MIRA INFORM REPORT

 

 

Report Date :           

02.06.2011

 

IDENTIFICATION DETAILS

 

Name :

ROYALTY CARPET MILLS INC

 

 

Registered Office :

17111 Redhill Ave, Irvine, CA 92614

 

 

Country :

United States 

 

 

Date of Incorporation :

05.12.1966

 

 

Legal Form :

Corporation for Profit

 

 

Line of Business :

Carpet Manufacturer.

 

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

 

Maximum Credit Limit :

USD 500,000

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

United States 

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form



GEOPOLITICS - UNITED STATES

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Ordered as:

Royalty Carpet Mills Inc

Address in the order:

17111 Redhill Ave, 92614 Irvine

 

 

Legal Name:

ROYALTY CARPET MILLS INC

Legal Address

17111 REDHILL AVE, IRVINE, CA 92614, USA

 

 

Telephone:

(949) 474-4000 / (800) 854-8331

ID :

C0518798

Fax:

(949) 553-8238

Legal Form:

Corporation for Profit

Email:

info@royaltycarpetmills.com

Registered in:

California

Website:

http://www.royaltycarpetmills.com

Date Created:

1963

Manager:

Mike Derderian, President

Date Incorporated:

December 5, 1966

Staff:

800

Stock:

NA

 

 

Value:

NA

Activity:

Carpet manufacturer.

 

 

BANKS

 

Name of the Bank

BANK OF AMERICA

 

 

BUSINESS

 

HISTORY

 

The company was established in 1963.

PRINCIPAL ACTIVITY

 

The company operates as a manufacturer of carpets. It also distributes ceramic and porcelain, as well as tiles.

Products/Services description:

 

It is among the top 4 carpet manufacturers in the USA ranked by sales volume and the largest mill owned and operated on the West Coast.

Sales are:

 

Wholesale

Clients:

 

Professionals of the industry, mainly the residential replacement and new home industries, as well as hospitals, hotels and corporate offices

Operations area:

 

National, International

The company imports from Italy and Brazil.

The company export to Canada, Europe and Asia.

Trade References:

 

The person contacted refused to provide the names of their suppliers for us to check the trade references.

PAYMENTS

 

regular

LOCATION

Headquarters

 

The company is headquartered at:

17111 REDHILL AVE, IRVINE, CA 92614, USA

Branches:

 

The company operates a tile distribution center in Arizona.



Shareholders - Manager - Related Companies

 

Shareholders Parent Company(ies):

 

This is a private company.

Mike Derderian is the owner and main shareholder.

Management:

 

Mike Derderian, President

Related Companies:

 

Royalty also holds two wholly-owned subsidiaries:

PacifiCrest Mills and Camelot Carpet Mills.



Financials - COMMERCIAL TRENDS AND FORECAST

 

As a private company the subject does not publish any financial statements.

We have contacted the Accounts Payable department but the person interviewed refused to provide us any financial data without knowing the name of the inquiring party.

 

However our financial sources could provide us with the following data.

Those figures are estimates provided by confidential banking and financial institutions working with the company.

 

 

Currency

DATE

USD

2007

Turnover

100,600,000

Operating Income

17,000,000

Net Income

16,200,000

Current Assets

84,000,000

Fixed Assets

6,000,000

Liabilities

10,000,000

The cash flow is

Large



Comments on the financial data:

The revenue of the company is in the range of USD 100-200 million.

Legal Fillings

 There are several UCC** files listed with the Secretary of State of California

 

There are no legal filings listed with the District Court.

 

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

 

 

For information:

 

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

 

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. 

 

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

 

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

 

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.




Rating

 

Local credit bureau gave a correct credit rate.

 

The company is in Good Standing.

This means that all local and federal taxes were paid on due date.

 

 Final Opinion

 

This is a medium sized company, with 800 employees and 48 years of experience.

 

It is a well established business, with international reach.

 

Through our sources we could gather the estimated range of revenue.

The company has been able to maintain revenues stable and growing.

 

Taking into consideration the size and history of the company, as well as its position in the market, we suggest a credit line for USD 500,000,
with a MAX of USD 2,000,000

 

 

SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

Profitability

CORRECT

Public Records

NO

 

Indebtedness

CONTROLLED

Payments

REGULAR

 

Cash

NORMAL

 

 

 



APPENDIX

 

Comments

 

We have contacted the Accounts Payable department but the person interviewed refused to provide us any information about the subject without knowing the name of the inquiring party.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.89

UK Pound

1

Rs.73.85

Euro

1

Rs.64.76

 

 

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.