MIRA INFORM REPORT

Report Date :

29.09.2014

IDENTIFICATION DETAILS

Name :	SAMWON PAPER CO., LTD.

Registered Office :	6, Jadongchasijang 1(il)-gil, Seongdong-gu, Seoul 133-847, South Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	17.08.1990

Com. Reg. No.:	218-81-17187

Legal Form :	Co., Ltd by Shares

Line of Business :	Manufacture of Printing and Writing Paper.

No. of Employees :	121

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 Information

Company Name	SAMWON PAPER CO., LTD. (Korean Company Name : “(주)삼원특수지”)
Registered Address	6, Jadongchasijang 1(il)-gil, Seongdong-gu, Seoul, Korea
Zip Code	133-847
Tel	+82-2-2217-8053
Fax	+82-2-2217-8998
E-mail	spc@samwonpaper.com
Website	www.samwonpaper.com
Trading Address	6, Jadongchasijang 1(il)-gil, Seongdong-gu, Seoul, Korea (Old Address System : 226-3, Yongdap-dong, Seongdong-gu, Seoul, Korea)
Tel	+82-2-2217-8053
Fax	+82-2-2217-8998
Other Address-Icheon Logistics Center	113-4, Jiseok-ri, Sindun-myeon, Icheon-si, Gyeonggi-do, Korea
Tel	+82-31-631-0668
Fax	+82-31-631-0672
Other Address-Busan Branch	410-1, Samnak-dong, Sasang-gu, Busan, Korea
Tel	+82-51-315-3293~4
Fax	+82-51-315-3295
Other Address-Jungbu Branch	411, Nangwol-dong, Dong-gu, Daejeon, Korea
Tel	+82-42-625-3293
Fax	+82-42-625-3291
Other Address-Daegu Branch	294, Sinam-dong, Dong-gu, Daegu, Korea
Tel	+82-53-756-8703~4
Fax	+82-53-756-8701
Type	Export/Import
Industry	Manufacture of Printing and Writing Paper
Main Business	Label Sheet, Note
Sub Business
Established (mm/dd/yyyy)	08/17/1990

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Undershirts(53102301)
Sell	Printing and writing paper(14111500)
Sell	Super calendared kraft paper(14122101)
Sell	Art or craft paper(14111606)
Sell	Novelty paper(14111600)
Buy	Coated papers(14121800)
Buy	Standard newsprint(14121901)
Buy	Super calendared kraft paper(14122101)
Buy	Printing and writing paper(14111500)

CEO’s

Name	Lee Yeon-Wook
Address	Suite 803, 640, Yeongdong-daero, Gangnam-gu, Seoul, Korea
Date of Birth	02/01/1959
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,500,000,000

Employees

121

Formation

Co., Ltd by Shares

Bank Details

Hana Bank

Industrial Bank of Korea

Corporate Registered No.

110111-0717227

Business Registered No.

218-81-17187

Permit & Licenses

Int’l Trade No.: 546265

Shareholder Position

Name	Shares	%
LEE MYUNG-WOO	48,450	32.30
LEE SANG-WOOK	37,650	25.10
LEE YEON-WOOK	27,600	18.40
OTHERS	36,300	24.20
TOTAL	150,000	100.00

Company History

08/17/1990 Incorporated as Samwon Specialty Paper Sangsa Co., Ltd.

05/30/1996 Decreased the authorized shares to 250,000 shares from 700,000 shares

03/31/2004 Changed company name to the present name

03/31/2006 Increased capital to 1,500,000,000 KRW from 1,210,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Co-President & CEO	Mr.	Lee Yeon-Wook	Male	Korean	03/31/2010
Co-President & CEO	Mr.	Lee Myung-Woo	Male	Korean	05/16/2013
Director	Mr.	Lee Sang-Wook	Male	Korean	12/21/1994
Director	Mr.	Lee Chang-Wook	Male	Korean	03/31/2012
Auditor	M/S.	Lee Sang-Rye	Female	Korean	03/30/2010

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	39,151,888,650	46,683,116,434	2,156,094,836
2012	37,851,722,905	48,160,702,150	1,984,897,865
2011	38,940,967,225	48,443,438,933	2,542,652,644
2010	36,698,743,606	44,135,963,448	2,912,256,035
2009	33,215,095,535	43,734,585,267	3,311,688,582

Financial Description

Authorized Capital(KRW)	2,500,000,000
Paid-Up Capital(KRW)	1,500,000,000
Total Issues Shares	150,000

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	46,683,116,434	48,160,702,150	48,443,438,933
Current Assets	12,496,880,857	14,327,260,676	14,899,554,422
-Quick Assets	9,419,962,828	11,112,055,769	11,894,467,014
-Inventories	3,076,918,029	3,215,204,907	3,005,087,408
Fixed Assets	34,186,235,577	33,833,441,474	33,543,884,511
-Investment	1,636,577,501	1,317,195,137	996,683,197
-Tangibles	31,793,714,114	31,859,611,757	32,176,841,734
-Intangibles	2,391,240	2,391,240	2,391,240
-Others	753,552,722	654,243,340	367,968,340
Total Liabilities	18,844,198,486	21,477,879,038	22,945,513,686
Current Liabilities	18,844,198,486	21,081,120,151	22,717,601,287
Fixed Liabilities	0	396,758,887	227,912,399
Capital Stock	1,500,000,000	1,500,000,000	1,500,000,000
Capital Surplus
Profit Surplus	26,338,917,948	25,182,823,112	23,997,925,247
Capital Adjustment
Total Equity	27,838,917,948	26,682,823,112	25,497,925,247
Liab. & Shareholder’s Equity	46,683,116,434	48,160,702,150	48,443,438,933

Current Liabilities	18,844,198,486	21,081,120,151	22,717,601,287
Trade Payables	2,047,357,862	2,679,361,987	3,797,350,628
Short-Term Borrowings	15,081,553,000	16,581,553,000	17,281,553,000
Account Payables	789,811,022	993,677,323	783,213,804
Advance Receipts	42,762,444	25,693,759	49,633,219
Withholdings	53,109,900	47,642,700	45,924,380
Accrued Expenses	84,039,315	24,943,560	31,884,396
Accrued Income Tax	150,564,943	168,247,822	238,041,860
Leasehold Deposit Received	595,000,000	560,000,000	490,000,000
Fixed Liabilities	0	396,758,887	227,912,399
Provision for Severance & Retirement	0	396,758,887	227,912,399

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	39,151,888,650	37,851,722,905	38,940,967,225
Cost of Sold Goods	25,681,747,875	24,900,847,883	25,378,133,479
Gross Profit	13,470,140,775	12,950,875,022	13,562,833,746
Selling & Admin. Expenses	10,632,004,309	10,259,354,219	9,772,430,299
Operating Income	2,838,136,466	2,691,520,803	3,790,403,447
Non-Operating Income	441,153,860	634,616,335	445,471,430
Non-Operating expenses	767,694,340	907,329,859	1,054,761,963
Income Before Taxes	2,511,595,986	2,418,807,279	3,181,112,914
Income Taxes Expenses	355,501,150	433,909,414	638,460,270
Net Income	2,156,094,836	1,984,897,865	2,542,652,644

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	1,684,051,204	2,457,528,809	2,378,722,686
-Net Income	2,156,094,836	1,984,897,865	2,542,652,644
-Exp. without Cash Outflow	819,229,847	1,294,641,302	1,143,345,540
-Revenue without Cash Inflows	-11,511,935	-2,181,819	-1,687,736
-Changes in Asset/ & Liability	-1,279,761,544	-819,828,539	-1,305,587,762
Cash Flows from Investing	-509,512,015	-1,100,558,998	-2,576,794,876
-Cash Inflow from Investing	2,338,590,908	2,664,181,819	3,351,710,336
-Cash Outflows for Investing	-2,848,102,923	-3,764,740,817	-5,928,505,212
Cash Flows from Financing	-2,500,000,000	-1,500,000,000	1,441,553,000
-Cash Inflows from Financing	7,500,000,000	4,300,000,000	3,581,553,000
-Cash Outflows from Financing	-10,000,000,000	-5,800,000,000	-2,140,000,000
Increase/Decrease in Cash	-1,325,460,811	-143,030,189	1,243,480,810
Cash at the Beginning of Year	2,209,732,843	2,352,763,032	1,109,282,222
Cash at the End of Year	884,272,032	2,209,732,843	2,352,763,032

Products, Technologies, Services Description

Main Products & Services

Label Sheet, Note

Trade Partners & Competitors

Competitors

HANKUK PAPER MFG CO., LTD. (110111-0002818)

1358-6, SEOCHO 2-DONG, SEOCHO-GU, SEOUL, KOREA

TEL:+82-2-3475-7200 FAX:+82-2-3473-2133

HANSOL PAPER CO., LTD. (110111-0017867)

21ST FL., HANSOL BLDG., 736-1, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3287-7114 FAX:+82-2-3287-6114

MOORIM PAPER CO., LTD.(191111-0000782)

281-1, SANGPYEONG-DONG, JINJU-SI, GYEONGSANGNAM-DO, KOREA

TEL:+82-55-751-1234 FAX:+82-55-751-1235

KYESUNG PAPER CO., LTD.(134811-0000654)

637, OSAN-DONG, OSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-379-5500 FAX:+82-31-379-5691

HONG WON PAPER MFG CO., LTD.(110111-0239221)

14TH FL., IMGWANG BLDG., 267, MIGEUN-DONG, SEODAEMUN-GU, SEOUL, KOREA

TEL:+82-2-360-6300 FAX:+82-2-360-6405

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

KORYEO P&B CO., LTD.(281111-0078152)

KORYEO NEW MATERIALS INDUSTRIES CO., LTD.(110111-1237365)

Cooperative Enterprise

-Insured Company

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

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

Sales by Region (Activity & Markets)

The Subject imports from Europe and USA.

Court Action

No.

News Clipping

---------

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 :	DIV

Report Prepared by :	NIT

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.