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Report Date : |
16.04.2014 |
IDENTIFICATION DETAILS
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Name : |
ZALE CANADA, INC. |
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Registered Office : |
900-1959 Upper Water Street, Halifax, Nova Scotia B3J 2X2 |
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Country : |
Canada |
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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 |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
CANADA - ECONOMIC OVERVIEW
As a high-tech industrial
society in the trillion-dollar class, Canada resembles the US in its
market-oriented economic system, pattern of production, and high living standards.
Since World War II, the impressive growth of the manufacturing, mining, and
service sectors has transformed the nation from a largely rural economy into
one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement
(FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes
Mexico) touched off a dramatic increase in trade and economic integration with
the US, its principal trading partner. Canada enjoys a substantial trade
surplus with the US, which absorbs about three-fourths of Canadian merchandise
exports each year. Canada is the US's largest foreign supplier of energy,
including oil, gas, uranium, and electric power. Given its abundant natural
resources, highly skilled labor force, and modern capital plant, Canada enjoyed
solid economic growth from 1993 through 2007. Buffeted by the global economic
crisis, the economy dropped into a sharp recession in the final months of 2008,
and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus.
Canada's major banks, however, emerged from the financial crisis of 2008-09
among the strongest in the world, owing to the financial sector's tradition of
conservative lending practices and strong capitalization. Canada achieved
marginal growth in 2010-13 and plans to balance the budget by 2015. In
addition, the country's petroleum sector is rapidly expanding, because
Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada
now ranks third in the world in proved oil reserves behind Saudi Arabia and
Venezuela
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Source
: CIA |
ZALE CANADA, INC.
Your order on: CANADIAN DCA, ZCDS-DC
Brand60 Peoples Mappins Jewellers, Toronto,
Canada
That business does not exist.
Peoples Jewellers and Mappins Jewellers are name of stores owned by:
Company name ZALE
CANADA, INC.
Address: 1440 Don Mills Road, North York,
Ontario M3B 3M1 - 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: Nova Scotia
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 (146 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: +1 905-470-7573
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 Delaware on
04-26-1991
ID# 2261333
The Company is listed with
the NYSE under symbol ZLC.
Management:
Theophlius KILLION is Director and CEO
He has been the Chief Executive Officer of Zale Corporation at Piercing
Pagoda, Inc. since September 23, 2010. Mr. Killion served as President of Zale
Corporation from August 2008 to September 23, 2010 and Interim Chief Executive
Officer from January 13, 2010 to September 23, 2010. He served as an Executive
Vice President of Human Resources, Legal and Corporate Strategy for Zale
Corporation from January 2008 to August 2008. He worked at executive recruiting
firm Berglass+Associates, focused on companies in the retail, consumer goods
and fashion industries. He served as an Executive Vice President of Human
Resources Division of Tommy Hilfiger B.V. since January 2005 and for its
subsidiary, Tommy Hilfiger U.S.A., Inc. since March 2004 until April 2006. His
responsibilities entailed worldwide HR strategies and initiatives that included
recruitment and retention, training and development, compensation and benefits
and performance management. Mr. Killion served as the Vice President of Human
Resources of The Limited Brands from January 1996 to March 2004 and also served
as its Corporate Vice President of HR for Merchandising and Design. He served
senior human resource roles at Macy's East and The Home Shopping Network. He
has 30 years of Leadership experience.
He has been a Director of Express Inc. since April 2012. He has been a
Director at Zale Corporation since September 23, 2010. He received a 2013
Better Chance DreamBuilder Award. He matriculated at The Hill School,
Pennsylvania.
He graduated cum laude from Tufts University with a bachelor’s degree in
history and English and master’s degree in education from Tufts University in
1975.
Other Directors include Matthew W. APPEL and Gil HOLLANDER.
Tom HAUBENSTRICKER is Sr. Vice President and CFO.
Elizabeth GALLOWAY is Vice President and Treasurer.
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.
Sales declared for year
2013 is in the range of CAD 300,000,000=
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: February 2014
High credit: CAD 40,000
Now owing: 0
Past due: 0
Last purchase: January 2014
Line of business: Office supply
Paying status: 6 days terms
Date reported: February 2014
High credit: USD 1,600,000+
Now owing: 0
Past due: 0
Last purchase: January 2014
Line of business: Payroll
Paying status: As agreed
Date reported: February 2014
High credit: CAD 20,000+
Now owing: 0
Past due: 0
Last purchase: January 2014
Line of business: Telecommunications
Paying status: 5 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
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Monthly Payment Trends - Recent
Activity |
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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 a flat
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.60.26 |
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1 |
Rs.100.70 |
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Euro |
1 |
Rs.83.27 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
PDT |
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.