MIRA INFORM REPORT

Report No. :	502823
Report Date :	10.04.2018

IDENTIFICATION DETAILS

Name :	MICHAEL STARS, INC.
Registered Office :	12955 Chadron Avenue Hawthorne Ca 90250
Country :	United States
Financials (as on) :	2015
Date of Incorporation :	28.10.1986
Legal Form :	Domestic Stock Corporation
Line of Business :	Subject designs and sells apparel and accessories for women in the United States and internationally.
No. of Employees :	190

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $59,500. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for more than 50% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and former President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through FY 2018, the direct costs of the wars will have totaled more than $1.9 trillion, according to US Government figures.

In March 2010, former President OBAMA signed into law the Patient Protection and Affordable Care Act (ACA), a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the former president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. The Fed ended its purchases during the summer of 2014, after the unemployment rate dropped to 6.2%, inflation stood at 1.7%, and public debt fell below 74% of GDP. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With continued low growth, the Fed opted to raise rates several times since then, and in December 2017, the target rate stood at 1.5%.

In December 2017, Congress passed and President Donald TRUMP signed the Tax Cuts and Jobs Act, which, among its various provisions, reduces the corporate tax rate from 35% to 21%; lowers the individual tax rate for those with the highest incomes from 39.6% to 37%, and by lesser percentages for those at lower income levels; changes many deductions and credits used to calculate taxable income; and eliminates in 2019 the penalty imposed on taxpayers who do not obtain the minimum amount of health insurance required under the ACA. The new taxes took effect on 1 January 2018; the tax cut for corporations are permanent, but those for individuals are scheduled to expire after 2025. The Joint Committee on Taxation (JCT) under the Congressional Budget Office estimates that the new law will reduce tax revenues and increase the federal deficit by about $1.45 trillion over the 2018-2027 period. This amount would decline if economic growth were to exceed the JCT’s estimate.

Source : CIA

Statutory Information
Legal Name	MICHAEL STARS, INC.
Trade Name	MICHAEL STARS
ID	ID
ID Details	C1390135
Creation Date	1986
Incorporation Date	10/28/1986
Legal Address	12955 CHADRON AVENUE HAWTHORNE CA 90250 USA
Operative Address	12955 CHADRON AVENUE HAWTHORNE CA 90250 USA
Telephone	415.496.2020
Fax	415.496.2020
Legal Form	DOMESTIC STOCK CORPORATION
E-Mail	cmstore@michaelstars.com
Registered In	CALIFORNIA
Website	www.michaelstars.com
Contact	Suzanne Lerner, Co-Founder and President
Staff	190 employees
Activity	SIC Code: 5621, Women's Clothing Stores NAICS Code: 448120, Women's Clothing Stores

Banks

There are not informed banks

History
History	The company was founded in 1986 by Michael Cohen and Suzanne Lerner.
Key Developments	NA
Parent Company	NA

Principal Activity

General Description

Michael Stars Inc. designs and sells apparel and accessories for women in the United States and internationally.

Service/Product Description

The company offers T-shirts, bottoms, dresses, sweaters and jackets, jewelry, footwear, and fashion accessories, including handbags, hats, belts, and scarves. Michael Stars is a Los Angeles-based apparel and lifestyle retail company that offers a full collection of women’s and men’s fashion and luxury essentials, including t-shirts, bottoms, dresses, sweaters, jackets, and accessories. Their clothing is distributed internationally through various department and specialty stores, as well as branded retail stores and its website.

Sales

Wholesale and Retail

Operations Area

National and International

Imports From

China

Export To

Mexico

Employees

190 employees

Payments With Suppliers

Regular

Brands
Brand	Comments
Michael Stars	NA

Clients
Name of Client	Country	Comments
INDUSTRIALIZADORA PARESSA DE CV	MEXICO	NA

Suppliers
Supplier Name	Country	Comments
SMART POINT TRADING (HK)	CHINA	NA
Zhejiang Springair Group Co., Ltd.	CHINA	NA

Location
Headquarters	12955 CHADRON AVENUE HAWTHORNE CA 90250, USA
Branches	The company has stores in Arizona, California, Florida, Georgia, Nevada, and New York. PONCE CITY MARKET 675 Ponce De Leon Avenue NE Ste W115 Atlanta, GA 30308 t: 678.538.1670 pcstore@michaelstars.com MALIBU COUNTRY MART 3835 Cross Creek Road #C Malibu , CA 90265 t: 310.774.5561 mastore@michaelstars.com THE POINT 860 S. Sepulveda Blvd. Suite 102 El Segundo, CA 90245 t: 424.290.2155 tpstore@michaelstars.com FASHION ISLAND 1005 Newport Center Drive Newport Beach, CA 92660 t: 949.999.0750 fistore@michaelstars.com SANTA MONICA 1233 Montana Ave Santa Monica, CA 90403 t: 310.260.5558 smstore@michaelstars.com THE VILLAGE AT CORTE MADERA 1724 Redwood Highway #A015 Corte Madera, CA 94925 t: 415.496.2020 cmstore@michaelstars.com

Group Structure and Subdiary Companies
Listed at the stock exchange	NO
Capital	NA
Shareholders (%)	This is a private company. The company does not disclose information on shareholders. The following information has been obtained through private sources and could not be confirmed: Major holders is Suzanne Lerner.
Management	Suzanne Lerner, Co-Founder and President Jennifer Needham, Administrator Jeff Busse, Manager Liz Kennedy, Sales Executive
Subsidiary Companies	NA
Related Companies	The company sells its products through retailers in Australia, England, France, Germany, Greece, Guatemala, Hong Kong, Indonesia, Israel, Italy, Japan, Lebanon, Singapore, South Africa, Switzerland, and the United Arab Emirates.

Financial Information
General Description	The company does not make its financial statements public. The following information has been provided by private sources.
Year/Currency	2015 USD
Sales	20,500,000
Money Flow	Normal
Import Fob Dollar There are not Import Fob Dollar informed
Export Fob Dollar There are not Export Fob Dollar informed

Legal Filings
Description	NA
Judgments	Starr v. Michael Stars, Inc. Plaintiff: Michael Starr Defendant: Michael Stars, Inc. Case Number: 5:2012cv00860 Filed: May 24, 2012 Court: New York Northern District Court Office: Syracuse Office County: Onondaga Referring Judge: Andrew T. Baxter Presiding Judge: Norman A. Mordue Nature of Suit: Trademark Cause of Action: 15:1121 Jury Demanded By: Plaintiff
Trademarks	MICHAEL STARS THE ORIGINAL TEE - Trademark Details Status: 710 - Cancelled - Section 8 Image for trademark with serial number 76576703 Serial Number76576703 Registration Number3122355 Word Mark MICHAEL STARS THE ORIGINAL TEE Status710 - Cancelled - Section 8 Status Date2017-03-03 Filing Date2004-02-23 Registration Number3122355 Registration Date2006-08-01 Mark Drawing3000 - Illustration: Drawing or design which also includes word(s)/ letter(s)/number(s) Typeset Design Searches090307, 260121, 290107 - T-shirts. Circles that are totally or partially shaded. Small, inconspicuous design elements functioning as punctuation or parts of letters. Published for Opposition Date2006-05-09 Attorney Name Deborah E. Greaves, Esq. Law Office Assigned Location CodeM80 Employee Name FAIRBANKS, RONALD L MICHAEL STARS - Trademark Details Status: 800 - Registered And Renewed Image for trademark with serial number 75649322 Serial Number75649322 Registration Number2332061 Word Mark MICHAEL STARS Status800 - Registered And Renewed Status Date2009-04-22 Filing Date1999-03-01 Registration Number2332061 Registration Date2000-03-21 Mark Drawing5S07 - Illustration: Drawing with word(s)/letter(s)/number(s) in Stylized form 75% Reduction Published for Opposition Date1999-12-28 Attorney Name Deborah E. Greaves, Esq. Law Office Assigned Location CodeL10 Employee Name BUCHANAN WILL, NORA MICHAEL STARS THE ORIGINAL MATERNITY - Trademark Details Status: 606 - Abandoned - No Statement Of Use Filed Image for trademark with serial number 76544340 Serial Number76544340 Word Mark MICHAEL STARS THE ORIGINAL MATERNITY Status606 - Abandoned - No Statement Of Use Filed Status Date2009-01-26 Filing Date2003-09-12 Mark Drawing1000 - Typeset: Word(s)/letter(s)/number(s) Typeset Published for Opposition Date2005-10-04 Attorney Name J. Alison Grabell Law Office Assigned Location CodeM30 Employee Name MEIER, SHARON A MICHAEL STARS THE ORIGINAL MATERNITY - Trademark Details Status: 606 - Abandoned - No Statement Of Use Filed Image for trademark with serial number 77604254 Serial Number77604254 Word Mark MICHAEL STARS THE ORIGINAL MATERNITY Status606 - Abandoned - No Statement Of Use Filed Status Date2011-01-31 Filing Date2008-10-30 Mark Drawing4000 - Standard character mark Typeset Published for Opposition Date2009-04-07 Attorney Name J Alison Grabell Law Office Assigned Location CodeM80 Employee Name SAPPENFIELD, ANN ELIZA MICHAEL STARS DOES DRESSES TO A TEE - Trademark Details Status: 606 - Abandoned - No Statement Of Use Filed Image for trademark with serial number 77552474 Serial Number77552474 Word Mark MICHAEL STARS DOES DRESSES TO A TEE Status606 - Abandoned - No Statement Of Use Filed Status Date2009-09-07 Filing Date2008-08-21 Mark Drawing4000 - Standard character mark Typeset Published for Opposition Date2008-11-11 Attorney Name J. Alison Grabell Law Office Assigned Location CodeL90 Employee Name SWIFT, GILBERT M
Patents Registered	No found.
Renevals	Document Type File Date SI-NO CHANGE 08/09/2017 SI-COMPLETE 10/28/2016 REGISTRATION 10/28/1986 MERGER 12/21/2016 AMENDMENT 09/24/2012 AMENDMENT 09/09/2002 AMENDMENT 06/12/1990
UCC (Uniform Commercial Code)	No records found.
OFAC Sanctions List Search	The company is not in the OFAC list.

Summary

Summary

Founded in 1986, Michael Stars Inc. designs and sells apparel and accessories for women in the United States and internationally. The company has 190 full-time employees and generates an estimated USD 20.5 million in annual revenue. The company mainly imports from China and exports to Mexico, operating within national and international markets. This has been an ACTIVE company incorporated in CALIFORNIA in 1986.

Risk Information
Debts	Controlled
Payments	Regular
Cash Flow	Normal
State	ACTIVE

Interview
First Name	NA
Position	NA
Comments	Despite we tried to contact the company several times, it did not answer, so we could not confirm further information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.93
UK Pound	1	INR 91.50
Euro	1	INR 79.69
USD	1	INR 64.93

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.