MIRA INFORM REPORT

 

 

Report Date :

27.08.2012

 

IDENTIFICATION DETAILS

 

Name :

COACH MANUFACTURING LTD.

 

 

Registered Office :

15/F., C-Bons International Centre, 108 Wai Yip Street, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

08.04.2004

 

 

Com. Reg. No.:

34456510

 

 

Legal Form :

Private Limited Company.

 

 

line of business :

Importer, Exporter and Retailer of Footwear, jewellery, travel bags, watches, sunwear, fragrance, etc.

 

 

No. of Employees :

200. (Including retailing shops)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

No Complaints

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)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company Name

 

COACH MANUFACTURING LTD.

 

 

ADDRESS

 

15/F., C-Bons International Centre, 108 Wai Yip Street, Kowloon, Hong Kong.

 

PHONE:            2760 8162

           

FAX:                 2760 8163

 

 

MANAGEMENT

 

Managing Director:  Mr. Leonard Todd Kahn

 

 

SUMMARY

 

Incorporated on:            8th April, 2004.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$100,000.00

 

Issued:                         HK$50,000.00

 

Business Category:       Importer, Exporter and Retailer.

 

Group Net Sales:           US$4,763,180,000  (Year ended 30-06-2012)

 

Employees:                  200.  (Including retailing shops)

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.


Company Name

 

COACH  MANUFACTURING  LTD.

 

 

ADDRESS

 

Registered Head Office:-

15/F., C-Bons International Centre, 108 Wai Yip Street, Kowloon, Hong Kong.

 

Holding Company:-

Coach International Holdings Inc., Cayman Islands.

 

Ultimate Holding Company:-

Coach Inc., USA.

 

Associated Companies:-

504-514 West 34th Street Corporation, USA.

516 West 34th Street LLC, USA.

Coach (Gibraltar) Ltd., Gibraltar.

Coach Consulting Dongguan Co. Ltd., China.

Coach France S.A.S., France.

Coach Hong Kong Ltd., Hong Kong.

Coach International Holdings, S.a.r.l., Luxembourg.

Coach International Ltd., Hong Kong.

Coach Italy Services S.r.l., Italy.

Coach Japan Investments, LLC, USA.

Coach Japan LLC, Japan.

Coach Korea Ltd., Korea.

Coach Leatherware (Thailand) Ltd., Thailand.

Coach Leatherware India Private Ltd., India.

Coach Malaysia SDN. BHD., Malaysia.

Coach Management (Shanghai) Co. Ltd., China.

Coach Netherlands B.V., Netherlands.

Coach Services, Inc., USA.

Coach Shanghai Ltd., China.

Coach Singapore Pte. Ltd., Singapore.

Coach Spain, S.L., Spain.

Coach Stores Canada, Inc., Canada.

Coach Stores France, SAS, France.

Coach Stores Germany GmbH., Germany.

Coach Stores Ireland Ltd., Ireland.

Coach Stores Ltd., UK.

Coach Stores Puerto Rico, Inc., USA.

Coach Stores, Unipessoal LDA, Portugal.

Coach Taiwan Co. Ltd., Taiwan.

Coach Thailand Holdings, LLC, USA.

Coach Vietnam Co. Ltd., Vietnam.

IP Recoveries LLC, USA.

Reed Krakoff LLC, USA.

 

 

BUSINESS REGISTRATION NUMBER

 

34456510

 

 

COMPANY FILE NUMBER

 

0894313

 

 

MANAGEMENT

 

Managing Director:  Mr. Leonard Todd Kahn

 

CAPITAL

 

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$50,000.00

 

 

SHAREHOLDER  

 

(As per registry dated 08-04-2012)

Name

 

No. of shares

Coach International Holdings Inc.

c/o Close Brothers (Cayman) Ltd.

Harbour Place, 103 South Church Street, P.O. Box 1034GT, Grand Cayman, Cayman Islands.

 

50,000

=====

 

 

DIRECTORS

 

(As per registry dated 08-04-2012)

Name

(Nationality)

 

Address

Leonard Todd KAHN

26 Hilltop Road, Katonah, New York 10536, USA.

 

Daniel Jonathan ROSS

61 Pocconock Trail, New Canaan, Connecticut 06840, USA.

 

SECRETARY

 

(As per registry dated 08-04-2012)

Name

Address

Co. No.

Tricor Tengis Ltd.

Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong.

0041027

 

 

HISTORY

 

The subject was incorporated on 8th April, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Gretna Co. Ltd., name changed to the present style on 21st April, 2004.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Retailer.

 

Lines:                           Footwear, jewellery, travel bags, watches, sunwear, fragrance, etc.

 

Employees:                  200.  (Including retailing shops)

 

Commodities Imported: China, other Asian countries, etc.

 

Markets:                        North America, Hong Kong, Japan, Macau, China, Singapore, etc.

 

Group Net Sales:           US$3,607,636,000  (Year ended 30-06-2010)

US$4,158,507,000  (Year ended 30-06-2011)

US$4,763,180,000  (Year ended 30-06-2012)

 

Terms/Sales:                 COD or as per contracted.

 

Terms/Buying:               Various terms.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:              HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

 

Issued Share Capital:                 HK$50,000.00

 

Group Operating Income:           US$1,150,171,000  (Year ended 30-06-2010)

                                                US$1,304,924,000  (Year ended 30-06-2011)

                                                US$1,511,989,000  (Year ended 30-06-2012)

 

Profit or Loss:                           Making a small profit every year.

 

Condition:                                 Keeping in a satisfactory manner.

 

Facilities:                                  Making rather active use of general banking facilities.

 

Payment:                                  Met trade commitments as required.

 

Commercial Morality:                 Satisfactory.

 

Banker:                                     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                                  Very Good.

 

 

GENERAL

 

Coach Manufacturing Ltd. is a wholly-owned subsidiary of Coach International Holdings Inc. which is a Cayman Islands-registered firm.  The subject’s ultimate holding company Coach Inc. [Coach] is a US-based and listed firm.

The subject is trading in the products of Coach.

Coach was founded in 1941 as a family-run workshop.  In a Manhattan loft, six artisans handcrafted a collection of leather goods using skills handed down from generation to generation.  Discerning consumers soon began to seek out the quality and unique nature of Coach craftsmanship.

Now greatly expanded, Coach continues to maintain the highest standards for materials and workmanship.  Coach’s exceptional work force remains committed to carefully upholding the principles of quality and integrity that define the company.

Coach is America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves, fragrance and fine jewelry.  Continued development of new categories has further established the signature style and distinctive identity of the Coach brand. Together with its licensing partners, it also offers watches, footwear, eyewear and fragrance bearing the Coach brand name.

In fiscal 2012, Coach had marketing websites in Australia, Bahrain, Brazil, China, Colombia, France, Ireland, Malaysia, Mexico, Panama, Portugal, Singapore, South Korea, Spain, Taiwan, Thailand, the United Kingdom, the UAE, Venezuela and Vietnam.

While all of its products are manufactured by independent manufacturers, Coach nevertheless maintain control of the supply chain process from design through manufacture.  It is able to do this by qualifying raw material suppliers and by maintaining sourcing and product development offices in China, Hong Kong, Vietnam, South Korea and India that work closely with its independent manufacturers.

During fiscal 2012, approximately 71% of Coach’s total net sales were generated from newly introduced products with no sales in the same quarter the previous year.  As the collections are seasonal and planned to be sold in stores for short durations, its production quantities are limited which lowers its exposure to excess and obsolete inventory.

Coach operates an 850,000 sq. ft. distribution and consumer service facility in Jacksonville, Florida.  To support its growth in China and the region, in fiscal 2010 it established an Asia distribution centre in Shanghai, owned and operated by a third-party, allowing it to better manage the logistics in this region while reducing costs.  Coach also operates a distribution centre, through a third-party, in Japan.

Major trademarks carried by Coach include Coach, Coach and lozenge design, Coach and tag design, Signature C design, Coach Op Art design and The Heritage Logo (Coach Leatherware Est. 1941).

As of 30th June, 2012, Coach employed approximately 18,000 people, including both full and part time employees.  Of these employees, approximately 6,200 and 8,000 were full time and part time employees, respectively, in the retail field in North America; Japan; Hong Kong, Macau, and mainland China; Taiwan; Singapore and Korea.

As of 30th June, 2012, Coach also occupied 354 retail and 169 factory leased stores located in North America, 180 Coach-operated department store shop-in-shops, retail stores and factory stores in Japan, 96 Coach-operated department store shop-in-shops, retail stores and factory stores in Hong Kong, Macau and mainland China, and 34 Coach-operated department store shop-in-shops, retail stores and factory stores in Taiwan and Singapore.

The subject is fully supported by Coach.

On the whole, consider the subject good for normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.38

UK Pound

1

Rs.87.80

Euro

1

Rs.69.48

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.