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Report No. : |
305213 |
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Report Date : |
04.02.2015 |
IDENTIFICATION DETAILS
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Name : |
NORWEST INDUSTRIES
LTD. |
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Formerly Known as : |
Norwest Trading Ltd |
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Registered Office : |
7/F., Park Fook Industrial Building, 615-617 Tai Nan West Street, Cheung Sha Wan, Kowloon |
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Country : |
Hong Kong |
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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 Wholesaler of all kinds of garments · subject offers a wide range of products comprising of Wovens, Jersey Wear and Sweaters |
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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 |
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Status : |
Satisfactory |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Hong Kong |
A1 |
A1 |
|
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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.
|
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
Chief Executive Officer: Mr. Sandeep Malhotra
Incorporated on: 24th June, 1998.
Organization: Private Limited Company.
Issued Share Capital: US$4,000,000.00
Business Category: Garment Trader.
Revenue:- (Year ended 31-03-2014)
HK$3,356,746,585 (Company)
Rs 46,989,586,420 (Group)
Employees: 22. (Including associates 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.
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 Manufacturing Colombo 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.
Hangzhou Grand Pearl Trading Co. Ltd., China.
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.
Pacific Logistics Ltd., UK.
Pacific Supply Chain Ltd., UK.
PDS Asia Star Corporation Ltd., Hong Kong.
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]
PT. Pinnacle Apparels, Indonesia.
Razamtazz Ltd., Mauritius.
SACB Holdings Ltd., Mauritius.
Simple Approach Ltd., Hong Kong.
Zamira Fashion Ltd., Hong Kong.
Zamira Fashions (Europe) Ltd., UK.
22023858
0648235
Group Vice Chairman: Mr. Pallak Seth
Chief Executive Officer: Mr. Sandeep Malhotra
US$4,000,000.00
(As per registry
dated 24-06-2014)
|
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 |
|
|
|
–––––––– |
|
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Total: |
4,000,000 ======= |
(As per registry
dated 24-06-2014)
|
Name (Nationality) |
Address |
|
Pallak SETH |
43 Green Street, Flat 3 &
4, Mayfair, London W1K 7FJ, UK. |
|
Deepak Kumar
SETH |
9 Avenue Ashok, West End,
Green Farms, Rajokri, New Delhi 11038, India. |
|
Omprakash MAKAM SURYANARAYAN SETTY |
1637, Suprabha 4th Main 19th
Cross Hsr Layout Sector 7, Landmark Near Hsr Club, Bangalore 560034,
Karnataka, India. |
(As per registry
dated 24-06-2014)
|
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, other Asian countries, etc.
Revenue:-
|
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 |
|
Year ended 31-03-2014 |
HK$3,356,746,585 |
Rs 46,989,586,420 |
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
Issued Share Capital: US$4,000,000.00
Indebtedness: HK$182,161,712.13
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 24-06-2014)
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 |
|
Year ended 31-03-2014 |
HK$29,145,729 |
Rs 386,432,714 |
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 |
|
Year ended 31-03-2014 |
HK$340,716,914 |
Rs 6,693,431,786 |
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.
· ICICI Bank Ltd., 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’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 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
· Sourcing Marketing and Distribution
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, 2014, the sales of the subject amounted to HK$3,356.7 million, grew by 11.6% as compared with HK$3,007.4 million in FY 2013; profit for the year was HK$29.1 million, decreased by 43.3% as compared with HK$51.3 million in FY 2013.
In the years ahead, the subject’s ultimate holding company will be changed to PDS Multinational Fashions Ltd. which is also a listed company in India.
In FY 2014, PGIL’s revenue from operations amounted to Rs 4,698.96 Crore compared to Rs 3,820.24 Crore in FY 2013.
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.
REMARKS:
Brief personal
profile of the principal director:-
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.
(Since July 2010)
|
Date |
Description of
Instrument |
Mortgagee |
|
12-10-2010 |
Memorandum |
Bank of Baroda, Hong Kong Branch. |
|
12-10-2010 |
Assignment
of Life Insurance |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
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12-10-2010 |
Assignment
of Life Insurance |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
|
16-09-2011 |
Undertaking
Relating to Deposits |
Canara Bank, Hong Kong Branch. |
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04-11-2011 |
Charge
on Deposit to secure the Depositor’s Obligations |
Punjab National Bank, Hong Kong Branch. |
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12-03-2012 |
Memorandum |
Bank of Baroda, Hong Kong Branch. |
|
17-04-2012 |
Charge
over Cash Deposit (the “Deed”) |
ICICI Bank Ltd., Hong Kong Branch. |
|
17-04-2012 |
General
Commercial Agreement |
ICICI Bank Ltd., Hong Kong Branch. |
|
03-04-2013 |
Security Over Deposit in Respect of
Obligations of the Deposit (Company) - the “Agreement” |
Intesa Sanpaolo S.p.A., Hong Kong Branch. |
|
15-04-2014 |
Charge Over Securities and Deposits with
the Bank (Limited Company – Under Seal) |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
|
04-12-2014 |
Charge Over Cash Deposit and Designated
Collection Account |
ICICI Bank Ltd., Hong Kong Branch. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
UK Pound |
1 |
Rs.92.71 |
|
Euro |
1 |
Rs.69.94 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
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.