MIRA INFORM REPORT

 

 

Report No. :

319207

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SING LIAN AUTO

 

 

Registered Office :

Not Available

 

 

Country :

Malaysia

 

 

Date of Incorporation :

09.06.1997

 

 

Com. Reg. No.:

001107303-D

 

 

Legal Form :

Partnership

 

 

Line of Business :

Subject is engaged in the dealing in new, reconditioned auto spare parts, diesel engines & replacement parts.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

 

Status :

Moderate

Payment Behaviour :

--

Litigation :

--

 

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)

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. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. 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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

001107303-D

COMPANY NAME

:

SING LIAN AUTO

COMMENCEMENT DATE

:

09/06/1997

REGISTRATION DATE

:

09/06/1997

EXPIRY DATE

:

24/10/2017

BUSINESS CONSTITUTION

:

PARTNERSHIP

BUSINESS ADDRESS

:

N/A

TEL.NO.

:

N/A

FAX.NO.

:

N/A

CONTACT PERSON

:

N/A

INDUSTRY CODE

:

45300

PRINCIPAL ACTIVITY

:

DEALING IN NEW, RECONDITIONED AUTO SPARE PARTS, DIESEL ENGINES & REPLACEMENT PARTS

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

N/A

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

N/A

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

HISTORY / BACKGROUND

 

The Subject commenced its business on 09/06/1997 as a PARTNERSHIP.

The Subject is a partnership firm registered under the Business Registration Act. The partners liabilities are unlimited, that is, if the partnership is not able to meet its obligations, the partners have to be personally liable for the debts incurred. The Subject's ownership is transferable with consent of the other partners. The Subject as a partnership firm is governed by the Partnership Act. The Subject is not required to file in its financial statements with the Registry of Business.

 

The Subject is principally engaged in the (as a / as an) dealing in new, reconditioned auto spare parts, diesel engines & replacement parts.

 

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

 

The owner of the Subject are shown as follows :


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. TAN LIAN LAI

GG13, TAMAN BAMBOO, JALAN IPOH, JALAN TEROLAK 9 , 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

440107-10-5291 7917796

50.00

50.00

MS. TAN GEOK BEE

GG13, TAMAN BAMBOO, JALAN TEROLAK 9 , 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

810416-08-5218

50.00

50.00

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

------

100.00

100.00

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

=====

 

+ Also Director

 





OWNERS



OWNER(S) 1

 

Name Of Subject

:

MR. TAN LIAN LAI

Address

:

GG13, TAMAN BAMBOO, JALAN IPOH, JALAN TEROLAK 9, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

7917796

New IC No

:

440107-10-5291

Date of Birth

:

07/01/1944

Nationality

:

MALAYSIAN

Date of Appointment

:

09/06/1997

Shareholding

:

50%

 

OWNER(S) 2

 

Name Of Subject

:

MS. TAN GEOK BEE

Address

:

GG13, TAMAN BAMBOO, JALAN TEROLAK 9, 51200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

810416-08-5218

Date of Birth

:

16/04/1981

Nationality

:

MALAYSIAN

Date of Appointment

:

05/11/2012

Shareholding

:

50%



MANAGEMENT


No data found in our databank. 

 

AUDITOR


No Auditor found in our databank 

 

BANKING


No Banker found in our databank. 



LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject 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 SUBJECT


* We have checked through the Subject 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.


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



PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


We were unable to verify the Subject's payment record. 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A

Credit Term

:

N/A

Payment Mode

:

N/A


We were unable to verify the Subject's clientele. 

 

OPERATIONS

 

 

Total Number of Employees:

YEAR

2014

GROUP

N/A

COMPANY

5

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) dealing in new, reconditioned auto spare parts, diesel engines & replacement parts. 



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

N/A

Match

:

N/A

Address Provided by Client

:

Q-7, JALAN TEROLAK 4 IPOH ROAD GARDEN OFF 4 MILE IPOH ROAD 51200 MALAYSIA

Current Address

:

N/A

Match

:

N/A

 

Other Investigations


We were unable to contact the Subject and its partners.


We are unable to verify the address provided.


We have found contact number at 0362591295 for the Subject. However, it is invalid.



FINANCIAL ANALYSIS

 

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

Overall financial condition of the Subject : N/A

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

-

-

Plastic Products

3.8

-

-

-

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



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 forecasted annual Total Industry Volume (TIV) in the year 2015 is 693,500 units, which is the forecasted increase of 2.0% compared to the forecasted annual TIV of 680,000 units for year 2014. The forecasted TIV for year 2014 is an estimated increase of 3.7% compared to the actual TIV of year 2013 (655,793 units). The factors that affected the forecasted TIV for year 2014 are the improving global economic conditions, investments in mega projects related to Economic Transformation Projects (ETP), positive consumer's sentiments, introduction of new models especially Energy Efficient Vehicles (EEV), and aggressive promotional campaigns by car companies. However, moderation in consumer's spending due to higher cost of living, and more stringent lending practices including hire purchase loan also have an effect in the forecasted TIV for year 2014.

Besides that, the annual sales of passenger vehicles in the year 2015 are forecasted to be 610,300 units and it's an estimated increase of 2.0% compared to the forecasted sales of passenger cars for year 2014. The forecasted annual sales of passenger cars for year 2014 have an estimated increase by 3.8% to 598,400 units compared to 576,657 units at the year 2013. While annual sales of commercial vehicles in year 2015 is forecasted to be 83,200 units, which is a forecasted increase 2.0% compared to the forecasted annual sales of commercial car in year 2014. The forecasted annual sales of commercial car in year 2014 were estimated to increase by 3.1% to 81,600 units compared to 79,136 units at the year 2013.

Other than that, for the total registration of new passenger vehicles in the first six months of year 2014, it reached 296,779 units compare with 275,991 units over the same period in year 2013. This had brought an increase of 7.5% (20,788 units) of growth rate in the registration of passenger vehicles. While the total registration for commercial vehicles in the first six months of year 2014 were 36,363 units, which was a decrease of 3.0%. Besides, the production of new vehicles also recorded an increase of 8.3% (24,381 units) over the first six months of year 2014. 

The National Automotive Policy 2014 envisions for Malaysia to be an Energy Efficient Vehicles (EEV) hub in ASEAN including the production of hybrids and electric vehicles (EV). This encompasses strategies and measures to strengthen the entire value chain of the automotive industry. Thus, the national car manufacturers, Proton and Perodua, lead in the industry's response. Proton launched "Iriz" and believes the global standard car will help to capture a larger share of the automotive market. Besides, Perodua came up with the Axia model, which is Malaysia's first EEV and it received similarly good response from consumers.

Moreover, Auto industry players believe that the 2015 Budget will spur manufacturing automation in their industry, due to the automation capital allowance of up to 200 per cent on the expenditure incurred within a specific period is a specialised incentive package, and will benefit manufacturers of energy-efficient vehicles (EEVs), said by the CEO of Malaysian Automotive Institute (MAI).

The Goods and Services Tax (GST) that set at 6% will be implemented on April 1, 2015, and the Sales and Services Tax (SST) of 10% will be abolished on that same day. According to Malaysian Automotive Institute (MAI), the implementation of the GST in 2015 should stimulate demand for vehicles with the reduction of prices due to the abolishment of the SST. However, according to Bernama, the gains could be offset by higher prices of imported auto parts due to foreign exchange factors, even though prices for new cars are generally expected to come down by between 1-3% after the implementation of the Goods and Services Tax (GST). As auto components are mainly imported from Japan, if the yen appreciates against the ringgit, the savings of 1-3% could be much less because the components would now cost more and that would affect retail car prices.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


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



FINANCIAL ACCOUNT


No latest financial accounts are available at the Registry Office. 



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.33

UK Pound

1

Rs.96.52

Euro

1

Rs.68.93

 

 

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.