ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON FINANCIAL DISCLOSURE
ITEM 9A. CONTROLS AND PROCEDURES
DISCLOSURE CONTROLS AND PROCEDURES
Under the supervision and with the participation of our management, including our principal executive officer and the principal financial officer, we are responsible for conducting an evaluation of the effectiveness of the design and operation of our internal controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the fiscal year covered by this report. Disclosure controls and procedures means that the material information required to be included in our Securities and Exchange Commission (“SEC”) reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, including any consolidating subsidiaries, and was made known to us by others within those entities, particularly during the period when this report was being prepared. Based on this evaluation, our principal executive officer and principal financial officer concluded as of the evaluation date that our disclosure controls and procedures were effective as of January 31, 2014.
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MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
As of January 31, 2014, management assessed the effectiveness of our internal control over financial reporting. The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the Company’s Chief Executive Officer and Chief Financial Officer and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP in the United States of America and includes those policies and procedures that:
- Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets;
- Provide reasonable assurance our transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
- Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statement.
In evaluating the effectiveness of our internal control over financial reporting, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. Based on that evaluation, completed only by Mr. Tan Sri Barry Goh Ming Choon, our President, Chief Executive Officer, Treasurer and Director, who also serves as our principal financial officer and principal accounting officer, Mr. Tan Sri Barry Goh Ming Choon concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below.
This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.
The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (i) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (ii) inadequate segregation of duties consistent with control objectives; and (iii) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by our President, Chief Executive Officer, Secretary, Treasurer and Director, who also serves as our principal financial officer and principal accounting officer, in connection with the review of our financial statements as of January 31, 2014.
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Management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING.
There were no changes in the Company’s internal control over financial reporting that occurred during the fourth quarter of the year ended January 31, 2014 that have materially affected, or that are reasonably likely to materially affect, the Company’s internal control over financial reporting.
ITEM 9B. OTHER INFORMATION.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Our executive officer’s and director’s and their respective age’s as of the date of this annual report on April 16, 2014 are as follows:
Name | Age | Positions and Offices |
| | |
Mr. Tan Sri Barry Goh Ming Choon | 50 | President, Chief Executive Officer, Secretary and Director |
Mr. C.K. Lee | 41 | Chief Financial Officer, Treasurer and Director |
Mr. Michael Teh Kok Lee | 31 | Director |
Mr. Dato’ John Looi Teh Sung | 49 | Director |
Mr. Dato’ Danny Goh Meng Keong | 46 | Director |
Mr. Law Boon Hee | 46 | Director |
Mr. Soo Kai Chee | 50 | Director |
Mr. Gilbert Loke | 59 | Director |
The directors named above will serve until the next annual meeting of the stockholders or until their respective resignation or removal from office. Thereafter, directors are anticipated to be elected for one-year terms at the annual stockholders’ meeting. Officers will hold their positions at the pleasure of the Board of Directors, absent any employment agreement, of which none currently exists or is contemplated.
Set forth below is a brief description of the background and business experience of our executive officers and directors for the past five years.
TAN SRI BARRY GOH MING CHOON , 50, is the President, Chief Executive Officer, Secretary and Chairman of the Board of Directors of the Company. Mr. Barry Goh is the founder of B&G Capital Resources Berhad (“BGCR”) which he started in 1994. BGCR has served as the principal contractor to TNB, one of the largest government link companies in Malaysia. BGCR provides assistance as an independent contractor with power transmission, power distribution, architecture, and building construction. In 1999, Mr. Barry Goh expanded BGCR to include advisory services for design and manufacturing of building components, civil engineering, and infrastructure.
In 2005 Mr. Barry Goh expanded his business into property development into 22 developer companies under the brand “MCT 1999”, which is recognized in both Malaysian and international markets. His current focus is on the domestic market. Mr. Barry Goh also established Kingsley International Education Group to provide a holistic education and 5-star school facilities at an affordable price.
Mr. Barry Goh is the President of the Alumni Association of Tunku Abdul Rahman College where he graduated in 1991.
C. K. LEE , 41, is the Chief Financial Officer, Tresurer and a Director of the Company. Mr. Lee started his professional career with Siva Tan & Co., a Chartered Accountant firm in Malaysia since 1995, and later joined K. Y. Ho & Co, Chartered Accountants in Malaysia, in 1997. In 2000, Mr. Lee founded Asia UBS Global Limited and spearheaded the accounting software business for UBS Software Malaysia in Hong Kong. In 2008, Mr. Lee obtained his Hong Kong residentialship under the Hong Kong Quality Migrant Program.
As a qualified member of the ACCA and Malaysia Institute of Accountants, Mr. Lee earned his professional qualification from the Hong Kong Institute of Certified Public Accountants and extended his professional services covering accounting, tax, and corporate structuring planning with special focus on cross-border client matters, in addition to his accounting software businesses. In 2006, Mr. Lee started Greenpro Resources Corporation, an advisory of which he is the Chief Executive Officer. In 2009, Mr. Lee established the Cross-Border Business Association (CBBA) – a Non-Government Organization established under Hong Kong Society Act - to provide information and professional advice in cross -border business for its investment members.
MICHAEL TEH KOK LEE, 31, is a Director of the Company. Mr. Kok Lee obtained his LLB with honors from the University of West England. Since graduating, Mr. Teh Kok Lee has served as the assistant to the Executive Chairman, as director of legal affairs, and as managing director of projects of B&G Capital Resources Bhd., a property developer in Asia formed by Mr. Barry Goh, the Company’s Chairman.
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DATO’ JOHN LOOI TEH SUNG , 49, is a Director of the Company. Mr. Looi Teh Sung obtained his law degree in 1989 from the National University of Singapore. In 1990, he was admitted as an Advocate and Solicitor of the Supreme Court of Singapore where he began his legal practice with Chor Pee & Company. Mr. Looi Teh Sung has been in legal practice for more than 22 years and has extensive experience in civil litigation, corporate, conveyance law, banking, and multinational and publicly-listed companies.
In 1992, he was admitted as an Advocate and Solicitor of the High Court of Malaysia. In 1994, he helped to set up the legal firm of Chor Pee Anwarul & Company in Johor Bahru, Malaysia. He became a partner of the firm in 1995. In 2000, he left the firm to join Low & Lee, his present firm. He presently manages Low & Lee’s two offices in Johor Bahru and Selangor.
DATO’ DANNY GOH MENG KEONG , 46, is a Director of the Company. Mr . Goh Meng Keong graduated with a diploma in building technology from TAR College in Malaysia in 1992. After graduating, he worked with Hazama Corporation Berhad in Malaysia as a contract executive. Three years later, he ventured into civil construction as a design and build contractor, including providing architectural, structural, mechanical, and electrical services. In 2005 he formed the MCT Group of Companies, a property developer. He is a frequent speaker at property development seminars.
LAW BOON HEE , 46, is a Director of the Company. Mr. Law Boon Hee obtained his Bachelor of Electrical Engineering degree with Honors from the University Teknology Malaysia in 1992. After graduation, he started his career with OYL Industries Berhad in Malaysia where he started working in the special project division and eventually became the director of research and development of the company. He was also part of the team that started the ISO 9000 quality system to the certification and start-up ERP system (Enterprise Resourcing Planning).
In 2000 he joined a subsidiary of the B & G Group of Companies in Malaysia; BRAS Venture Berhad, as a Project Manager. He is now the Executive Director of the B & G Group of Companies. He oversees an engineering company and seven other developer companies.
SOO KAI CHEE , 50, is a Director of the Company. Mr. Soo Kai Chee graduated with a professional qualification from the Chartered Institute of Management Accountancy in 1988 and thereafter began his career with an auditing firm in Ipoh, Malaysia. In 2004, he joined the B&G Group of Companies as an Executive Director in charge of property development.
GILBERT LOKE , 59, is a Director of the Company. Mr. Loke trained and qualified with Hacker Young, Chartered Accountants, one of the large accounting firms based in London, England between 1980 and 1988. His extensive experience in auditing, accounting, taxation, SOX compliance and corporate listing has prompted him to specialize in corporate advisory services covering IPO and DPO listings, as well as risk management and internal controls serving those small to medium-sized enterprises. Since 2004 he has been a regular traveler between Hong Kong, China and Malaysia which has provided him with extensive exposure to Chinese businesses. Mr. Loke obtained his M.B.A. degree from Bulacan State University in the Philippines and earned his professional accountancy qualifications from the ACCA, AIA and HKICPA. He also earned other professional qualifications from the HKICS, ICSA as Chartered Secretary, FPAM - Malaysia as Certified Financial Planner and ATIHK as Tax Adviser in Hong Kong.
Mr. Loke previously acted as an Independent Non-Executive Director of ZMay Holdings Limited, a public company listed on the Hong Kong Stock Exchange, and as Chief Financial Officer for Asia Properties Inc. and Sino Bioenergy Inc., both companies listed on the OTC Markets in USA. Currently, Mr. Loke is also the Chief Financial Officer for Greenpro Resources Corporation, a company provides green technology solutions for its clients.
TERM OF OFFICE
All directors hold office until the next annual meeting of the stockholders of the Company and until their successors have been duly elected and qualified. The Company’s Bylaws provide that the Board of Directors will consist of no less than three members. Officers are elected by and serve at the discretion of the Board of Directors.
On February 4, 2013, Mr. O’Neill resigned from his position with the Company as Director. The resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
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DIRECTOR INDEPENDENCE
Our board of directors is currently composed of eight members, six of them qualify as an independent director in accordance with the published listing requirements of the NASDAQ Global Market (the Company has no plans to list on the NASDAQ Global Market). The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our board of directors has not made a subjective determination as to our director that no relationships exist which, in the opinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our board of directors made these determinations, our board of directors would have reviewed and discussed information provided by our director and us with regard to our director’s business and personal activities and relationships as they may relate to us and our management.
CERTAIN LEGAL PROCEEDINGS
No director, nominee for director, or executive officer of the Company has appeared as a party in any legal proceeding material to an evaluation of his ability or integrity during the past five years.
SIGNIFICANT EMPLOYEES AND CONSULTANTS
Other than our officers and directors, we currently have no other significant employees.
AUDIT COMMITTEE AND CONFLICTS OF INTEREST
Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. The Board of Directors has not established an audit committee and does not have an audit committee financial expert, nor has the Board of Directors established a nominating committee. The Board is of the opinion that such committees are not necessary since the Company is an early exploration stage company and has only two directors, and to date, such directors have been performing the functions of such committees. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions.
There are no family relationships among our directors or officers. Other than as described above, we are not aware of any other conflicts of interest with any of our executive officers or directors.
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors, and persons who own more than ten percent of a registered class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. Specific due dates for these reports have been established and the Company is required to report in this report any failure to file by these dates.
All of these filing requirements were satisfied by the Company’s Officers, Directors, and ten-percent holders.
In making these statements, we have relied on the written representation of our Directors and Officers or copies of the reports that they have filed with the Commission.
CODE OF ETHICS
The Company has adopted a code of ethics that applies to its principal executive officers, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
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ITEM 11. EXECUTIVE COMPENSATION
The following tables set forth certain information about compensation paid, earned or accrued for services by our Chief Executive Officer and all other executive officers (collectively, the “Named Executive Officers”) in the fiscal years ended January 31, 2014 and 2013:
SUMMARY COMPENSATION TABLE
The table below summarizes all compensation awarded to, earned by, or paid to our current and former Officers for all services rendered in all capacities to us as of the year ended January 31, for the fiscal year ended as indicated.
| Non-Equity Incentive | Nonqualified | | |
Name and | | | Stock | Option | Plan | Deferred | All Other |
Principal | Salary | Bonus | Awards | Awards | Compensation | Compensation | Compensation | Total |
Position Year | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) |
Mr. Tan Sri Barry Goh Ming Choon (1) 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. C.K. Lee (2) 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Michael Teh Kok Lee 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Dato’ John Looi Teh Sung 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Dato’ Danny Goh Meng Keong 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Law Boon Hee 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Soo Kai Chee 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Gilbert Loke 2014 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
William O’Neill 2013 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
(1) President, Chief Executive Officer, Secretary and Director
(2) Chief Financial Officer, Treasurer and Director
None of our directors have received monetary compensation since our inception to the date of this Annual Report on Form 10-
K. We currently do not pay any compensation to our directors serving on our board of directors.
STOCK OPTION GRANTS
We have not granted any stock options to the executive officers since our inception. Upon the further development of our business, we will likely grant options to directors and officers consistent with industry standards for junior mineral exploration companies.
EMPLOYMENT AGREEMENTS
The Company is not a party to any employment agreement and has no compensation agreement with any of its officers and directors.
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DIRECTOR COMPENSATION
The following table sets forth directors’ compensation as of January 31, 2014 (2013: Nil):
| Non-Equity Incentive | Nonqualified | | |
| | | Stock | Option | Plan | Deferred | All Other |
| Salary | Bonus | Awards | Awards | Compensation | Compensation | Compensation | Total |
Name | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) |
Mr. Tan Sri Barry Goh Ming Choon | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. C.K. Lee | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Michael Teh Kok Lee | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Dato’ John Looi Teh Sung | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Dato’ Danny Goh Meng Keong | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Law Boon Hee | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Soo Kai Chee | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Mr. Gilbert Loke | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table lists, as of January 31, 2014, the number of shares of common stock of our Company that are beneficially owned by (i) each person or entity known to our Company to be the beneficial owner of more than 5% of the outstanding common stock; (ii) each officer and director of our Company; and (iii) all officers and directors as a group. Information relating to beneficial ownership of common stock by our principal shareholders and management is based upon information furnished by each person using “beneficial ownership” concepts under the rules of the Securities and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.
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The percentages below are calculated based on 3,660,000 shares of our common stock issued and outstanding as of January 31, 2014. We do not have any outstanding warrant, options or other securities exercisable for or convertible into shares of our common stock.
| Name and Address | Number of Shares | | Percent of |
Title of Class | | of Beneficial Owner | Owned Beneficially | | Class Owned |
Common Stock: | | Mr. Tan Sri Barry Goh Ming Choon, President, Chief Executive Officer, Secretary and Director C-07-01, Block C, Level 7 Sky Park @ One City, Jalan USJ 25/1A, 47650 Subang Jaya, Selangor Darul Ehsan, Malaysia | | 2,527,230 | | | | 69.05 | % |
| | Mr. C.K. Lee | | | | | | | |
| | Chief Financial Officer, Treasurer and Director | | | | | | | |
| | 9/F., Kam Chung Commercial Building, 19-21 Hennessy | | | | | | | |
| | Road, Wanchai, | | | | | | | |
| | Hong Kong | | 49,100 | | | | 1.34 | % |
| | Mr. Dato’ Danny Goh Meng Keong | | | | | | | |
| | Director | | | | | | | |
| | C-07-01, Block C, Level 7 Sky Park @ One City, | | | | | | | |
| | Jalan USJ 25/1A, 47650 Subang Jaya, | | | | | | | |
| | Selangor Darul Ehsan, Malaysia | | 208,620 | | | | 5.70 | % |
| | Mr. Dato’ John Looi Teh Sung | | | | | | | |
| | Director | | | | | | | |
| | C-07-01, Block C, Level 7 Sky Park @ One City, | | | | | | | |
| | Jalan USJ 25/1A, 47650 Subang Jaya, | | | | | | | |
| | Selangor Darul Ehsan, Malaysia | | 10,000 | | | | 0.27 | % |
| | Mr. Gilbert Loke | | | | | | | |
| | Director | | | | | | | |
| | 9/F., Kam Chung Commercial Building, 19-21 Hennessy | | | | | | | |
| | Road, Wanchai, | | | | | | | |
| | Hong Kong | | 19,100 | | | | 0.52 | % |
| | Mr. Soo Kai Chee | | | | | | | |
| | Director | | | | | | | |
| | C-07-01, Block C, Level 7 Sky Park @ One City, | | | | | | | |
| | Jalan USJ 25/1A, 47650 Subang Jaya, | | | | | | | |
| | Selangor Darul Ehsan, Malaysia | | 64,400 | | | | 1.76 | % |
| | Mr. Michael Teh Kok Lee | | | | | | | |
| | Director | | | | | | | |
| | C-07-01, Block C, Level 7 Sky Park @ One City, | | | | | | | |
| | Jalan USJ 25/1A, 47650 Subang Jaya, | | | | | | | |
| | Selangor Darul Ehsan, Malaysia | | 343,160 | | | | 9.38 | % |
| | Mr. Law Boon Hee | | | | | | | |
| | Director | | | | | | | |
| | C-07-01, Block C, Level 7 Sky Park @ One City, | | | | | | | |
| | Jalan USJ 25/1A, 47650 Subang Jaya, | | | | | | | |
| | Selangor Darul Ehsan, Malaysia | | 65,000 | | | | 1.78 | % |
All executive officers and directors | | | | | | | | | |
as a group (8 persons) | | | | 3,286,610 | | | | 89.80 | % |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
For the year ended January 31, 2014 the total fees charged to the company for audit services, including quarterly reviews were $10,600 (2013: $9,100), for audit-related services were $0 (2013: $0) and for tax services and other services were $0 (2013: $0) and $0 (2013: $0), respectively.
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ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULE
(a) The following Exhibits, as required by Item 601 of Regulation SK, are attached or incorporated by reference, as stated below.
Number | | Description |
| | |
3.1 | | Articles of Incorporation* |
| | |
3.2 | | Bylaws* |
| | |
31.1 | | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| | |
31.2 | | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| | |
32.1 | | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| | |
101.INS ** | | XBRL Instance Document |
| | |
101.SCH ** | | XBRL Taxonomy Extension Schema Document |
| | |
101.CAL ** | | XBRL Taxonomy Extension Calculation Linkbase Document |
| | |
101.DEF ** | | XBRL Taxonomy Extension Definition Linkbase Document |
| | |
101.LAB ** | | XBRL Taxonomy Extension Label Linkbase Document |
| | |
101.PRE ** | | XBRL Taxonomy Extension Presentation Linkbase Document |
* Incorporated by reference to the Registrant’s Form S-1 (File No. 333-166076), filed with the Commission on April 15, 2010.
** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
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