MIRA INFORM REPORT

 

 

Report Date :

24.12.2013

 

IDENTIFICATION DETAILS

 

Name :

LEVI STRAUSS DE MEXICO S.A. DE C.V.

 

 

Registered Office :

Jaime Balmes 8, Int.502, Col. Los Morales Polanco, Deleg. Miguel Hidalgo 11510

 

 

Country :

Mexico

 

 

Date of Incorporation :

18.08.1966

 

 

Legal Form :

Stock Company of Variable Capital

 

 

Line of Business :

Manufacture and distribution of items of clothing for men and women such as trousers, jeans, shorts, shirts, T- shirt, dresses, jackets, sweatshirts

 

 

No. of Employees :

370

 

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 :

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Mexico

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MEXICO - ECONOMIC OVERVIEW

 

Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, Mexico's share of US imports has increased from 7% to 12%, and its share of Canadian imports has doubled to 5.5%. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2012 Mexico formally joined the Trans-Pacific Partnership negotiations and in July it formed the Pacific Alliance with Peru, Colombia and Chile. In 2007, during its first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008 and another fiscal reform in 2009. Mexico's GDP plunged 6.2% in 2009 as world demand for exports dropped, asset prices tumbled, and remittances and investment declined. GDP posted positive growth of 5.6% in 2010 with exports - particularly to the United States - leading the way. Growth slowed to 3.9% in 2011 and slightly recovered to 4% in 2012. In November 2012, Mexico's legislature passed a comprehensive labor reform which was signed into law by former President Felipe CALDERON. Mexico's new PRI government, led by President Enrique PENA NIETO, has said it will prioritize structural economic reforms and competitiveness. The new president signed the Pact for Mexico, an agreement that lists 95 priority commitments, along with the leaders of the country's three main political parties: the Institutional Revolutionary Party (PRI), the National Action Party (PAN) and the Party of the Democratic Revolution (PRD).

 

Source : CIA

 


IDENTIFICATION

 

CORRECT COMPANY NAME

LEVI STRAUSS DE MEXICO S.A. DE C.V.

TRADE NAME

LEVI STRAUSS DE MÉXICO

TAXPAYER REGISTRATION

RFC LSM660818M98

MAIN ADDRESS

Jaime Balmes 8, Int.502, Col. Los Morales Polanco, Deleg. Miguel Hidalgo

POSTAL CODE

11510

DEPT/PROV/REGION/STATE

México DF

COUNTRY

MEXICO

TELEPHONE

(5255) 52828400

CORPORATE E-MAIL

kcasillas@levi.com

WEB

www.levi.com.mx

COMMENTS

 

 

Other website: www.levistrauss.com

 

 

EXECUTIVE SUMMARY

 

Date of foundation

1966

Capital stock

No specified

permanent employees

370

Disposition

TF: REPORT PREPARED FROM OUTSIDE SOURCES.

Payments policy

(P2) Usually to terms / good

Credit (**)

UNDETERMINED RISK.(Insufficient or Non existent information).

Number of times that this company was required: 6

 

 

LEGAL STRUCTURE

 

LEGAL STATUS

Stock Company of Variable Capital

 

 

DATE OF INCORPORATION

18AUG1966

 

 

PLACE OF REGISTRY

Mexico DF

 

 

NOTARY OFFICE

 

DURATION

99 years

CURRENT PAID-IN CAPITAL

No specified

 

 

PARENT COMPANY

LEVI STRAUSS & CO.(USA)

LISTED AT STOCK
EXCHANGE?

No

CURRENT EXCHANGE RATE (US$)

Ps$.13,04 per USADollar

 

 

COMMENTS

 

Membership:

-  American Chamber of Commerce of México A.C. (AMCHAM)".

-  National Chamber of Small-sized Commerce, Service and Tourism of the City of Mexico

-  National Chamber of the Clothes Industry

 

 

 

DIRECTORS - EXECUTIVES – SHAREHOLDERS

 

FULL NAMES / COMPANY NAME

TITLE

%PART.

SINCE

CASILLAS, KARLA

Accounting Manager

 

 

LEVI STRAUSS & CO.

Majority Shareholder (Parent Company)

100%

 

 

 

 

WHO IS WHO?

 

LEVI STRAUSS & CO.

 

 

BUSINESS BACKGROUND

Levi Strauss & Co.; is a manufacturer of items of clothing, globally well-known for its brand Levi's (jeans). It was founded in 1853 in Sacramento (California, United States) by Levi Strauss, a Jewish immigrant from Buttenheim, in the region of Franconia, Bavaria, south of Germany.

Head Offices are located at: 1155 Battery St., San Francisco, CA, 94111 United States, Tel: (415) 501-6000.

 

 

 

BUSINESS HISTORY

 

Levi Strauss of México is a Mexican concern fully controlled by American capital, founded in 1966 by the Parent Company to serve the Mexican market.

 

The Company is a subsidiary of LEVI STRAUSS & CO. a company that since 1852 is engaged in the manufacture and trading of jeans and casual clothes under its brands: Levi's, Dockers and Slates.

Today, Levi Strauss & Co. is present in over 110 countries with genuine products of multiple influences, which combine style and functionality to the most original fashion trends of the world.

The company employs a staff of approximately 1,300 people at its headquarters in San Francisco, California and about 17,000 people worldwide.

At present, it has 21 production facilities and 25 customer support centers worldwide. Levi Strauss usually manufactures its products in regions where they are sold.

 

Certain subsidiaries of "Levi Strauss & Co." are:

 

 

 

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

 

COMPANY NAME

COUNTRY

TAX REG.

RELATION %

LEVI STRAUSS (U.K.) LTD

UNITED KINGDOM

 

Related

LEVI STRAUSS DE ESPAÑA S.A.

SPAIN

 

Related

LEVI STRAUSS DO BRASIL INDUSTRIA E COMERCIO LTDA

BRAZIL

(AC) 43351097/000190

Related

LEVI STRAUSS GERMANY GMBH

GERMANY

 

Related

LEVI STRAUSS INTERNATIONAL, INC.

U.S.A.

 

Related

LEVI STRAUSS ITALIA S.R.L.

ITALY

 

Related

LEVI STRAUSS POLAND SP. Z.O.O.

POLAND

 

Related

LEVI'S ONLY STORES, INC.

U.S.A.

 

Related

LS JAPAN LTD

JAPAN

 

Related

 

 

 

BUSINESS

 

SIC Classification
2 3 - CONFECTIONARY INDUSTRY (APPAREL MADE FROM FABRICS AND SIMILAR MATERIALS). (Manuf. Suits, coats, shirts, underwear, trousers, blouses, embroideries.)

Main activity

Manufacture and distribution of items of clothing for men and women such as trousers, jeans, shorts, shirts, T- shirt, dresses, jackets, sweatshirts

Brands: LEVI'S; DOCKERS

O P E R A T I O N S

Import

Yes

Country

Vietnam, Pakistan, Turkey, Hong Kong, Bulgaria, Poland, Brazil, etc.., Through direct credit

% CASH SALES / METHOD

100% (general public at stores)

% Credit SALES / Terms

100% Terms:30-60 Days(department stores)

% DOMESTIC PURCHASES

50%

% FOREIGN PURCHASES

50%

SELLING TerritorY

Nationally 100%

EMPLOYEES

370

LOCATION

OTHER PREMISES

Headquarters operate at the above address. Facilities occupy 5th floor of the above building situated between Av. Ejercito Nacional and Calle Homero, business and residential area of the City of Mexico.

 

Other locations:

-Av. Tejocotes S/N, Agave 4, Fraccionamiento San Martín Obispo Tepetlixpan, Cuautitlán Izcalli, Estado de México, C.P. 54763, Tel: (55) 53280545 (Distribution Center).

-Vialidad de la Barranca 6, Local N1-43. Col. Ex-Hacienda Jesús del Monte, Fraccionamiento Interlomas, Huixquilucan, Estado de México, C.P. 52787, Tel: (55) 52915414 (Dockers® Store Paseo Interlomas).

 

 

Comments

 

Clients: The Company sells products through main department stores.

 

 

 

FINANCIAL INFORMATION

 

Disposition

TF: REPORT PREPARED FROM OUTSIDE SOURCES.

Information provided

All the information contained in this report has been collected from outside sources as it was not possible to get information from the Company directly due to confidential policy.

Efforts to obtain balance sheets or estimated accounting figures of this Company proved unsuccessful.

 

As reference report contains the Consolidated Balance Sheet of LEVI STRAUSS & CO. and Subsidiaries at 26/05/2013, in U.S. Dollars (US$).

Comments

 

         CONSOLIDATED BALANCE SHEET OF LEVI STRAUSS & CO. AND SUBSIDIARIES                 

 

   BALANCE SHEET DATE     :           26MAY2013 

   BALANCE SHEET TYPE     :        Consolidated

   TYPE OF CURRENCY       :          US Dollars

 

   ASSETS

      TOTAL CURRENT       :     1,517,505,000.00

      FIXED               :       445,887,000.00

      OTHER               :     1,017,380,000.00

   TOTAL ASSETS           :     2,980,772,000.00    

   LIABILITIES

      TOTAL CURRENT       :       685,923,000.00

      LONG-TERM           :     2,254,673,000.00

   SHAREHOLDERS' EQUITY   :        40,176,000.00

   TOTAL LIAB/EQUITY      :     2,980,772,000.00   

 

 

   SALES                  :     2,245,576,000.00

   NET PROFIT (LOSS)      :       155,084,000.00

   NET PROFIT ATTRIBUTABLE

    TO LEWIS STRAUSS& CO. :       155,169,000.00

 

 

 

 

 

 

SALES

US$ 0.00 ()

FINANCIAL SITUATION

NN: UNDETERMINED

As no accounting elements were available, it is not possible to get a clearer vision of the financial situation of this Company.

Property of company comments

 

They include:

 

- Office furniture and fixtures

- Computers

- Vehicles

 

 

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

 

(Confidential Information)

TRADE REFERENCES

Supplier: DAMCO LOGISTICS MÉXICO S.A. DE C.V.

Tel.: (55) 50109350.

Country: MEXICO

Goods/Services? : Logistics services

 

 

Highest credit? : Not specified

 

 

Client since? : Sv.years

Terms? : 15 Days

Performance? : Prompt

Comments : Good Client

 

Note : Other suppliers did not provide information or could not be consulted

 

Supplier

Country

SAIGON3 GARMENT JOINT STOCK COMPANY

VIETNAM

LEVI STRAUSS DO BRASIL INDUSTRIA E COMERCIO LT

BRAZIL

LEVIS STRAUSS POLAND ZOO

POLAND

YANA LTD.

BULGARIA

GLOSS MIND APPAREL (HONG KONG) LTD.

HONG KONG

TAYPA TEKSTIL GIYIM SAN VE TIC AS

TURKEY

US APPAREL AND TEXTILES (PVT) LTD.

PAKISTAN

DOMEX (VIETNAM) CO., LTD.

VIETNAM

 


CREDIT BUREAU COMMENTS

No adverse information was learnt against the trade reputation of this company.

 

 

Comments :

BANK OF AMÉRICA MÉXICO S.A. The Company deals with the aforesaid bank. Further information was not given under confidentiality.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.99

UK Pound

1

Rs.101.37

Euro

1

Rs.84.82

 

 

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.