MIRA INFORM REPORT

Report Date :

22.09.2014

IDENTIFICATION DETAILS

Name :	FIRST COLOR CO., LTD.

Formerly Known As :	JEIL COLOR INDUSTRIES CO., LTD.

Registered Office :	70, Gongdan 1-daero 28beon-gil, Siheung-si, Gyeonggi-do

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	20.10.1977

Com. Reg. No.:	130-81-02370

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Inorganic Pigments and Other Metal Oxides

No. of Employees :	90

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 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

Company Name	FIRST COLOR CO., LTD. (Korean Company Name : “(주)퍼스트칼라”)
Registered Address	70, Gongdan 1-daero 28beon-gil, Siheung-si, Gyeonggi-do, Korea
Building	1Ra-102, Sihwa Industrial Complex
Zip Code	429-914
Tel	+82-31-432-6900
Fax	+82-31-432-6328
E-mail	fcicolor@kotis.net
Website	www.first-color.com
Trading Address	1Ra-102, Sihwa Industrial Complex, 70, Gongdan 1-daero 28beon-gil, Siheung-si, Gyeonggi-do, Korea (Old Address System : 1Ra-102, Sihwa Industrial Complex, 1236-1, Jeongwang 3-dong, Siheung-si, Gyeonggi-do, Korea)
Tel	+82-31-432-6900
Fax	+82-31-432-6329
Type	Export/Import
Industry	Manufacture of Inorganic Pigments and Other Metal Oxides
Main Business	Pigment
Established (mm/dd/yyyy)	10/20/1977

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Pigments(12171600)

CEO’s

Name	Yang Yeong-Sean
Address	Suite 701-102, 17, Gumi-ro 185beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Date of Birth	01/08/1940
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

859,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Korea Development Bank of Korea-Shihwa Branch

Woori Bank-Jeongwang Dong Branch

Shinhan Bank

Corporate Registered No.

124311-0003329

Business Registered No.

130-81-02370

Permit & Licenses

10/01/2001 ISO 9001(Ukas)

10/01/2002 ISO 14001 (Eagle)

Int’l Trade No.: 522038

Shareholder Position

Name	Shares	%
YANG YEONG-SEAN & HIS FAMILY	58,154	67.70
OTHERS	27,746	32.30
TOTAL	85,900	100.00

Company History

10/20/1977 Incorporated as JEIL COLOR INDUSTRIES CO., LTD.

01/01/2000 Changed company name to the present name

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Yang Yeong-Sean	Male	Korean	09/14/2000
President & CEO	Mr.	Yang Seok-Won	Male	Korean	07/01/2013
Director	M/S.	Cho Myung-Ja	Female	Korean	08/01/2001
Auditor	Mr.	Cho Sung-In	Male	Korean	03/23/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	24,226,054,154	42,526,025,474	964,662,342
2012	24,006,517,685	42,578,611,316	1,683,691,730
2011	25,348,213,902	41,941,947,546	997,719,234
2010	23,819,116,215	40,189,984,430	-277,227,786
2009	21,358,797,316	29,166,500,288	1,675,168,742
2008	19,181,555,909	27,161,476,699	-3,092,984,370
2007	18,824,698,573	24,331,004,852	329,583,053
2006	17,162,711,337	22,424,663,564	175,152,721
2005	17,206,673,919	21,285,370,805	1,001,416,686

Financial Description

Authorized Capital(KRW)	1,000,000,000
Paid-Up Capital(KRW)	859,000,000
Total Issued Shares	85,900

Balance Sheet

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	42,526,025,474	42,578,611,316	41,941,947,546
Current Assets	13,656,256,886	13,689,981,399	13,934,496,259
-Quick Assets	7,283,673,379	7,797,944,342	7,000,802,662
-Inventories	6,372,583,507	5,892,037,057	6,933,693,597
Fixed Assets	28,869,768,588	28,888,629,917	28,007,451,287
-Investment	14,935,860,175	14,413,987,163	12,928,141,839
-Tangibles	13,835,196,013	14,375,930,354	14,980,597,048
-Intangibles
-Others	98,712,400	98,712,400	98,712,400
Total Liabilities	17,802,365,274	14,959,568,996	15,908,397,816
Current Liabilities	14,683,862,808	11,976,393,277	12,976,093,697
Fixed Liabilities	3,118,502,466	2,983,175,719	2,932,304,119
Capital Stock	859,000,000	859,000,000	859,000,000
Capital Surplus
Profit Surplus	18,670,414,746	17,705,752,404	16,120,259,814
Capital Adjustment	5,194,245,454	9,054,289,916	9,054,289,916
Total Equity	24,723,660,200	27,619,042,320	26,033,549,730
Liab. & Shareholder’s Equity	42,526,025,474	42,578,611,316	41,941,947,546

Current Liabilities	14,683,862,808	11,976,393,277	12,976,093,697
Trade Payables	834,307,545	922,202,005	934,947,529
Short-Term Borrowings	12,752,962,604	8,784,276,122	10,195,723,868
Account Payables	-	87,463,200	13,900,000
Accrued Expenses	493,537,581	452,983,587	357,452,325
Withholdings	264,268,670	211,656,710	210,457,670
Deferred Income Tax	217,453,408	313,145,653	58,946,305
Current Portion of Long-Term Debts	121,333,000	1,204,666,000	1,204,666,000
Fixed Liabilities	3,118,502,466	2,983,175,719	2,932,304,119
Long-Term Borrowings	376,000,000	497,333,000	401,999,000
Provision for Severance & Retirement	3,667,701,330	3,298,151,990	3,185,586,920

Income Statement

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	24,226,054,154	24,006,517,685	25,348,213,902
Cost of Sold Goods	19,002,981,526	19,070,290,316	19,827,901,331
Gross Profit	5,223,072,628	4,936,227,369	5,520,312,571
Selling & Admin. Expenses	4,141,449,348	4,312,070,862	4,394,034,129
Operating Income	1,081,623,280	624,156,507	1,126,278,442
Non-Operating Income	1,668,390,709	2,076,021,048	1,055,752,280
Non-Operating Expenses	1,421,204,349	692,819,662	1,118,370,473
Income Before Taxes	1,328,809,640	2,007,357,893	1,063,660,249
Income Taxes Expenses	364,147,298	323,666,163	65,941,015
Net Income	964,662,342	1,683,691,730	997,719,234

Cash Flows

Unit : Million Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	2,576,573,865	2,323,627,670	1,962,415,139
-Net Income	964,662,342	1,683,691,730	997,719,234
-Exp. without Cash Outflow	1,978,673,906	1,294,973,294	1,743,967,989
-Revenue without Cash Inflows	-977,387,605	-913,645,415	-7,806,630
-Changes in Asset/ & Liability	610,625,222	258,608,061	-771,465,454
Cash Flows from Investing	-6,110,395,754	-1,579,815,177	-2,414,896,432
-Cash Inflow from Investing	3,949,755,550	1,076,989,798	1,668,334,228
-Cash Outflows for Investing	-10,060,151,304	-2,656,804,975	-4,083,230,660
Cash Flows from Financing	3,389,288,618	-742,345,063	802,696,518
-Cash Inflows from Financing	5,300,263,418	1,100,000,000	2,120,000,000
-Cash Outflows from Financing	-1,910,974,800	-1,842,345,063	-1,317,303,482
Increase/Decrease in Cash	-144,533,271	1,467,430	350,215,225
Cash at the Beginning of Year	945,865,973	944,398,543	594,183,318
Cash at the End of Year	801,332,702	945,865,973	944,398,543

Products, Technologies, Services Description

Main Products & Services

Pigment

Trade Partners & Competitors

Competitors

CIBA SPECIALTY CHEMICALS KOREA LTD.

13TH FL., HAESEONG 2 BLDG., 942-10, DAECHI 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3451-7300 FAX:+82-2-553-1928

OH YOUNG INDUSTRIAL CO., LTD.

1RA-402, SIHWA INDUSTRIAL COMPLEX, 1250-1, JEONGWANG 3-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-2781 FAX:+82-31-499-2785

SAMBO FINE CHEMICALS MFG. CO., LTD.

628-2, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-311-3001 FAX:+82-51-323-1742

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Subsidiary

FIRST MCA CO., LTD.(135511-0159737)

(71.43% held by the subject company)

Cooperative Enterprise

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

DONGBU INSURANCE CO., LTD.(110111-0095285)

Sales by Region (Activity & Markets)

The Subject deals with the companies in North America.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.81
UK Pound	1	Rs.100.06
Euro	1	Rs.78.47

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	SHG

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.