MIRA INFORM REPORT

Report Date :

27.09.2014

IDENTIFICATION DETAILS

Name :	KWANGLIM TRADING CO., LTD.
Registered Office :	506-7, Amsa 2-dong, Gangdong-gu, Seoul, Korea
Country :	South Korea
Financials (as on) :	31.12.2013
Date of Incorporation :	28.12.1988
Com. Reg. No.:	215-81-04311
Legal Form :	Company Limited By Shares
Line of Business :	Manufacturer of Shirts and Sports Garments.
No of Employees :	227

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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

Company Name	KWANGLIM TRADING CO., LTD. (Korean Company Name : “광림통상(주)”)
Registered Address	506-7, Amsa 2-dong, Gangdong-gu, Seoul, Korea
Building	Kwanglim Bldg.
Zip Code	134-877
Tel	+82-2-440-5000
Fax	+82-2-481-8855
E-mail	hjkim@kwanglim.com
Website	www.kwanglim.com
Trading Address	Kwanglim Bldg., 506-7, Amsa 2-dong, Gangdong-gu, Seoul, Korea
Tel	+82-2-440-5000
Fax	+82-2-481-8855
Other Address	205-2, Seongsu-dong 2-ga, Seongdong-gu, Seoul, Korea
Tel
Fax
Type	Export/Import
Industry	Manufacture of Shirts and Sports Garments
Main Business	T-Shirts, One-Piece Dress, Sweater, Knitwear
Sub Business
Established (mm/dd/yyyy)	12/28/1988

The Subject owns the premises of registered HQ address.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Tshirts(53103000)
Sell	Sweaters(53101700)
Sell	Dresses and skirts and saris and kimonos(53102000)
Buy	Synthetic fabrics(11161800)
Buy	Threads(11151600)
Buy	Zippers(53141503)
Buy	Tags(55121500)
Buy	Buttons(53141505)
Buy	Labels(55121600)
Buy	Cotton fabrics(11161700)
Buy	Miscellaneous sewing supplies(53141600)
Buy	Nonwoven fabrics(11162200)
Buy	Paper tubes or cores(24141701)

CEO’s

Name	Yoon Kwang-Ho
Address	Suite G-3702, 467-29, Dogok-dong, Gangnam-gu, Seoul, Korea
Date of Birth	11/02/1953
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,500,000,000

Employees

227

Formation

Co., Ltd by Shares

Bank Details

Citibank, Korea-Jamsil Branch

Hana Bank-Jamsil Station Branch

Shinhan Bank-Jamsil Branch

Korea Exchange Bank- Jamsil Station Branch

Woori Bank-Garak Branch

Kookmin Bank-Songpa Branch

Corporate Registered No.

110111-0603046

Business Registered No.

215-81-04311

Permit & Licenses

Int’l Trade No.: 944496

Shareholder Position

Name	Shares	%
YOON KWANG-HO	252,000	84.00
YOON KWANG-HO'S FAMILY	39,000	13.00
OTHERS	9,000	3.00
TOTAL	300,000	100.00

Company History

12/28/1988 Incorporated as the present name

08/27/2001 Moved to the present HQ address from 69-4, Bangi-dong, Songpa-gu, Seoul, Korea

08/27/2001 Increased the authorized shares to 500,000 Shares from 200,000 shares

11/2001 Awarded US$ 50 Million Export Top Prize

11/30/2007 Awarded US$ 10 Million Export Top Prize

12/23/2008 Increased capital to 1,500,000,000 KRW from 1,000,000,000 KRW

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Yoon Kwang-Ho	Male	Korean	12/28/1991
Director	M/S.	Lee Myung-Hee	Female	Korean	12/28/1991
Director	Mr.	Yoon Han-Jin	Male	Korean	04/20/2009
Outside Director	Mr.	Hong Jong-Seok	Male	Korean	04/22/2013
Outside Director	Mr.	Lee Ho-Yeon	Male	Korean	04/22/2013
Auditor	Mr.	Kim Woon-Jae	Male	Korean	03/31/2012

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	321,513,956,360	116,281,856,109	1,586,990,344
2012	291,126,798,778	108,262,850,193	2,589,117,440
2011	218,395,088,360	99,461,821,005	8,711,828,593
2010	172,348,892,590	79,029,525,138	3,075,610,548
2009	149,802,470,847	56,971,131,182	2,707,475,249
2008	124,314,585,770	47,487,537,191	2,045,893,731
2007	91,991,699,721	44,209,826,880	894,868,747
2006	89,314,245,581	40,377,892,646	646,978,375
2005	81,532,046,774	37,676,680,860	551,568,078

Financial Description

Authorized Capital(KRW)	2,500,000,000
Paid-Up Capital(KRW)	1,500,000,000
Total Issues Shares	300,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	116,281,856,109	108,262,850,193	99,461,821,005
Current Assets	93,931,954,610	84,867,420,804	76,479,559,894
-Quick Assets	34,969,276,772	32,821,620,031	31,580,079,034
-Inventories	58,962,677,838	52,045,800,773	44,899,480,860
Fixed Assets	22,349,901,499	23,395,429,389	22,982,261,111
-Investment	10,191,803,934	10,846,167,564	11,751,058,264
-Tangibles	11,233,973,320	11,869,872,006	11,074,582,477
-Intangibles
-Others	924,124,245	679,389,819	156,620,370
Total Liabilities	77,655,883,123	71,164,398,184	64,548,284,123
Current Liabilities	75,040,045,690	68,073,637,561	61,407,077,227
Fixed Liabilities	2,615,837,433	3,090,760,623	3,141,206,896
Capital Stock	1,500,000,000	1,500,000,000	1,500,000,000
Capital Surplus
Profit Surplus	30,725,292,745	29,138,302,401	26,549,184,961
Capital Adjustment	6,400,680,241	6,460,149,608	6,864,351,921
Total Equity	38,625,972,986	37,098,452,009	34,913,536,882
Liab. & Shareholder’s Equity	116,281,856,109	108,262,850,193	99,461,821,005

Current Liabilities	75,040,045,690	68,073,637,561	61,407,077,227
Trade Payables	11,595,467,558	11,251,012,636	6,621,617,194
Short-Term Borrowings	56,409,007,169	49,420,581,245	47,604,539,537
Account Payables	1,741,300,853	2,556,748,082	1,425,522,971
Advance Receipts	1,090,655,583	4,305,840,649	3,500,671,584
Unearned Income	4,000,000	-	8,500,000
Withholdings	98,078,330	95,866,670	75,024,660
Accrued Expenses	152,305,197	154,091,849	139,861,102
Accrued Income Tax	894,461,000	289,496,430	2,031,340,179
Guarantee Deposit Withhold	54,770,000	-
Current Portion of Debentures	3,000,000,000	-
Fixed Liabilities	2,615,837,433	3,090,760,623	3,141,206,896
Debentures	2,500,000,000	3,000,000,000	3,000,000,000
Leasehold Deposit Received	5,000,000	5,000,000	15,000,000
Provision for Severance & Retirement	110,837,433	85,760,623	60,683,813
Deferred Income Tax Credit			65,523,083

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	321,513,956,360	291,126,798,778	218,395,088,360
Cost of Sold Goods	264,883,968,940	239,550,173,617	175,402,984,266
Gross Profit	56,629,987,420	51,576,625,161	42,992,104,094
Selling & Admin. Expenses	49,045,692,885	44,930,423,808	29,415,475,123
Operating Income	7,584,294,535	6,646,201,353	13,576,628,971
Non-Operating Income	3,155,155,037	3,536,562,506	4,069,067,696
Non-Operating Expenses	7,492,665,104	6,803,836,350	6,509,102,802
Income Before Taxes	3,246,784,468	3,378,927,509	11,136,593,865
Income Taxes Expenses	1,659,794,124	789,810,069	2,424,765,272
Net Income	1,586,990,344	2,589,117,440	8,711,828,593

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	-10,041,907,145	418,483,123	-13,113,981,414
-Net Income	1,586,990,344	2,589,117,440	8,711,828,593
-Exp. without Cash Outflow	1,379,021,891	3,337,231,855	1,703,246,868
-Revenue without Cash Inflows	-367,434,799	-1,495,222,131	-802,001,791
-Changes in Asset/ & Liability	-12,640,484,581	-4,012,644,041	-22,727,055,084
Cash Flows from Investing	-2,627,190,208	-927,372,232	-1,785,731,136
-Cash Inflow from Investing	855,345,023	4,535,887,877	1,627,921,259
-Cash Outflows for Investing	-3,482,535,231	-5,463,260,109	-3,413,652,395
Cash Flows from Financing	9,653,106,279	2,532,040,384	13,514,235,679
-Cash Inflows from Financing	9,653,106,279	2,532,040,384	13,514,235,679
-Cash Outflows from Financing	-	-	-
Increase/Decrease in Cash	-3,015,991,074	2,023,151,275	-1,385,476,871
Cash at the Beginning of Year	4,132,393,020	2,109,241,745	3,494,718,616
Cash at the End of Year	1,116,401,946	4,132,393,020	2,109,241,745

Products, Technologies, Services Description

Main Products & Services	T-Shirts, One-Piece Dress, Sweater, Knitwear
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers
Customers	KOHL’S CARTER’S JANSPORT WAL MART OSHKOSH AMERICAN EAGLE OUTFITTERS TARGET
Competitors	YAKJIN TRADING CORPORATION 5TH FL., YEONG BLDG., 166-9, GARAK-DONG, SONGPA-GU, SEOUL, KOREA TEL:+82-2-430-1101 FAX:+82-2-449-4500 PAN-PACIFIC CO., LTD. 726, WONSI-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA TEL:+82-2-850-9000 FAX:+82-2-830-1011 SAMIL KNIT CO., LTD. 190-99, SANGJISEOK-RI, GYOHA-MYEON, PAJU-SI, GYEONGGI-DO, KOREA TEL:+82-2-3451-6724 FAX:+82-2-598-7422

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary	KL PRIMETEX GUATEMALA,S.A.(GUATEMALA) (100.0% held by the subject company) PT. KWANGLIM INDONESIA(INDONESIA) (100.0% held by the subject company) MASTEX VINA(VIETNAM) (100.0% held by the subject company) KWANGLIM AMERICA INC. (100.0% held by the subject company)
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

Sales by Region (Activity & Markets)

The Subject exports to USA.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Analysis Done by :	SUB
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%)

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