MIRA INFORM REPORT

Report No. :	497111
Report Date :	14.03.2018

IDENTIFICATION DETAILS

Name :	LACHMI’S INTERNATIONAL LIMITED

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 Footwear, Garments, Garment Accessories.

No. of Employees :	17

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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 47.3 million in 2014, outnumbering visitors from all other countries combined. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies. Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Company name & address

LACHMI’S INTERNATIONAL LIMITED

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.

Issued Share Capital: HK$1,370,000.00

Business Category: Garment Trader.

Employees: 17.

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

Banking Relation: Very Good.

Name

LACHMI’S INTERNATIONAL LIMITED

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 807, 8/F., Harbour Crystal Centre, 100 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.

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

Amrapur International Ltd., Hong Kong.

Amrapur Overseas Inc., United States.

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

ISSUED SHARE CAPITAL

HK$1,370,000.00 (13,700 fully paid ordinary shares)

SHAREHOLDERS

(As per registry dated 25-01-2018)

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

DIRECTORS

(As per registry dated 25-01-2018)

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 25-01-2018)

Name	Address	Co. No.
Broadway Corporate Advisory Services Ltd.	Room 805, 8/F., Harbour Crystal Centre, 100 Granville Road, Tsimshatsui, Kowloon, Hong Kong.	1473722

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.

The subject changed its company secretary on 31st October, 2015.

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: 17.

Commodities Imported: China, other Asian countries, etc.

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

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

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

FINANCIAL INFORMATION

Issued Share Capital: HK$1,370,000.00 (13,700 fully paid ordinary shares)

Mortgage or Charge (since 2007): (See attachment)

Profit or Loss: Making small profits in the past years.

Condition: Keeping in an active & satisfactory condition.

Facilities: Making active use of general banking facilities.

Payment: Regular.

Commercial Morality: Good.

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: Very Good.

GENERAL

Having issued 13,700 ordinary shares of HK$100.00 each, Lachmi’s International Limited 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.

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

It is a Hong Kong based export house exporting all types of casual wear (menswear, womenswear, boys-wear, girls-wear, denim jeans, winter jackets, ladies blouses, etc.), and home textiles.

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, sportswear, etc.

The subject also has set up a division specially 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 has had a sister company known as Colonial Home Textiles which is in Los Angeles, the United States.

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 following companies are some of the customers of the subject:

Ackermans, amazon.com, BED BATH & BEYOND, BIG Lots, CITY CLUB, Costco Wholesale, Dillard’s, Edgars, Family Dollar, you always win at game, GROUPON, Joss & Main, Target, kmart, Walmart, Wayfair, Pep, Sears, etc.

The annual sales turnover of the subject and its associates are significant.

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 to worldwide countries. Its factory is located at ‘Yiheng South Road, Chiling Industrial Area, Houjie Town, Dongguan City, Guangdong Province, China’.

In 1983, the Wadhwani family set up a company known as Amrapur Overseas Inc. in California of the United States. The family in November 2016 set up a company known as Amrapur International Ltd. [Amrapur] in Hong Kong. This company is located at the same address as the subject.

Amrapur is trading in the following products:

Comforter Sets & Duvets

Sheets

Towel Sets

Bathroom Related Products: Towels, Mats, Shower Curtains

Window Coverings

Throws And Blankets

Kitchen Related Products and Accessories, etc.

Currently, Amrapur Overseas Inc. is actively operating in the United States.

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

The subject is one of the oldest Indian companies in Hong Kong. It is a reliable suppliers.

The subject operates from its own office in Hong Kong.

Since the history of the subject in Hong Kong is over fifty years and a month, 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.