MIRA INFORM REPORT

Report No. :	302635
Report Date :	10.01.2015

IDENTIFICATION DETAILS

Name :	PHARMA PIA CO., LTD.

Registered Office :	12, Songi-ro 32-gil, Songpa-gu, Seoul, Korea 4FL., Pamapia Bldg. 138-824

Country :	Korea (South)

Financials (as on) :	31.12.2013

Date of Incorporation :	09.12.2002

Com. Reg. No.:	215-86-31491

Legal Form :	Co., Ltd by Shares

Line of Business :	Wholesales of Medicinal Chemicals and Antibiotics.

No. of Employee :	18

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Korea (South)

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

KOREA (SOUTH) 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	PHARMA PIA CO., LTD.
Registered Address	12, Songi-ro 32-gil, Songpa-gu, Seoul, Korea
Building	4FL., Pamapia Bldg.
Zip Code	138-824
Tel	+82-2-425-0871
Fax	+82-2-425-0873
E-mail	info@ pharma-pia.com;sales@pharma-pia.com
Website	www.pharma-pia.com
Trading Address	4FL., Pamapia Bldg., 12, Songi-ro 32-gil, Songpa-gu, Seoul, Korea (Old Address System : 4FL., Pamapia Bldg., 11-10, Munjeong 1-dong, Songpa-gu, Seoul, Korea)
Tel	+82-2-425-0871
Fax	+82-2-425-0873
Other Address
Tel
Fax
Type	Export/Import
Industry	Wholesales of Medicinal Chemicals and Antibiotics
Main Business	Pharmaceutical Raw Materials, Glimepiride, Entecavir, Tramadol HCL, Nutraceuticals, Food, Chemicals, Cosmetics
Sub Business	Brokerage of Other Commodity
Established (mm/dd/yyyy)	09/12/2002

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Biochemicals(12352200)
Sell	Chemistry reagents or solutions(41116105)
Sell	Drugs and Pharmaceutical Products(51000000)
Sell	Formulas and products for nutritional support(42231800)

CEO’s

Name	Shin Yong-Hee
Address	Suite 102-1205, 27, Songpa-daero 28-gil, Songpa-gu, Seoul, Korea
Date of Birth	08/19/1956
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

530,000,000

Employees

Formation

Co., Ltd by shares

Bank Details

Woori Bank-Jamsil Nam Branch

SC Bank

Corporate Registered No.

110111-2609331

Business Registered No.

215-86-31491

Permit & Licenses

Int’l Trade No.: 45288216

Shareholder Position

Name	Shares	%
SHIN YONG-HEE	31,800	30.00
MOON GYU-YOUN	52,470	49.50
LEE BOK-SOO	1,060	1.00
OTHERS	20,670	19.50
TOTAL	106,000	100.00

Company History

09/12/2002 Incorporated as the present name

07/28/2005 Increased capital to 530,000,000 KRW from 210,000,000 KRW

08/19/2010 Moved to the present HQ address from 310, Jamsil-dong, Songpa-gu, Seoul, Korea

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Shin Yong-Hee	Male	Korean	02/21/2007
Director	Mr.	Moon Gyu-Youn	Male	Korean	02/17/2006
Director	Mr.	Lee Bok-Soo	Male	Korean	05/18/2010
Auditor	Mr.	Lee Ho-Soong	Male	Korean	02/28/2008

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	26,004,178,370	12,286,049,623	880,112,303
2012	23,350,264,888	11,490,825,427	711,715,360
2011	21,630,536,029	12,083,966,116	1,439,190,387
2010	24,965,000,000	9,749,000,000	1,199,000,000
2009	21,827,000,000	7,098,000,000	1,046,000,000
2008	16,554,090,000	5,290,448,000	206,217,000

Financial Description

Authorized Capital(KRW)	840,000,000
Paid-Up Capital(KRW)	530,000,000
Total Issued Shares	106,000

Balance Sheet

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	12,286,049,623	11,490,825,427	12,083,966,116
Current Assets	9,098,864,458	8,267,984,785	7,746,451,342
-Quick Assets	7,956,299,775	7,598,011,903	7,212,547,352
-Inventories	1,142,564,683	669,972,882	533,903,990
Fixed Assets	3,187,185,165	3,222,840,642	4,337,514,774
-Investment	468,715,010	400,200,000	600,200,000
-Tangibles	2,520,793,895	2,541,961,349	3,398,195,580
-Intangibles	1,756,000	97,208,533	167,157,934
-Others	195,920,260	183,470,760	171,961,260
Total Liabilities	5,720,148,543	5,805,036,650	7,109,892,699
Current Liabilities	5,665,148,543	5,658,444,078	6,979,237,890
Fixed Liabilities	55,000,000	146,592,572	130,654,809
Capital Stock	530,000,000	530,000,000	530,000,000
Capital Surplus
Profit Surplus	6,035,901,080	5,155,788,777	4,444,073,417
Capital Adjustment
Total Equity	6,565,901,080	5,685,788,777	4,974,073,417
Liab. & Shareholder’s Equity	12,286,049,623	11,490,825,427	12,083,966,116

Current Liabilities	5,665,148,543	5,658,444,078	6,979,237,890
Trade Payables	2,856,491,602	2,552,978,492	2,608,225,252
Account Payables	156,083,519	85,299,382	182,884,043
Accrued Expenses	28,993,579	13,690,567	20,276,649
Withholdings	8,598,020	8,306,450	14,181,010
Short-Term Borrowings	2,426,161,600	2,863,172,797	3,926,971,126
Accrued Income Tax	188,820,223	134,996,390	226,699,810
Fixed Liabilities	55,000,000	146,592,572	130,654,809
Leasehold Deposit Received	55,000,000	55,000,000	45,000,000
Provision for Severance & Retirement	400,576,635	484,243,866	356,782,058

Income Statement

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	26,004,178,370	23,350,264,888	21,630,536,029
Cost of Sold Goods	22,833,909,383	20,252,216,869	18,101,180,125
Gross Profit	3,170,268,987	3,098,048,019	3,529,355,904
Selling & Admin. Expenses	1,960,771,459	1,960,424,779	2,084,615,934
Operating Income	1,209,497,528	1,137,623,240	1,444,739,970
Non-Operating Income	220,761,116	370,455,434	634,406,129
Non-Operating Expenses	223,467,458	480,627,724	252,420,742
Income Before Taxes	1,206,791,186	1,027,450,950	1,826,725,357
Income Taxes Expenses	326,678,883	315,735,590	387,534,970
Net Income	880,112,303	711,715,360	1,439,190,387

Cash Flows

Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	54,610,951	-245,421,953	-123,914,695
-Net Income	880,112,303	711,715,360	1,439,190,387
-Exp. without Cash Outflow	232,719,087	449,694,489	384,515,573
-Revenue without Cash Inflows	-83,667,231	-113,727,938	-431,460,073
-Changes in Asset/ & Liability	-974,553,208	-1,293,103,864	-1,516,160,582
Cash Flows from Investing	252,798,490	1,191,233,300	-112,314,852
-Cash Inflow from Investing	384,034,500	1,633,792,800	724,008,829
-Cash Outflows for Investing	-131,236,010	-442,559,500	-836,323,681
Cash Flows from Financing	-437,011,197	-1,063,798,329	625,553,787
-Cash Inflows from Financing	-	663,172,797	1,201,971,126
-Cash Outflows from Financing	-437,011,197	-1,726,971,126	-576,417,339
Increase/Decrease in Cash	-129,601,756	-117,986,982	389,324,240
Cash at the Beginning of Year	345,625,623	463,612,605	74,288,365
Cash at the End of Year	216,023,867	345,625,623	463,612,605

Products, Technologies, Services Description

Main Products & Services	Pharmaceutical Raw Materials, Nutraceuticals, Food, Chemicals, Cosmetics
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers

MARTK(USA)

MEDCHEM(SPAIN)

AMOLI(INDIA)

Competitors

PHARMACHEM CO., LTD.

3RD FL., 309, JAMSILBON-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-575-8914 FAX:+82-2-575-8913

DUKSAN PURE CHEMICALS CO., LTD.

608B-2L, BANWOL INDUSTRIAL COMPLEX, 635-1, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-495-4055 FAX:+82-31-495-4058

SECHANG INT`L CORP.

A-1422, GALLERIA PALACE, 40, JAMSIL 3-DONG, SONGPA-GU, SEOUL, KOREA

TEL:+82-2-2145-4883 FAX:+82-2-2145-4893

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

PINE COM CO., LTD.(110111-3055517)

-Insured Company

HANWHA GENERAL INSURANCE CO., LTD.(110111-0006456)

Sales by Region (Activity & Markets)

The Subject exports to Vietnam, and it imports from Spain and India.

Court Action

No.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.39
UK Pound	1	Rs.94.17
Euro	1	Rs.73.61

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	ANK

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.