MIRA INFORM REPORT

 

 

Report Date :

04.07.2012

 

IDENTIFICATION DETAILS

 

Name :

K.H.S. MUSICAL INSTRUMENT CO., LTD.

 

 

Registered Office :

10fl., No.162,Zhongshan 2nd Rd., Luzhou Dist., New Taipei City 247

 

 

Country :

Taiwan

 

 

Date of Incorporation :

27.08.1969

 

 

Com. Reg. No.:

35035758

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Produce and trade of instruments.

 

 

No. of Employees :

About 600 Employees

 

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 :

Good

Payment Behaviour :

Regular

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Contact Points

 

Company Name:

K.H.S. Musical Instrument Co., Ltd.

Supplied Name:

K H S Musical Instrument Co Ltd.

Trading Address:

10fl.,No.162,Zhongshan 2nd Rd., Luzhou Dist., New Taipei City 247, Taiwan (R.O.C.)

Supplied Address:

162 Zhongshan 2nd Rd. Lu Zhou City Taipei County247 Taiwan ROC

Telephone Number:

+886 2-22825151

Fax Number:

+886 2-22813934

E-mail:

Yiju_chen@khs-musix.com / khsms1@khs-musix.com

Notes:

The exact name is as above.

The supplied address is incomplete, and the exact address is as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

K.H.S. Musical Instrument Co., Ltd.

Registered Address:

10fl., No.162,Zhongshan 2nd Rd., Luzhou Dist., New Taipei City 247, Taiwan (R.O.C.)

Date of Foundation:

1969-8-27

Registration Number:

35035758

Registry:

New Taipei City Government

Registered Capital:

NTD 1,500,000,000 (USD 50,169,200)

(As of 2012.7, 1 NTD =0.03345 USD)

Paid-up Capital:

NTD 400,000,000 (USD 13,378,500)

Legal Representatives:

Huixiu Xiao

Legal Form:

Joint Stock Company

Principal Activities:

Produce and trade of instruments.

Staff:

About 600 Employees

About 42,000 Employees(Group)

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-4-2

 

History

Subject was incorporated on 1969-8-27 with registered number 35035758 as Private Limited Liability Company in Taiwan.

 

Awards

Year

Awards

2008

Blue chip importer and exporter

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

Unit: USD

Year

Amount

2008

19,000,000

2009

15,000,000

2010

20,000,000

 

Shareholders

 

Name

Subscription Shares

Lixue Investment Co., Ltd (translated)

18,222,302       

 

Gongcheng Development Co., Ltd (translated)

 

59

 

 Shenghe Development Co., Ltd (translated)

6,295,706

 Bokai Musical Instrument Co., Ltd (translated)

59

Xingxue Investment Co., Ltd (translated)

14,435,110

 

The information above is that of subject’s major shareholders.

 

Subsidiaries & Branches

 

Subject introduced that it has about 30 retail stores all over Taiwan, but declined to disclose more details about subject.

 

Plant:

Name

Plant Kuolin

Address:

Chungli, Taiwan, R.O.C

Note:

Occupied 100,000 square meters. It becomes the supply center for international wholesales and retailers. The main business in Kuolin involves production of brass and wood wind instruments, R&D in drums and percussions, and service as warehouse.

 

Related Companies in Taiwan:

1

Name

Musix Co. Ltd.

Address:

Taiwan, R.O.C

Note:

Found in 1985 for sale of musical instruments in Taiwan. As the sales volume and profit increase, branches in Taipei, TaiChung and Kaohsiung were set up accordingly in order to provide the services to customers all over Taiwan.

2

Name

Bohon Music Corp.

Address:

Taipei, Taiwan, R.O.C

Note:

Sales of professional musical instruments. Its branches locate from north to south of Taiwan. They are Taipei Aeolus, Taichung Sextet, and Kaohsiung.

3

Name

KHS Audio Co. Ltd.

Address:

Taipei, Taiwan, R.O.C

Note:

Agency of world audio instruments. Its branches and service centers are also opened in North, Middle and South of Taiwan. Retail stores can be found in Taiwan.

 

Personnel Information

Core Management

 

Directors

1

Name

Huixiu Xiao

Position

Board of Chairman

2

Name

Gongcheng Development Co., Ltd (translated)

Position

Director

3

Name

Shenghe Development Co., Ltd (translated)

Position

Director

4

Name

Bokai Musical Instrument Co., Ltd (translated)

Position

Director

5

Name

Xingxue Investment Co., Ltd (translated)

Position

Director

6

Name

Shaohui Chen

Position

Director

7

Name

Shiming Yang

Position

Director

8

Name

Shaofu Chen

Position

Supervisor

9

Name

Zhiming Lin

Position

Supervisor

Personnel Structure

 

Total Employees

About 600 Employees

About 42,000 Employees(Group)

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

10fl., No.162,Zhongshan 2nd Rd., Luzhou Dist., New Taipei City 247, Taiwan (R.O.C.)

 

Production Information

l         Subject is a manufacturer and producer of instruments and the related products with the  production activities

 

Purchase Information

l         The registered activities of subject:

Business Code

Details

CH01010

Manufacture of sporting goods

CH01020

Manufacture of musical instruments

CH01030

Manufacture of stationery

F401010 

International trade

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

l         The components and raw material for production are purchased from both local and abroad.

Sales Information

 

l         Subject is mainly engaged in manufacturing and trading of kinds of instruments and the related products.

l         Subject introduced that it has about 30 retail stores in Taiwan, supplying the services for customers.

l         Subject introduced that it Walden acoustic guitars, Mapex drums, and a full-line of Jupiter brand brass, wind, and stringed instruments.

l         Subject introduced some brands: Jupiter, Altus for Wind instruments, Mapex, Linko, Jupiter, Ross, Majestic for Percussions, Butterfly for Reeds, Linko, Walden for Guitar, Linko for Plastic recorder and so on.

l         Subject introduced that it also supply the musical education services in Taiwan.

l         Subject’s selling territory covers all over the world, such as the United States, Europe, Asia, and so on.

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

Subject declined to disclose the purchase settlements information, and from other sources, we couldn’t obtain the information, either.

Sales

Domestic Markets

Product

Sales Terms

Proportion

Instruments

Cash, Credit Card, etc.

100%

 

 

Export

Product

Sales Terms

Proportion

Instruments

L/C , T.T, etc.                                 

100%

Notes:

Subject’s settlement for export is generally in USD

 

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Mr. Chan declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

 

Bankers

 

The bankers’ information is not available from the subject or other sources.

 

Public Record

 

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

Interview Details

 

Name

Mr. Chan

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.81

UK Pound

1

Rs.86.04

Euro

1

Rs.69.06

 

 

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.