|
Report Date : |
11.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
NORWEST INDUSTRIES LTD. |
|
|
|
|
Registered Office : |
7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street,
Cheung Sha Wan, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
24.06.1998 |
|
|
|
|
Com. Reg. No.: |
22023858 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler 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 : |
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 – 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 |
|
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 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.
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
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 31-03-2013)
HK$3,007,394,133 (Company)
Rs 38,202,401,476 (Group)
Employees: 22.
(Including associates in Hong Kong)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
NORWEST INDUSTRIES
LTD.
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:-
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.
Sister &
Associated 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.
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 (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.
[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.
22023858
0648235
Group Vice Chairman: Mr. Pallak
Seth
Di=rector & 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 13-12-2013)
|
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
21-08-2013)
|
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 03-09-2013)
|
Name |
Address |
Co. No. |
|
Tricor Tengis Ltd. |
Lever 54, Hopewell Centre, 183 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 associates 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 |
|
Year ended 31-03-2013 |
HK$3,007,394,133 |
Rs 38,202,401,476 |
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$205,917,957.96 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 24-06-2013)
Mortgage or Charge (since July 2010): (See attachment)
Net 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 |
|
Year ended 31-03-2013 |
HK$51,288,175 |
Rs 237,883,451 |
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 |
|
Year ended 31-03-2013 |
HK$346,009,095 |
Rs 6,139,870,418 |
Profit or Loss: Making a small profit every year.
Condition:
Keeping in an
active and satisfactory condition.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Bank of Baroda,
Hong Kong Branch.
BNP Paribas,
Hong Kong Branch.
Canara Bank,
Hong Kong Branch.
Intesa Sanpaolo
S.p.A., Hong Kong Branch.
Punjab National
Bank, Hong Kong Branch.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
UCO 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:-
Zamira Fashion Ltd., Hong Kong.
These offices are specialized in products merchandising and QA teams di=rectly
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 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.
PGIL operates through its subsidiaries has an integrated business model
with two distinct business streams:-
Manufacturing and Merchant Trade
The group has manufacturing facilities in Bangladesh, India and
Indonesia which execute orders procured from customers. It is also engaged in merchant trade where
office in India procures order from customers and out sources these orders to
own/third party factories in Bangladesh, China and Indonesia
Sourcing Marketing and Distribution (SDM)
SDM business has marketing net work in Hong Kong, the United States, and
the United Kingdom which procure orders from customers and outsource these
orders entirely to third party manufacturers.
It also has apparels processing and distribution facilities in the
United States and the United Kingdom.
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 sales of the subject amounted
to HK$3,007.4 million, grew by 35.0% as compared with HK$2,227.9 million in FY
2012; profit for the year was HK$51.3 million, increased by 18.2% as compared
with HK$43.4 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.
Brief personal profile of the principal dir=ectors:-
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 |
|
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.62.14 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.83.87 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.