MIRA INFORM REPORT

Report Date :

26.02.2013

IDENTIFICATION DETAILS

Name :	SEWANG TEXTILE CO., LTD.

Registered Office :	Rm. 302, Daewha Bldg. 107-5, Samseong 1-dong, Gangnam-gu, Seoul, Korea 135-873

Country :	South Korea

Financials (as on) :	31.12.2011

Date of Incorporation :	27.07.1994

Com. Reg. No.:	120-81-40945

Legal Form :	Co., Ltd by Shares

Line of Business :	Dyeing and Finishing of Woven and Knitted Fabrics

No. of Employees :	45

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
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 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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 currently is among the world's 20 largest economies. 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. 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. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

Basic Information

Company Name	SEWANG TEXTILE CO., LTD. (Korean Company Name : “(주)세왕섬유”)
Registered Address	107-5, Samseong 1-dong, Gangnam-gu, Seoul, Korea
Building	Rm. 302, Daewha Bldg.
Zip Code	135-873
Tel	+82-2-546-0066
Fax	+82-2-540-4106
E-mail	trade@sewangkorea.com
Website	www.sewangkorea.com
Trading Address	Rm. 302, Daewha Bldg., 107-5, Samseong 1-dong, Gangnam-gu, Seoul, Korea
Tel	+82-2-546-0066
Fax	+82-2-540-4106
Other Address-Sihwa Factory	12B-52, Banwol Industrial Complex, 659-4, Choji-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea
Tel	+82-31-493-2300
Fax	+82-31-493-8769
Type	Export
Industry	Dyeing and Finishing of Woven and Knitted Fabrics
Main Business	Velour Fabrics Dyeing, Modal Span Fabrics Dyeing, T/R Span Fabrics Dyeing, Tencel Fabrics Dyeing
Established (mm/dd/yyyy)	07/27/1994

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Knit synthetic fabrics(11161804)

CEO’s

Name	Choi Jae-Rak
Address	84-4, Samseong-dong, Gangnam-gu, Seoul, Korea
Date of Birth	01/09/1954
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

600,000,000

Employees

Formation

Co., Ltd by Shares

Bank Details

Kookmin Bank

Shinhan Bank

Corporate Registered No.

110111-1061574

Business Registered No.

120-81-40945

Permit & Licenses

N/A

Shareholder Position

Name	Shares	%
CHOI JAE-RAK & HIS FAMILY(2)	120,000	100.00%
TOTAL	120,000	100.00%

Company History

07/27/1994 Incorporated as the present name

08/02/1999 Moved to the present HQ address from 160-18, Samseong-dong, Gangnam-gu, Seoul, Korea

08/29/2008 Designated as a Venture Business

08/31/2009 Increased the authorized shares to 1,000,000 shares from 48,000 shares

09/04/2009 Increased capital to 600,000,000 KRW from 200,000,000 KRW

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Choi Jae-Rak	Male	Korean	01/15/2001
Director	Mr.	Choi Kook-Rak	Male	Korean	03/21/1998
Director	Mr.	Lim Gui-Rae	Male	Korean	03/21/1998
Director	Mr.	Choi Won-Seok	Male	Korean	08/31/2009
Auditor	Mr.	Choi Yoon-Taik	Male	Korean	03/21/1998

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	91,545,680,223	33,530,223,671	717,629,226
2010	71,732,038,744	30,738,310,258	374,554,500
2009	85,266,690,258	29,063,036,933	4,162,655,637

Financial Description

Authorized Capital(KRW)	5,000,000,000
Paid-Up Capital(KRW)	600,000,000
Total Issued Shares	120,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	33,530,223,671	30,738,310,258	29,063,036,933
Current Assets	24,465,246,859	21,460,361,813	20,552,017,264
-Quick Assets	20,324,479,839	18,206,741,703	19,348,568,515
-Inventories	4,140,767,020	3,253,620,110	1,203,448,749
Fixed Assets	9,064,976,812	9,277,948,445	8,511,019,669
-Investment	617,519,404	557,519,404	396,399,798
-Tangibles	7,859,629,215	8,363,343,878	7,737,539,467
-Intangibles	22,618,685	56,094,555	91,089,796
-Others	565,209,508	300,990,608	285,990,608
Total Liabilities	19,838,353,652	17,505,538,185	16,204,819,360
Current Liabilities	17,961,621,410	15,609,802,712	15,385,019,360
Fixed Liabilities	1,876,732,242	1,895,735,473	819,800,000
Capital Stock	600,000,000	600,000,000	600,000,000
Capital Surplus
Profit Surplus	13,091,870,019	12,632,772,073	12,258,217,573
Capital Adjustment
Total Equity	13,691,870,019	13,232,772,073	12,858,217,573
Liab. & Shareholder’s Equity	33,530,223,671	30,738,310,258	29,063,036,933

Current Liabilities	17,961,621,410	15,609,802,712	15,385,019,360
Trade Payables	10,685,224,344	9,044,593,315	8,125,978,914
Short-Term Borrowings	5,198,060,000	4,889,780,000	4,455,841,554
Current Portion of Long-Term Debts	180,600,000	143,850,000	43,200,000
Short-Term Borrowings to Shareholders/ Executives/ Employees	354,452,889	340,472,696	340,472,696
Account Payables	810,235,398	641,140,162	1,029,739,981
Accrued Expenses	529,948,805	488,672,713	422,131,785
Advance Receipts	28,258,221	-	960,563
Withholdings	116,421,097	61,027,496	159,879,740
VAT Withhold	-	266,330	-
Accrued Income Tax	58,420,656	-	806,814,127
Fixed Liabilities	1,876,732,242	1,895,735,473	819,800,000
Long-Term Borrowings	1,634,350,000	1,814,950,000	819,800,000
Provision for Severance & Retirement	798,180,388	664,912,962	555,179,703

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	91,545,680,223	71,732,038,744	85,266,690,258
Cost of Sold Goods	85,481,202,337	65,786,447,127	75,324,718,181
Gross Profit	6,064,477,886	5,945,591,617	9,941,972,077
Selling & Admin. Expenses	5,309,358,423	4,419,030,275	4,239,688,546
Operating Income	755,119,463	1,526,561,342	5,702,283,531
Non-Operating Income	1,473,384,747	881,889,875	2,575,364,458
Non-Operating Expenses	1,311,295,508	1,754,456,709	2,963,436,125
Income Before Taxes	917,208,702	653,994,508	5,314,211,864
Income Taxes Expenses	199,579,476	279,440,008	1,151,556,227
Net Income	717,629,226	374,554,500	4,162,655,637

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	-969,673,775	-2,296,955,490	5,413,777,375
-Net Income	717,629,226	374,554,500	4,162,655,637
-Exp. without Cash Outflow	1,354,754,827	1,304,217,974	1,148,807,717
-Revenue without Cash Inflows	-	-22,998,000	-
-Changes in Asset/ & Liability	-3,042,057,828	-3,952,729,964	102,314,021
Cash Flows from Investing	-587,432,664	-1,598,731,760	-696,799,205
-Cash Inflow from Investing	-	23,000,000	-
-Cash Outflows for Investing	-587,432,664	-1,621,731,760	-696,799,205
Cash Flows from Financing	1,987,662,360	2,431,193,132	-5,151,286,097
-Cash Inflows from Financing	2,191,512,360	2,548,893,991	400,000,000
-Cash Outflows from Financing	-203,850,000	-117,700,859	-5,551,286,097
Increase/Decrease in Cash	430,555,921	-1,464,494,118	-434,307,927
Cash at the Beginning of Year	2,826,242,273	4,290,736,391	4,725,044,318
Cash at the End of Year	3,256,798,194	2,826,242,273	4,290,736,391

Products, Technologies, Services Description

Main Products & Services

Velour Fabrics Dyeing, Modal Span Fabrics Dyeing, T/R Span Fabrics Dyeing, Tencel Fabrics Dyeing

Trade Partners & Competitors

Customers

GAP

MAY

VICTORIA’S SECRET

EXPRESS

DKNY

REEBOK

WAL MART

OLD NAVY

Competitors

YOU AND YU FABRICS INC.

RM. 201, PRIMAVILLE, 727-11, YEOKSAM 2-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-773-2525 FAX:+82-2-773-2527

BOOSUNG FABRIC CO., LTD.

RM. 301, YEONGDONG BLDG., 689-34, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-558-6256 FAX:+82-2-569-3186

SW INTERNATIONAL CO., LTD.

11-13, SEONDAN-DONG, POCHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-543-4573 FAX:+82-31-543-4572

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Cooperative Enterprise

-Insured Company

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

Sales by Region

(Activity & Markets)

The Subject exports to USA, Europe, Japan and Hong Kong.

Court Action

Not Available.

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.04
UK Pound	1	Rs.81.80
Euro	1	Rs.71.41

INFORMATION DETAILS

Report Prepared by :

PRL

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.