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Report Date : |
06.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
Norwest Industries 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 Wholesalers of all kinds of Garments. |
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No. of Employees : |
22 (Including
Affiliates in |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 levies excise
duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon
oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of
total system deposits in Hong Kong by the end of 2012, an increase of 59% from
the previous 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 34.9 million in 2012,
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 2012 mainland Chinese companies constituted about 46.6% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit
expansion and tight housing supply conditions caused Hong Kong property prices
to rise rapidly and inflation to rise 4.1% in 2012. 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.
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
E-MAIL: accounts@norwest.com.hk
Director & Chief Executive Officer: Mr. Sandeep Malhotra
Incorporated on: 24th June, 1998.
Organization: Private Limited Company.
Capital: Nominal:US$4,000,000.00
Issued: US$4,000,000.00
Business Category: Garment Trader.
Annual Turnover:- (Year ended 31-03-2012)
HK$2,227,897,396 (Company)
Rs 27,984,910,633 (Group)
Employees: 22. (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:-
Grand Pearl Trading Co. Ltd., China.
Nor Europe Manufacturing
Co. Ltd., Hong Kong.
[Formerly known as Nor Barcelona Manufacturing Co. Ltd.]
Nor India Manufacturing Co. Ltd., Hong Kong.
Nor Lanka Manufacturing
Ltd., Hong Kong.
[Formerly known as Poetic Hong Kong Ltd.]
Sino West Manufacturing Co. Ltd., Hong Kong.
Spring Near East Manufacturing Co. Ltd., Hong Kong.
Sister & Affiliated Companies:-
House
of Pearl Fashions Group of Companies
Casa Forma Ltd., UK.
FX Import Co. Ltd., UK.
FX Import Hong Kong Ltd., Hong Kong.
GHouse of Pearl Fashions (US) Ltd., US.
Global Textiles Group Ltd., Mauritius.
House of Pearl Fashions (US) Ltd., US.
Lerros Fashions India Ltd., India.
Lerros Moden GmbH, Germany.
Magic Global Fashion Ltd., UK.
Nahata Ltd., UK.
Nor Delhi Manufacturing Ltd., Hong Kong.
Nor Europe MFG Co. Ltd., Hong Kong.
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.
PDS Multinational Fashions 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.
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.
Propur Invest Ltd., UK.
PS Sourcing Ltd., Hong Kong.
Razamtazz Ltd., Mauritius.
SACB Holdings Ltd., Mauritius.
Simple Approach Ltd., Hong Kong.
Sino West MFG Co. 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$4,000,000.00 (Divided into 4,000,000 shares of US$1.00 each)
Issued Share Capital: US$4,000,000.00
(As per registry dated 13-12-2012)
|
Name |
|
No.
of shares |
|
Multinational Textile Group
Ltd. Manor House,
1/F., CNR St. George & Chazal Street, Port Louis, Mauritius. |
|
3,400,000 |
|
Pallak SETH |
|
600,000 |
|
|
|
–––––––– |
|
|
Total: |
4,000,000 ======= |
(As per registry dated 01-02-2013)
|
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 24-06-2012)
|
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: 22. (Including affiliates in Hong Kong)
Commodities Imported: China, other Asian countries.
Markets: Hong Kong, China, etc.
Annual Turnover:-
|
FY |
Company |
Group |
|
Year ended 31-03-2011 |
HK$1,654,558,243 |
Rs 22,510,310,300 |
|
Year ended 31-03-2012 |
HK$2,227,897,396 |
Rs 27,984,910,633 |
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
Nominal Share Capital: US$4,000,000.00 (Divided into 4,000,000 shares of US$1.00 each)
Issued Share Capital: US$4,000,000.00
Indebtedness: HK$212,565,631.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 24-06-2012)
Mortgage or Charge (since July 2010): (See attachment)
Profit:-
|
FY |
Company |
Group |
|
Year ended 31-03-2011 |
HK$43,716,837 |
Rs 195,650,301 |
|
Year ended 31-03-2012 |
HK$43,376,767 |
Rs 314,900,466 |
Net Worth:-
|
FY |
Company |
Group |
|
Year ended 31-03-2011 |
HK$246,856,848 |
Rs 4,713,030,154 |
|
Year ended 31-03-2012 |
HK$286,294,131 |
Rs 5,480,793,269 |
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: Very 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.
PGIL (Formerly House of Pearl Fashion Limited) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. PGIL is engaged in manufacturing, sourcing and export of ready to wear apparels through its domestic and global facilities.
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$2,227.9 million, grew by 34.6% as compared with HK$1,654.6 million in FY 2011; profit for the year was HK$43.4 million, decreased by 0.7% as compared with HK$43.7 million in FY 2011.
The Group works only with customers who have sound financial credibility. All orders are either backed by bank consigned L/C or insured with Banks / Euler Hermes. The Group does not take any risk on account of stock. All inventory / purchases are backed by confirmed customer orders rupee appreciation is always a major concern to our type of industry. In 2012, rupee fell by 13-14% against USD.
Garment manufacturing is totally a labour intensive and even after greater automation it will remain so.
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 |
|
03-04-2013 |
Instrument: Security Over Deposit in Respect of Obligations of the
Deposit (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. 4647-001-6692 for US$1,250,000.00 dated 28-03-2013) 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 that the Bank may from time to
time granted to the company |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.95 |
|
|
1 |
Rs.70.50 |
|
Euro |
1 |
Rs.83.81 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.