|
Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
NORWEST INDUSTRIES LTD. |
|
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Formerly Known As : |
Norwest Trading Ltd |
|
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Registered Office : |
7/F., |
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Country : |
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Date of Incorporation : |
24.06.1998 |
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Com. Reg. No.: |
22023858 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of garments. |
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|
|
No. of Employees : |
20. (Including
affiliates in |
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 (31.03.2012) |
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 |
NORWEST INDUSTRIES
LTD.
7/F., Park Fook Industrial
Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon, Hong Kong.
PHONE: 3588 1988
FAX: 2117 0079
Director & Chief Executive Officer:
Mr. Sandeep Malhotra
Incorporated on: 24th
June, 1998.
Organization: Private
Limited Company.
Capital: Nominal: US$1,200,000.00
Issued: US$1,200,000.00
Business Category: Garment Trader.
Turnover:- (Year
ended 31-03-2011)
HK$1,654,558,243 (Company)
Rs 22,069,010,496 (Group)
Employees:
20. (Including affiliates in Hong Kong)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head Office:-
7/F., Park Fook Industrial Building, 615-617
Tai Nan West Street, Cheung Sha Wan, Kowloon, Hong Kong.
Overseas Offices:-
Bangladesh (Dacca), China (Shanghai) and
India (Bangalore and New Delhi).
Holding Company:-
Multinational Textile Group Ltd., Mauritius.
Ultimate Holding Company:-
Pearl Global Industries Ltd., India.
[Formerly known as House of Pearl Fashions Ltd.]
Subsidiaries:-
Nor India Manufacturing Co. Ltd., Hong Kong.
Nor Lanka Manufacturing Ltd., Hong Kong.
[Formerly known as Poetic Hong Kong Ltd.]
Spring Near East Manufacturing Co. Ltd.,
Hong Kong.
Sister & Affiliated Companies:-
House of Pearl
Fashions Group of Companies
FX Import Co. Ltd., UK.
FX Import Hong Kong Ltd., Hong Kong.
Global Textiles Group Ltd., Mauritius.
Grand Pearl Trading Co. Ltd., China.
House of Pearl Fashions (US) Ltd., USA.
Lerros Fashions India Ltd., India.
Lerros Moden GmbH, Germany.
Magic Global Fashions Ltd., UK.
Nordelhi Manufacturing Ltd., Hong Kong.
[Formerly known as Magic Global Fashions Ltd.]
Norp Knit Industries Ltd., Bangladesh.
P.T. Norwest Industry, Indonesia.
Pacific Logistics Ltd., UK.
Pacific Supply Chain Ltd., UK.
Pearl GES Home Group S.p.A., Chile.
Pearl Global (HK)Ltd., Hong Kong.
Pearl Global Fareast Ltd., Hong Kong.
Pearl Global Ltd., 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.
Razamtazz Ltd., Mauritius.
SACB Holdings Ltd., Mauritius.
Simple Approach Ltd., Hong Kong.
Zamira Fashion Ltd., Hong Kong.
Zamira Fashions Europe Ltd., UK.
etc.
22023858
0648235
Group Vice Chairman: Mr. Pallak
Seth
Director & Chief Executive Officer:
Mr. Sandeep Malhotra
Nominal Share Capital: US$1,200,000.00 (Divided into 1,200,000 shares of
US$1.00 each)
Issued Share Capital: US$1,200,000.00
(As per registry dated 24-06-2011)
|
Name |
|
No. of shares |
|
Multinational Textile Group Ltd. Manor House, 1/F., CNR St. George & Chazal Street,
Port Louis, Mauritius. |
|
1,020,000 |
|
Pallak SETH |
|
180,000 |
|
|
|
–––––––– |
|
|
Total: |
1,200,000 ======= |
(As per registry dated 24-06-2011)
|
Name (Nationality) |
Address |
|
Pallak SETH |
43 Green Street, Flat 3 & 4, Mayfair, London W1K 7FJ, UK. |
|
Sandeep MALHOTRA |
Flat A, 4/F., Green Villa, 90 Pok Fu Lam Road, Pokfulam, Hong Kong. |
|
Faiza Habeeb SETH |
43 Green Street, Flat 3 & 4, Mayfiar, London W1K 7FJ, UK. |
(As per registry dated 24-06-2011)
|
Name |
Address |
Co. No. |
|
Tricor Tengis Ltd. |
Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong. |
0041027 |
The subject was incorporated on 24th June, 1998 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Norwest Trading
Ltd., name changed to the present style on 27th October, 1998.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of garments.
Employees: 20. (Including affiliates in Hong Kong)
Commodities Imported: China, other Asian countries.
Markets: Hong
Kong, China, etc.
Turnover:-
|
FY |
Company |
Group |
|
Year ended 31-03-2007 |
HK$ 584,323,885 |
Rs 9,154,004,010 |
|
Year ended 31-03-2008 |
HK$ 741,209,577 |
Rs 10,691,755,484 |
|
Year ended 31-03-2009 |
HK$ 902,327,878 |
Rs 14,351,898,188 |
|
Year ended 31-03-2010 |
HK$1,058,634,830 |
Rs 18,134,055,033 |
|
Year ended 31-03-2011 |
HK$1,654,558,243 |
Rs 22,069,010,496 |
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
Nominal Share Capital: US$1,200,000.00 (Divided into 1,200,000 shares
of US$1.00 each)
Issued Share Capital: US$1,200,000.00
Indebtedness: HK$218,156,675.60 (Total amount outstanding on all mortgages and
charges as per last Annual Return dated 24-06-2011)
Mortgage or Charge (since July 2010): (See attachment)
Net Profit:-
|
FY |
Company |
Group |
|
Year ended 31-03-2007 |
HK$36,830,142 |
Rs
111,159,347 |
|
Year ended 31-03-2008 |
HK$55,807,276 |
Rs
534,862,605 |
|
Year ended 31-03-2009 |
HK$38,358,795 |
Rs
990,084,653 |
|
Year ended 31-03-2010 |
HK$54,383,161 |
Rs 1,042,646,976 |
|
Year ended 31-03-2011 |
HK$43,716,837 |
Rs 1,130,974,142 |
Net Worth:-
|
FY |
Company |
Group |
|
Year ended 31-03-2007 |
HK$
66,076,095 |
Rs 3,907,296,448 |
|
Year ended 31-03-2008 |
HK$126,272,601 |
Rs 4,339,178,290 |
|
Year ended 31-03-2009 |
HK$170,388,720 |
Rs 4,697,508,184 |
|
Year ended 31-03-2010 |
HK$221,135,966 |
Rs 4,543,578,158 |
|
Year ended 31-03-2011 |
HK$246,856,848 |
Rs 4,713,030,153 |
Profit or Loss: Making a small profit every year.
Condition:
Keeping in an
active and satisfactory 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.
UCO Bank, Hong Kong Branch.
Standard Chartered Bank (Hong Kong)
Ltd., Hong Kong.
BNP Paribas, Hong Kong Branch.
Canara Bank, Hong Kong Branch.
Intesa Sanpaolo S.p.A., Hong Kong Branch.
Bank of Baroda, Hong Kong Branch.
Punjab National Bank, Hong Kong Branch.
Standing: Good.
Norwest Industries Ltd. is a subsidiary of Multinational Textile Group Ltd.
which is a Mauritius-registered firm.
The ultimate holding company is Pearl Global Industries Ltd. [PGIL], an
India-based and listed firm. PGIL
including its subsidiaries and associates are referred as the Pearl Global
Group.
The subject is a garment trader.
It is the sourcing arm of PGIL.
The subject has had a subsidiary company in Hong Kong known as Nor India
Manufacturing Co. Ltd. located at its operating address.
The subject’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, the
subject 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.
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 Pearl Global 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, 2011, the sales of the subject amounted
to HK$1,654.6 million, grew by 56.3% as compared with HK$1,058.6 million in FY
2010; profit for the year was HK$43.7 million, decreased by 19.7% as compared
with HK$54.4 million in FY 2010.
For the year ended 31st March, 2011, the sales of the Pearl Global Group
amounted to Rs 22,069.0 million (2010: Rs 18,134.1 million); Group profit for the
year was Rs 1,131.0 million (2010: Rs 1,042.6 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.
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.
Brief personal
profile of the principal directors:-
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 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 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.
Mr. Sandeep MALHOTRA, born in 1969, is the Chief Executive Officer of
the subject. He is responsible for
overall operations of the subject. He
has over 13 years of experience in sales and marketing. He completed “O” level and “A” level courses
in 1986 and 1988, respectively. Prior to
joining the Group, he worked as Sales Director of SKD Pacific.
(Since July 2010)
|
Date |
Particulars |
Amount |
|
13-08-2010 |
Instrument: Deed of Charge on Deposit – Own
Liabilities Property: The Company charges and agrees to charge to the Bank by way of first
fixed charge and as continuing security for discharge of all Liabilities, all
existing and future rights and interests of the Company in all the moneys
from time to time standing to the credit of the account number
00001-203808-101-60 Mortgagee: BNP Paribas, Hong Kong Branch. |
To secure the payment and discharge of all present and future
indebtedness, obligations and/or liabilities |
|
12-10-2010 |
Instrument: Memorandum Property: Distinctive 91220300001273 30-08-2010 US$200,000.00 28-08-2011 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
12-10-2010 |
Instrument: Assignment of Life Insurance Property: (i) All the Assignor’s claims, options, privileges, right, title,
interest and benefit in and under the Insurance; and (ii) all the Assignor’s
claims and rights against the issuer of the Policy (No. 28002822) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Secured Monies |
|
12-10-2010 |
Instrument: Assignment of Life Insurance Property: (i) All the Assignor’s claims, options, privileges, right, title,
interest and benefit in and under the Insurance; and (ii) all the Assignor’s
claims and rights against the issuer of the Policy (No. 28002820) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Secured Monies |
|
22-03-2011 |
Instrument: Security Over Deposit in Respect of
Obligations of the Depositor (Company) – the “Agreement” Property: By the Agreement, the Depositor charges to the Bank by way of fixed first
charge and assign to the Bank by way of Mortgage all the Deposit and all
right, title and interest of the Depositor (Fixed deposit No. 4647-001-2739
for US$500,000.00 dated 17-02-2011) Mortgagee: Intesa Sanpaolo S.p.A., Hong Kong
Branch. |
To secure banking facilities and/or other financial accommodation up
to any sum or sums of money |
|
16-09-2011 |
Instrument: Undertaking Relating to Deposits Property: Amount Rate of Maturity FC 41 31-03-2011 US$454,151.88 0.78% 30-03-2012 Mortgagee: Canara Bank, Hong Kong Branch. |
“Liabilities” means all and any liabilities, sole or joint, actual or
contingent, quantified or not, now or hereafter owing or incurred to the Bank
by the Depositor or the Third Party |
|
04-11-2011 |
Instrument: Charge on Deposit to secure the
Depositor’s Obligations Property: Account No. Sum Dated 7141000866 US$1,008,516.67 31-03-2011 Mortgagee: Punjab National Bank, Hong Kong
Branch. |
As a continuing security for the payment and discharge of the Secured
Obligations |
|
12-03-2012 |
Instrument: Memorandum Property: No. of Receipts Date of
Issue Amount Due Date 91220300001273 28-08-2011 US$201,734.33 26-08-2012 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
17-04-2012 |
Instrument: Charge over Cash Deposit (the “Deed”) Property: By way of a first fixed charge, all the company’s present and future
rights in respect of the sum(s) of money (Account No. 852006869, and all time
deposits from time to time opened with the Bank and all other accounts) Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies at the date of the Deed and all other liabilities |
|
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; Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies at the date of the Deed and all other liabilities |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.58 |
|
UK Pound |
1 |
Rs.86.60 |
|
Euro |
1 |
Rs.68.94 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.