MIRA INFORM REPORT

Report No. :	346140
Report Date :	17.10.2015

IDENTIFICATION DETAILS

Name :	DONGBANG PLANTECH CO., LTD.
Registered Office :	183, Seongseogongdanbuk-ro, Dalseo-gu, Daegu, Korea, 42702
Country :	South Korea
Financials (as on) :	31.12.2014
Date of Incorporation :	26.11.1987
Com. Reg. No.:	503-81-13624
Legal Form :	Co., Ltd by Shares
Line of Business :	Manufacture and Wholesales of Industrial Machinery
No. of Employees :	159

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

Source : CIA

Basic Information

Company Name	DONGBANG PLANTECH CO., LTD. (Korean Company Name : “(주)동방플랜텍”)
Registered Address	183, Seongseogongdanbuk-ro, Dalseo-gu, Daegu, Korea
Building
Zip Code	42702
Tel	+82-53-589-5700
Fax	+82-53-589-5777
E-mail	doby@dbind.co.kr
Website	www.dbind.co.kr
Trading Address	183, Seongseogongdanbuk-ro, Dalseo-gu, Daegu, Korea (Old Address System : 1095-12, Sindang-dong, Dalseo-gu, Daegu, Korea)
Tel	+82-53-589-5771
Fax	+82-53-589-5777
Other Address
Tel
Fax
Type	Export/Import
Industry	Manufacture and Wholesales of Industrial Machinery
Main Business	Industrial Machinery Parts, Engine Parts, Machinery Facilities Works, Hydraulic Breaker, Electric Works, Dry Vacuum Pump, Engineering Services, Travelling Assembly
Sub Business
Established (mm/dd/yyyy)	11/26/1987

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Hydraulic machinery and equipment(27120000)
Sell	Heavy equipment components(22101700)
Sell	Engine components and accessories(26101700)
Sell	Vacuum pumps(40151502)
Sell	Industrial process machinery and equipment and supplies(23150000)

CEO’s

Name	Lee Dong-Wook
Address	Suite 102-802, 345, Cheongho-ro, Suseong-gu, Daegu, Korea
Date of Birth	10/10/1949
Title	Chairman& CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,800,000,000

Employees

159

Formation

Co., Ltd by Shares

Bank Details

Kookmin Bank

Industrial Bank of Korea-Seongseo Industrial Complex

Corporate Registered No.

170111-0032508

Business Registered No.

503-81-13624

Permit & Licenses

Int’l Trade No.: 910736

Shareholder Position

Name	Shares	%
LEE KIL	1,065,600	29.60
OTHERS(6)	2,534,400	70.40
TOTAL	3,600,000	100.00

Company History

11/26/1987 Incorporated as DONGBANG INDUSTRY CO., LTD.

04/25/2006 Changed company name to the present name

08/26/2006 Split off the par value to 500 KRW from 5,000 KRW

02/27/2006 Increased capital to 1,800,000,000 KRW from 1,100,000,000 KRW

08/26/2006 Increased the authorized shares to 20,000,000 shares from 1,000,000 shares

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Chairman& CEO	Mr.	Lee Dong-Wook	Male	Korean	11/26/1999
President & CEO	Mr.	Lee Seung-Hwa	Male	Korean	11/26/2014
Director	Mr.	Yang Jae-Hoon	Male	Korean	07/05/2004
Auditor	Mr.	Lee Kil	Male	Korean	08/27/2010
Auditor	Mr.	Hong Sung-Seon	Male	Korean	03/23/2015

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2014	47,563,294,068	38,997,833,312	420,619,841
2013	56,535,250,975	45,031,138,526	912,106,263
2012	63,750,822,832	48,753,511,641	1,128,061,229
2011	72,194,538,509	41,502,649,406	2,663,976,051
2010	45,900,793,178	41,882,921,208	1,352,612,067

Financial Description

Authorized Capital(KRW)	10,000,000,000
Paid-Up Capital(KRW)	1,800,000,000
Total Issued Shares	3,600,000

Balance Sheet
Unit : Korean Won	As of 12/31/2014	As of 12/31/2013	As of 12/31/2012
Total Assets	38,997,833,312	45,031,138,526	48,753,511,641
Current Assets	19,974,656,696	25,974,279,376	30,986,634,374
-Quick Assets	15,393,742,911	19,151,564,221	25,725,123,972
-Inventories	4,580,913,785	6,822,715,155	5,261,510,402
Fixed Assets	19,023,176,616	19,056,859,150	17,766,877,267
-Investment	2,996,427,438	2,453,393,494	3,180,392,745
-Tangibles	15,102,219,394	15,513,829,340	13,486,830,643
-Intangibles	1,562,650	1,909,182	2,255,714
-Others	922,967,134	1,087,727,134	1,097,398,165
Total Liabilities	12,955,065,238	19,408,810,709	26,967,648,989
Current Liabilities	11,870,331,594	18,265,176,793	25,838,975,470
Fixed Liabilities	1,084,733,644	1,143,633,916	1,128,673,519
Capital Stock	1,800,000,000	1,800,000,000	1,800,000,000
Capital Surplus	1,771,571,370	1,771,571,370	1,771,571,370
Profit Surplus	16,451,397,301	16,030,777,460	15,318,671,197
Capital Adjustment	6,019,799,403	6,019,978,987	2,895,620,085
Total Equity	26,042,768,074	25,622,327,817	21,785,862,652
Liab. & Shareholder’s Equity	38,997,833,312	45,031,138,526	48,753,511,641

Current Liabilities	11,870,331,594	18,265,176,793	25,838,975,470
Trade Payables	6,885,666,335	12,470,514,884	17,594,434,421
Short-Term Borrowings	2,246,000,000	1,000,000,000	811,577,200
Advance Receipts	1,959,049,120	2,049,735,261	4,738,149,518
Withholdings	33,611,330	46,876,991	105,280,110
VAT Withhold	-	69,273,164	-
Accrued Expenses	628,123,149	700,543,934	697,994,081
Accrued Income Tax	-	53,088,099	-
Current Portion of Long-Term Debts	117,881,660	1,875,144,460	1,891,540,140
Fixed Liabilities	1,084,733,644	1,143,633,916	1,128,673,519
Long-Term Borrowings	299,193,110	417,074,770	546,219,230
Provision for Severance & Retirement	785,540,534	726,559,146	582,454,289

Income Statement
Unit : Korean Won	As of 12/31/2014	As of 12/31/2013	As of 12/31/2012
Sales	47,563,294,068	56,535,250,975	63,750,822,832
Cost of Sold Goods	43,399,593,209	50,975,077,855	54,672,343,997
Gross Profit	4,163,700,859	5,560,173,120	9,078,478,835
Selling & Admin. Expenses	5,938,536,295	6,558,106,362	7,109,970,679
Operating Income	-1,774,835,436	-997,933,242	1,968,508,156
Non-Operating Income	3,166,013,930	3,697,085,477	1,610,627,773
Non-Operating Expenses	932,117,003	1,718,945,443	1,930,204,990
Income Before Taxes	459,061,491	980,206,792	1,648,930,939
Income Taxes Expenses	38,441,650	68,100,529	520,869,710
Net Income	420,619,841	912,106,263	1,128,061,229

Cash Flows
Unit : Korean Won	As of 12/31/2014	As of 12/31/2013	As of 12/31/2012
Cash Flows from Operating	2,447,735,668	-1,945,904,270	-3,978,000,048
-Net Income	420,619,841	912,106,263	1,128,061,229
-Exp. without Cash Outflow	1,481,176,735	2,023,711,800	1,659,323,473
-Revenue without Cash Inflows	-	-1,705,501	-8,758,136
-Changes in Asset/ & Liability	545,939,092	-4,880,016,832	-6,756,626,614
Cash Flows from Investing	-1,019,116,288	780,159,670	134,601,837
-Cash Inflow from Investing	749,785,392	1,480,438,337	2,211,840,563
-Cash Outflows for Investing	-1,768,901,680	-700,278,667	-2,077,238,726
Cash Flows from Financing	-629,144,460	-157,117,340	-1,367,650,640
-Cash Inflows from Financing	1,246,000,000	188,422,800	-
-Cash Outflows from Financing	-1,875,144,460	-345,540,140	-1,367,650,640
Increase/Decrease in Cash	799,474,920	-1,322,861,940	-5,211,048,851
Cash at the Beginning of Year	1,047,788,582	2,370,650,522	7,581,699,373
Cash at the End of Year	1,847,263,502	1,047,788,582	2,370,650,522

Products, Technologies, Services Description

Main Products & Services	Industrial Machinery Parts, Engine Parts, Machinery Facilities Works, Hydraulic Breaker, Electric Works, Dry Vacuum Pump, Engineering Services, Travelling Assembly
Detailed Products Spec.
Technologies Acquired

Trade Partners & Competitors

Suppliers	VALPE CO., LTD.(171711-0086437)
Customers
Competitors

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	DBD CO., LTD.(170111-0079469)
Overseas Office
Liaison Office
Overseas Branch
Joint Venture
Subsidiary	DONG BANG VINA (100.0% held by the subject company)
Corporate Ownership
Major Shareholders
Cooperative Enterprise	-Insured Company HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893) DONGBU INSURANCE CO., LTD.(110111-0095285)

Sales by Region (Activity & Markets)

Not Available.

Court Action

No.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.97
UK Pound	1	Rs.100.55
Euro	1	Rs.73.99

INFORMATION DETAILS

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