MIRA INFORM REPORT

 

 

Report No. :

320691

Report Date :

06.05.2015

 

IDENTIFICATION DETAILS

 

Name :

WATANMAL BOOLCHAND AND CO. LTD.

 

 

Registered Office :

10/F., Man Cheung Building, 15-17 Wyndham Street, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

1908

 

 

Com. Reg. No.:

00494708-000

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

IMPORTER AND EXPORTER, BUYING AGENT, CONFIRMING HOUSE, FINANCIER AND INVESTMENT.

 

ALSO SUBJECT ENGAGED IN:

IMPORTER:  BATTERIES; CANDLES; TEA; TOOTH PASTE; PADLOCKS; MOSQUITO COIL; SCREWS; BLEACHED WOVEN FABRICS OF COTTON; DAMASK; UNBLEACHED, PLAIN WEAVE WOVEN FABRICS OF COTTON; DYED WOVEN FABRICS OF SYNTHETIC FILAMENT YARN; T-SHIRTS; BABY’S OVERALLS; MEN’S AND BOYS’ JOGGING SUITS OF OTHER TEXTILE MATERIALS; SOCKS; PARKAS; BAGS OF POLYETHYLENE; BLANKETS; WOMEN’S AND GIRLS’ BRIEFS AND MAN-MADE FIBRES; BRASSIERES.

 

EXPORTER:  BATTERIES; CANDLES; TEA; TOOTH PASTE; PADLOCKS; MOSQUITO COIL; SCREWS; DAMASK; WOVEN FABRICS OF COTTON – BLEACHED; WOVEN FABRICS OF COTTON – UNBLEACHED PLAIN WEAVE; DYED WOVEN FABRICS; T-SHIRTS; BABY’S OVERALLS; MEN’S AND BOYS’ JOGGING SUITS OF OTHER TEXTILE MATERIALS; SOCKS; PARKAS; TABLE CLOTH; BATS OF POLYETHYLENE; MEN’S AND BOYS’ WOVEN JACKETS OF SYNTHETIC FIBRES; MEN’S AND BOYS’ SHORTS OF OTHER TEXTILE MATERIALS; BLANKETS; WOMEN’S AND GIRLS’ PANTIES OF COTTON; WOMEN’S AND GIRLS’ BRIEFS OF MAN-MADE FIBRES; BRASSIERES; MEN’S AND BOYS’ BRIEFS OF COTTON; CAPS.

 

 

No. of Employees :

27

 

 

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 – 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

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 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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 

 

Note

 

Your as “Main Street” which is incomplete.

 

 

Company Name & address

 

WATANMAL BOOLCHAND AND CO. LTD.

 

ADDRESS:       10/F., Man Cheung Building, 15-17 Wyndham Street, Central, Hong Kong.

 

PHONE:            852-2524 9276 (4 lines)

 

FAX:                 852-2845 0540

 

E-MAIL:            info@watanmal.com

ranjit@watanmal.com

 

MANAGEMENT:

 

Managing Director:  Mr. Nari Lalchand Sakraney

 

 

SUMMARY

 

Establishment:                          1908.

 

Incorporated on:            24th June, 1948.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$50,000,000.00

 

Issued:                         HK$50,000,000.00

 

Business Category:       Importer and Exporter, Buying Agent, Financier and Investor.

 

Group Annual Turnover:  US$600-650 million.

 

Employees:                  27.

 

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

 

BNP Paribas, Hong Kong Branch.

 

Banking Relation:          Very Good.

Name

 

WATANMAL  BOOLCHAND  AND  CO.  LTD.

 

 

ADDRESS

 

Registered Head Office:-

10/F., Man Cheung Building, 15-17 Wyndham Street, Central, Hong Kong.

 

Mailing Address:-

G.P.O. Box 644, Hong Kong.

 

Business Names:-

Fareast Industrial Supplies Corporation, Hong Kong.

[BR. No:  00494708-003]

Saksons Enterprises Corporation, Hong Kong.

[BR. No:  00494708-001]

 

Headquarters:-

Watanmal (India) Pvt. Ltd.

Unit 4, 7/F., Crest Building, Ascendas IT Park, CSIR Road, Taramani, Chennai 600113, Tarmil Nadu, India.

[Tel:      91-44-2254 8300

Fax:      91-44-2254 8330

E-mail:  info@watanmal.com]

 

Holding Company:-

Prime Target Development Inc., British Virgin Islands.

 

Associated Companies:-

Watanmal Group of Companies

Watanmal (America) Inc., USA.

Watanmal (Singapore) Pte. Ltd., Singapore.

Watanmal (U.K.) Ltd., U.K.

WB Finlease & Industries Pvt. Ltd., India.

Watanmal Italia S.r.l., Italy.

 

 

BUSINESS REGISTRATION NUMBER

 

00494708-000

 

 

COMPANY FILE NUMBER

 

0002617


MANAGEMENT

 

Managing Director:  Mr. Nari Lalchand Sakraney

Contact Person:  Mr. David Tejnani

 

 

CAPITAL

 

Nominal Share Capital: HK$50,000,000.00 (Divided into 500,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$50,000,000.00

 

 

SHAREHOLDER

 

(As per registry dated 24-06-2014)

Name

 

No. of shares

Prime Target Development Inc.

Arias Fabrega & Fabrega Trust Co. BVI Ltd.

325 Waterfront Drive, Omar Hodge Building, 2/F., Wickhams Cay, Road Town, Tortola, British Virgin Islands.

 

500,000

======

 

 

DIRECTORS

 

(As per registry dated 24-06-2014)

Name

(Nationality)

 

 

Address

Prakash Haney SAKRANEY

22 Point Loma Drive, Newport Beach, California 92625, USA.

 

Nari Lalchand SAKRANEY

12A, 6/F., Bellevue Court, 41 Stubbs Road, Hong Kong.

 

Keso Lalchand SAKRANEY

9 Mistry Court, 2/F., Dincha Vacha Road Opp. CCI, Mumbai 400020, India.

 

Gulab Madhavdas ASSOMAL [Alternate to Nari Lalchand SAKRANEY]

 

10A Elegant Apartments, Sobani Road, Cuffe Parada, Mumbai, India.

Ishan Anoop SAKRANEY [Alternate to Keso Lalchand SAKRANEY]

7 Surrey Road, #09-00 Casa Melwani, Singapore 307746.

 

SECRETARY

 

(As per registry dated 24-06-2014)

Name

 

Address

Co. No.

Marfan & Associates Ltd.

11/F., Fortis Bank Tower, 77-79 Gloucester Road, Hong Kong.

0094488

 

 

HISTORY

 

The subject was incorporated on 24th June, 1948 as a private limited liability company under the Hong Kong Companies Ordinance to take over the business of Watanmal Boolchand which was a sole proprietorship concern owned by Setah Lalchand Watanmal Sakraney.  Watanmal Boolchand was established in 1908.

It was originally registered under the name of Watanmal Boolchand Co. Ltd., name changed to Watanmal Boolchand And Co. Ltd. on 20th May, 1972.

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

 

 

OPERATIONS

 

Activities:          Importer and Exporter, Buying Agent, Confirming House, Financier and Investment.

 

Lines:-

Importer:  Batteries; Candles; Tea; Tooth paste; Padlocks; Mosquito coil; Screws; Bleached woven fabrics of cotton; Damask; Unbleached, plain weave woven fabrics of cotton; Dyed woven fabrics of synthetic filament yarn; T-shirts; Baby’s overalls; Men’s and boys’ jogging suits of other textile materials; Socks; Parkas; Bags of polyethylene; Blankets; Women’s and girls’ briefs and man-made fibres; Brassieres.

 

Exporter:  Batteries; Candles; Tea; Tooth paste; Padlocks; Mosquito coil; Screws; Damask; Woven fabrics of cotton – bleached; Woven fabrics of cotton – unbleached plain weave; Dyed woven fabrics; T-shirts; Baby’s overalls; Men’s and boys’ jogging suits of other textile materials; Socks; Parkas; Table cloth; Bats of polyethylene; Men’s and boys’ woven jackets of synthetic fibres; Men’s and boys’ shorts of other textile materials; Blankets; Women’s and girls’ panties of cotton; Women’s and girls’ briefs of man-made fibres; Brassieres; Men’s and boys’ briefs of cotton; Caps.

 

Trade Marks:     WHITE ROSE”, “CADET”, “HIGHNOON”, “SAFARI”, “CENTRAL PARK” and “ADREEN” brands.

 

Employees:      27.

 

Commodities Imported:-

Textiles – China (main) and Japan.

Chinese goods – China.

 

Markets:            Africa, US, Europe, Austria, New Zealand,.

 

Group Annual Turnover:  US$600-650 million.

 

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

 

Terms/Buying:  Various terms.

 

MEMBERSHIP: The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKW0031]

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$50,000,000.00 (Divided into 500,000 shares of HK$100.00 each)

 

Issued Share Capital: HK$50,000,000.00

 

Alternation of Capital:-

17-12-1948

paid up

HK$      178,000.00

07-05-1949

paid up

HK$      72,000.00

06-04-1954

paid up

HK$      250,000.00

01-11-1972

paid up

HK$      4,500,000.00

06-02-1978

paid up

HK$      5,000,000.00

30-07-2008

paid up

HK$      40,000,000.00

 

 

––––––––––––––––

Total:

paid up

HK$      50,000,000.00

==============

 

Increases of Nominal Capital:-

From

HK$     500,000.00

to

HK$  6,000,000.00

on

30-11-1965

From

HK$  6,000,000.00

to

HK$15,000,000.00

on

06-02-1978

From

HK$15,000,000.00

to

HK$50,000,000.00

on

02-06-2008

 

Profit or Loss:   Business is profitable.

 

Condition:         Keeping in an active and good condition.

 

Facilities:          Making active use of general banking facilities.

 

Payment:  So far so good.

 

Commercial Morality:  Very Good.

 

Bankers:-

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

BNP Paribas, Hong Kong Branch.

Calyon, Hong Kong Branch.

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

Bank of India, Hong Kong Branch.

Société Générale, Hong Kong Branch.

Banking:-

One source reports subject has maintained an active current account on their books since 14th July, 1959.  Credit facilities granted in US$ low seven figures have been utilized with satisfactory results.

Another source informs they maintain an active and well conducted current account opened in their books on 13th July, 1948 and on which they grant facilities without security.  They handle their import bills both under and not under documentary credits.  They negotiate their export bills both under and not under documentary credits.

 

Standing:  Sound.

 

 

GENERAL

 

The predecessor of Watanmal Boolchand And Co. Ltd. was founded in 1908 by Mr. Lalchand Watanmal Boolchand who was an Indian.

 

The subject is an old established business of good reputation in Hong Kong.  It has been owned and operated by an Indian family in Hong Kong for over a hundred years.

 

The subject is also trading under the names of ‘Fareast Industrial Supplies Corporation’ and ‘Saksons Enterprises Corporation’.  Both companies are located at the same address and trading in the same commodities.

 

The subject formerly was just a branch company of India Watanmal Boolchand [Watanmal] which is an India-based company.  The Hong Kong branch and India Watanmal Boolchand started business simultaneously.

 

Overseas business outside India was set up and managed by Mr. Boolchand’s only son Rao Bahadur (an honour conferred by the British rulers Lalchand Watanmal) Lalchand Watanmal.  He set up branches in Hong Kong, Singapore, Guangzhou of China and Yokohama of Japan.  After World War II, Mr. Rao Bahadur Lalchand Watanmal’s three sons joined the thriving company and in 1948, the subject was incorporated in Hong Kong.  Since then, the subject’s business has been kept on expanding.

 

Today, the subject has been developed from a small company into an administrative office and training centre for its group companies which are in different countries of the world.  The subject currently has about 27 staff members in Hong Kong.

 

The subject has set up a “China Product Division” in Hong Kong which is engaged in exporting commodities from China, Pakistan, Thailand, etc. to African and South American countries.

 

Watanmal is chiefly trading in fast moving consumer goods [FMCG].  With a vision of being the market leader in the FMCG segment, Watanmal concentrates on Sales and Distribution Management, Brand Building, etc.  In the late 90’s, Watanmal forayed into the Branded Food Market segment, a business that the Group has got large benefits.  A very large share of the Watanmal’s revenue today, comes from this segment.

 

Now, Watanmal is trading in the following commodities:

Piecegoods - vegetable fibre (damask for table cloth), piecegoods - blended (damask for table cloth), suits and jackets - men’s, children’s wear, blouses, jeans, shirts, tailor made garments, trousers, slacks, tee and sweat shirts, underwear - men’s, underwear - women’s, underwear - children’s, footwear - PVC and plastic, footwear - rubber and textile, sandals - eva, matches, tea and teabag (China tea), biscuit, milk, dairy products - misc. (condensed milk, evaporate milk), sauce and seasoning (mayonnaise), oil - cooking (cooking oil, margarine, vegetable oil), sugar, sauce - tomato, cereal preparations (pasta), locks, batteries, bed linen (bed sheet), pillow case / bed sheet - non-embroidered (bed sheet), rice, hardware.

 

Today, Watanmal has dominant shares in many of the markets it operates in, selling over seven million products per day and its customers are about 530 million.  The Watanmal Group has dominated in the categories in which it has focused.

 

Besides, Watanmal is the No. 1 Tomato Paste seller in Africa and also has the No. 1 American Mayonnaise brand in West and Central Africa.

 

Watanmal is also a pioneer in FMCG marketing and distributing in West and Central Africa.  It is present in 24 countries in West and Central Africa.

 

Watanmal has launched a number of brands in various categories like Culinary Division, Breakfast division, Animal Proteins, Beverages & Confectionary, Spices and Seasoning and Branded Commodities like Rice and Oil.  Today the Group has reputed brands like “Gino”, “Pomo”, “Jago”, “Palmo”, “Forte”.

 

The subject is a founder of The Indian Chamber of Commerce Hong Kong and the oldest Indian member of The Hong Kong General Chamber of Commerce.  Principal shareholders and directors of the subject are the three sons of Mr. Lalchand Watanmal Sakraney while all of whom are permanent directors of the subject as well.

Now, Watanmal has opened offices in Japan, Singapore, Malaysia, West Africa, the United States, Mexico, the United Kingdom, India.

 

Watanmal has developed business ties with many manufacturers and buyers throughout the world.  However, the prime markets of the Group are African and South American countries.  Overall business is active and steady.  Regular suppliers and customers have been maintained.

 

In recent years, the Group has set up a company Watanmal Italia S.r.l. which is an Italy-based company.  This company is chiefly trading in all kinds of foodstuffs, oils, beans.

 

The annual turnover of Watanmal Group ranges from US$600 to 650 million.

 

The subject is fully supported by the Watanmal Group and the Indian family.  The contact person Mr. David Tejnani is an Indian.

 

The subject operates from its own office in Hong Kong.  Besides, the subject also owns other premises in Hong Kong.

 

On the whole, in view of the background and history of the subject, consider it good for normal business engagements.

 

 

REMARKS

 

Property information of the company:-

Property Location

Owner

Date of Purchase

Purchased
Price

Flat D on 9/F., Garfield Mansion, 23‑25 Seymour Road, Hong Kong.

Watanmal Boolchand And Co. Ltd.

30-01-1981

HK$650,000

Flats A & B on 10/F., Man Cheung Building, 15-17 Wyndham Street, Hong Kong.

Watanmal Boolchand And Co. Ltd.

19-08-1984

HK$800,000

Flat 12 on 6/F. of Block A, Bellevue Court, 41 Stubbs Road, Hong Kong.

Watanmal Boolchand And  Co. Ltd.

01-04-1964

HK$198,000

Block D on 6/F., 64 MacDonnell Road, Hong Kong.

Watanmal Boolchand And Co. Ltd.

09-08-1972

HK$172,000

 

(No mortgage registered against all the properties)

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.97.99

Euro

1

Rs.70.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               


 

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.