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Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
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Name : |
MADDEN INTERNATIONAL LTD. |
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Registered Office : |
Room 1102-1105, 11/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.07.2007 |
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Com. Reg. No.: |
38191196 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of all kinds of footwear. |
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No. of Employees : |
20 |
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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Status : |
Satisfactory |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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 |
HONG KONG - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on
international trade and finance - the value of goods and services trade, including
the sizable share of re-exports, is about four times GDP. Hong Kong levies
excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong
Kong''s open economy left it exposed to the global economic slowdown that began
in 2008. Although increasing integration with China, through trade, tourism,
and financial links, helped it to make an initial recovery more quickly than
many observers anticipated, it again faces a possible slowdown as exports to
the Euro zone and US slump. The Hong Kong government is promoting the Special
Administrative Region (SAR) as the site for Chinese renminbi (RMB)
internationalization. Hong Kong residents are allowed to establish RMB-denominated
savings accounts; RMB-denominated corporate and Chinese government bonds have
been issued in Hong Kong; and RMB trade settlement is allowed. The territory
far exceeded the RMB conversion quota set by Beijing for trade settlements in
2010 due to the growth of earnings from exports to the mainland. RMB deposits
grew to roughly 9.1% of total system deposits in Hong Kong by the end of 2012,
an increase of 59% from the previous year. The government is pursuing efforts
to introduce additional use of RMB in Hong Kong financial markets and is
seeking to expand the RMB quota. The mainland has long been Hong Kong''s
largest trading partner, accounting for about half of Hong Kong''s exports by
value. Hong Kong''s natural resources are limited, and food and raw materials
must be imported. As a result of China''s easing of travel restrictions, the
number of mainland tourists to the territory has surged from 4.5 million in
2001 to 34.9 million in 2012, outnumbering visitors from all other countries
combined. Hong Kong has also established itself as the premier stock market for
Chinese firms seeking to list abroad. In 2012 mainland Chinese companies
constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and
accounted for about 57.4% of the Exchange''s market capitalization. During the
past decade, as Hong Kong''s manufacturing industry moved to the mainland, its
service industry has grown rapidly. Growth slowed to 5% in 2011, and less than
2% in 2012. Credit expansion and tight housing supply conditions caused Hong
Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. Lower
and middle income segments of the population are increasingly unable to afford
adequate housing. Hong Kong continues to link its currency closely to the US dollar,
maintaining an arrangement established in 1983.
Source
: CIA
MADDEN INTERNATIONAL
LTD.
Address: Room 1102-1105,
11/F., 9 Wing Hong Street,
Cheung Sha
Wan, Kowloon,
Hong Kong.
(Formerly located at:
Unit 3, 5 & 6, 16/F., Metropole Square,
2 On Yiu Street, Shek Mun, Shatin,
New Territories, Hong Kong. )
PHONE: 852-3963 7000
FAX: 852-2646 8600
Managing Director: Mr. Arvind Mohanlal Dharia
Incorporated on: 17th
July, 2007.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$1,000.00
Business Category: Footwear trader.
Group Net Sales: US$1,227,072,000 (Year ended 31-12-2012)
Company Employees: 20.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head Office:-
Room 1102-1105, 11/F., 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong
Kong.
Holding Company:-
Steven Madden Ltd., US.
Subsidiaries:-
Adesso-Madden Inc., US.
Big Buddha Inc., US.
Cejon Inc., US.
Daniel M. Friedman & Associates Inc., US.
Diva Acquisition Corp., US.
Steve Madden Canada Inc., Canada.
Steven Madden Retail Inc., US.
Stevices Inc., US.
The Topline Corporation, US.
38191196
1150267
Managing Director: Mr. Arvind
Mohanlal Dharia
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000.00
(As per registry dated 17-07-2012)
|
Name |
|
No. of shares |
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Steven Madden Ltd. 52-16 Barnett Avenue, Long Island City, NY 11104, US. |
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1,000 ==== |
(As per registry dated 17-07-2012)
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Name (Nationality) |
Address |
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Awadhesh Kumar SINHA |
46 Schoolhouse Lane, Roslyn Heights, NY 11577, US. |
|
Arvind Mohanlal DHARIA |
50 Percheron Avenue, Roslyn Heights, NY 11577, US. |
(As per registry dated 17-07-2012)
|
Name |
Address |
Co. No. |
|
Edtoma Secretarial Services Ltd. |
Suite 1201, 12/F., Tower 2, The Gateway, 25 Canton Road,
Tsimshatsui, Kowloon, Hong Kong. |
0534483 |
The subject was incorporated on 17th July, 2007 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit 3, 5 & 6, 16/F., Metropole
Square, 2 On Yiu Street, Shek Mun, Shatin, New Territories, Hong Kong.
move to the present address in January, 2013.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Footwear
trader.
Lines: All
kinds of footwear.
Company Employees: 20.
Commodities Imported: China, other Asian countries, etc.
Markets: North
America, Europe, Asian countries, etc.
Group Net Sales: US$
457,046,000 (Year ended
31-12-2008)
US$ 503,550,000 (Year ended 31-12-2009)
US$ 635,418,000
(Year ended 31-12-2010)
US$ 968,549,000
(Year ended 31-12-2011)
US$1,227,072,000 (Year ended 31-12-2012)
Terms/Sales:
As per contracted.
Terms/Buying: As
per contracted.
Nominal Share Capital: HK$10,000.00 (Divided
into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,000.00
Group Net Income Attributable to Steven
Madden:-
US$ 27,967,000
(Year ended 31-12-2008)
US$ 50,107,000
(Year ended 31-12-2009)
US$ 75,725,000
(Year ended 31-12-2010)
US$ 97,319,000
(Year ended 31-12-2011)
US$119,626,000 (Year ended 31-12-2012)
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:
Good.
Madden International Ltd. is a wholly-owned subsidiary of Steven Madden
Ltd. [Steven Madden/Company/and its subsidiaries are referred to Group] which
is a US-based and listed firm.
The subject and Steven Madden are engaged in the same lines of business.
The Group designs, sources, markets and retails fashion-forward footwear
for women, men and children. In
addition, it is also engaged in design, source, market and retail name brand
and private label fashion handbags and accessories through its Daniel M.
Friedman Division. It distributes
products through its retail stores, its e-commerce website, department and
specialty stores throughout the United States and through special distribution
arrangements in Canada, Europe, Central and South America, Australia and
Asia. Its product line includes a broad
range of updated styles which are designed to establish or capitalize on market
trends, complemented by core products.
It has established a reputation for its creative designs, popular styles
and quality products at affordable price points.
Its business is comprised of three distinct segments (Wholesale, Retail
and First Cost). Its Wholesale segment includes
ten core divisions: Steve Madden Womens, Steve Madden Mens, Candie’s, Madden
Girl, Steve Madden’s Fix, Steven, Stevies, Fabulosity, Elizabeth and James and
its accessories division. Its
accessories division, through license agreements, includes the Daisy Fuentes,
Betsey Johnson and Fabulosity accessories brands. Steven Madden Retail, Inc., its wholly owned
retail subsidiary, operates Steve Madden and Steven retail stores as well as
its e-commerce website. Its wholly owned
subsidiary, Adesso-Madden, Inc., acts as a buying agent for footwear products
under private labels and licensed brands (such as l.e.i and Candie’s) for many
of the country’s large mass merchandisers and mid-tier department stores. Its also license its Steve Madden and Steven
trademarks for several accessory and apparel categories.
Its wholesale customers consist principally of better department stores,
major department stores, mid-tier department stores, national chains, mass
merchants, value priced retailers, specialty stores and catalog retailers. Its customers include Macy’s, DSW, Nordstrom,
Dillard’s, J.C. Penney, Kohl’s, Famous Footwear, Marshall’s, TJ Maxx, Ross and
Belks.
It sells its products principally through department stores, specialty
stores, luxury retailers, national chains and mass merchants and in its owned
retail stores in the United States and Canada and our e-commerce websites. For
the year ended 31st December, 2012, its Retail segment and its two Wholesale
segments generated net sales of approximately US$191.2 million and US$1,035.8
million, or 16% and 84% of our total net sales, respectively.
The Group currently sells to over 4,400 doors of 15 department stores
throughout the United States and Canada.
Its major accounts include Macy’s, Nordstrom, Bloomingdale’s, Dillard’s
and Lord & Taylor.
Steven Madden was incorporated as a New York corporation on 9th July,
1990 and reincorporated under the same name in Delaware in November 1998. It completed its initial public offering in
December 1993 and its shares of common stock currently trade on The NASDAQ
Global Select Market under the symbol SHOO.
The Company maintains its principal executive offices at 52-16 Barnett
Avenue, Long Island City, NY 11104, telephone number (718) 446-1800.
Fiscal year 2012 represents the fourth consecutive year that the Company
achieved record sales and earnings. Net
sales for 2012 increased 27% to US$1,227,072 from US$968,549 in the same period
of 2011. Net income increased 23% to
US$119,626 in 2012 compared to US$97,319 in the same period of 2011. Net income attributable to Steven Madden,
Ltd. in 2012 was impacted by US$5,932 of impairment charges related to the
bankruptcies of Betsey Johnson LLC and Bakers Footwear Group, Inc. [Bakers] and
US$2,500 for settlement of a class action lawsuit.
As part of the Group’s strategic initiative to grow its international
business, on 21st February, 2012, the Company purchased all of the assets of
Steve Madden Canada Inc., Steve Madden Retail Canada Inc., Pasa Agency Inc. and
Gelati Imports Inc. [collectively, ‘SM Canada’], the Company’s sole distributor
in Canada since 1994, comprising SM Canada’s footwear, handbags and accessories
wholesale and retail businesses.
Management believes that Canada represents a strong and growing market
for the Company. The transaction was
completed for consideration consisting of a cash payment at closing of
approximately $29,129 (Canadian dollars, which converts to approximately the
same in US dollars) plus potential earn-out payments of up to a maximum of $38,000
(Canadian dollars, which converts to approximately the same in US dollars), in
the aggregate, based on achievement of certain earnings targets over a
five-year period. The fair value of
contingent payments was estimated based on management’s projections of the
financial results of SM Canada during the earn-out period.
On 1st February, 2013, the Group employed approximately 2,650 employees,
of whom approximately 1,800 work on a full-time basis and approximately 850
work on a part-time basis, with most of the part-time employees being employed
in the Retail segment. Approximately
1,860 of its employees are located in the United States, approximately 590
employees are located in Hong Kong, China and Taiwan, and approximately 200
employees are located in Canada.
As the subject is fully supported by its parent company, on the whole,
consider it good for normal business engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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 |
|
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.