MIRA INFORM REPORT

 

 

Report Date :

21.03.2013

 

IDENTIFICATION DETAILS

 

Name :

KAULIN MANUFACTURING CO., LTD.

 

 

Registered Office :

11th Fl., No.128, Sec.3, Min Shen E. Rd., Taipei, Taiwan, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

05.10.1965

 

 

Com. Reg. No.:

29538509

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and sale of sewing machines and components, etc

 

 

No. of Employees :

1,100

 

 

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 :

Usually 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Taiwan - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA

 


Contact Points

 

Company Name:

Kaulin Manufacturing Co., Ltd.

Supplied Name:

KAULIN MFG., CO., LTD

Trading Address:

11th Fl., No.128, Sec.3, Min Shen E. Rd., Taipei, Taiwan, R.O.C.

Supplied Address:

11F 128 SEC, 3 MIN SHEN E. ROAD TAIPEI, TAIWAN

Telephone Number:

+886-2-2713-0232

Fax Number:

+886-2-2713-0501

E-mail:

sirubatw@siruba.com

Notes: Subject’s complete name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Kaulin Manufacturing Co., Ltd.

Registered Address:

11th Fl., No.128, Sec.3, Min Shen E. Rd., Taipei, Taiwan, R.O.C.

Date of Foundation:

1965-10-5

Registration Number:

29538509

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 2,000,000,000 (USD 67,800,000)

(As of 2013.03, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 1,931,510,800 (USD 65,478,216)

Legal Representatives:

Yuwen Lin

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and sale of sewing machines and components, etc

Staff:

About 1,100 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 1531

Date of Last Annual Return:

2013-3-6

 

History

 

Subject was incorporated on 1965-10-5 with registered number 29538509 as Joint Stock Company in Taiwan.

 

Subject was listed in Taiwan Stock Exchange with the Stock Symbol as 1531 on 2000-9-11.

 

Awards

Year

Awards

2008

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

2010

20,000,000

 

 

Shareholders

 

Name

Subscription Shares

Yuwen Lin

11,013,873

Shengzhi Lin

6,864,205

Peijia Lin

5,726,038

Wenxiong Su

65,928

Sumei Chen

61,369

Yuzhen Lin

1,840,803

Xiurong Lin

2,275,319

 

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

 

 

Subsidiaries & Branches

 

Factory

Address

No.42, Sec. 1, Minsheng N. Rd., Gueishan Township, Taoyuan County, Taiwan R.O.C.

Tel number:

+886-3-326-2128-31

Fax number:

+886-3-326-2127

 

Related Companies

1

Name

Kaulin Machinery and Electronic Industrial (Ningbo) Co., Ltd.

Address

No. 16, Long Tan Shang Rd., Bei Lun Dist. Ningbo City, Zhejiang Province, China

Telephone Number:

+86-574-8611-5888

Fax Number:

+86-574-8611-4666

2

Name

America Siruba Latin America Inc.

Address

11380 NW 36th Terrace, Doral, Fl 33178, U.S.A

Telephone Number:

+1-305-477-4562

Fax Number:

+1-305-477-7524

3

Name

India Siruba Machinery India Private Limited

Address

#268, 1st Floor, 18th 'D' Main Road, 6th Block, Koramangala, Bangalore-560095, Karnataka India

Telephone Number:

+91-080-4155-7057

Fax Number:

+91-080-4155-7056

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Yuwen Lin

Position

Board Chairman

2

Name

Shengzhi Lin

Position

Director

3

Name

Peijia Lin

Position

Director

Date of Appointment

2013-3-1

4

Name

Wenxiong Su

Position

Director

5

Name

Yingzhou Chen

Position

Director

6

Name

Jingsong Wang

Position

Director

7

Name

Sumei Chen

Position

Director

8

Name

Yuzhen Lin

Position

Supervisor

9

Name

Paizheng Wang

Position

Supervisor

10

Name

Xiurong Lin

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,100 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

11th Fl., No.128, Sec.3, Min Shen E. Rd., Taipei, Taiwan, R.O.C.

 

Production Information

 

l         It is introduced that subject’s factory in Taiwan operates as a researching and developing center and the factory in mainland of China focus on manufacturing of sewing machines.

l         Subject’s factories also offers related components, technology services and training services

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

--

Manufacture, installation and sales of all kinds of sewing machine and components

--

Casting, processing and sales of milling products.

--

Surface treatment, spray painting and baking finishing of all kinds of metal.

--

Manufacture, installation and sales of all kinds of All kinds of transport equipment mechanical parts

--

Casting, processing and sales of sewing machine components

--

Agent and sales business of the products for domestic and overseas customers

--

Import and export trading business of above mentioned products.

ZZ99999

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

 

l         It is introduced that subject purchases components from mainland of China, etc.

l         It is introduced that Subject imports equipment from Japan.

 

Sales Information

 

l         Subject is engaged in selling of sewing machines and related spare parts including bag closers, overlock stitch machines, interlock machines, double chainstitch machines, lockstitch machines, picoting chainstitch machines, button holing machines, button sewing machines, bar tacking machines, zig-zag machines and feed-off-the-arm machines, among others.

l         Subject’s products are applied in the sewing and processing of bags, apparels, underwear, shoes, leather products and curtains, etc

l         Subject provides its products under the brand named “SIRUBA”.

l         Subject’s products are both sold in domestic and overseas market and it is introduced that Subject has sales agencies in Indian, Pakistan, mainland of china, Tunisia, etc. that in charge of the sales business in local market.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Components, etc.

CBD, etc.

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

  Equipment, etc.

L/C, etc.

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Sewing machine

CBD, etc.

100%

 

Export

Product

Sales Terms

Proportion

Sewing machine

L/C, etc.

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-9-30

2011-9-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

381,433.00

225,575.00

Available-for-sale financial assets - current

105,988.00

142,107.00

Notes receivable - net

17,297.00

8,195.00

Accounts receivable - net

501,228.00

822,833.00

Accounts receivable - related parties - net

305,494.00

509,977.00

Other receivables - related parties

26,869.00

77,915.00

Inventories

108,236.00

148,284.00

Other current assets

31,826.00

20,039.00

Current assets

1,478,371.00

1,954,925.00

Funds and Investments

 

 

Financial assets measured at fair value through profit or loss - non current

2,080.00

0.00

Available-for-sale financial assets - non current

31,484.00

49,870.00

Equity investments under equity method

3,240,691.00

3,201,440.00

Investments

3,240,691.00

3,201,440.00

Funds and long-term investments

3,274,255.00

3,251,310.00

Fixed Assets

 

 

Cost

 

 

Land

199,362.00

199,362.00

Buildings and structures

74,548.00

73,902.00

Machinery and equipment

2,919.00

2,918.00

Transportation equipment

9,470.00

8,211.00

Other facilities

46,562.00

45,714.00

Revaluation increment

0.00

0.00

Cost and revaluation increment

332,861.00

330,107.00

Accumulated depreciation

-98,208.00

-92,043.00

Construction in process and prepayment for equipments

2,130.00

0.00

Fixed assets

236,783.00

238,064.00

Intangible Assets

 

 

Computer software cost

2,260.00

3,781.00

Intangible assets

2,260.00

3,781.00

OtherAssets

 

 

Guarantee deposits paid

1,699.00

1,700.00

Other assets

1,699.00

1,700.00

Assets

4,993,368.00

5,449,780.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Notes payable

57,818.00

111,704.00

Accounts payable

35,347.00

63,735.00

Accounts payable - related parties

259,736.00

278,343.00

Income tax payable

5,002.00

30,709.00

Accrued expenses

71,402.00

91,722.00

Advance receipts

3,655.00

1,748.00

Current liabilities

432,960.00

577,961.00

Long term Liabilities

 

 

Financial liabilities measured at fair value through profit or loss - non current

0.00

447.00

Long-term liabilities

0.00

447.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

51,240.00

49,360.00

Guarantee deposits received

535.00

535.00

Deferred income tax liabilities

307,767.00

304,251.00

Other liabilities - other

24,733.00

40,421.00

Other liabilities

384,275.00

394,567.00

Liabilities

817,235.00

972,975.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,931,511.00

1,931,511.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

90,000.00

90,000.00

Capital surplus - long-term equity investments

2,276.00

2,276.00

Capital surplus - premium from merger

248,901.00

248,901.00

Capital surplus

341,177.00

341,177.00

Retained Earnings

 

 

Legal reserve

579,856.00

527,450.00

Special reserve

48,461.00

48,461.00

Unappropriated retained earnings

1,129,673.00

1,379,567.00

Retained earnings

1,757,990.00

1,955,478.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

177,565.00

269,064.00

Unrealized gains (losses) on financial instruments

-32,110.00

-20,425.00

Equity adjustments

145,455.00

248,639.00

Stockholders-equity

4,176,133.00

(USD 141,570,908.70)

4,476,805.00

(USD 151,763,689.50)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

0.00

0.00

(As of 2013.03, 1 NTD = 0.0339 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012-1-1~2012-9-30

2011-1-1~2011-9-30

Sales

1,644,556.00

(USD 55,750,448.40)

2,897,165.00

(USD 98,213,893.50)

Sales returns

16,905.00

21,811.00

Sales

1,627,651.00

2,875,354.00

Operating income

1,627,651.00

2,875,354.00

Operating costs

1,344,115.00

2,358,326.00

Gross profit (loss) from operations

283,536.00

517,028.00

Realized gains on intercompany transactions

10,263.00

8,999.00

Selling expense

66,655.00

68,130.00

General and administrative expenses

72,071.00

131,710.00

Research and development expenses

35,245.00

43,572.00

Operating expenses

173,971.00

243,412.00

Operating income (loss)

119,828.00

282,615.00

Non-Operating Income

 

 

Interest income

1,821.00

3,288.00

Income from long-term equity investments under the equity method

153,845.00

299,529.00

Investment income

153,845.00

299,529.00

Gains on sale of investments

1,715.00

1,146.00

Foreign exchange gains

0.00

74,913.00

Reversal of provision for bad debts

5,479.00

0.00

Revaluation gain on financial assets

1,848.00

0.00

Miscellaneous income

5,528.00

3,561.00

Non-operating revenues and gains

170,236.00

382,437.00

Non-Operating Expenses

 

 

Foreign exchange losses

34,887.00

0.00

Miscellaneous disbursements

593.00

1,196.00

Non-operating expenses and losses

35,480.00

1,196.00

Income from continuing operations before income tax

254,584.00

663,856.00

Income tax expense (benefit)

51,946.00

125,972.00

Income from continuing operations

202,638.00

537,884.00

Net income (loss)

202,638.00

(USD 6,869,428.20)

537,884.00

(USD 18,234,267.60)

Primary Earnings per Share

 

 

Primary earnings per share

1.05

2.78

Diluted earnings per share

 

 

Diluted earnings per share

1.04

2.76

 (As of 2013.03, 1 NTD = 0.0339 USD)

 

 

Cash Flows

 

Unit: NTD/000

 

2012-1-1~2012-9-30

2011-1-1~2011-9-30

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

202,638

537,884

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

9,448

9,699

Provision (Reversal of Provision) for Bad Debts Losses

-5,479

42,505

Provision (Reversal of Provision) for Sales Returns, Discounts and Allowances

7,800

15,300

Difference Between Net Pension Cost and Plan Contribution

1,612

786

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

6,664

-5,267

Investment Loss (Income) Recognized under Equity Method

-153,845

-299,529

Loss (Gain) on Disposal of Property, Plant and Equipment

44

20

Loss (Gain) on Disposal of Investments

-1,715

-1,146

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-1,848

447

Realized Loss (Gain) on Intercompany Transactions

-10,263

-8,999

Loss (Gain) on Deferred Income Tax

23,515

73,577

Other Adjustments to Reconcile Net Income

-2,666

-2,985

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

-6,799

10,280

Decrease (Increase) in Accounts Receivable

203,238

-281,417

Decrease (Increase) in Accounts Receivable - Related Parties

160,342

-74,977

Decrease (Increase) in Inventories

20,833

-34,312

Decrease (Increase) in Other Prepayments

-885

-1,203

Increase (Decrease) in Notes Payable

-33,094

3,760

Increase (Decrease) in Accounts Payable

-12,387

-21,350

Increase (Decrease) in Accounts Payable - Related Parties

58,589

-38,536

Increase (Decrease) in Income Tax Payable

-31,050

-6,991

Increase (Decrease) in Accrued Expenses

-30,781

-20,298

Increase (Decrease) in Other Current Liabilities

2,244

-979

Net Cash Provided by (Used in) Operating Activities

406,155

-103,731

Cash Flows from Investing Activities

 

 

Acquisition of Available-for-sale Financial Assets

-470,800

-699,397

Proceeds from Disposal of Available-for-sale Financial Assets

608,719

692,328

 

 

Bankers

 

Name

Megaa International Commercial Bank Co., Ltd.,

Address

No.128 Minagaa Shang E. Road Sec3, Taiapaei, Taiwan.

 

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

Ms. Yang

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.37

UK Pound

1

Rs.82.07

Euro

1

Rs.70.03

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.