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Report Date : |
09.11.2013 |
IDENTIFICATION DETAILS
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Name : |
ZALE CANADA, INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
15.04.1999 |
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Legal Form : |
Corporation – Profit |
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Line of Business : |
Retailer of traditional jewelry items |
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No. of Employees : |
1,000+ |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 |
As a high-tech industrial society in the trillion-dollar
class,
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Source
: CIA |
Company name: ZALE CANADA, INC.
Address: 61 McPherson Street, Markham, Ontario L3R 3L3
- Canada
Reg. address: 900-1959 Upper Water Street, Halifax,
Nova Scotia B3J 2X2 Canada
Telephone: +1
416-391-7739
Fax: +1 416-391-7870
Website: www.zalecorp.com
Corporate ID#: 3265471
State:
Judicial form: Corporation – Profit
Date incorporated: August
2, 2012
Date founded: April 15, 1999
Stock: -
Value: -
Name of manager: Theophlius
KILLION
History:
ZALE CANADA, INC. is issued from the merger of:
- ZALE CANADA DIAMOND SOURCING, INC.
- ZALE CANADA FINCO 1, INC.
- ZALE CANADA FINCO 2, INC.
- ZALE CANADA INC.
Business:
Zale Canada Co. is a retailer of traditional jewelry items and operates
201 stores in 9 provinces.
The Canadian operations consist of two brands:
- Peoples Jewellers (145 stores)
- Mappins Jewellers (55 stores)
Zale Canada Co. is based in North York, Canada.
Staff: 1,000+
Operations & branches:
At the headquarters, we
find the corporate office.
The Company maintains 201
stores in Canada, including a distribution center and store located:
61 McPherson Street
Markham, Ontario L3R 3L3
Ph: 905-470-7573
Shareholders:
ZALE CANADA HOLDING LP
1000-44 Chipman Hill, CP 7289
St John, New Brunswich E2L 4S6
Canada
Which is a wholly owned subsidiary of:
ZALE CORPORATION
901 West Walnut Hill Lane, Irving, TX 75038
Incorporated in
ID# 2261333
The Company is listed with
the NYSE under symbol ZLC.
Management:
Mary E. BURTON is the President, non Director
Mary E. Burton has served as a member of the Board since August 2010.
Ms. Burton served as Interim Chief Executive Officer of Zale
Corporation, a specialty jewelry retailer, from January 2006 to July 2006 and
as President and Chief Executive Officer from July 2006 to December 2007. Ms.
Burton also has been the Chief Executive Officer of BB Capital, Inc., a retail
advisory and management services company, since 1992. Prior directorships
include The Sports Authority, Inc. from 1999 to 2006, Aeropostale, Inc. from
2000 to 2006, Rent-a-Center, Inc from 2002 to 2007 and Zale Corporation from
2003 to 2007.
Ms. Burton currently serves on the board of directors of Staples, Inc.,
a board that she has served on since 1993.
Theophlius KILLION is Director and CEO
Other Directors include Matthew W. APPEL and Gil HOLLANDER.
Subsidiaries
And partnership: None
In Canada, privately held
corporations are not required to publish any financials.
On a direct call, a
financial assistant controlled the present report but deferred any financials.
We sent a fax but no answer
received.
However, sales estimate for
year 2012 is in excess of CAD 50,000,000+
The business is profitable.
Banks: Royal Bank of Canada
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: None
Haut du formulaire
Trade references:
Date reported: October 2013
High credit: CAD 40,000
Now owing: 0
Past due: 0
Last purchase: September 2013
Line of business: Office supply
Paying status: 6 days terms
Date reported: October 2013
High credit: USD 1,600,000+
Now owing: 0
Past due: 0
Last purchase: September 2013
Line of business: Payroll
Paying status: As agreed
Date reported: October 2013
High credit: CAD 20,000+
Now owing: 0
Past due: 0
Last purchase: September 2013
Line of business: Telecommunications
Paying status: 6 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
Monthly Payment Trends - Recent Activity
|
Date |
Up to 30 DBT |
31-60 DBT |
61-90 DBT |
>90 DBT |
||
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05/13 |
$213,000 |
88% |
12% |
0% |
0% |
0% |
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06/13 |
$221,000 |
86% |
14% |
0% |
0% |
0% |
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07/13 |
$218,000 |
87% |
13% |
0% |
0% |
0% |
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08/13 |
$199,000 |
88% |
12% |
0% |
0% |
0% |
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09/13 |
$201,000 |
86% |
14% |
0% |
0% |
0% |
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10/13 |
$209,000 |
86% |
14% |
0% |
0% |
0% |
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made with an average of 5 to 10 days beyond terms.
International
credit history:
Payments of imports are currently made with an average of 2 to 5 days
beyond terms.
The Company is improving
its payments, but the cash remains low, due to high inventories and bad
conditions of the market.
Other comments:
The bank confirmed late payments.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is medium.
Our opinion:
A business connection may
be conducted but we suggest you to check regularly the way of payments.
However, we suggest you a
report on the US ultimate parent company ZALE CORP.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February 2013.
Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India
exported $ 1.84 billion worth of polished diamonds in February 2013. A senior
executive of GJEPC said, “Export of cut and polished diamonds started falling
month-wise after the imposition of 2 % of import duty on the polished diamonds.
But February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following prudent
risk management norms when lending money to gems and jewellery sector. This
follows the implementation of Basel III accord – a global voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.73 |
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1 |
Rs.100.92 |
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Euro |
1 |
Rs.84.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.