MIRA INFORM REPORT

 

 

Report Date :

06.10.2012

 

IDENTIFICATION DETAILS

 

Name :

NOR  LANKA  MANUFACTURING  LTD.

 

 

 

 

Registered Office :

7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon

 

 

 

 

Country :

Hong Kong

 

 

 

 

Date of Incorporation :

22.10. 2008

 

 

 

 

Com. Reg. No.:

50449630

 

 

 

 

Legal Form :

Private Limited Company

 

 

 

 

Line of Business :

Importer, Exporter and Investment Holder of all kinds of garments.

 

 

 

 

No. of Employees :

20.  (Including associates in Hong Kong)

 

 

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 :

Good

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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


Company name and address

 

NOR  LANKA  MANUFACTURING  LTD.

 

 

ADDRESS:       7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon, Hong Kong.

 

PHONE:            3588 1988

 

FAX:                 2117 0079

 

 

MANAGEMENT

 

Group Chairman:  Mr. Deepak Kumar Seth

 

 

SUMMARY

 

Incorporated on:                         22nd October, 2008.

 

Organization:                             Private Limited Company.

 

Capital:                                     Nominal:           HK$10,000.00

Issued:              HK$10,000.00

 

Business Category:                    Garment Trader and Investment Holder.

 

Annual Revenue:                        HK$ 763,653,872  (Year ended 31-03-2012)

 

Employees:                               20.  (Including associates in Hong Kong)

 

Main Dealing Banker:                 The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:                       Good.


ADDRESS

 

Registered Head Office:-

7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon, Hong Kong.

 

China Office:  Shanghai, China.

 

Overseas Offices:  Bangladesh (Dacca), India (Bangalore and New Delhi).

 

Holding Company:-

Norwest Industries Ltd., Hong Kong.  (same address)

 

Intermediate Holding Company:-

Multinational Textile Group Ltd., Mauritius.

 

Ultimate Holding Company:-

Pearl Global Industries Ltd., India.
[Formerly known as House of Pearl Fashions Ltd.]

 

Sister & Affiliated Companies:-

House of Pearl Fashions Group of Companies

Casa Forma Ltd., UK.

Crown Computerized Embroidery, India.

Deepak Seth & Sons (HUF), India.

Depa International Inc., USA.

Fru Holdings Ltd., Mauritius.

FX Import Co. Ltd., UK.

FX Import Hong Kong Ltd., Hong Kong.

Global Textiles Group Ltd., Mauritius.

Grand Pearl Trading Ltd., China.

Group Extremo SUR S.A., Chile.

Hopp Fashions, India.

House of Pearl Fashions (US) Ltd., USA.

JSM Trading (F.Z.E.), Dubai.

Lerros Fashions India Ltd., India.

Lerros Moden GmbH, Germany.

Little People Education Society, India.

Magic Global Fashions Ltd., UK.

Multinational Textile Group Ltd., India.

NAFS Ltd., UK.

Nahata Ltd., UK.

Nim International Commerce Pvt. Ltd., India.

Nor Delhi Manufacturing Ltd., Hong Kong.

Nor Europe MFG Co. Ltd., Hong Kong.

Nor India Manufacturing Co. Ltd., Hong Kong.

Nor Lanka Manufacturing Ltd., Hong Kong.

Nordelhi Manufacturing Ltd., Hong Kong.
[Formerly known as Magic Global Fashions Ltd.]

Norp Knits Industries Ltd., Bangladesh.

Nor-Pearl Knitwear Ltd., Bangladesh.

Norwest Industries Ltd., Hong Kong.

P.T. Norwest Industry, Indonesia.

Pacific Logistics Ltd., UK.

Pacific Supply Chain Ltd., UK.

Pallas Holdings Ltd., Mauritius.

PDS Multinational Fashions Ltd., India.

Pearl Academy of Fashion India Ltd., India.

Pearl Apparels Ltd., India.

Pearl GES Home Group S.p.A., Chile.

Pearl Global (Australia) Pty. Ltd., Australia.

Pearl Global (HK) Ltd., Hong Kong.

Pearl Global Fareast Ltd., Hong Kong.

Pearl Global Ltd., India.

Pearl Retail Solutions Pvt. Ltd., India.

Pearl Wears, India.

PG Group Ltd., Hong Kong.
[Formerly known as Pearl GES Group Ltd.]

PG Home Group Ltd., Hong Kong.
[Formerly known as Pearl GES Home Group Ltd.]

Poetic Knitwear Ltd., UK.

Poeticgem (Canada) Ltd., Canada.

Poeticgem Ltd., UK.

Premier Fashion Garment JSC, Vietnam.

Premier Pearl Garment Joint Stock Co. Ltd., Vietnam.

Propur Invest Ltd., UK.

PS Arts Pvt. Ltd., India.

PS Sourcing Ltd., Hong Kong.

Razamtazz Ltd., Mauritius.

SACB Holdings Ltd., Mauritius.

Simple Approach Ltd., Hong Kong.

Sino West MFG Co. Ltd., Hong Kong.

Spring Near East Manufacturing Co. Ltd., Hong Kong.

Superb Mind Holdings Ltd., Mauritius.

Vastras, India.

Vau Apparels Pvt. Ltd., India.

Zamira Fashion Ltd., Hong Kong.

Zamira Fashions (Europe) Ltd., Hong Kong.

Zamira Fashions Europe Ltd., UK.

etc.

 

 

BUSINESS REGISTRATION NUMBER 

 

50449630

 

 

COMPANY FILE NUMBER 

 

1281519

 

MANAGEMENT

 

Group Chairman:  Mr. Deepak Kumar Seth

Group Vice Chairman:  Mr. Pallak Seth

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

 

SHAREHOLDER

(As per registry dated 22-10-2011)

 

Name

 

No. of shares

Norwest Industries Ltd.

7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon, Hong Kong.

 

10,000

=====

 

 

DIRECTORS

(As per registry dated 05-07-2012)

 

Name

(Nationality)

 

Address

Deepak Kumar SETH

9 Avenue Ashok, West End, Green Farms, Rajokri, New Delhi 11038, India.

 

Pallak SETH

3/F. & 4/F., 43 Green Street, London, W1K 7FJ, UK.

 

 

SECRETARY

(As per registry dated 22-10-2011)

 

Name

Address

Co. No.

Louis Lai Co. Secretarial Services Ltd.

9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

0686503

 

 


HISTORY

 

The subject was incorporated on 22nd October, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Mark Rainbow Ltd., name changed to Poetic Hongkong Ltd. on 31st March, 2009, and further changed to the present style on 25th June, 2010.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Investment Holder.

 

Lines:                           All kinds of garments.

 

Employees:                   20.  (Including affiliates in Hong Kong)

 

Commodities Imported:   China, India, other Asian countries.

 

Markets:                       Worldwide countries.

 

Annual Revenue:            HK$  93,522,614  (Year ended 31-03-2011)

HK$763,653,872  (Year ended 31-03-2012)

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

Net Profit:                      HK$  2,067,461  (Year ended 31-03-2011)

HK$24,229,538  (Year ended 31-03-2012)

 

Profit or Loss:                Business of holding company is profitable.

 

Condition:                      Keeping in a normal manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Intesa Sanpaolo S.p.A., Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

Nor Lanka Manufacturing Ltd. was a wholly-owned subsidiary of Multinational Textile Group Ltd. [MTGL] which was a Mauritius-registered firm.  The ultimate holding company of the subject was House of Pearl Fashions Ltd. [HPFL], an India-based and listed firm.  Now, the holding company of the subject is Norwest Industries Ltd. [NIL], a Hong Kong-registered firm located at the same operating office.  HPFL has changed name to Pearl Global Industries Ltd. [PGIL].

PGIL including its subsidiaries and associates are referred as the Pearl Global Group [Group].  The subject is a garment trader.  It is one of the sourcing arms of PGIL.

NIL’s aims are to leverage its presence in this region to maximize its business volumes and margins.  To strengthen its sourcing capability credentials, over the years, NIL has set up the following sourcing offices:-

·         Norwest Industries Ltd., Bangalore, India.

·         Norwest Industries Ltd., Dacca, Bangladesh.

·         Norwest Industries Ltd., New Delhi, India.

·         Norwest Industries Ltd., Shanghai, China.

·         Zamira Fashion Ltd., Hong Kong.

These offices are specialized in products merchandising and QA teams directly coordinating production with third party factories on a day to day basis to ensure quality and timely delivery of customer orders.

The Group carries two brands “Kool hearts” and “DCC” in the United States.  The brand “Kool hearts” focuses on the young fashion, where as the focus of “DCC” is more towards Missy segment.

The Group’s sourcing business has developed strong partnership with more than 150 factories across Asia over the past years.  Besides, the Group also offers warehousing solutions in the United Kingdom and the United States.

For the year ended 31st March, 2012, the sales of the subject amounted to HK$763.7 million, grew by 716.6% as compared with HK$93.5 million in FY 2011; profit for the year was HK$24.2 million, grew substantially as compared with HK$2.1 million in FY 2011.

For the year ended 31st March, 2012, the sales of the Pearl Global Group amounted to Rs. 27,984.9 million (2011: Rs. 22,510.3 million); Group profit for the year was Rs. 314.9 million (2011: Rs. 195.7 million).

On 19th November, 2010, the Group acquired a 100% interests in Nor Lanka Manufacturing Ltd. [Nor Lanka] from Multinational Textile Group Ltd., the immediate holding company of the subject.  Nor Lanka is engaged in garments trading.

On the whole, in view of the parentage and background of the subject, consider it good for normal business engagements.

 

 

REMARKS

 

            Brief information of directors:-

Mr. Deepak Kumar SETH, born in 1951, a non-resident Indian, is the Non-executive Chairman of HPFL.  He has a Bachelor of Economics from St. Stephen’s College, Delhi and Post Graduate of Business Management from Jamnalal Bajaj Institute of Management, Mumbai.  He is also the Non-executive Chairman of Pearl Global, the listed subsidiary of HPFL.  He has over 32 years of experience in the apparel industry.  He led in expanding the operations from a single manufacturing unit in India to the current operations in 12 locations across the world.  He has played an important role in setting up its sourcing business in Hong Kong, Bangladesh and China, setting up new manufacturing units in Bangladesh and Indonesia and acquiring existing businesses in the UK and the US.  He was elected to the Apparel Export Promotion Council in the years 1990 and 1993, and has been inducted to the Executive Committee of the Apparel Export Promotion Council as a special invitee.

Mr. Pallak SETH, born in 1977, a non-resident Indian, is the Non‑executive Vice-Chairman of HPFL.  He has a Bachelor of Economics and International Business degree from Northwestern University, US.  He has over eight years of experience in the apparel industry.  He has played an important role in setting up its sourcing business in Hong Kong, Bangladesh and China by promoting the subject.  He was also responsible in expanding its operations in the UK and is currently the Managing Director of Poeticgem Ltd., a subsidiary of HPFL.  He has led in establishing strong relationships with third-party manufacturing units and leading retailers such as ASDA Wal-Mart, Matalan, Next, Tesco and British Home Stores.

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

25-02-2011

Instrument:        Trade Finance Security Deed

Property:

By the Deed, all the Company’s right, title, interest and benefit to and in all and any moneys now or at any time due or owing to the Company under or in connection with the Collateral and all other rights and benefits whatsoever accuring now or at any time to the Company thereunder or in connection therewith

Mortgagee:        Intesa Sanpaolo S.p.A., Hong Kong Branch.

By the Deed, all the Company’s obligations and liabilities due or owing to the bank of every kind anywhere and at any time and in any currency or currencies and whether present or future, actual or contingent and whether incurred alone or jointly with or as surety for another

17-04-2012

Instrument:        General Commercial Agreement

Property:

(1)        All bills of exchange drawn, accepted or endorsed by the company, all produce and goods, shipping documents, bills of lading, warrants, delivery orders, wharfingers’ or other warehouse keepers certificates or receipts and other documents of title, invoices and like documents shall be held by and pledged to the Bank as a continuing security for the payment and discharge of all moneys, obligations and liabilities;
(2)        The company assigns and agree to assign to the Bank (a) any and all moneys and claims for moneys owing to account under or pursuant to (i) any and all documentary credits under this Agreement, and all drafts, demands or other instruments drawn or made or purported to be drawn or made thereunder (“Master Credits”) and (ii) any and all contracts entered into by the Company for the sale or supply of goods or services (“Sale Contracts”); (b) any and all moneys and claims for moneys owing to account under or pursuant to policies of insurance; and (c) all proceeds of any of the foregoing

Mortgagee:        Intesa Sanpaolo S.p.A., Hong Kong Branch.

All monies at the date of the Deed or at any time thereafter or from time to time due, owing or payable to the Bank from or by the Company


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.62

UK Pound

1

Rs.83.57

Euro

1

Rs.67.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.