MIRA INFORM REPORT

 

 

Report Date :

02.04.2013

 

IDENTIFICATION DETAILS

 

Name :

GEMILANG HAFI ENTERPRISE

 

 

Registered Office :

Level 36, Menara Citibank, 165 Jalan Ampang, 50450 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Date of Incorporation :

10.11.2011

 

 

Com. Reg. No.:

IP0357558-P

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Trading In Automotive Related Products

 

 

No. of Employees :

6

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Poor

Payment Behaviour :

Slow and delayed

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

 

REGISTRATION NO.

:

IP0357558-P

COMPANY NAME

:

GEMILANG HAFI ENTERPRISE

COMMENCEMENT DATE

:

10/11/2011

REGISTRATION DATE

:

10/11/2011

EXPIRY DATE

:

03/01/2014

BUSINESS CONSTITUTION

:

SOLE PROPRIETORSHIP

 

 

 

 

 

 

 

 

 

BUSINESS ADDRESS

:

LEVEL 36, MENARA CITIBANK, 165 JALAN AMPANG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

TEL.NO.

:

03-21696121

FAX.NO.

:

03-21696273

HP.NO.

:

01112415990

EMAIL

:

EGEMILANGHAFI@YAHOO.COM

CONTACT PERSON

:

MUHAMMAD ZAHID BIN ZULKIFLI ( OWNER )

 

 

 

INDUSTRY CODE

:

45300

PRINCIPAL ACTIVITY

:

TRADING IN AUTOMOTIVE RELATED PRODUCTS

 

 

 

STAFF STRENGTH

:

6 [2013]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

 

 

 

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

NOT YET DETERMINED

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND

The SC commenced its business on 10/11/2011 as a SOLE PROPRIETORSHIP.

The SC is a sole proprietorship, that is, it has a single owner whose liabilities are unlimited. In case the SC is unable to meet all its obligations, the creditors can claim on the owner's personal assets. The sole proprietorship ceases upon the death of the owner or any time at the discretion of the owner. The ownership is non-transferable. Under the law, the SC has to file in its information with Registrar of Business but it is not required to file in its financial statements.

The SC is principally engaged in the (as a / as an) trading in automotive related products.

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

 

The owner of the SC are shown as follows :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. MUHAMMAD ZAHID BIN ZULKIFLI

69, PERSIARAN TERATAI 3, TAMAN TERATAI, , 33000 KUALA KANGSAR, PERAK, MALAYSIA.

880320-08-6201

100.00

100.00

 

 

 

---------------

------

 

 

 

100.00

100.00

 

 

 

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

=====

+ Also Director

OWNERS



OWNER(S) 1

 

Name Of Subject

:

MR. MUHAMMAD ZAHID BIN ZULKIFLI

Address

:

69, PERSIARAN TERATAI 3, TAMAN TERATAI, 33000 KUALA KANGSAR, PERAK, MALAYSIA.

 

 

 

New IC No

:

880320-08-6201

Date of Birth

:

20/03/1988

Nationality

:

MALAYSIAN

Date of Appointment

:

04/01/2013

Shareholding

:

100%

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

MUHAMMAD ZAHID BIN ZULKIFLI

 

Position

:

OWNER

 

 

 

 

 

 

AUDITOR


No Auditor found in our databank

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). No adverse record was found during our 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.

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

 

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

100%

Overseas

:

NO

Percentage

:

0%

 

 

 

 

 

 



CLIENTELE

 

Local

:

YES

Percentage

:

20%

 

 

 

 

 

 

Overseas

:

YES

Percentage

:

80%

Export Market

:

ASIA

Credit Term

:

15 DAYS

 

 

 

 

 

 

Payment Mode

:

LETTER OF CREDIT (LC)

Type of Customer

:

AUTOMOTIVE INDUSTRIES

 

 

 

 

 

 

 

 

 

 

 

 


The above clientele information belongs to SC and the SC is not aware of the number of customer. Majority of the customers are from overseas.

 

OPERATIONS

 

Goods Traded

:

CAR ACCESSORIES, SPARE PARTS AND TYRES

 

 

 

 

Total Number of Employees:

YEAR

2013

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

6

 

 

 

 

 

 

 

 

 

Branch

:

NO

Other Information:


The SC is principally engaged in the (as a / as an) trading in automotive related products.

The company is trading in automotive related products such as spare parts, tyres, car accessories and vehicles. Besides, the company is on the way of expanding the business through manufacture own products.

 

PROJECTS


No projects found in our databank

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-21696121

Match

:

N/A

 

 

 

Address Provided by Client

:

LEVEL 36, MENARA CITIBANK, 165 JALAN AMPANG 50450, KUALA LUMPUR

Current Address

:

LEVEL 36, MENARA CITIBANK, 165 JALAN AMPANG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

Match

:

YES

 

 

 

 

Other Investigations


On 2nd April 2013, we contacted the SC's owner Mr. Zahid and he provided some information.

FINANCIAL ANALYSIS

 

 

We are unable to comment on the SC financial position as the SC is not required by the law to file its financial statement in the Registrar of Business.

 

 

 

 

 

 

 

Overall financial condition of the SC : N/A

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

45300 : Wholesale and retail sale of all kinds of parts, components, supplies, tools and accessories for motor vehicles

 

 

INDUSTRY :

MOTOR VECHICLE

 

 

 


The total industry volume (TIV) for year 2013 forcasted 640 000 units. This is an increase of 2.0% compared to the year 2012. Sales of passenger vehicles in the year 2013 forcasted increase by 2.0% to 563 000 units compared to 552 189 units at the year 2012. While sales of comercial vehicles in year 2013 forcasted to increase by 2.0% to 77 000 units compared to 75 564 units at the year 2012.


It is a big challenge for the TIV of year 2013 to create another high record. However, Malaysia's GPD growth is forcasted to be 5.6% in year 2013. This is driven by exports and domestic demand and is expected to give confidence in consumer sentiments. Besides, multiplier effects from the Economic Transformation Programme's (ETP) projects would give a further boost to the domestic economy and create greater demand for new vehicles.


According to the Malaysian Automotive Association (MAA), the implimentation of the Bank Negara's guidelines on responsible financing practices from 1st January 2012 coused a slowdown in new vehicle purchase in first quarter 2012. However, the total industry volume (TIV) of the year 2012 surged to a historical high of 627,753 units which is an all time record achievement for the industry. This record had overtaken the previous highest record of 605,156 units achieved in 2010. It had also outperformed the MAA's TIV forcast of 615,000 units. The main contributors to the growth were led by Perodua and Proton, followed by Toyota, Honda and Nissan.


The total registration of new passenger vehicles in year 2012 reached 552,189 unts compare with 535,113 units in year 2011. Which had bring an increase of 3.2% (17,076 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles n 2012 was 75,564 units which is an increase of 6.2% (10,554 units). Besides, the production of new vehicles also recorded an increase of 6.8% (36,105 units) in year 2012. According to the president of Malaysian Automotive Association (MAA), the record new vehicle sales in 2012 was due to factors such as strong economic growth, the implementation of infrastructure projects under the Economic Transformation Programme (ETP), increased consumer spending and consumption due to stable employment and rising disposable income, introduction of new models at competitive prices as well as aggressive sales campaigns by car companies.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 


CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2011, the SC is a Sole Proprietorship, focusing on trading in automotive related products. The SC was newly established and it has yet to build up a stable clientele base in the market. It is likely to incur start-up costs during the initial years of its operations.


Over the years, the SC has established an extensive clientele base in the market. Besides catering to the local market, the SC has penetrated into other countries. With the contribution of both local and overseas customers, the SC is likely to be exposed to lower commercial risk. Hence, we believe that the SC has better business expansion opportunities in the future. Being a small company, the SC's business operation is supported by 6 employees. We regard that the SC's management capability is weak. Without capable management, the SC is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.


As the SC is registered as a sole-proprietorship, its financial statement are not available for analysis. As such, we are unable to ascertain the SC's financial health. The SC's ability to meet its obligations is very much dependent on the owner's financial strength.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the SC's future performance is very much depend on its marketing strategies in order to retain its position in the market.


Based on the above unfavourable condition, we regard granting credit to the SC to be quite risky. Hence, credit is not recommended.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.38

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.