MIRA INFORM REPORT

Report Date :

08.09.2014

IDENTIFICATION DETAILS

Name :	ILSHIN SPINNING CO., LTD.
Registered Office :	11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Korea Ilshin Bldg. 150-872
Country :	South Korea
Financials (as on) :	30.06.2014
Date of Incorporation :	11.03.1951
Com. Reg. No.:	116-81-40780
Legal Form :	Listed Company (Korea Stock Exchange : 003200 ) as of 03/1999
Line of Business :	Export/Import of Cotton spun yarn, P/C blended spun yarn, P/C blended fabric, Combed Cotton Yarns, Melange Yarns, Core Spun Yarns, Blended Yarns, OE Yarns, Dyed Yarns, Dyed Fabrics, Cotton Fabrics, Knitted Fabrics, Modal Yarn
No. of Employees	1,134

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

Basic

Company Name	ILSHIN SPINNING CO., LTD.
Registered Address	11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Korea
Building	Ilshin Bldg.
Zip Code	150-872
Tel	+82-2-3774-0114
Fax	+82-2-786-5891~4
E-mail	grchoi@ilshin.co.kr;cwlee@ilshin.co.kr;donghkim@ilshin.co.kr
Website	www.ilshin.co.kr
Trading Address	11, Eunhaeng-ro, Yeongdeungpo-gu, Seoul, Korea (Old Address System : 15-15, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea(C.P.O.BOX 91))
Tel	+82-2-3774-0114
Fax	+82-2-786-5891~4
Other Address-Gwangju Factory	100, Im-dong, Buk-gu, Gwangju, Korea
Tel	+82-62-510-5111
Fax	+82-62-570-5105
Other Address-Gwangju Factory II	879-4, Ok-dong, Gwangsan-gu, Gwangju, Korea
Tel	+82-62-600-5300
Fax	+82-62-600-5305
Other Address-Cheongwon Factory	231-1, Seongsan-ri, Ochang-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea
Tel	+82-43-219-3114
Fax	+82-43-219-3119
Other Address-Banwol Factory	644-1, Choji-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea
Tel	+82-31-489-4604~5
Fax	+82-31-489-4600
Type	Export/Import
Industry	Cotton Spinning
Main Business	Cotton spun yarn, P/C blended spun yarn, P/C blended fabric, Combed Cotton Yarns, Melange Yarns, Core Spun Yarns, Blended Yarns, OE Yarns, Dyed Yarns, Dyed Fabrics, Cotton Fabrics, Knitted Fabrics, Modal Yarn
Established (mm/dd/yyyy)	11/03/1951

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Yarns(11151700) -Garment Use Yarns spun with raw cotton & top dyed fibre.
Sell	Cotton fabrics(11161700)
Sell	Knit synthetic fabrics(11161804)
Sell	Dyeing or printing or finishing services(73141706)
Sell	Threads(11151600)
Sell	Synthetic fabrics(11161800)
Buy	Cotton(11121802)

CEO’s

Name	Kim Young-Ho
Date of Birth	03/09/1944
Title	Chairman & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

12,000,000,000

Employees

1,134

Formation

Listed Company (Korea Stock Exchange : 003200 ) as of 03/1999

A company of ILSHIN SPINNING CO., LTD.

Bank Details

Citi Bank, Korea-Seo Yoido Branch

Corporate Registered No.

110111-0041717

Business Registered No.

116-81-40780

Permit & Licenses

01/2000 ISO 9002

Int’l Trade No.: 672139

Shareholder Position

Name	Shares	%
KIM YOUNG-HO	495,141	20.63
KB ASSET MANAGEMENT CO., LTD.(110111-0572556)	274,819	11.45
SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)	238,817	9.95
NATIONAL PENSION SERVICE(110171-0007134)	196,676	8.19
KIM JUNG-SOO	132,339	5.51
ILSHIN CULTURE FOUNDATION(111222-0005624)	120,000	5.00
OTHERS	942,208	39.26
TOTAL	2,400,000	100.00

Company History

11/03/1951 Incorporated as the present name

03/1995 Awarded The Presidential Prize on the Tax Day

04/2004 Awarded The Commissioner Prize of National Tax Office on the Tax Day

Detailed Information

Management

Job Description	Title	Name	Nationality	Date of Birth	Education
Chairman & CEO	Mr.	Kim Young-Ho	Korean	1944-03-09	New Yok Pratt Institute, USA
President & CEO	Mr.	Kim Jung-Soo	Korean	1963-06-15	University of Biola, USA
Executive Director	Mr.	Kim Min-Soo	Korean	1966-09-21	Chamman University-USA
Executive Director	Mr.	Kim Jung-Kil	Korean	1959-09.	Seoul National University, Korea
Director	Mr.	Ko Jeong-Seock	Korean	1957-05-22	Seoul National University, Korea
Outside Director	Mr.	Shin Young-Moo	Korean	1944-03-02	Seoul National University, Korea
Outside Director	Mr.	Song Ja	Korean	1936-12-02	Yonsei University, Korea
Auditor	Mr.	Jeong Young-Sik	Korean	1959-09-16	Seogang University, Korea

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2014	152,927,664,502	562,625,019,648	5,794,061,939
(*)2013	311,084,146,123	554,797,863,642	16,321,684,923
(*)2012	326,933,867,026	533,630,133,141	-12,191,133,858
2011	380,131,312,496	570,909,115,439	1,101,455,649
2010	374,483,214,849	601,433,022,867	46,626,986,390

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

Financial Description

Authorized Capital(KRW)	30,000,000,000
Paid-Up Capital(KRW)	12,000,000,000
Total Issued Shares	2,400,000

Balance Sheet
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	562,625,019,648	554,797,863,642	533,630,133,141
Current Assets	173,390,410,627	176,829,033,519	152,590,956,581
Cash & Cash Equivalents	7,155,302,317	6,697,725,843	4,032,377,808
Current Financial Instruments	55,765,780,583	70,112,069,753	51,980,100,921
Trade Receivables & Other Receivables	42,903,620,550	39,574,164,113	38,608,211,084
Other Current Assets	582,115,364	1,295,690,480	548,333,558
Inventories	66,983,591,813	59,149,383,330	57,270,115,880
Deferred Income Tax Assets	0	0	151,817,330
Non-Current Assets	389,234,609,021	377,968,830,123	381,039,176,560
Marketable Financial Instruments	16,596,102,008	21,019,279,384	21,873,334,659
Non-Current Financial Instruments	3,000,000	18,670,000	2,500,000
Other Non-Current Assets	728,542,727	731,365,727	381,327,470
Investment_Subsidiaries	121,750,673,726	112,847,645,207	112,847,645,207
Investment_Related Companies	9,899,640,080	0	0
Tangibles	155,206,386,428	156,884,485,036	156,050,351,854
Investment_Real Estates	84,230,543,056	85,631,758,474	88,733,826,517
Intangibles	819,720,996	835,626,295	1,150,190,853
Total Liabilities	78,191,255,590	71,738,208,107	69,156,404,462
Current Liabilities	50,734,025,723	42,147,951,772	44,068,102,815
Short-Term Borrowings	21,511,485,149	19,628,206,942	18,059,997,979
Trade Payables & Other Payables	27,124,417,746	20,613,982,840	26,008,104,836
Deferred Income Tax Credit	2,098,122,828	1,905,761,990	0
Non-Current Liabilities	27,457,229,867	29,590,256,335	25,088,301,647
Long-Term Borrowings	6,274,713,931	7,324,264,028	4,266,990,442
Other Non-Current Liabilities	8,792,253,248	9,087,171,575	9,359,952,482
Deferred Income Tax Credit	12,390,262,688	13,178,820,732	11,461,358,723
Capital Stock	12,000,000,000	12,000,000,000	12,000,000,000
Capital Surplus	10,637,536,828	10,637,536,828	5,854,300,706
Others	4,237,270,323	3,964,299,739	4,760,947,428
Profit Surplus	457,558,956,907	456,457,818,968	441,858,480,545
Total Equity	484,433,764,058	483,059,655,535	464,473,728,679
Liab. & Shareholder’s Equity	562,625,019,648	554,797,863,642	533,630,133,141

Income Statement
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Sales	152,927,664,502	311,084,146,123	326,933,867,026
Cost of Sold Goods	143,865,805,637	283,409,064,089	335,740,660,403
Gross Profit	9,061,858,865	27,675,082,034	-8,806,793,377
Selling & Admin. Expenses	5,364,873,758	10,902,229,397	10,665,144,488
Operating Income	3,696,985,107	16,772,852,637	-19,471,937,865
Finance Income	4,291,249,010	5,226,746,107	4,920,325,643
Finance Expenses	701,609,008	1,160,226,154	516,064,672
Other Income	1,099,595,573	2,276,462,108	1,229,296,168
Other Expenses	1,095,169,658	2,608,994,742	2,202,847,834
Income Before Taxes	7,291,051,024	20,506,839,956	-16,041,228,560
Income Taxes Expenses	1,496,989,085	4,185,155,033	-3,850,094,702
Net Income	5,794,061,939	16,321,684,923	-12,191,133,858

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	5,047,500,703	21,474,781,785	37,157,645,832
Net Income	5,794,061,939	16,321,684,923	-12,191,133,858
Adjustment	-1,318,455,725	2,520,582,393	44,004,122,913
Interests Received	1,334,140,318	1,737,491,920	1,107,659,846
Interests Paid	-78,045,736	-224,748,271	-357,464,223
Dividends Received	1,485,977,900	1,908,977,900	1,593,227,900
Income Taxes	-2,170,177,993	-789,207,080	3,001,233,254
Cash Flows from Investing	-1,430,679,464	-25,080,344,689	-44,621,730,511
Cash Flows from Financing	-3,159,111,653	6,270,311,409	-16,430,565,070
Increase/Decrease in Cash	457,576,474	2,665,348,035	-23,894,653,901
Cash at the Beginning of Year	6,697,725,843	4,032,377,808	27,927,031,709
Cash at the End of Year	7,155,302,317	6,697,725,843	4,032,377,808

Products, Technologies, Services Description

Main Products & Services	Combed yarns are The Subject Company's main products. The Subject Company is biggest combed cotton yarn spinning mill in Korea which has production capacity of 2,500 tons per month. Brand Name : THREE STAR
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers
Customers
Competitors	TAE KWANG INDUSTRIAL CO., LTD.(110111-0185276) DAENONG CORPORATION(110111-0138572) CHONBANG CO.,LTD.(110111-0005664)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

ILSHIN INVESTMENT CO., LTD. (200111-0020308) (90.63% held by the subject company) ILSHIN INDUSTRY DEVELOPMENT CO., LTD.(110111-0790877) (100.00% held by the subject company) SHIN DONG COROPERATION(110111-0006159) (100.00% held by the subject company) SHIN DONG WINE CO., LTD.(110111-0744072) (100.00% held by the subject company) BSK CORPORATION (110111-1358616) (100.00% held by the subject company) ILSHIN VIETNAM CO.,LTD.(VIETNAM) (100.00% held by the subject company)

News Clipping

Not Available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.44
UK Pound	1	Rs.98.64
Euro	1	Rs.78.20

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	SDA

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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