MIRA INFORM REPORT

 

 

Report Date :

12.11.2013

 

IDENTIFICATION DETAILS

 

Name :

PEARL GLOBAL (HK) LTD.

 

 

Registered Office :

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

 

 

Country :

Hongkong

 

 

Date of Incorporation :

22.12.2009

 

 

Com. Reg. No.:

51589415

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Trader of all kinds of garments.

 

 

No. of Employees :

22 (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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hongkong

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Hongkong- 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

 


company Name and Address

 

PEARL GLOBAL (HK) LTD.

 

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

PHONE:                  852-3588 1988, 2116 3830

FAX:                       852-2117 0079

E-MAIL:                  accounts@norwest.com.hk

                         pseth@norwest.com.hk

 

 

MANAGEMENT

 

General Manager:  Mr. Sandeep Malhotra

 

 

SUMMARY

 

Incorporated on:       22nd December, 2009.

 

Organization:           Private Limited Company.

 

Capital:                   Nominal:  US$10,000.00

                         Issued:     US$10,000.00

 

Business Category:  Garment Trader.

 

Group Turnover:       Rs  38,202,401,476 (Year ended 31-03-2013)

 

Employees:             22.  (Including associates in Hong Kong)

 

Main Dealing Banker: Standard Chartered Bank (Hong Kong) 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.

 

Holding Company:-

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

 

Associated Companies:-

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

Designed & Sourced Ltd., Hong Kong.

GEM Australia Manufacturing Co. Ltd., Hong Kong.

Grand Pearl Trading Co. Ltd., China.

Nor Europe Manufacturing Co. Ltd., Hong Kong. [Formerly known as Nor Barcelona Manufacturing Co. Ltd.]

Nor France Manufacturing Co. Ltd., Hong Kong.

Nor France SAS, France.

Nor India Manufacturing Co. Ltd., Hong Kong.

Nor Lanka Colombo Manufacturing Co. Ltd., Sri Lanka.

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

Norwest USA Inc., US.

Sino West Manufacturing Co. Ltd., Hong Kong.

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

 

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.

Norp Knit Industries Ltd., Bangladesh.

PT. Pinnacle Apparels, 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 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.  [Dissolved]

Razamtazz Ltd., Mauritius.

SACB Holdings Ltd., Mauritius.

Simple Approach Ltd., Hong Kong.

Zamira Fashion Ltd., Hong Kong.

Zamira Fashions (Europe) Ltd., UK.

PDS Asia Star Corporation Ltd., Hong Kong.

Hangzhou Grand Pearl Trading Ltd., China.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

51589415

 

 

COMPANY FILE NUMBER

 

1404292

 

 

MANAGEMENT

 

General Manager:  Mr. Sandeep Malhotra

 

 

CAPITAL

 

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

 

Issued Share Capital: US$10,000.00

 

 

SHAREHOLDER

(As per registry dated 22-12-2012)

 

Name

 

No. of shares

Pearl Global Industries Ltd.

446, Udyog Vihar, Phase-V, Gurgaon-122 016, India.

 

10,000

=====

 

 

DIRECTORS

(As per registry dated 01-07-2013)

 

Name

(Nationality)

 

Address

Pulkit SETH

Krish Nayan, 9 Avenue Ashok West End, Green Farms Rajokari, New Delhi-110038, India.

 

Mahesh Kumar SETH

35 W 90 ST 7D, New York NY 10024-1507, US.

 

Deepak Kumar SETH

9 Avenue, Ashok West End, Green Farms Rajokari, New Delhi 110038, India.

 

SECRETARY

(As per registry dated 03-09-2013)

 

Name

Address

Co. No.

Tricor Corporate Secretary Ltd.

Level 54, Hopewell Centre, 183 Queen’s Road East, Hong Kong.

0714799

 

 

HISTORY

 

The subject was incorporated on 22nd December, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

 

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

 

 

OPERATIONS

 

Activities:          Garment Trader.

 

Lines:               All kinds of garments.

 

Employees:       22.  (Including associates in Hong Kong)

 

Commodities Imported:   China, other Asian countries.

 

Markets:           Hong Kong, China, etc.

 

Annunal Turnover:-

FY

Company

Group

Year ended 31-03-2011

---

Rs 22,510,310,300

Year ended 31-03-2012

US$21,831,903

Rs 27,984,910,633

Year ended 31-03-2013

US$24,283,300

Rs 38,202,401,476

 

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

 

Terms/Buying:  L/C, D/P, etc.

 

 

FINANCIAL INFORMATION

 

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

 

Issued Share Capital: HK$10,000.00

 

Indebtedness:  US$3,265,908.45  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 22-12-2012)

 

Mortgage or Charge:  (See attachment)

 

Net Profit/(Loss):-

FY

Company

Group

Year ended 31-03-2011

---

Rs 195,650,301

Year ended 31-03-2012

US$2,169,371

Rs 314,900,466

Year ended 31-03-2013

(US$1,842,909)

Rs 237,883,451

 

Net Worth:-

FY

Company

Group

Year ended 31-03-2011

---

Rs 4,713,030,154

Year ended 31-03-2012

US$2,174,980

Rs 5,480,793,269

Year ended 31-03-2013

US$   349,449

Rs 6,139,870,418

 

Profit or Loss:    Made a loss in FY 2013.

 

Condition:          Keeping in an active condition.

 

Facilities:          Making active use of general banking facilities.

 

Payment:          Met trade commitments as contracted.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Bank of Baroda, Hong Kong Branch.

 

Standing:          Normal.

 

 

GENERAL

 

Pearl Global (HK) Ltd. is a wholly-owned subsidiary of Pearl Global Industries Ltd. [PGIL] which is an India-based company.  PGIL including its subsidiaries and associates are referred as the Pearl Global Group.

 

The principal activities of the subject are investment holding and garment trading.

 

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 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.

 

PGIL is operating in three business streams: manufacturing, marketing and distribution and sourcing of garments through its subsidiaries.  It also provides total supply chain solutions to its customers, which include value retailers as well as higher-end fashion brand retails in the United States and Europe.  Its Multi stream business enables it to offer multi country, multi gender and multi product options to our global customers.  PGIL has marketing and distribution network, through subsidiaries, in the United Kingdom, the United States and Hong Kong.  These offices oversee its marketing and merchandizing teams across Canada, Europe, Hong Kong, the United Kingdom, and the United States.

 

The Group also has fabric development centres in China and India as well as design and product development teams in the United Kingdom, the United States, India and Hong Kong.

 

For the year ended 31st March, 2013, the turnover of the subject amounted to US$24.3 million, grew by 11.5% as compared with US$21.8 million in FY 2012; loss for the year was US$1.8 million as compared with a net profit of US$2.2 million in FY 2012.

 

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 its type of industry.

 

With the recent trends, the future of the garment industry in India looks quite promising.  The Indian garment industry alone provides employment to Lakhs of people, a high percentage among who are young women.  Therefore, the significance of the Indian garment industry cannot be ruled out when it comes to employment generation and foreign exchange generation.  The growth in the garment industry will boost the growth of Indian economy.

 

Despite decline in initial months in the industry PGIL has achieved a gross income of Rs 3820.24 Crore compared to Rs 2798.49 Crore in last financial year on consolidated basis, a growth of 36%.

 

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.


MORTGAGE OR CHARGE

 

Date

Particulars

Amount

15-11-2012

Instrument:      Security Agreement over Bank Account
(All moneys) - (Own Obligations)

Property:

The Chargor, as beneficial owner, charges by way of a first floating charge all of its rights in respect of any amount standing to the credit of the account from time to time and the debt represented by it

Note:

1)  Restriction on Dealings

The Chargor must not:

(a)  Create or allow to subsist any Security Interest

(b)  Sell, transfer, licence, lease or otherwise dispose of any Security Asset

2)  Further Assurances

The Chargor must, at its own expense, take whatever action the bank may require for:

(a)  Creating, perfecting or protecting any security intended to be created by the security agreement, or

(b)  Facilitating the realisation of any security asset, or the exercise of any right, power or discretion exercisable, by the bank or any of its delegates or sub-delegates in respect of any security asset, including:

i)    The execution of any transfer, conveyance, assignment or assurance of any property, whether to the Bank or to its nominee; or

ii)    The giving of any notice, order or direction and the making of any registration,

Which, in any such case, the Bank may think expedient

Mortgagee:      Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

All present and future obligations and liabilities of the chargor to the bank or to any other company of the Standard Chartered group being Standard Chartered Bank, the Holding company, subsidiary or associated company of SCB anywhere

15-11-2012

Instrument:      Charge Over Receivables

Property:

The Chargor, as beneficial owner and as continuing security for the payment and discharge of all secured obligations, charges by way of flothing charge all of its present and future rights, title and interest in and to all receivables, all rights and remedies in connection with the receivables and all proceeds and claims arising therefrom

Mortgagee:      Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

All present and future obligations and liabilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.30

UK Pound

1

Rs.101.36

Euro

1

Rs.84.60

 

 

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%)

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.