MIRA INFORM REPORT

 

 

Report Date :

25.01.2011

 

IDENTIFICATION DETAILS

 

Name :

LONGCHEER TELECOMMUNICATION LIMITED

 

 

Registered Office :

Not Available

 

 

Country :

Malaysia

 

 

Date of Incorporation :

30.12.2009

 

 

Com. Reg. No.:

LL07418-B

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Investment Holding and Trading of Telecommunication Products

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

----

NB

New Business

----

 

Status :

New Company

 

 

Payment Behaviour :

Unknown

 

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Malaysia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

* Adopted abbreviations :         SC - Subject Company (the company enquired by you)

                                            N/A - Not Applicable

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

LL07418-B

COMPANY NAME

:

LONGCHEER TELECOMMUNICATION LIMITED

FORMER NAME

:

N/A

INCORPORATION DATE

:

30/12/2009

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

OTHERS

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

N/A

BUSINESS ADDRESS

:

N/A

TEL.NO.

:

N/A

FAX.NO.

:

N/A

CONTACT PERSON

:

N/A

INDUSTRY CODE

:

65992 51511

PRINCIPAL ACTIVITY

:

INVESTMENT HOLDING AND TRADING OF TELECOMMUNICATION PRODUCTS

AUTHORISED CAPITAL

:

N/A

ISSUED AND PAID UP CAPITAL

:

N/A

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

N/A

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

N/A

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

NIL

 

HISTORY / BACKGROUND

 

The SC is principally engaged in the (as a / as an) investment holding and trading of telecommunication products.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).



 

CHARACTERISTICS OF OFFSHORE COMPANIES

 

To participate in the offshore activities and enjoy the special tax advantage provided under the Labuan Offshore Business Activity Tax Act 1990, an entity must be an offshore company.

An offshore company in Labuan shall have the following characteristics:

 

(a) It must be a company limited by shares (sec 14(3) of the Offshore Companies Act 1990);

(b) Any person may form an offshore company by subscribing to a memorandum;

(c) It is required to engage a trust company which is a company registered under the Labuan Trust Companies Act 1990 to discharge its statutory duties seince all documents required to be filed with the Labuan Financial Services Authority must be filed through a trust company;

(d) There is no minimum capital requirement;

(e) It can be alter its share capital by a special resolution (sec. 51(10 of the Offshore Companies Act 1990);

(f) It can reduce its share capita special resolution (sec.51(10 of the Offshore Companies Act 1990);

(g) It may purchase its own shares (sec. 48(2)(3) of the Offshore Companies Act 1990); and;

(h) There is no restriction in issuing share warrants.

 

PROHIBITED ACTIVITES

Offshore companies are prohibited from carrying on the following activities:

(a) the business of banking or insurance or any such similar business unless it is licensed so to do under the relevant laws currently in force in Malaysia;

(b) it must only carry on business in, from or through Labuan;

(c) it must not:

 

(1) except as permitted by the Offshore Banking Act 1990 or by the Labuan Financial Services Authority carry on business with a resident of Malaysia;

(2) except as permitted by the Offshore Banking Act 1990, carry on banking business;

(3) Except for defraying its administrative and statutory expenses and where Sec. 147 of the Offshore Companies Act 1990 applies, carry on business in Malaysian currency;

(4) Except as permitted by the Offshore Insurance Act 1990, carry on business as an insurance or a reinsurance company;

(5) Carry on shipping or petroleum operations in Malaysia; or

(6) Carry on any business of a trust company.

 

PERMITTED ACTIVIES

An offshore company may do the following:

(a) Make or maintain deposits with a person carrying on business within Malaysia;

(b) Make or maintain professional contacts with any counsel and attorney, accountant, book-keeper, trust company, domestic company wholly owned by a trust company made available by the trust company to act or be appointed as a resident director or a resident secretary of an offshore company;

(c) Prepare or maintain books and record with Malaysia;

(d) Hold, within Malaysia, meetings of its directors or members;

(e) Acquire or hold any lease of any property for the purpose of its operation or as accommodation for its offices or employees; or

(f) Hold shares, debt obligations or other securities for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money.


No shareholders was found in our databank at the time of investigation



 

 

DIRECTOR


No director found in our databank.

MANAGEMENT


No data found in our databank.

 

AUDITOR


No Auditor found in our databank

COMPANY SECRETARIES


No company secretary was found in our databank.

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SC


* We have checked through the SC in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD


No payment record found in our databank.

CLIENTELE


No data found in our databank.

OPERATIONS

 

Competitor(s)

:

BERJAYA ASSETS BHD

HICOM HOLDINGS BHD

KHAZANAH NASIONAL BHD

KURNIA ASIA BHD

UEM LAND BHD

 

 

 

 

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) investment holding and trading of telecommunication products.

 

PROJECTS


No projects found in our databank

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA)database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

N/A

Match

:

N/A

 

 

 

Address Provided by Client

:

LOT A020, LEVEL 1, PODIUM LEVEL, FINANCIAL PARK, JALAN MERDEKA 87007

Current Address

:

N/A

Match

:

N/A

 

 

 

Latest Financial Accounts

:

NO

 

Other Investigations

We contacted Ms Sue , from the SC's Trust Company, Hans Advisory & Trust Co Ltd( 087-427745). However she refused to disclose any information pertaining to the SC.

She has requested us to send all enquiries pertaining to the SC to the Trust Company, Hans Advisory & Trust Co Ltd, for further information.

We have verified and confirmed that the address provided is belongs to the SC's Trust Company / Registered Office.

FINANCIAL COMMENTS

 

No latest financial accounts are available at the Registry Office, thus we are not able to comment on the SC's financial performance.

ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2007

2008

2009

2010*

2011**

 

 

 

 

 

 

Population ( Million)

27.17

27.73

28.31

28.88

29.13

Gross Domestic Products ( % )

6.3

4.6

<0.5>

6.9

5.8

Domestic Demand ( % )

9.0

6.9

2.9

4.6

4.8

Private Expenditure ( % )

8.6

7.1

<2.7>

8.1

7.0

Consumption ( % )

9.0

8.4

0.7

6.7

6.3

Investment ( % )

7.1

1.5

<17.2>

15.2

10.2

Public Expenditure ( % )

10.1

6.5

5.2

3.8

2.8

Consumption ( % )

10.8

11.6

3.1

0.2

4.6

Investment ( % )

9.3

0.7

8.0

8.3

0.6

 

 

 

 

 

 

Balance of Trade ( MYR Million )

100,340

129,563

89,650

118,356

116,058

Government Finance ( MYR Million )

<19,948>

<34,462>

<28,450>

<40,482>

-

Government Finance to GDP / Fiscal Deficit ( % )

<3.2>

<4.8>

<4.8>

<5.6>

<5.4>

Inflation ( % Change in Composite CPI)

2.0

<3.3>

<5.2>

5.1

-

Unemployment Rate

3.2

3.7

4.5

3.9

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

336

388

331

394

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.04

1.91

2.87

2.20

-

Average 3 Months of Non-performing Loans ( % )

13.30

13.24

11.08

15.30

-

Average Base Lending Rate ( % )

6.72

6.72

5.53

5.70

-

Business Loans Disbursed( % )

9.1

11.6

10.5

14.7

-

Foreign Investment ( MYR Million )

33,426.0

23,261.4

22,156.8

22,517.9

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

43,337

41,599

41,578

-

-

Registration of New Companies ( % )

13.2

<4.0>

<0.1>

-

-

Liquidation of Companies ( No. )

22,629

27,992

39,075

-

-

Liquidation of Companies ( % )

161.5

23.7

39.6

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

227,410

269,866

312,581

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

20,431

18,885

19,345

-

-

Business Dissolved ( % )

<61.4>

<7.6>

2.4

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

442.9

497.5

319.4

369.7

-

Cellular Phone Subscribers ( Million )

23.3

25.1

30.1

32.8

-

Tourist Arrival ( Million Persons )

20.9

21.5

23.6

24.0

-

Hotel Occupancy Rate ( % )

70

68

58

63

-

 

 

 

 

 

 

Credit Cards Spending ( % )

20.1

17.1

12.8

15.1

-

Bad Cheque Offenders (No.)

30,004

34,834

-

-

-

Individual Bankruptcy ( No.)

13,238

13,907

-

-

-

Individual Bankruptcy ( % )

<2.6>

5.1

-

-

-

INDUSTRIES ( % of Growth ):

2007

2008

2009

2010*

2011**

 

 

 

 

 

 

Agriculture

3.1

3.6

0.4

3.4

4.5

Palm Oil

<0.6>

7.0

<1.1>

1.3

-

Rubber

1.0

<1.1>

<19.8>

9.9

-

Forestry & Logging

2.8

<1.5>

<5.9>

<1.3>

-

Fishing

5.2

4.0

5.5

4.1

-

Other Agriculture

7.0

5.9

9.0

6.6

-

Industry Non-Performing Loans ( MYR Million )

487.3

393.0

413.7

508.4

-

% of Industry Non-Performing Loans

1.1

<2.0>

1.3

2.1

-

 

 

 

 

 

 

Mining

3.3

<0.8>

<3.8>

1.0

2.9

Oil & Gas

2.2

12.7

2.1

4.9

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

42.2

36.0

44.2

49.7

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

3.1

1.3

<9.4>

10.8

6.7

Exported-oriented Industries

<1.9>

2.7

<19.0>

12.1

-

Electrical & Electronics

3.0

2.4

<30.3>

27.4

-

Rubber Products

8.0

4.2

<10.1>

25.3

-

Wood Products

3.3

<6.0>

<24.1>

19.7

-

Textiles & Apparel

<10.1>

1.9

<19.5>

<1.3>

-

Domestic-oriented Industries

5.3

9.9

<9.8>

16.3

-

Food, Beverages & Tobacco

5.6

9.5

0.2

3.0

-

Chemical & Chemical Products

9.2

1.4

<7.7>

20.4

-

Plastic Products

<3.6>

6.5

<9.1>

2.4

-

Iron & Steel

17.5

16.8

<32.7>

30.0

-

Fabricated Metal Products

26.2

14.7

<2.5>

14.9

-

Non-metallic Mineral

6.6

8.3

<15.5>

20.2

-

Transport Equipment

<19.0>

27.1

<13.5>

36.5

-

Paper & Paper Products

14.9

8.6

<5.0>

20.5

-

Crude Oil Refineries

8.6

7.8

0.2

<11.4>

-

Industry Non-Performing Loans ( MYR Million )

6,366.2

5,729.4

6,007.3

6,217.5

-

% of Industry Non-Performing Loans

14.1

16.8

18.3

23.8

-

 

 

 

 

 

 

Construction

4.6

2.1

5.8

4.9

4.4

Industry Non-Performing Loans ( MYR Million )

5,116.7

4,149.8

3,241.8

4,038.5

-

% of Industry Non-Performing Loans

11.3

12.2

9.9

10.7

-

 

 

 

 

 

 

Services

9.7

7.3

2.6

6.5

5.3

Electric, Gas & Water

4.6

5.0

0.4

8.5

5.6

Transport, Storage & Communication

7.60

7.80

1.60

7.15

7.55

Wholesale, Retail, Hotel & Restaurant

11.6

10.0

2.8

4.7

5.2

Finance, Insurance & Real Estate

10.7

9.2

3.8

6.0

5.2

Government Services

4.6

8.6

2.0

6.7

1.9

Other Services

5.0

5.9

4.4

4.2

5.4

Industry Non-Performing Loans ( MYR Million )

10,207.8

8,281.4

6,631.3

7,384.6

-

% of Industry Non-Performing Loans

22.6

24.3

20.2

25.7

-

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY COMMENTS

 

MSIC CODE

65992 : Investment companies

51511 : Wholesale of telecommunication equipment and accessories

                   

INDUSTRY :  ECONOMY


The Malaysian economy recorded a robust growth of 10.1% in the first quarter of 2010, the highest first quarter growth since the 11.7% recorded in 2000. Prime Minister Datuk Seri Najib Tun Razak said that given the robust performance in 2010 and the government-introduced economic transformation initiatives, Malaysia would achieve its target of 6% growth in 2010. Growth in 2010 will be driven by domestic demand, particularly the private expenditure, and supported by expected recovery in external demand.


Bank Negara announced a slight increase in the interest rate to counter any spike in inflation following the high growth. The Overnight Policy Rate (OPR) was increased by 25 basis points to 2.5%. The new level of the OPR would continue to be accommodative and supportive of the economic growth. The growth of GDP in the first three months of 2010 was much higher than the 4.4% growth registered in the fourth quarter of 2009. It has spurred by strong domestic demand and global economic recovery.


On the supply side, all major sectors recorded robust growth, particularly the manufacturing sector which grew by 16.9% compared to the 5.0% in the last quarter of 2009. Growth in this sector was driven by the electric and electronics (25.9%), transport equipment (25.3%) as well as wood products and furniture (18.7%) sub-sectors.


The services sector also registered a strong performance at 8.5% in the first quarter of 2010 compared to 5.2% in the first quarter of 2009. This was because of strong growth in the utilities (16.6%), real estate and business services (14.2%), wholesale and retail (9.6%) and the transport and storage (9.2%) sub-sectors.


The construction sector continued to expand with a 8.5% growth while the mining sector also seemed to have turned around to record a 5.2% growth. The agriculture sector also expanded by 6.8% mainly due to higher production of rubber, livestock and timber.


On the demand side, growth during the first quarter of 2010 was underpinned by strong domestic expenditure stemming from sustained expansion in private and public consumption of 5.1% and 6.3% respectively. Investments grew strongly at 5.4%, reflecting a recovery in investor confidence.


The external sector registered a sterling performance with a 19.3% increase in total exports, amidst recovery in the global economy and trade. Total imports expanded by 27.5% on account of higher imports of intermediate (37.9%), consumption (18.5%) and capital goods (9.6%), pointing to a more robust domestic economic activities. Government is committed to ensuring economic recovery and transformation is on the right track.

                   

OVERALL INDUSTRY OUTLOOK : Average Growth

 

COMMENTS & RECOMMENDATION

 

 

During our investigation, we were unable to contact the SC as well as its Directors. In view of this, the SC's existence in the market is in doubt. Based on the above condition, the SC is not qualified for credit assessment.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.58

UK Pound

1

Rs.72.79

Euro

1

Rs.62.01

 

 

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

 

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.