MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	LACHMI'S INTERNATIONAL LTD.

Registered Office :	11/F., Harbour Crystal Centre, 100 Granville Road, Tsimshatsui East, Kowloon

Country :	Hong Kong

Date of Incorporation :	25.01.1968

Com. Reg. No.:	02395966

Legal Form :	Private Limited Company.

Line of Business :	Importer and Exporter of all types of casual wear (denim jeans, winter jackets, ladies blouses, men’s casual wear, sportswear.)

No. of Employees :	13

RATING & COMMENTS

MIRA’s Rating :

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 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Hong Kong

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

Company name

LACHMI’S INTERNATIONAL LTD.

Company ADDRESS

11/F., Harbour Crystal Centre, 100 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.

PHONE: 852-2368 0224 (10 lines), 2171 8054, 2171 8988

FAX: 852-2721 6316

E-MAIL: info@lachmis.com.hk

raju@lachmis.com.hk

precy@lachmis.com.hk

MANAGEMENT

Managing Director: Mr. Raju Wadhwani

SUMMARY

Incorporated on: 25th January, 1968.

Organization: Private Limited Company.

Capital: Nominal: HK$2,000,000.00

Issued: HK$1,370,000.00

Business Category: Garment Trader.

Annual Turnover: US$50~55 million.

Employees: 13.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Good.

Company ADDRESS

Registered Head Office:-

11/F., Harbour Crystal Centre, 100 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.

Mailing Address:-

P.O. Box 96261, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.

Associated Companies:-

Grand Step (HK) Ltd.

Flat A07, 8/F., Harbour Crystal Centre, 100 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.

[Tel: 852-2368 8666 Fax: 852-2368 8669]

Grand Step (HK) Ltd. Dongguan Office, China.

BUSINESS REGISTRATION NUMBER

02395966

COMPANY FILE NUMBER

0015003

MANAGEMENT

Managing Director: Mr. Raju Wadhwani

Contact Person: Mr. Urriquia Robert

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)

Issued Share Capital: HK$1,370,000.00

SHAREHOLDERS

(As per registry dated 25-01-2013)

Name		No. of shares
Raju WADHWANI		10,275
Sudha Raju WADHWANI		3,425
		––––––
	Total:	13,700 =====

DIRECTORS

(As per registry dated 25-01-2013)

Name (Nationality)	Address
Raju WADHWANI	Flat A/B, 18/F., Block D, Wylie Court, 19 Wylie Path, Homantin, Kowloon, Hong Kong.
Sudha Raju WADHWANI	Flat A/B, 18/F., Block D, Wylie Court, 19 Wylie Path, Homantin, Kowloon, Hong Kong.

Name

(Nationality)

Address

Raju WADHWANI

Flat A/B, 18/F., Block D, Wylie Court, 19 Wylie Path, Homantin, Kowloon, Hong Kong.

Sudha Raju WADHWANI

Flat A/B, 18/F., Block D, Wylie Court, 19 Wylie Path, Homantin, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 25-01-2013)

Name	Address	Co. No.
PRO (Nominees) Ltd.	15/F., Fung Sang Trading Building, 54 Bonham Strand West, Sheung Wan, Hong Kong.	0072653

HISTORY

The subject was incorporated on 25th January, 1968 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Flat C & D, 6/F., Alpha House, 27‑33 Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in February 2009.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: Footwear, garments, garment accessories.

Employees: 13.

Commodities Imported: China, other Asian countries, etc.

Markets: Europe, North America, Central & South America, Africa, etc.

Annual Turnover: US$50~55 million.

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

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

MEMBERSHIP

The Indian Chamber of Commerce Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$2,000,000.00 (Divided into 20,000 shares of HK$100.00 each)

Issued Share Capital: HK$1,370,000.00

Mortgage or Charge

(since 2007): (See attachment)

Profit or Loss: Making a small profit in the past years.

Condition: Keeping in an active & satisfactory condition.

Facilities: Making active use of general banking facilities.

Payment: So far so good.

Commercial Morality: Satisfactory.

Bankers:-

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

Indian Overseas Bank, Hong Kong Branch.

UCO Bank, Hong Kong Branch.

Wing Hang Bank Ltd., Hong Kong.

Standing: Good.

GENERAL

Having issued 13,700 ordinary shares of HK$100.00 each, Lachmi’s International Ltd. is jointly owned by Raju Wadhwani, holding 75% interests; and Mr. Sudha Raju Wadhwani, holding 25%. They are also directors of the subject. The two Wadhwanis are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.

Incorporated in January 1968, the subject is owned by the Wadhwani family.

The subject is a Hong Kong based export house exporting all types of casual wear (denim jeans, winter jackets, ladies blouses, men’s casual wear, sportswear.). Its significant products are short jeans, skinny-leg jeans, straight‑leg jeans.

The subject also trades in the following commodities:-

Shorts, Skirt, Sweatshirt, Trouser, Sweater, Tops, Tank Top, T-shirts, Woven Garment, Work Wear, Night Dresses (Sleep Wear), Ladies Wear, Jacket, Jeans, Knit Wear, Men’s Wear, Camisole, Casual Wear, Children Wear, Beach Wear, Sports Wear.

The subject also has set up a division dealing in Home Textiles. It also has had a division responsible for the Panama and Curacao markets.

The subject has customers ranging from wholesalers, buying houses and chain stores in the United States, Canada, the United Kingdom, Spain, France, Germany, Czech, South Africa, Panama, Mexico and other countries in Latin America, Prague, the Middle East, etc.

The subject sources the merchandise from countries like China, Pakistan and the other Asia Pacific countries. According to the subject, it has had its own associated factory in China.

In order to ensure the quality of the products, the subject has set up a team of “quality control supervisors” supervising the production.

The subject has set up an office in Guangzhou City, Guangdong Province, China. Its employees in China ensure that the production inspections are done at all stages in line of the process starting from selection of the correct fabric to the finished products.

The business scope of the subject includes the following three main categories:-

· Quality Controlling;

· Shipping and Distribution; &

· Sourcing (raw materials or finished products).

Besides in China, the subject has had other three offices in the other countries of the world.

The annual sales turnover of the subject and its associates ranges from US$50 to 55 million. Making a small profit every year. Business is active and steady as regular customers and suppliers have been maintained.

The subject has had an associated company Grand Step (HK) Ltd. [Grand Step] which is located in the same building. Grand Step is engaged in designing and producing a wide variety of footwear, namely women’s fashion, casual and sports shoes, sandals, winter boots, sports shoes, leather shoes, children’s shoes, slip-ons, etc. Products are exported worldwide countries.

The contact person of Grand Step is Mr. Kamiesh Chandiramani who is the director. Another contact person is Mr. Urriquia Robert.

Most of the subject’s employees in Hong Kong are Indian.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it took part the Fair held in Miami, the United States in June 2013.

Since the history of the subject in Hong Kong is over forty-five years, on the whole, consider it good for normal business engagements.

REMARKS:

Property information of the company:-

1. Property Location: Unit 01, 02, 03, 04, 05, 06 & 07 on 11/F., Harbour Crystal Centre, 100 Granville Road, Kowloon, Hong Kong.