MIRA INFORM REPORT
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Report Date : |
28.03.2012 |
IDENTIFICATION DETAILS
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Name : |
SEARS CANADA INC |
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Formerly Known As : |
Simpsons-Sears Limited |
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Registered Office : |
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Country : |
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Financials (as on) : |
28.01.2012 |
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Year of Establishment : |
1952 |
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Legal Form : |
Corporation for Profit |
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Line of Business : |
Multi-Channel Retailer |
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No. of Employees
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30000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2 000 000 |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Canada |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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POLITICAL DATA |
ECONOMIC DATA |
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Form of Government: Federal
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Currency: USD |
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Legal Name: |
SEARS CANADA INC |
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Legal Address |
290 Yonge St., Suite 700, Toronto, Ontario, M5B 2C3, Canada. |
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Operative Address |
Suite 32-190 Port Augusta, Comox, BC V9M 3M1, Canada |
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Telephone: |
+1 (416) 362-1711 |
ID : |
NA |
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Fax: |
+1 (613) 391-3047 |
Legal Form: |
Corporation for Profit |
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Email: |
Registered in: |
Canada |
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Website: |
Date Created: |
1952 |
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Manager: |
Dene L. Rogers, CEO |
Date Incorporated: |
1952 |
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Staff: |
30 000 |
Stock: |
NA |
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Value: |
NA |
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Activity: |
Multi-channel retailer |
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Name of the Bank |
Bank of Canada |
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HISTORY |
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The company was founded in 1952. Sears Canada Inc. was formerly known
as Simpsons-Sears Limited and changed its name to Sears Canada Inc. in 1984. |
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PRINCIPAL ACTIVITY |
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Sears Canada Inc. operates as a multi-channel retailer in Canada. It operates in two segments, Merchandising and Real Estate Joint
Venture Operations. The Merchandising segment includes the sale of goods and services
through its retail and direct channels. |
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Products/Services description: |
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The subject offers: - Appliances. - Home furnishings. - Mattresses. - Home decor. - Women’s apparel. - Men’s apparel. - children’s apparel. - Cosmetics. - Jewellery. - Home services Among Others. |
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Sales are: |
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Retail |
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Clients: |
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General Clientele. |
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Operations area: |
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National |
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The company imports from Asia, USA |
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The company does not export |
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The subject employs 30 000 employee(s) |
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PAYMENTS |
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made on a 55 days basis - monitored over the last 12 months |
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LOCATION |
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Headquarters |
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290 Yonge St., Suite 700, Toronto, Ontario, M5B 2C3, Canada. |
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Branches: |
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The company has several locations throughout Canada. |
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Listed at the stock exchange: |
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YES |
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Shareholders Parent Company(ies): |
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As at January 24, 2012, the Company's controlling shareholder, Sears Holdings
Corporation, beneficially holds approximately 94.7% of the common shares of
the Company. |
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Management: |
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- William Crowley, Chairman. - Sharon Driscoll, SVP and CFO. - R. Raja Khanna, Director. - James McBurney, Director. - Deidra C. Merriwether, Director. - Calvin McDonald, President and CEO - Sears Canada. - Debi E. Rosati, Director. |
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The subject is a public company traded at the Toronto stock exchange
under the symbol "SCC". Please find enclosed the financial statements. |
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Comments on the financial data: Currency CAD DATE 2008 |
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Legal Fillings |
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The sources consulted record no
detrimental legal or labor court information. |
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Local credit bureau gave a Good credit
rate. The company is in Good Standing. This
means that all local and federal taxes were paid on due date. |
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Final Opinion |
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This is a large canadian company, publicy
traded, with 30 000 employees and more than 57 years of experience in the
industry. The subject operates in an unstable
market. The financial figures for the 2011 period
showed that the company has worsened its performance, from $4,938.5 million
to $4,619.3. The decrease year-over-year was primarily
attributed to sales declines in major appliances and electronics due to
industry-wide price compression and lower women’s and men’s wear sales. The subject´s revenue seems to be in a
trend of decrease, however the income continues to be positive. A credit line may be considered for USD 2 000
000. In addition, we suggest requesting a
monitoring report within the next 9-12 months. |
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Profitability |
CORRECT |
Public |
YES |
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Indebtedness |
CONTROLLED |
Payments |
REGULAR |
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Cash |
CORRECT |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.91 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.67.99 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.