MIRA INFORM REPORT

 

 

Report Date :

09.01.2013

 

IDENTIFICATION DETAILS

 

Name :

INDIAN PROVISION STORES

 

 

Registered Office :

Room E, G/F., 18-20 Bowrington Road, Wanchai,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

01.06.1971

 

 

Com. Reg. No.:

3279531-000-06

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Importers and Exporters; Distributors, Wholesalers and Retailers; Commission Agents; Ship Chandlers and Hotel Suppliers of All kinds of provision and foodstuff

 

 

No. of Employees :

10

 

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 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

 

 


Company name

 

INDIAN  PROVISION  STORES

 

 

ADDRESS

 

Room E, G/F., 18-20 Bowrington Road, Wanchai, Hong Kong.

 

PHONE:            2891 8324,  2891 8024,  2891 8104

 

FAX:                 2572 5073

 

E-MAIL:                        ips1957@netvigator.com

 

 

MANAGEMENT

 

Manager:  Mr. Gurdev Singh Brar

 

 

SUMMARY

 

Establishment:                          1st June, 1971.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Provision Store/Supermarket.

 

Employees:                   10.

 

Main Dealing Bankers:   Indian Overseas Bank, Hong Kong Branch.

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

 

Banking Relation:           Satisfactory.


Company name

 

INDIAN PROVISION STORES

 

 

ADDRESS

 

Head Office & Store:-

Room E, G/F., 18-20 Bowrington Road, Wanchai, Hong Kong.

 

Warehouse:-

Unit 4, 19/F., Harbour Industrial Centre, 10 Lee Hing Street, Ap Lei Chau, Hong Kong.

 

Associated Companies:-

Brar Sons Ltd., Hong Kong.

[Trading as “Chillie Sark” and “Italian Otto”]

Brar Group (Hong Kong) Ltd., Hong Kong.

Saarland (HK) Ltd., Hong Kong.

Indian Provision Store & Supermarket

Shop 65-66, G/F., Chungking Arcade, Chungking Mansion, 36‑44 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

3279531-000-06

 

 

MANAGEMENT

 

Manager:  Mr. Gurdev Singh Brar

 

 

SOLE PROPRIETOR

 

Name:  Gurdev Singh BRAR

Residential Address:      Flat B, 8/F., Lai Shing Court, 15 Tai Hang Road, Hong Kong.

 

 

HISTORY

 

The subject was originally established on 1st June, 1971 as a partnership concern of Messrs. Gurdev Singh Brar and Buta Singh Brar under the Hong Kong Business Registration Regulations.

 

Changed to a sole proprietorship firm solely owned by Mr. Gurdev Singh Brar on 31st March, 1994.

 

The subject was initially located at G/F., 11-A Salisbury Avenue, Kowloon, Hong Kong., moved to G/F., 11A Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong in September 1987; to Flat D-4, 6/F., Chungking Mansion, 36-44 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in June 1990; to G/F., 34 Bowrington Road, Wanchai, Hong Kong in March 1994 and further to the present address in February 2007.

 

There had been a branch store, located at G/F., 29 Canal Road East, Wanchai, Hong Kong, which was relocated at G/F., 42 Yiu Wah Street, Hong Kong in July 1992, but the business was closed down on 30th May, 1994.

 

Another branch, originally located at G/F., 42 Yiu Wah Street, Hong Kong, was established in August 1983.  This branch moved to Block M, 14/F., Kingley Industrial Building, 33-35 Yip Kan Street, Aberdeen, Hong Kong in July 1992.  On 30th September, 1994, this branch was also closed down.

 

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

 

 

OPERATIONS

 

Activities:                      Importers and Exporters; Distributors, Wholesalers and Retailers; Commission Agents; Ship Chandlers and Hotel Suppliers.

 

Lines:                           All kinds of provision and foodstuff.

 

Sole Agents for:-

Q.B.B. Brand Ghee –Australia.

Harvey Fresh UHT Milk – Western Australia.

Austcrown UHT Milk

Golden Temple Durum Atta Flour

Rose Brand Rose Syrup – T.G. Kiat & Co. (Pte) Ltd., Singapore.

 

Authorised Distributor for:-

Ahmed Food (Pvt) Ltd., Pakistan.  [Jams, jellies marmalade, pickles, whole & ground spices, spices’ pastes, canned mughalai recipes, syrups, aromatic distillates, chutneys, tomato ketchup, murabbas, instant custard, crystal jelly and kheer mix, fine vermicelli, etc.]

 

Employees:                   10.

 

Commodities Imported:   Mainly arranged from India, Pakistan, Australia, Singapore, etc.

 

Markets:                       Hong Kong and China.

 

Terms/Sales:                 COD or 30 days credit.

 

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

 

 

MEMBERSHIP

 

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active and good condition.

 

Facilities:                      Is making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Good.

 

Bankers:-

Indian Overseas Bank, Hong Kong Branch.

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

BNP Paribas, Hong Kong Branch.

 

Standing:                      Good.

 

 

GENERAL

 

Bearing the Business Registration No. 3279531, Indian Provision Stores is a partnership having two partners, namely, Mr. Gurdev Singh Brar and Mr. Buta Singh Brar.  It was established on 1st June, 1971.

The subject is engaged in operating grocery stores which have succeeded to the predecessor, a sole proprietorship firm owned by the late Mr. H. S. Brar.

The subject changed to a sole proprietorship concern solely owned by Mr. Gurdev S. Brar when Mr. Buta S. Brar retired on 31st March, 1994.

The subject is a leading Indian grocery store in Hong Kong.  It is an importer, exporter, commission agent, wholesaler and retailer.  It is trading in Indian grocery, international diary products, rice, ethnic frozen products.

The subject has been appointed as the sole agents for Q.B.B. Brand Ghee, Golden Temple Durum Atta Flour, Harvey Fresh UHT Milk, Austcrown UHT Milk, Rose Brand Rose Syrup, etc.  Commodities are mostly sold to local Indian communities and families.

The subject is retailing the following commodities:-

Product/Service

Product/Service Remarks

Food and Beverage

 

Sauce and Seasoning

Spice and lentil from India, Pakistan, Australia, Canada and USA. Saffron from Spain

Spice

 

Dairy Products

 

Milk

UHT milk from Australia and New Zealand

Confectionery

 

Candy and Sweet

From India, Australia and USA

Dried and Preserved Food

From India, Australia, Canada, Pakistan and USA

Canned Food

From India, Australia, Canada, Pakistan and USA

Non-Alcoholic Beverage

 

Tea and Teabag

Indian tea from India and Sri Lanka

Agricultural Products, Livestock and Poultry

 

Seed

Guar seeds

Cereal

From India, Canada and Australia

Rice

Basmati rice from India, Pakistan and Canada

Chemicals (including Plastic Materials)

 

Food Chemicals

Guar gum/seed gum

 

Located at the same address, the subject has got an associate known as Brar Sons Ltd. [BSL] which was incorporated on 2nd April, 1997.  The shareholders are Mr. Jaswinder Singh Brar and Mr. Natha Singh.  The board of directors of BSL include Mr. Gurdev S. Brar, Mrs. Amar Kaur Brar and Mr. Jaswinder Singh Brar.  BSL is currently the owner and operator of the following restaurants:-

Chillie Sark  [General restaurant & bar]

1)       Shop 203, Maritime Square, Tsing Yi, New Territories, Hong Kong.

(Established on 1st September, 1998)

2)       Shops G47 & G48, Paradise Mall, Heng Fa Chuen, Chai Wan, Hong Kong.  (Established on 15th October, 2001)

Italian Otto  [Restaurant & cafe]

 

Shops A130-A131, New Town Plaza III, Shatin, New Territories, Hong Kong.  (Established on 18th August, 2000)

Another firm Curry Hunters, a food court counter located at Unit 3, 1/F., Cathay Pacific City, 8 Scenic Road, Hong Kong International Airport, Chek Lap Kok, Lantau, Hong Kong, was set up on 1st April, 1999.  Now, this firm has been closed down.

 

According to BSL’s registration, a company also under the name of Indian Provision Stores (bearing the same Business Registration No. 20799548 as BSL’s) was established on 4th April, 1997.  This firm was solely owned by BSL but has ceased business since 28th December, 1998.

 

The subject and its associated firms belong to the Brar Group.  The Group was founded in Hong Kong in 1957.  Its mission is to provide local Indian customers with consumers food and beverages.

 

According to the Group, it imports foodstuffs and provisions via Brar Foods (HK) Ltd., Saarland (HK) Ltd. and the subject.  However, the first firm has not registered in Hong Kong.

 

Another key enterprise of the Group is Brar Group (HK) Ltd. [BGHKL] which is operated by Bobby & Tony Enterprises.

Since conception 16 years ago, BGHKL has evolved and grown to be one of the leading providers of 100% Cotton Shirting and Woollen Suiting fabrics.  It caters locally on a retail basis and local tailors and on a wholesale basis to garment manufacturers and international importers.

 

BGHKL’s turnover ratio of 70:30 (local to exports) has substantially changed to 60:40 (export to local) over the period and its annual trading volume is about 30 million meters.

 

BGHKL has been servicing customers with Poplin, Oxford, French Oxford, Chambray, Pin-Point, Twills in Checks, Stripes, fancy Dobby and Printed Designs ranging in different yarn counts 40s 50s 60s 70s 80s 100s 120s 140s 160s 200s which are in 1-ply and 2-ply.

 

The annual sales turnover of the Group ranges from HK$150 to 200 million.  Overall business is satisfactory.

The history of the subject in Hong Kong is over 41 years and seven months.

 

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

 

 

REMARKS

 

Court case record of associate:-

Date

Plaintiff

Defendant

Cause

Amount

June 2002

MTR Corporation Ltd.

Brar Sons Ltd., Jaswinder Singh Brar and Natha Singh

Landlords and Tenants (Possession)

Not stated

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.33

UK Pound

1

Rs.89.05

Euro

1

Rs.72.57

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.