MIRA INFORM REPORT

Report Date :

26^th February, 2007

IDENTIFICATION DETAILS

Name :	SONGWOL TOWEL CO., LTD.

Registered Office :	250-1, Yusan-dong, Yangsan-si, Gyeongsangnam-Do, Korea

Country :	Korea

Financials (as on) :	31.12.2005

Date of Incorporation :	12.12.1974

Legal Form :	Company Limited by shares

Line of Business :	Import and Exporter of Cotton Towel, Bath Gowns, Cotton Sheet, Handkerchief.

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 :	Usually Correct

Litigation :	Clear

Basic Information

Company Name	SONGWOL TOWEL CO., LTD.
Address	250-1, Yusan-dong, Yangsan-si, GYEONGSANGNAM-DO, KOREA
Zip Code	626-230
Tel	+82-55-911-1000
Fax	+82-55-911-0990
E-mail	songwol@songwol.com
Website	www.songwol.co.kr
Sinpyeong Factory	653-5, Sinpyeong-dong, Saha-gu, BUSAN, KOREA
Tel	+82-51-207-6702~4
Fax	+82-51-207-8628
YangSan Factory	237-16 BunJung-Dong, YangSan-Si, Korea
Tel	+82-55-388-4343
Fax	+82-55-388-4343
Type	Export/Import
Industry	Other Weaving of Textiles
Main Business	Cotton Towel, Bath Gowns, Cotton Sheet, Handkerchief
Established	12/12/1974

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Handkerchiefs(53102512)
Sell	Towels(52121700)
Sell	Nightwear(53102600)
Sell	Sheets(52121509)
Sell	Towels(52121700)
Sell	Mattress pads(52121506)
Sell	Bath towels(52121701)
Buy	Cotton fabrics(11161700)

Others

Name	Park Byung-Dae
Address	1434-2, U-dong, Haeundae-gu, Busan 612-020 Korea
Date of Birth	01/19/1959
Title	President & CEO
Sex	Male
Nationality	Korean
Capital	1,984,870,000 KRW
Employees	263
Formation	Co., Ltd by shares

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Day
President & CEO	Mr.	Park Byung-Dae	Male	Korean	12/23/1999
Director	Mr.	Park Byung-Do	Male	Korean	12/23/1999
Director	Mr.	Park Byung-Moon	Male	Korean	04/22/2002
Auditor	Mr.	Park Byung-Jin	Male	Korean	03/28/2001

Financials

Unit: KRW

Year	Sales	Assets	Net income
2005	45,156,407,933	62,096,520,558	4,257,145,523
2004	49,936,021,095	52,569,569,154	5,778,022,420
2003	48,027,169,076	48,293,707,272	7,159,146,882

Financial Description

Unit: KRW

Authorized Capital

2,500,000,000

Paid-Up Capital

1,984,870,000

Total Issues Shares

396,974

Balance Sheet Unit : Korean Won

As of 12/31/2005

As of 12/31/2004

As of 12/31/2003

Total Assets

62,096,520,558

52,569,569,154

48,293,707,272

Current Assets

25,730,756,011

28,642,691,997

24,515,628,936

-Quick Assets

17,463,557,658

20,814,021,591

16,249,850,406

-Inventories

8,267,198,353

7,828,670,406

8,265,778,530

Fixed Assets

36,365,764,547

23,926,877,157

23,778,078,336

-Investment

6,416,096,871

5,123,801,315

4,390,419,195

-Tangibles

29,800,737,680

18,571,860,217

19,173,258,728

-Intangibles

148,929,996

231,215,625

214,400,413

Total Liabilities

27,385,424,675

21,625,032,999

22,132,309,098

Current Liabilities

11,319,895,333

12,364,684,483

9,957,242,122

Fixed Liabilities

16,065,529,342

9,260,348,516

12,175,066,976

Capital Stock

1,984,870,000

992,435,000

Capital Surplus

3,439,874,876

4,434,860,616

Profit Surplus

29,280,618,001

25,519,689,978

20,734,102,558

Capital Adjustment

5,733,006

101,301

Total Equity

34,711,095,883

30,944,536,155

26,161,398,174

Liab. & Shareholder’s Equity

62,096,520,558

52,569,569,154

48,293,707,272

Income Statement Unit : Korean Won

As of 12/31/2005

As of 12/31/2004

As of 12/31/2003

Sales

45,156,407,933

49,936,021,095

48,027,169,076

Cost of Sold Goods

32,590,500,346

35,488,553,170

33,473,954,994

Gross Profit

12,565,907,587

14,447,467,925

14,553,214,082

Selling & Admin. Expenses

6,704,506,665

6,520,481,709

5,112,145,754

Operating Income

5,861,400,922

7,926,986,216

9,441,068,328

Non-Operating Income

1,249,998,465

1,236,641,966

895,512,617

Non-Operating expenses

1,504,096,675

1,225,574,578

1,989,721,817

Ordinary Income

5,607,302,712

7,938,053,604

8,346,859,128

Special Income

Income Before Taxes

5,607,302,712

7,938,053,604

8,346,859,128

Income Taxes Expenses

1,350,157,189

2,160,031,184

1,187,712,246

Net Income

4,257,145,523

5,778,022,420

7,159,146,882

Bank Details

Busan Bank

Yonsan Dong Branch

Hana Bank

Busan Branch

Corporate Registered No.

180111-0021799

Business Registered No.

607-81-17714

Permit & Licenses

Int’l Trade No.: 158835

1972 Industry Award

1987 Busan Industry Award

Shareholder Position

Name	Shares	%
Park Byung-Dae	149,056	37.5
Park Byung-Wook	51,078	12.8
Others	196,840	49.7
Total	396,974	100.0

Company History

03 03 10 Applied to finish the procedure of composition

03 03 20 Approved to finish the procedure of composition

02 5 President Byung-Dae Park gained the Minister of Labor Republic of Korea's Prize

98 01 30 Banned the account transaction with the principal bank

98 07 22 Approved the commencement of composition from the court

97 1 Mr. Byung-Dae Park has been inaugurated as President of Song Wol Towel Co., Ltd.

95 11 Gained a "SF" Anti-Bacteria Sanitary Process Mark for the Industry.

89 4 Achieved high quality control

87 12 Gained the "Q" Mark from the Origianl Silk Textile Inspection center.

87 11 Awarded the SaeMaul Medal (Enterprise Award)

87 9 Awarded the Textile Industry Prize.(Monthly Textile)

86 12 President Dong-Soo Park gained the Pusan Industry Grand's Prize

86 11 Registered a special company school, "Song Wol Girls' Commercial High School" with the Pusan Board of Education

79 1 Merged with KukDong Towel Inc, and increased an extra capital of 130 million wons.

75 3 Appointed as medal Saemaul Factory (by the Ministry of Commerce and Industry)

75 1 Appointed as a Green industsy (by the Ministry of Labor)

74 12 Song Wol Towel Industry has been changed to limited company as Song Wol Towel Co., Ltd. Mr. Dong Soo Park was elected as President by a board of directors.

73 4 Designated as an exporting and manufacturing company(by notice #143 of Pusan city)

72 7 President if Song Wol industry was awarded an industry bronze medal from the Korean President resulting from a decision made during a cabinet meeting

66 3 Designated as exporting and manufacturing company by notice#507 of the Ministry of commerce and industry)

66 3 Constructed a DongRae factory at #3, Sajik-Dong, DongRae-Ku, Pusan, Korea

49 10 Song Wol industrial was established at 141 Pujun-dong, Pusan jin-ku, Pusan, Korea

Products, Technologies, Services Description

Main Products & Services

Domestic Appliances and Supplies and Consumer Electronic Products

Bedclothes and table and kitchen linen and towels

Apparel and Luggage and Personal Care Products

Clothing

Clothing accessories

Bedclothes and table and kitchen linen and towels

Bedclothes

Trade Partners

Customers

Songwol Co., Ltd.

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

Songwol Co., Ltd.

Song Jeong Textile

Koyro Fabric Industry Co.

Jeong Hwan Sizing

Overseas Office

China Factory (QinDao, China)

Tel : +86-532-339-8600(2043)

Fax : +86-86-532-339-2042

Sales by Region (Activity & Markets)

Sales/ Unit : KRW	2005	2004	2003
Export	4,598,048	22,119,966	19,081,513
Domestic	45,226,084,097	49,968,349,996	48,031,033,328
Adjustment	-74,274,212	-54,448,867	-22,945,765
Total	45,156,407,933	49,936,021,095	48,027,169,076

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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