MIRA INFORM REPORT

 

 

Report No. :

334586

Report Date :

31.07.2015

 

IDENTIFICATION DETAILS

 

Name :

GCN RESOURCES

 

 

Registered Office :

6, Jalan Timur 25, Taman Melaka Raya, 1st Floor, 75000 Melaka, Melaka

 

 

Country :

Malaysia

 

 

Date of Incorporation :

10.11.2011

 

 

Com. Reg. No.:

MA0164323-X

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Logistic, transport (haulier), (lorry), document services

 

 

No. of Employee :

Not Available

 

 

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 :

Moderate

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 previously 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 strained government finances, 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 supplied about 29% of government revenue in 2014. 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.

:

MA0164323-X

COMPANY NAME

:

GCN RESOURCES

COMMENCEMENT DATE

:

10/11/2011

REGISTRATION DATE

:

10/11/2011

EXPIRY DATE

:

09/11/2018

BUSINESS CONSTITUTION

:

SOLE PROPRIETORSHIP

 

 

 

 

 

 

 

 

 

BUSINESS ADDRESS

:

6, JALAN TIMUR 25, TAMAN MELAKA RAYA, 1ST FLOOR, 75000 MELAKA, MELAKA, MALAYSIA.

TEL.NO.

:

06-2832527

FAX.NO.

:

N/A

CONTACT PERSON

:

KUA CHEE MING ( OWNER )

 

 

 

INDUSTRY CODE

:

492

PRINCIPAL ACTIVITY

:

LOGISTIC, TRANSPORT (HAULIER), (LORRY), DOCUMENT SERVICES

 

 

 

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

 

 

 

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

 

 

 

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

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

 

The Subject is a sole proprietorship, that is, it has a single owner whose liabilities are unlimited. In case the Subject 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 Subject has to file in its information with Registrar of Business but it is not required to file in its financial statements.

 

The Subject is principally engaged in the (as a / as an) logistic, transport (haulier), (lorry), document services.

 

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

 

The owner of the Subject are shown as follows :

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. KUA CHEE MING

56-R, JALAN UJONG PASIR , 75050 MELAKA, MELAKA, MALAYSIA.

751219-04-5367 A3273719

100.00

100.00

 

 

 

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

------

 

 

 

100.00

100.00

 

 

 

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

=====

+ Also Director

 

 

OWNERS

 

OWNER(S) 1

 

Name Of Subject

:

MR. KUA CHEE MING

Address

:

56-R, JALAN UJONG PASIR, 75050 MELAKA, MELAKA, MALAYSIA.

IC / PP No

:

A3273719

New IC No

:

751219-04-5367

Date of Birth

:

19/12/1975

Nationality

:

MALAYSIAN

Date of Appointment

:

10/11/2011

Shareholding

:

100%

 

 

 

 

 

 

 

 

 



MANAGEMENT

 

 

 

1)

Name of Subject

:

KUA CHEE MING

 

Position

:

OWNER

 

 

 

 

 

 

 

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

 

 

 


The Subject is a service provider.

 

 

CLIENTELE

 

Local

:

YES

Percentage

:

100%

Domestic Markets

:

MALAYSIA

Overseas

:

NO

 

 

 

 

 

 

 

 

 

Credit Term

:

N/A

 

 

 

 

 

 

Payment Mode

:

CHEQUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATIONS

 

Services

:

LOGISTIC, TRANSPORT (HAULIER), (LORRY), DOCUMENT SERVICES

 

 

 

 

Branch

:

YES

Branch(es)

:

65, LEBUH TURI, TAMAN CHI LIUNG, 41200 KLANG, SELANGOR, MALAYSIA.

Other Information:


The Subject is principally engaged in the (as a / as an) logistic, transport (haulier), (lorry), document services.

The Subject refused to disclose its operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

606-2818687

Current Telephone Number

:

06-2832527

Match

:

NO

 

 

 

Address Provided by Client

:

NO. 6,1ST FLOOR, JALAN TMR 25 TAMAN MELAKA RAYA, 75000 MELAKA MALAYSIA

Current Address

:

6, JALAN TIMUR 25, TAMAN MELAKA RAYA, 1ST FLOOR, 75000 MELAKA, MELAKA, MALAYSIA.

Match

:

YES

 

Other Investigations


On 30th July 2015 we contacted one of the staff from the Subject and he provided limited information on the Subject.

The Subject refused to disclose its fax number, number of employees and bankers.


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

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

 

 

 

 

 

 

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

 

 

 

 

 

 

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

63.2

-

 

 

 

 

 

 

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

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)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

 

 

 

 

 

 

Manufacturing #

4.7

4.8

3.4

6.4

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

1.4

-

Plastic Products

3.8

-

-

2.7

-

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

-

-

13.0

-

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

492 : Other land transport

 

 

INDUSTRY :

TRANSPORTATION

 

 

 

In 2015, the transport and storage subsector is expected to growth by 4.7% due to the implementation of Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP). On the other hand, for 2014, due to resilient domestic economic activity and improving global trade, the transport and storage subsector is expected to grow 5%.

 

Moreover, the land transport segment continued to record positive growth of 6.2% during the first half of 2014 supported by higher freight transported by road in line with improvement in trade-related activity. The opening of Penang Second Bridge in March 2014 saw a healthy number of vehicles using it to avoid traffic congestion. However, the increase in passenger volume for bus services was only 1.9% over the first six months in 2014 (January - July 2013: 6%).

 

Meanwhile, total rail ridership in the Klang Valley increased 5.9% passengers due to improved service efficiency and increased frequencies. The 2.14KM extension of Express Rail Link (ERL) from KLIA to KLIA2 will also increase rail ridership. However, KTM Intercity Service contracted 18% because of the fewer number of coaches in operation due to maintenance issues. Other than that, The Electric Train Service (ETS) ridership on the Kuala Lumpur - Ipoh route increased 11.7% supported by higher demand.

 

During the first half in 2014, the air transport segment expanded 4.9% supported by higher tourist arrivals and domestic passengers amid continuous promotion of travel packages with competitive fares by airlines. The air passenger segment continued to record positive with total passenger traffic at airports nationwide increasing 10.3% during the first seven moths of 2014.

 

According to Budget 2015, to improve the public transport system, the Government will introduce the programmes included providing intercity bus services to those residing outside Kuala Lumpur (KL) but work in KL, provide Electric Train Service (ETS) for Ipoh-Butterworth route starting April 2015, and upgrade stage bus services in several states (Kuching, Ipoh, Seremban, Kuala Terengganu and Kangar) through a contracting system with existing bus companies. The budget 2015 for transportation sector includes RM9 billion development allocation for a LRT extension project from Bandar Utama to Shah Alam and Klang, and RM23 billion for a second MRT line from Selayang to Putrajaya. Government also will allocate RM5.3 billion for the construction of Sungai Besi - Ulu Klang Expressway (SUKE), RM5 billion for West Coast Expressway from Taiping to Banting, RM4.2 billion for construction of Damansara - Shah Alam Highway (DASH), and RM1.6 billion for construction of Eastern Klang Valley Expressway (EKVE).

 

Additionally, improving urban public transport (UPT) is one of the National Key Result Areas (NKRAs) under the Government Transformation Programme (GTP). The aim is to improve the overall availability and efficiency of UPT, including enhancing connectivity, providing an integrated system and ensuring adequate facilities. Because of the improvement to UPT in the Klang Valley, the public transport modal share has increased from 17% in 2010 to 21% in 2013. The programme covers improvement for Bus Services (RapidKL, Bus Expressway Transit (BET), Bus Rapid Transit (BRT), bus stops), Rail System (KTM, LRT, KL Monorail, Express Rail Link (ERL), MRT, Park n' Ride), and Taxi Services.

 

The Klang Valley Mass Transit Project (KVMRT) is one of the improvements to do for UPT and it may boost the growth of transportation sector. The Sungai Buloh - Kajang (SBK) line has started construction in 2012. The first phase of SBK Line from Sungai Buloh to Semantan will be operational on 31 December 2016, while the second phase from Semantan to Kajang will be operational on 31 July 2017.

 

Furthermore, the Bus Rapid Transit (BRT) aims to create a dedicated bus right-of-way at main corridors and is a specialized form of bus priority services to meet the high level of passenger demand by incorporating aspects of mass transit. One of the BRT corridors is the Kuala Lumpur - Klang corridor, covering a distance of 34KM, and will pass through Federal Highway, Jalan Syed Putra, and Jalan Tun Sambanthan. The KL-Klang BRT is estimated to save more than one hour of daily travelling time for 600,000 passengers, and is expected to be completed in 2017.

 

In order to improve taxi services, the Centralized Taxi Services System (CTSS) will be launched in 2015. It is a technology infrastructure to monitor taxi services. It integrates and enhances the existing booking system. It is targeted to raise the success rate of meeting passenger bookings. Besides, a new business model for taxis has been introduced to increase the take-home income for taxi drivers by reducing their operating cost. Under the Taxi 1Malaysia project, licenses will be offered to individual drivers. The Land Public Transport Commission (SPAD) has launched a fleet of new taxis known as Teksi 1Malaysia (TEKS1M). Through the TEKS1M initiative, 1,000 new Proton Exora will be deployed in 2014.

 

 

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2011, the Subject is a Sole Proprietorship, focusing on logistic, transport (haulier), (lorry), document services. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field.

Investigation revealed that the Subject concentrates only on the local market. This narrow market segment has placed the Subject at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the Subject's business performance. We regard that the Subject's management capability is weak. Without capable management, the Subject 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 Subject is registered as a sole-proprietorship, its financial statement are not available for analysis. As such, we are unable to ascertain the Subject's financial health. The Subject'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 Subject'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 Subject to be quite risky. Hence, credit is not recommended.

 

 

 

FINANCIAL ACCOUNT

 

No latest financial accounts are available at the Registry Office.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.01

UK Pound

1

Rs.99.83

Euro

1

Rs.70.07

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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.