MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	KOREA OPTICAL CO., LTD.

Registered Office :	174, Daedeok-daero 1448 Beon-gil, Daedeok-gu, Daejeon, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	05.07.1997

Com. Reg. No.:	305-81-28329

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of optical lens and elements

No. of Employees	70

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 :	Slow but correct
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

Basic

Company Name	KOREA OPTICAL CO., LTD. (Korean Company Name : “(주)고려광학”)
Registered Address	174, Daedeok-daero 1448beon-gil, Daedeok-gu, Daejeon, Korea
Building
Zip Code	306-230
Tel	+82-42-531-5340
Fax	+82-42-531-5341
E-mail	sbh@clex.co.kr
Website	www.clex.co.kr
Trading Address	174, Daedeok-daero 1448beon-gil, Daedeok-gu, Daejeon, Korea (Old Address System : 1688-27, Sinil-dong, Daedeok-gu, Daejeon, Korea)
Tel	+82-42-531-5340
Fax	+82-42-531-5341
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture of Optical Lens and Elements
Main Business	Optical Plastic Lens
Sub Business
Established (mm/dd/yyyy)	07/05/1997

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Eyeglass lenses(42142902)

CEO’s

Name	Sung Bong-Hee
Address	Suite 305-303, 353, Noeun-ro, Yuseong-gu, Daejeon, Korea
Date of Birth	02/23/1963
Title	Representative Director
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

600,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Industrial Bank of Korea-Seo Daejeon Branch

Corporate Registered No.

160111-0064066

Business Registered No.

305-81-28329

Permit & Licenses

2009.08.00 INNO-BIZ

2006.04.00 KGMP

2005.04.00 ISO 9001

2003.07.01 ISO 14001

2002.02.01 CE

2000.05.00 FDA

Int’l Trade No.: 16010769

Shareholder Position

Name	Shares	%
SUNG BONG-HEE	79,200	66.00
PARK KYUNG-OK	28,800	24.00
AHN SUN-YOUNG	12,000	10.00
TOTAL	120,000	100.00

Company History

07/05/1997 Incorporated as the present name

11/2005 Awarded US$ 10 Million Export Top Prize

08/2009 Designated as an INNO-BIZ Company

12/04/2008 Designated as a Venture Business

11/17/2009 Moved to the present HQ address from 185-2, Oryu-dong, Jung-gu, Daejeon, Korea

12/16/2011 Designated as a Venture Business again

01/25/2012 Increased the authorized shares to 500,000 shares from 100,000 shares

11/27/2013 Increased capital to 600,000,000 KRW from 500,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Representative Director	Mr.	Sung Bong-Hee	Male	Korean	03/31/2001
Auditor	M/S.	Park Kyung-Ok	Female	Korean	06/30/1998

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	9,741,759,000	8,319,368,000	171,973,000
2012	11,423,658,944	7,824,918,188	62,473,764
2011	12,862,992,868	10,063,320,718	-98,140,552

Financial Description

Authorized Capital(KRW)	2,500,000,000
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	8,319,368,000	7,824,918,188	10,063,320,718
Current Assets	7,185,645,000	6,455,187,404	5,485,924,341
-Quick Assets	-	1,586,558,239	1,412,559,020
-Inventories	-	4,868,629,165	4,073,365,321
Fixed Assets	1,133,723,000	1,369,730,784	4,577,396,377
-Investment	-	70,899,056	117,928,090
-Tangibles	-	1,073,341,061	4,438,815,844
-Intangibles	-	296,667	1,638,443
-Others		225,194,000	19,014,000
Total Liabilities	6,108,231,000	5,629,321,212	7,865,528,897
Current Liabilities	3,765,147,000	4,116,954,424	5,099,460,877
Fixed Liabilities	2,343,084,000	1,512,366,788	2,766,068,020
Capital Stock	600,000,000	500,000,000	400,000,000
Capital Surplus	-	-	-
Profit Surplus	1,611,413,000	1,695,872,576	1,797,791,821
Capital Adjustment	-276,000	-275,600	-
Total Equity	2,211,137,000	2,195,596,976	2,197,791,821
Liab. & Shareholder’s Equity	8,319,368,000	7,824,918,188	10,063,320,718

Current Liabilities	4,116,954,424	5,099,460,877
Trade Payables	212,694,889	533,354,986
Account Payables	151,210,588	192,717,514
Withholdings	12,914,110	12,834,940
Advance Receipts	157,758,460	64,535,291
Accrued Expenses	163,820,067	119,092,913
Accrued Income Tax	4,337,920	-
Short-Term Borrowings	3,301,718,390	4,176,925,233
Current Portion of Long-Term Debts	112,500,000	-
Fixed Liabilities	1,512,366,788	2,766,068,020
Long-Term Borrowings	1,237,500,000	2,578,408,001
Leasehold Deposit Received	4,000,000	24,000,000
Provision for Severance & Retirement	270,866,788	163,660,019

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	9,741,759,000	11,423,658,944	12,862,992,868
Cost of Sold Goods	7,771,947,000	9,547,901,929	10,861,399,297
Gross Profit	1,969,812,000	1,875,757,015	2,001,593,571
Selling & Admin. Expenses	1,195,660,000	1,191,229,640	1,301,192,152
Operating Income	774,152,000	684,527,375	700,401,419
Non-Operating Income	228,008,000	913,584,418	190,565,360
Non-Operating Expenses	823,927,000	1,646,598,807	767,656,697
Income Before Taxes	178,233,000	48,487,014	-123,310,082
Income Taxes Expenses	6,260,000	13,986,750	25,169,530
Net Income	171,973,000	62,473,764	-98,140,552

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating		-1,247,241,760	-719,244,457
-Net Income		-62,473,764	98,140,552
-Exp. without Cash Outflow		1,376,887,855	616,283,707
-Revenue without Cash Inflows		-757,093,577	-834,748
-Changes in Asset/ & Liability		-1,804,562,274	-1,432,833,968
Cash Flows from Investing		3,270,540,950	18,446,225
-Cash Inflow from Investing		4,243,651,756	95,736,225
-Cash Outflows for Investing		-973,110,806	-77,290,000
Cash Flows from Financing		-2,023,890,444	576,388,071
-Cash Inflows from Financing		1,450,000,000	955,520,420
-Cash Outflows from Financing		-3,473,890,444	-379,132,349
Increase/Decrease in Cash		-591,254	-124,410,161
Cash at the Beginning of Year		1,617,348	126,027,509
Cash at the End of Year		1,026,094	1,617,348

Products, Technologies, Services Description

Main Products & Services	Optical Plastic Lens
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

Customers

Competitors

A.G. OPTICS CO., LTD.

731-8, ANCHEONG-DONG, GWANGSAN-GU, GWANGJU, KOREA

TEL:+82-62-956-0765 FAX:+82-62-956-0764

MICROPTICS CO., LTD.

RM. 501, YUNMIN TECHNO TOWN, 473-4, BORA-DONG, GIHEUNG-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-289-9000 FAX:+82-31-285-7900

HANMI SWISS OPTICAL CO., LTD.

26-18, HO-DONG, JUNG-GU, DAEJEON, KOREA

TEL:+82-42-273-8972 FAX:+82-42-274-0819

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.98.65
Euro	1	Rs.78.63

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIS

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.