MIRA INFORM REPORT

Report Date :

30.09.2014

IDENTIFICATION DETAILS

Name :	ASIA PAPER MFG. CO., LTD.

Registered Office :	430, Nonhyeon-ro, Gangnam-gu, Seoul, Korea 9th Fl., ASEA Tower Bldg. 135-719

Country :	South Korea

Financials (as on) :	30.06.2014

Date of Incorporation :	03.07.1958

Com. Reg. No.:	220-81-02052

Legal Form :	Listed Company

Line of Business :	Manufacture of Corrugated Cardboard and Cardboard Boxes

No. of Employees :	253

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

Basic

Company Name	ASIA PAPER MFG. CO., LTD.
Registered Address	430, Nonhyeon-ro, Gangnam-gu, Seoul, Korea
Building	9th Fl., ASEA Tower Bldg.
Zip Code	135-719
Tel	+82-2-527-6882~5
Fax	+82-2-527-6859
E-mail	webmaster@asiapaper.co.kr
Website	www.asiapaper.co.kr
Trading Address	9th Fl., ASEA Tower Bldg., 430, Nonhyeon-ro, Gangnam-gu, Seoul, Korea (Old Address System : 9th Fl., ASEA Tower Bldg., 726, Yeoksam 2-dong, Gangnam-gu, Seoul, Korea)
Tel	+82-2-527-6882~5
Fax	+82-2-527-6859
Other Address-Cheongwon Factory	497, Buganggeumho-ro, Bugang-myeon, Sejong-si, Korea (Old Address System : 501, Geumho-ri, Bugang-myeon, Sejong, Korea)
Tel	+82-43-270-7800
Fax	+82-43-275-5497
Other Address-Shihwa Factory	231, Seohaean-ro, Siheung-si, Gyeonggi-do, Korea
Tel	+82-31-499-6366
Type	Export/Import
Industry	Manufacture of Corrugated Cardboard and Cardboard Boxes
Main Business	Corrugated Cardboard Stencil Paper, Gypsum Board Stencil Paper, Kraft, Liner
Established (mm/dd/yyyy)	03/07/1958

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Kraft paper(60121124)
Sell	Cardboard(14121503)
Sell	Paper pulp(14101501)
Buy	Paper wastes(11141604)

CEO’s

Name	Lee Byung-Moo
Date of Birth	10/27/1941
Title	Chairman
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

44,782,510,000

Employees

253

Formation

Listed Company(Korea Stock Exchange : 002310) as of 12/15/1988

A Company of ASIA GROUP

Bank Details

Korea Development Bank

Hana Bank

Shinhan Bank

Woori Bank-Gangnam Branch

Corporate Registered No.

110111-0006274

Business Registered No.

220-81-02052

Permit & Licenses

Int’l Trade No.: 730576

Shareholder Position

Name	Shares	%
ASIA HOLDINGS CO., LTD.(110111-0030710)	4,226,310	47.19
BOOGOOK REMICON CO., LTD.(124311-0012370)	91,000	1.02
HANGARAM INVESTEMENT MGT. CO., LTD.(110111-1935935)	601,980	6.72
SHINYOUNG ASSET MANAGEMENT CO., LTD.(110111-1304148)	849,238	9.48
OTHERS	3,187,974	35.59
TOTAL	8,956,502	100.00

Company History

03/07/1958 Incorporated as SAMYNAG PAPER CO., LTD.

02/1964 Changed company name to SAMYANG PULP CO., LTD.

06/1979 Changed company name to KOOKJE PAPER CO., LTD.

01/1987 Changed company name to the present name

11/2000 Awarded US$ 10 Million Export Top Prize

01/10/2013 Acquired ASIA PAPERTEC INC.(134111-0000939)

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Chairman	Mr.	Lee Byung-Moo	Korean	1941.10.27	Yonsei University, Korea
Vice Chairman	Mr.	Lee Yoon-Moo	Korean	1946.12.12	Korea University, Korea
President & CEO	Mr.	Park Won-Hee	Korean	1949.12	Yonsei University, Korea
Vice President	Mr.	Lee In-Bum	Korean	1971.03	MIT, USA
Outside Director	Mr.	Kim Sung-Dong	Korean	1951.03	-
Outside Director	Mr.	Lee Hae-Jung	Korean	1947.07	-
Auditor	Mr.	Jang Ki-Young	Korean	1952.01	-

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)06/2014	182,411,506,473	576,169,679,914	11,374,206,897
(*)2013	407,624,328,945	574,482,505,270	19,173,714,639
(*)2012	263,863,109,877	346,922,458,960	22,538,263,454
2011	285,674,731,388	334,608,175,226	4,007,705,219
2010	262,587,886,635	332,899,752,445	222,316,141

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	100,000,000,000
Paid-Up Capital(KRW)	44,782,510,000
Total Issued Shares	8,956,502

Balance Sheet
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	576,169,679,914	574,482,505,270	346,922,458,960
Current Assets	157,260,228,269	153,956,085,916	96,443,578,219
Cash & Cash Equivalents	26,209,130,360	34,907,332,544	33,385,822,423
Current Financial Instruments	30,500,000,000	12,500,000,000	250,045,662
Held-to-Maturity Financial Assets	0	0	115,442,562
Trade Receivables	49,579,446,788	51,434,802,942	29,646,844,734
Other Current Assets	576,394,322	626,389,735	520,472,345
Other Receivables	213,687,467	499,850,601	405,354,990
Inventories	49,069,712,325	53,496,921,567	31,758,385,839
Deferred Income Tax Assets	0	0	0
Other Current Assets	1,111,857,007	490,788,527	361,209,664
Non-Current Assets	418,909,451,645	420,526,419,354	250,478,880,741
Non-Current Financial Instruments	80,029,610	48,169,790	11,000,000
Marketable Financial Instruments	30,681,642	30,681,642	8,529,184,550
Held-to-Maturity Financial Assets	17,046,966	16,840,428	293,101
Long-Term Trade Receivables & Other Receivables	89,043,963	89,043,963	110,043,963
Investment_Subsidiaries	146,867,202,074	146,867,202,074	113,769,128,180
Tangibles	252,361,764,294	253,980,857,029	109,520,850,263
Investment_Real Estates	17,202,089,026	17,232,030,358	16,370,786,614
Intangibles	2,261,594,070	2,261,594,070	2,167,594,070
Total Liabilities	118,583,362,002	124,667,817,607	114,573,346,713
Current Liabilities	57,298,669,910	74,818,721,394	79,044,213,431
Trade Payables	15,246,204,823	15,826,535,184	7,886,327,543
Short-Term Borrowings	22,415,110,709	31,844,901,403	34,436,710,176
Current Portion of Long-Term Debts	6,129,370,000	5,722,590,000	24,799,200,000
Current Portion of Debentures	0	10,000,000,000	0
Account Payables	3,874,586,529	3,382,400,237	2,081,663,778
Other Payables	5,746,990,779	5,932,838,613	4,585,848,619
Other Current Liabilities	1,756,931,023	905,616,172	964,781,584
Deferred Income Tax Credit	2,129,476,047	1,203,839,785	4,289,681,731
Non-Current Liabilities	61,284,692,092	49,849,096,213	35,529,133,282
Debentures	0	0	10,000,000,000
Long-Term Borrowings	35,420,380,000	25,794,310,000	20,448,950,000
Deferred Income Tax Credit	21,174,154,923	20,189,807,667	2,792,704,200
Confirmed Salaries	4,690,157,169	3,864,978,546	2,287,479,082
Capital Stock	44,782,510,000	44,782,510,000	30,208,300,000
Capital Surplus	226,384,011,404	226,384,011,404	47,916,982,645
Others	0	0	-8,990,249,838
Profit Surplus	186,419,796,508	178,648,166,259	163,214,079,440
Total Equity	457,586,317,912	449,814,687,663	232,349,112,247
Liab. & Shareholder’s Equity	576,169,679,914	574,482,505,270	346,922,458,960

Income Statement
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Sales	182,411,506,473	407,624,328,945	263,863,109,877
Cost of Sold Goods	159,571,261,173	365,104,228,390	224,578,200,592
Gross Profit	22,840,245,300	42,520,100,555	39,284,909,285
Selling Expenses	4,378,227,873	9,942,283,522	6,024,599,592
Admin. Expenses	5,454,227,896	9,105,951,944	6,358,333,281
Operating Income	13,007,789,531	23,471,865,089	26,901,976,412
Finance Income	1,730,217,365	2,912,418,667	4,140,967,253
Finance Expenses	976,004,552	3,672,748,886	3,436,446,217
Non-Operating Income	1,013,588,346	3,144,708,103	2,310,372,061
Non-Operating Expenses	225,864,663	904,685,376	1,507,518,537
Income Before Taxes	14,549,726,027	24,951,557,597	28,409,350,972
Income Taxes Expenses	3,175,519,130	5,777,842,958	5,871,087,518
Net Income	11,374,206,897	19,173,714,639	22,538,263,454

Cash Flows
Unit : Korean Won	01/01/2014~06/30/2014	As of 12/31/2013	As of 12/31/2012
Operating Activities Cash Flows	29,295,630,899	29,088,991,217	49,543,424,239
Net Income	11,374,206,897	19,173,714,639	22,538,263,454
Adjustment	14,073,913,812	29,329,196,081	24,261,991,767
Cash Flows from Operating	5,380,266,570	-9,646,990,623	7,928,248,032
Interests Received	560,842,445	1,525,733,359	471,187,275
Interests Paid	-836,507,782	-2,419,166,562	-3,317,841,162
Dividends Received	0	0	144,273,435
Income Taxes	-1,257,091,043	-8,873,495,677	-2,482,698,562
Cash Flows from Investing	-25,556,276,178	-1,278,534,896	-5,454,344,310
Cash Flows from Financing	-12,437,556,905	-26,288,946,200	-13,045,149,172
Increase/Decrease in Cash	-8,698,202,184	1,521,510,121	31,043,930,757
Cash at the Beginning of Year	34,907,332,544	33,385,822,423	2,341,891,666
Cash at the End of Year	26,209,130,360	34,907,332,544	33,385,822,423

Products, Technologies, Services Description

Main Products & Services	Corrugated Cardboard Stencil Paper, Gypsum Board Stencil Paper, Kraft, Liner
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Competitors

DONGKWANG PANJI CO., LTD.

1295-1, JEONGWANG 1-DONG, SIHEUNG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-499-3333 FAX:+82-31-498-1115

SAM BO CORRUGATED BOARD CO., LTD.

195, CHUNUI-DONG, WONMI-GU, BUCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-32-662-2227 FAX:+82-32-653-4300

KWANG SIN PANJI CO., LTD.

23B-10L, 770, WONSI-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-490-7514 FAX:+82-31-492-6676

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

ASIA HOLDINGS CO.,LTD.(110111-0030710)

ASIA CEMENT CO.,LTD.(110111-5238096)

APACK CO., LTD.(184511-0000684)

(100.0% held by the subject company)

AP RECYCLING CO., LTD.(164811-0045810)

(100.0% held by the subject company)

KYUNGSAN PAPER CO., LTD.(174811-0003486)

(100.0% held by the subject company)

CHEIL INDUSTRIAL CO., LTD.(134511-0004256)

(99.8% held by the subject company)

YU JIN FIBRE BOARD IND. CO., LTD.(124311-0001878)

(100.0% held by the subject company)

SAMSUNG EXPORT PACKING CO., LTD.(211111-0016859)

ASIA ADVANCED MATERIALS SDN.BHD

News Clipping

Not Available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.43
UK Pound	1	Rs.99.73
Euro	1	Rs.77.93

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SDA

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.