MIRA INFORM REPORT

Report Date :

29.09.2014

IDENTIFICATION DETAILS

Name :	SUNG LIM CO., LTD.

Registered Office :	104-104, Sanho-daero, Gumi-si, Gyeongsangbuk-do, Korea

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	19.04.1983

Com. Reg. No.:	513-81-03759

Legal Form :	Co., Ltd by shares

Line of Business :	Spinning of Man-Made Fibers, Polyester Chip, Polyester Staple Fiber, Virgin Staple Fiber

No. of Employees :	83

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

- 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	SUNG LIM CO., LTD.
Registered Address	104-104, Sanho-daero, Gumi-si, Gyeongsangbuk-do, Korea (Old Address System : 297-15, Gongdan 2-dong, Gumi-si, Gyeongsangbuk-do, Korea)
Building	--
Zip Code	730-906
Tel	+82-54-463-2183
Fax	+82-54-461-9343
E-mail	sunglimco@kornet.net

Trading Address	Rm. 911, Daemyeong Bldg., 44-1, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea
Tel	+82-2-783-2724~5
Fax	+82-2-783-2726

Type	Export/Import
Industry	Spinning of Man-Made Fibers
Main Business	Polyester Chip, Polyester Staple Fiber, Virgin Staple Fiber

Established (mm/dd/yyyy)	04/19/1983

The Subject owns the premises of registered HQ address (20,541㎡).

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Polyester fibers(11151503)
Sell	Fibers(11151500)

CEO’s

Name	Kwon In-Sup
Address	Suite 102-3203, 36, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea
Date of Birth	08/27/1947
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

127,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Citibank, Korea

Hana Bank-Yeoido Branch

Shinhan Bank

Industrial Bank of Korea

Corporate Registered No.

124311-0009301

Business Registered No.

513-81-03759

Permit & Licenses

Int’l Trade No.: 910987

Shareholder Position

Name	Shares	%
KWON IN-SUP	11,400	44.90
OH SOOK-HEE & OTHERS(6)	14,000	55.10
TOTAL	25,400	100.00

Company History

04/19/1983 Incorporated as the present name

11/2007 Awarded US$ 30 Million Export Top Prize

06/21/2010 Decreased capital to 127,000,000 KRW from 300,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Kwon In-Sup	Male	Korean	10/26/2000
Director	M/S.	Oh Sook-Hee	Female	Korean	10/26/2000
Director	Mr.	Park Tae-Wan	Male	Korean	06/21/2003
Auditor	Mr.	Kwon Yook	Male	Korean	03/14/2013

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	68,411,505,348	33,798,588,693	1,376,513,192
2012	72,880,341,070	30,106,022,282	1,137,549,476
2011	69,065,681,492	28,706,441,851	2,176,049,160
2010	55,531,788,094	23,611,135,152	1,523,751,257
2009	47,385,469,667	22,946,685,225	359,780,301
2008	52,945,296,899	19,797,621,069	1,488,325,441
2007	40,422,202,218	16,502,653,722	482,755,732
2006	37,785,566,054	15,201,129,015	455,686,152
2005	34,514,715,064	15,230,122,410	561,076,870
2004	33,983,252,723	15,030,448,865	227,909,284

Financial Description

Authorized Capital(KRW)	550,000,000
Paid-Up Capital(KRW)	127,000,000
Total Issued Shares	25,400

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	33,798,588,693	30,106,022,282	28,706,441,851
Current Assets	20,938,213,651	18,576,086,492	17,252,521,406
-Quick Assets	12,608,770,635	11,707,883,770	9,611,568,556
-Inventories	8,329,443,016	6,868,202,722	7,640,952,850
Fixed Assets	12,860,375,042	11,529,935,790	11,453,920,445
-Investment	4,972,666,500	3,725,460,500	3,975,078,209
-Tangibles	7,278,221,298	7,179,863,046	6,892,279,992
-Intangibles
-Others	609,487,244	624,612,244	586,562,244
Total Liabilities	20,740,996,450	18,521,853,989	18,569,492,479
Current Liabilities	17,168,148,526	14,923,328,223	14,801,648,443
Fixed Liabilities	3,572,847,924	3,598,525,766	3,767,844,036
Capital Stock	127,000,000	127,000,000	127,000,000
Capital Surplus
Profit Surplus	11,199,017,032	9,822,503,840	8,717,809,004
Capital Adjustment	1,731,575,211	1,634,664,453	1,292,140,368
Total Equity	13,057,592,243	11,584,168,293	10,136,949,372
Liab. & Shareholder’s Equity	33,798,588,693	30,106,022,282	28,706,441,851

Current Liabilities	17,168,148,526	14,923,328,223	14,801,648,443
Trade Payables	802,847,245	728,806,859	775,171,067
Account Payables	1,971,159,408	1,781,845,569	1,624,274,387
Withholdings	11,403,040	9,892,850	13,265,530
Advance Receipts	288,476,808	318,411,104	567,200,705
Short-Term Borrowings	11,620,000,000	11,820,000,000	11,064,000,000
Accrued Income Tax	224,734,235	24,042,070	517,187,350
Accrued Expenses	45,870,817	50,329,771	50,549,404
Current Portion of Long-Term Debts	190,000,000	190,000,000	190,000,000
Current Portion of Debentures	2,000,000,000	-
Current Portion of Finance Lease Debts	13,656,973	-
Fixed Liabilities	3,572,847,924	3,598,525,766	3,767,844,036
Long-Term Borrowings	2,285,000,000	475,000,000	665,000,000
Debentures	-	2,000,000,000	2,000,000,000
Guarantee Deposit Withhold	14,500,000	14,500,000	14,500,000
Leasehold Deposit Received	12,000,000	12,000,000	12,000,000
Provision for Severance & Retirement	1,371,122,887	1,246,383,768	1,218,005,412
Finance Lease Debts	38,909,478	-

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	68,411,505,348	72,880,341,070	69,065,681,492
Cost of Sold Goods	62,720,354,836	66,746,577,645	61,978,200,987
Gross Profit	5,691,150,512	6,133,763,425	7,087,480,505
Selling & Admin. Expenses	3,528,790,674	4,048,731,420	3,686,042,559
Operating Income	2,162,359,838	2,085,032,005	3,401,437,946
Non-Operating Income	530,528,419	486,495,474	534,774,027
Non-Operating Expenses	951,332,010	1,169,515,203	1,099,300,253
Income Before Taxes	1,741,556,247	1,402,012,276	2,836,911,720
Income Taxes Expenses	365,043,055	264,462,800	660,862,560
Net Income	1,376,513,192	1,137,549,476	2,176,049,160

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	870,765,991	2,436,303,513	-509,575,190
-Net Income	1,376,513,192	1,137,549,476	2,176,049,160
-Exp. without Cash Outflow	1,124,990,776	1,062,483,474	1,304,248,126
-Revenue without Cash Inflows	-5,548,135	-11,860,934	-58,179,814
-Changes in Asset/ & Liability	-1,625,189,842	248,131,497	-3,931,692,662
Cash Flows from Investing	-1,489,410,183	-1,116,096,435	-4,352,155,020
-Cash Inflow from Investing	4,324,981,486	4,413,641,552	1,180,826,870
-Cash Outflows for Investing	-5,814,391,669	-5,529,737,987	-5,532,981,890
Cash Flows from Financing	1,662,566,451	566,000,000	1,842,500,000
-Cash Inflows from Financing	2,060,813,636	7,600,000,000	7,650,000,000
-Cash Outflows from Financing	-398,247,185	-7,034,000,000	-5,807,500,000
Increase/Decrease in Cash	1,043,922,259	1,886,207,078	-3,019,230,210
Cash at the Beginning of Year	3,438,841,921	1,552,634,843	4,571,865,053
Cash at the End of Year	4,482,764,180	3,438,841,921	1,552,634,843

Products, Technologies, Services Description

Main Products & Services	Polyester Chip, Polyester Staple Fiber, Virgin Staple Fiber
Detailed Products Spec.	--
Technologies Acquired	--

Trade Partners & Competitors

Suppliers

HYUNDAI CAPITAL SERVICES, INC.(110111-0995378) provides the vehicles Leasing Services to the Subject Company.

Customers

HAE DONG TRADING CO., LTD.(KOREA)

Competitors

WOONGJIN CHEMICAL CO., LTD.(174811-0000151)

HYOSUNG CORPORATION(110111-0030497)

TK CHEMICAL CORPORATION(110111-3783457)

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

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

Sales by Region (Activity & Markets)

The Subject exports 95% to USA and Europe.

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 :	RAS

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.