MIRA INFORM REPORT

Report Date :

30.10.2012

IDENTIFICATION DETAILS

Correct Name :	NORDELHI MANUFACTURING LTD.
Formerly Known As :	Magic Global Fashions
Registered Office :	7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon
Country :	Hong Kong
Date of Incorporation :	19.01.2009
Com. Reg. No.:	50210023
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler 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 :	Satisfactory
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 30^th, 2012

Country Name	Previous Rating (31.03.2012)	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

NORDELHI MANUFACTURING LTD.

Company 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

Managing Director: Mr. Pallak Seth

SUMMARY

Incorporated on: 19th January, 2009.

Organization: Private Limited Company.

Capital: Nominal: HK$2,000,000.00

Issued: HK$2,000,000.00

Business Category: Garment Trader.

Revenue: HK$19,688,475 (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: Satisfactory.

Company ADDRESS

Registered Head Office:-

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

Holding Company:-

Multinational Textile Group Ltd., Mauritius.

Ultimate Holding Company:-

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

Subsidiary:-

Magic Global Fashions Ltd., UK.

Sister & Associated Companies:-

Pearl Global Industries Group of Companies

Casa Forma Ltd., UK.

Deepak Seth & Sons (HUF), India.

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.

Grupo Extremo SUR S.A., Chile.

Hopp Fashions, India.

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

JSM Trading FZE., Dubai.

Lerros Fashions India Ltd., India.

Lerros Moden GmbH, Germany.

Little People Education Society, India.

NAFS Ltd., UK.

Nahata Ltd., UK.

Nim Int’l Commerce Pvt. Ltd., India.

Nor Europe Mfg. Co. Ltd., Hong Kong.

Nor India Manufacturing Co. Ltd., Hong Kong.

Nor Lanka Manufacturing Ltd., Hong Kong.
[Formerly known as Poetic Hongkong Ltd.]

Norp Knit Industries 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 Apparels Ltd., India.

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

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 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., UK.

etc.

BUSINESS REGISTRATION NUMBER

50210023

COMPANY FILE NUMBER

1301954

MANAGEMENT

Managing Director: Mr. Pallak Seth

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

SHAREHOLDER

(As per registry dated 19-01-2012)

Name	No. of shares
Multinational Textile Group Ltd. c/o Krossborder Trust Services Ltd. St. Louis Business Centre, Cnr Desroches & St. Louis Street, Port Louis, Mauritius.	2,000,000 =======

DIRECTOR

(As per registry dated 03-05-2012)

Name (Nationality)	Address
Pallak SETH	3/F. & 4/F., 43 Green Street, London, W1K 7FJ, UK.

SECRETARY

(As per registry dated 19-01-2012)

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 19th January, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Magic Global Fashions Ltd., name changed to the present style on 10th February, 2011.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of garments.

Employees: 20. (Including associates in Hong Kong)

Commodities Imported: China, other Asian countries.

Markets: Hong Kong, China, etc.

Revenue: Not Available (Year ended 31-03-2011)

HK$19,688,475 (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$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

Net Profit/(Loss): (HK$ 5,983) (Year ended 31-03-2011)

HK$289,376 (Year ended 31-03-2012)

Profit or Loss: Business is profitable in FY 2012.

Condition: Keeping in an active and satisfactory condition.

Facilities: Making 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: Normal.

GENERAL

Nordelhi Manufacturing Ltd. is a subsidiary of Multinational Textile Group Ltd. [MTGL] which is a Mauritius-registered firm. The ultimate holding company is Pearl Global Industries Ltd. [PGIL], an India-based and listed firm. PGIL includes its subsidiaries and associates are referred as the PGIL Group.

The subject is a garment trader. It is one of the sourcing arms of PGIL. The subject has had a subsidiary company known as Magic Global Fashions Ltd. which is a UK-based firm. Its aims are to leverage its presence in this region to maximize its business volumes and margins.

The subject has had a number of associated sourcing offices in Hong Kong, the United Kingdom, Indonesia, Bangladesh, India, South America, Canada, Mauritius, etc. 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. These sourcing offices have built relationships with around 150 partner factories by educating them and helping them to come to a level where they meet compliance requirement of all the major retailers of the world. The sourcing stream offers complete logistics, quality assurance and timely dispatch of goods to the Group’s customers.

The subject offers a wide range of products comprising of wovens, jersey wear and sweaters. Business is active.

PGIL is engaged in multinational ready to wear apparel business. It currently operates in 11 strategic locations and six continents, leveraging the strengths of each country in creating a strong value for its clients. PGIL provides global supply chain solutions for the fashion industry. It has a complete control on the services from designing, developing, manufacturing or sourcing. PGIL has teams of international designers working in New York, Los Angeles, London, Hong Kong and India.

The Group has set up three distinct business streams:-

· Manufacturing to Retailers

Souring solutions for Retailers

Marketing, Distribution and Branding for Retailers

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 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).

For the year ended 31st March, 2012, the sales of the subject amounted to HK$19.7 million (2011: Not Available); profit for the year was about HK$0.3 million (2010: Made a loss of HK$5,983.00).

The subject is fully supported by PGIL.

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

REMARKS:

Brief personal profile of the director:-

Mr. Pallak SETH, born in 1977, a non-resident Indian, is the Non‑executive Vice-Chairman of PGIL. He has a Bachelor of Economics and International Business degree from Northwestern University, US. He has over nine 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 PGIL. 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.81
UK Pound	1	Rs.86.52
Euro	1	Rs.69.50

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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