/27/1969
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

114,200,000

Employees

Formation

Co., Ltd by shares

Bank Details

Woori Bank

Korea Exchange Bank-Hwagok Branch

Corporate Registered No.

121111-0157066

Business Registered No.

130-86-26912

Permit & Licenses

Int’l Trade No.: 45312775

Shareholder Position

Name	Shares	%
BAIK SUNG-HAK	3,784	16.6
BAIK JUNG-SOO	5,879	25.7
BAIK BYUNG-SOO	5,878	25.7
BAIK SEUNG-SOO	5,878	25.7
TREASURY STOCK	1,421	6.3
TOTAL	22,840	100.0

Company History

04/18/2007 Incorporated as DABO MACHINERY CO., LTD., after spin off from YOUNGAN INTERNATIONAL CO., LTD.(110111-1405540) and CLARK MATERIAL HANDLING INTERNATIONAL INC.(110111-0936752)

05/31/2007 Changed company name to DAEWOO BUS GLOBAL COPORATION after acquiring DAEWOO BUS GLOBAL CO., LTD.

05/31/2007 Increased capital to 114,200,000 KRW from 100,000,000 KRW

05/21/2011 Acquired CLARK ENG CO., LTD.(121111-0166273)

09/01/2011 Changed Korean company name to ZYLE MOTOR COMPANY, “자일자동차(주)”

08/08/2013 Changed company name to the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Baik Byung-Soo	Male	Korean	07/01/2008
Director	Mr.	Baik Sung-Hak	Male	Korean	04/18/2007
Director	Mr.	Kwon Jang-Hyun	Male	Korean	03/03/2011
Director	Mr.	Baik Jung-Soo	Male	Korean	01/01/2012
Director	Mr.	Baik Seung-Soo	Male	Korean	01/01/2012
Auditor	Mr.	Kim Moon-Kyung	Male	Korean	03/30/2009

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	108,387,599,218	141,222,466,913	2,010,463,763
2012	120,103,441,527	132,883,930,253	-12,147,505,577
2011	140,927,858,872	147,155,833,621	9,886,339,196
2010	134,118,820,407	99,707,199,924	5,719,290,591
2009	140,512,580,969	87,331,418,708	7,012,779,542
2008	125,993,908,052	93,694,723,188	8,638,997,852
2007	61,781,487,166	69,945,007,068	9,646,466,098

Financial Description

Authorized Capital(KRW)	400,000,000
Paid-Up Capital(KRW)	114,200,000
Total Issued Shares	22,840

Balance Sheet

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	141,222,466,913	132,883,930,253	147,155,833,621
Current Assets	21,347,944,647	29,056,707,800	21,089,919,127
-Quick Assets	20,788,073,849	26,523,690,674	19,880,281,577
-Inventories	559,870,798	2,533,017,126	1,209,637,550
Fixed Assets	119,874,522,266	103,827,222,453	126,065,914,494
-Investment	118,202,780,594	102,040,424,887	124,221,238,712
-Tangibles	16,755,228	56,377,157	109,255,373
-Intangibles	1,643,488,594	1,718,922,559	1,718,922,559
-Others	11,497,850	11,497,850	16,497,850
Total Liabilities	87,293,193,187	76,351,834,372	71,875,487,623
Current Liabilities	80,643,822,360	68,979,696,211	61,459,213,944
Fixed Liabilities	6,649,370,827	7,372,138,161	10,416,273,679
Capital Stock	114,200,000	114,200,000	114,200,000
Capital Surplus	26,362,394,277	25,519,262,866	25,210,963,050
Profit Surplus	33,580,624,361	31,575,378,797	48,523,825,434
Capital Adjustment	-6,127,944,912	-676,745,782	1,431,357,514
Total Equity	53,929,273,726	56,532,095,881	75,280,345,998
Liab. & Shareholder’s Equity	141,222,466,913	132,883,930,253	147,155,833,621

Current Liabilities	80,643,822,360	68,979,696,211	61,459,213,944
Trade Payables	23,718,148,772	23,056,024,441	19,334,827,260
Short-Term Borrowings	45,585,406,400	35,715,406,400	35,915,406,400
Account Payables	8,638,892,191	5,386,786,838	2,547,315,908
Accrued Expenses	212,067,780	257,336,472	108,350,325
Advance Receipts	1,976,661,367	2,168,288,463	1,282,046,258
Withholdings	394,629,802	140,905,728	150,544,158
Accrued Income Tax			392,482,428
Guarantee Deposit Withhold	-	2,127,854,278	1,605,688,363
Other Current Liabilities	118,016,048	127,093,591	122,552,844
Fixed Liabilities	6,649,370,827	7,372,138,161	10,416,273,679
Provision for Severance & Retirement	1,109,698,182	881,667,280	625,379,244
Deferred Income Tax Credit	5,539,672,645	6,490,470,881	9,790,894,435

Income Statement

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	108,387,599,218	120,103,441,527	140,927,858,872
Cost of Sold Goods	89,139,803,960	99,990,665,663	119,645,701,264
Gross Profit	19,247,795,258	20,112,775,864	21,282,157,608
Selling & Admin. Expenses	16,214,752,771	19,134,696,449	18,328,153,627
Operating Income	3,033,042,487	978,079,415	2,954,003,981
Non-Operating Income	5,302,308,575	4,921,389,459	22,359,000,557
Non-Operating Expenses	5,813,576,358	21,056,207,841	17,838,272,904
Income Before Taxes	2,521,774,704	-15,156,738,967	7,474,731,634
Income Taxes Expenses	511,310,941	-3,009,233,390	-2,411,607,562
Net Income	2,010,463,763	-12,147,505,577	9,886,339,196

Cash Flows

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	6,050,654,049	86,642,983	2,091,291,322
-Net Income	2,010,463,763	-12,147,505,577	9,886,339,196
-Exp. without Cash Outflow	1,652,914,117	17,762,871,298	13,463,094,091
-Revenue without Cash Inflows	-2,062,580,343	-878,122,659	-18,958,969,262
-Changes in Asset/ & Liability	4,449,856,512	-4,650,600,079	-2,299,172,703
Cash Flows from Investing	-13,621,320,065	-332,924,479	-641,829,242
-Cash Inflow from Investing	830,664,573	14,756,521	9,089,265
-Cash Outflows for Investing	-14,451,984,638	-347,681,000	-650,918,507
Cash Flows from Financing	9,870,000,000	-200,000,000	-432,137,217
-Cash Inflows from Financing	13,000,000,000	-	857,862,783
-Cash Outflows from Financing	-3,130,000,000	-200,000,000	-1,290,000,000
Increase/Decrease in Cash	2,299,333,984	-446,281,496	1,017,324,863
Cash at the Beginning of Year	718,691,420	1,164,972,916	147,648,053
Cash at the End of Year	3,018,025,404	718,691,420	1,164,972,916

Products, Technologies, Services Description

Main Products & Services

Bus, Bus Parts

Trade Partners & Competitors

Suppliers

ZYLE DAEWOO BUS CORPORATION(120111-0295940)

Competitors

DOOWON HEAVY INDUSTRIAL CO., LTD.

650, GUHO-RI, CHUKDONG-MYEON, SACHEON-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-851-2121 FAX:+82-55-851-2011

S.S TRADE CORPORATION

1439, JWA 2-DONG, HAEUNDAE-GU, BUSAN, KOREA

TEL:+82-51-915-6466 FAX:+82-51-915-5251

HOGYEONG CO., LTD.

98-1, BUJEON 1-DONG, BUSANJIN-GU, BUSAN, KOREA

TEL:+82-51-806-4123 FAX:+82-51-802-4123

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic

ZYLE DAEWOO BUS CORPORATION(120111-0295940)

(90.0% held by the subject company)

OBS GYEONGIN TV CO., LTD.(121111-0149021)

(5.0% held by the subject company)

Affiliates-Overseas

GULIN DAEWOO BUS CO., LTD.

JINGPING ROAD GUILIN GUANGXI, CHINA

TEL :+86-773-632-3996 FAX :+86-773-362-6182

SHANGHAI WANXING AUTOMOBILE CO., LTD.

NO.999, SHUHAI ROAD, SHANGHAI, CHINA

TEL :+86-21-6760-0774 FAX :+86-21-6760-0541

VIETNAM DAEWOO BUS CO., LTD.

LOT CN9 KHAI QUANG INDUSTRIAL PARK VINH YEN CITY VIHN PHUC PROVINCE, VIETNAM

TEL :+842-1172-1335 FAX :+842-1172-1334

DAEWOO BUS COSTA RICA S.A

12143-1000 SAN JOSE, COSTA RICA 2.5KMS AL OESTE, DEL CENTRO COMECIAL / SANTA ANA 2000

TEL :+506-282-9320 FAX :+506-282-5555

DAEWOO BUS KAZAKHSTAN LLC.

81 BI BORANBAYA ST., SEMEY EAST KAZAKHSTAN OBLAST, 071412, REPUBLIC OF KAZAKHSTAN

TEL :+7-7222-33-4601 FAX :+7-7222-33-4606

MASTER TRANSPORTATION BUS MANUFACTUREING(MTBM) CO., LTD.

(10.2% held by the subject company)

NO.385,MA-TSO RD., SHINYUAN SHIANG, PINGTUNG, COUNTRY,TAIWAN 932 ROC

TEL :+886-2-2578-8978 FAX :+886-2-2579-4156

DAEWOO BUS(SHANGHAI) GLOBAL TRADING CO.,LTD.

(100.0% held by the subject company)

NO. 999, SHUHAI ROAD, SONGJIANG DISTRICT, SHANGHAI, CHINA

TEL :+86-21-6760-2041 FAX :+86-21-6760-2045

DAEWOO BUS COSTARICA S.A

VIETNAM DAEWOO BUS CO., LTD

DAEWOO BUS KAZAKHSTAN LLC.

(50.0% held by the subject company)

GYERIM DAEWOO BUS CO., LTD.(CHINA)

(50.0% held by the subject company)

DAEWOO BUS ANDINA S.A.S

(50.0% held by the subject company)

DAEWOO BUS MERCOSUR S.A

(50.0% held by the subject company)

ZYLE MOTOR TRADING SHANGHAI CO., LTD.

Subsidiary

ZYLE DAEWOO BUS CORPORATION(120111-0295940)

(90.0% held by the subject company)

DAEWOO BUS COSTARICA S.A

(98.3% held by the subject company)

VIETNAM DAEWOO BUS CO., LTD.

(100.0% held by the subject company)

ZYLE MOTOR SALES CORPORATION(120111-0592908)

KORAD CO., LTD.(110111-0298904)

Sales by Region (Activity & Markets)

The Subject exports to Middle East including UAE.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.45
UK Pound	1	Rs.99.45
Euro	1	Rs.79.46

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	PDT

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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