|
* Adopted abbreviations : SC - Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
791899-A
|
|
COMPANY NAME
|
:
|
AGRI-HORTI LINK SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
12/10/2007
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
PRIVATE LIMITED
|
|
LISTED STATUS
|
:
|
NO
|
|
REGISTERED ADDRESS
|
:
|
21B , ROOM 2, JALAN USJ10/1C, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
NO 20-2, JALAN USJ21/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
TEL.NO.
|
:
|
03-80232248
|
|
FAX.NO.
|
:
|
03-80233248
|
|
CONTACT PERSON
|
:
|
DO HOCK KWONG ( DIRECTOR )
|
|
|
|
|
|
INDUSTRY CODE
|
:
|
51491
|
|
PRINCIPAL ACTIVITY
|
:
|
TRADING IN FERTILIZERS
|
|
AUTHORISED CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARE 100,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND
PAID UP CAPITAL
|
:
|
MYR 100,000.00
DIVIDED INTO
ORDINARY SHARES 100,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
MYR 7,053,014 [2010]
|
|
NET WORTH
|
:
|
MYR 1,131,388 [2010]
|
|
STAFF STRENGTH
|
:
|
5 [2011]
|
|
BANKER (S)
|
|
MALAYAN BANKING BHD
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
FAIR
|
|
PAYMENT
|
:
|
AVERAGE
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
MODERATE
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
STRONG GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD26,017.00
|
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one
and a maximum of forty-nine shareholders. As a private limited company, the
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the
equity they have taken up and the creditors cannot claim on shareholders'
personal assets even if the SC is insolvent. The SC is governed by the
Companies Act, 1965 and the company must file its annual returns, together
with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) trading in fertilizers.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The major shareholder(s) of the SC are shown as follows :
|
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MR. DO HOCK KWONG +
|
33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
661216-08-5647
A0702643
|
90,000.00
|
|
MS.HAW SOOK LENG
|
33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
660110-10-7292
A0343501
|
10,000.00
|
|
|
|
|
---------------
|
|
|
|
|
100,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. TAN TEE @ TAN POH KIM
|
|
Address
|
:
|
33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
0550543
|
|
New IC No
|
:
|
410105-10-5418
|
|
Date of Birth
|
:
|
05/01/1941
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MR. DO HOCK KWONG
|
|
Address
|
:
|
33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
IC / PP No
|
:
|
A0702643
|
|
New IC No
|
:
|
661216-08-5647
|
|
Date of Birth
|
:
|
16/12/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
DO HOCK KWONG
|
|
|
Position
|
:
|
DIRECTOR
|
AUDITOR
|
Auditor
|
:
|
WANG & CO
|
|
Auditor' Address
|
:
|
CT 10-06, CORPORATE TOWER, SUBANG SQUARE, JALAN SS 15/4G, LEVEL 10,
47500 SUBANG JAYA, SELANGOR, MALAYSIA.
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. ONG SIOK LEAN
|
|
|
|
|
|
|
|
New IC No
|
:
|
700802-02-5240
|
|
|
Address
|
:
|
33, JALAN USJ 12/2A, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
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.
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
16/02/2011
|
|
Description Of Charge
|
:
|
FIRST LEGAL CHARGE UNDER THE NATIONAL LAND CODE 1965 DATED
16/02/2011 "THE CHARGE"
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
A UNIT OF THREE STOREY SHOP-OFFICE BEARING POSTAL ADDRESS AT 2 JALAN
USJ 21/4, 47630 UEP SUBANG JAYA, SELANGOR DARUL EHSAN SITUATED ON THE LAND
HELD UNDER INDIVIDUAL TITLE GRN 219094, LOT 49102, PEKAN SEBANG JAYA,
DAERAH PETALING, NEGERI SELANGOR MEASURING APPROXIMATELY 1.540 SQUARE FEET
IN AREA
|
|
Name & Address Of Chargee
|
:
|
STANDARD
CHARTERED BANK MALAYSIA BHD
30-36, JALAN 52/4, 46200 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
12/04/2011
|
|
Description Of Charge
|
:
|
THIRD PARTY LEGAL CHARGE UNDER THE NATIONAL LAND CODE, 1965 DATED
12/04/2011
|
|
Amount Secured
|
:
|
N/A
|
|
Description Of Property Affected
|
:
|
ONE UNIT OF THREE STOREY SHOP OFFICE BEARING POSTAL ADRESS 25 JALAN
USJ 10/1, 47620 UEP, SUBANG JAYA, SELANGOR DARUL EHSAN HELD UNDER
INDIVIDUAL TITLE GRN 284602 LOT 37075, PEKAN SUBANG JAYA, DAERAH PETALING,
NEGERI SELANGOR
|
|
Name & Address Of Chargee
|
:
|
CIMB BANK BHD
27 JALAN 52/2, 46200 PETALING JAYA, SELANGOR, MALAYSIA.
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of
the wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
SOURCES OF RAW
MATERIALS:
Local : YES
Overseas : YES
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data
we conclude that :
|
OVERALL PAYMENT HABIT
|
|
Prompt 0-30 Days
|
[
|
|
]
|
|
Good 31-60 Days
|
[
|
|
]
|
|
Average 61-90 Days
|
[
|
X
|
]
|
|
|
Fair 91-120 Days
|
[
|
|
]
|
|
Poor >120 Days
|
[
|
|
]
|
|
|
|
|
|
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
100%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
NO
|
Percentage
|
:
|
0%
|
|
|
|
|
|
|
|
|
Credit Term
|
:
|
30 - 60 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
OPERATIONS
|
Goods Traded
|
:
|
FERTILIZERS
|
|
|
|
|
|
Competitor(s)
|
:
|
AGROMATE (M)
SDN BHD
AGROMATE HOLDINGS SDN BHD
BEHN MEYER & CO (M) SDN BHD
HAP SENG FERTILIZERS SDN BHD
HARRISONS TRADING (PENINSULAR) SDN BHD
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
5
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) trading in fertilizers.
The SC sells all kinds of fertilizers.
The SC sells the products according to its customers' orders.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
N/A
|
|
Current Telephone Number
|
:
|
03-80232248
|
|
Match
|
:
|
N/A
|
|
|
|
|
|
Address Provided by Client
|
:
|
23-2, JLN USJ 21/3, 47630, SUBANG JAYA, SELANGOR.
|
|
Current Address
|
:
|
NO 20-2, JALAN USJ21/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
YES
|
Other Investigations
We contacted one
of the staff from the SC and she provided some information on the SC.
The SC had shifted from the address provided.
FINANCIAL COMMENTS
Profitability:
|
Turnover
|
:
|
Decreased
|
[
|
55.07%
|
]
|
|
Profit/(Loss) Before Tax
|
:
|
Decreased
|
[
|
81.77%
|
]
|
|
Return on Shareholder Funds
|
:
|
Acceptable
|
[
|
14.48%
|
]
|
|
Return on Net Assets
|
:
|
Acceptable
|
[
|
17.45%
|
]
|
The shrinking turnover could be the result of more entrants into the market
which eroded the SC's market share. The SC's profit fell sharply because of
the high operating costs incurred. The SC's management had generated
acceptable return for its shareholders using its assets.
Working Capital Control:
|
Stock Ratio
|
:
|
Favourable
|
[
|
38 Days
|
]
|
|
Debtors Ratio
|
:
|
Favourable
|
[
|
53 Days
|
]
|
|
Creditors Ratio
|
:
|
Favourable
|
[
|
46 Days
|
]
|
The SC's stocks were moving fast thus reducing its holding cost. This had
reduced funds being tied up in stocks. The favourable debtors' days could be
due to the good credit control measures implemented by the SC. The SC had a
favourable creditors' ratio as evidenced by its favourable collection days.
The SC could be taking advantage of the cash discounts and also wanting to
maintain goodwill with its creditors.
Liquidity:
|
Liquid Ratio
|
:
|
Favourable
|
[
|
1.23 Times
|
]
|
|
Current Ratio
|
:
|
Unfavourable
|
[
|
1.78 Times
|
]
|
A minimum liquid ratio of 1 should be maintained by the SC in order to assure
its creditors of its ability to meet short term obligations and the SC was in
a good liquidity position. Thus, we believe the SC is able to meet all its
short term obligations as and when they fall due.
Solvency
|
Interest Cover
|
:
|
Favourable
|
[
|
229.48 Times
|
]
|
|
Gearing Ratio
|
:
|
Favourable
|
[
|
0.05 Times
|
]
|
The interest cover showed that the SC was able to service the interest. The
favourable interest cover could indicate that the SC was making enough profit
to pay for the interest accrued. The SC was lowly geared thus it had a low
financial risk. The SC was mainly financed by its shareholders' funds and
internally generated funds. In times of economic slowdown / downturn, the SC
being a lowly geared company, will be able to compete better than those
companies which are highly geared in the same industry.
Overall Assessment:
The SC's performance deteriorated over the
years with lower turnover and profit. The SC was in good liquidity position
with its total current liabilities well covered by its total current assets.
With its current net assets, the SC should be able to repay its short term
obligations. With the favourable interest cover, the SC could be able to
service all the accrued interest without facing any difficulties. The SC as a
lowly geared company, will be more secured compared to those highly geared
companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC : FAIR
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimate / Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
51491 : Wholesale of fertilizers
|
|
|
|
|
INDUSTRY :
|
CHEMICAL
|
|
|
|
|
|
|
The chemicals industry is one of Malaysia's key industries, catering not
only for its own national requirements but also exporting to a number of
countries worldwide. The Malaysian chemicals and chemical products industry
has become the second largest contributor to the manufactured exports
sector, after the electrical and electronics industry.
|
|
The chemicals industry is important in Malaysia on account of the nation's
substantial oil and gas feedstock. The Chemicals Industries Council of
Malaysia (CICM) was established in 1978 as an industry group under the
aegis of the Federation of Malaysian Manufacturers, to focus on the
development of the chemicals industry. The primary objective of the CICM
was to organise the chemicals industry in Malaysia into a cohesive group to
represent Malaysia's interest at the ASEAN Chemicals Industries Club
(ACIC).
|
|
The Malaysian chemicals industry witnessed 37% growth in domestic sales
value in 2004 and sustained solid growth up until mid-2008. It expanded
rapidly and had been forecast to reach sales figures of MYR60,816mn by
2009.
|
|
Malaysia's balance of trade for the year January to December 2008 was
MYR114,883mn. In the first five months of 2008, total trade was 11.2% up on
the same period last year. These impressive figures were short-lived
however, with significant decreases observed in the latter half of 2008 and
early 2009, due to the impact of global economic crisis. The Industrial
Production Index (IPI) in January 2009 was 20.2 % lower than it was in
January 2008, following a sharp decline of 15.9% in December 2008.
|
|
The biggest drop was witnessed by chemicals and chemical products, which
saw output contract by 29.9%. This is partly because the chemicals industry
tends to be more sensitive to the economic cycle and so fares
disproportionately badly in recessions.
|
|
Total exports are down from MYR100,115mn (US$27,858.48mn) in
January-February 2008 to MYR77,856mn (US$21,662mn) in the same period of
2009. Similarly, there has been a fall in imports, with total incoming
sales falling from MYR81,289mn (US$22,617mn) in January-February 2008 to
MYR57,778mn (US$16,705mn) in January-February 2009.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Strong Growth
|
COMMENTS & RECOMMENDATION
|
Formed in 2007 as a private limited company, the SC is principally
engaged in the trading in fertilizers. Having been in the industry for 4
years, the SC has started to stabilise its business position in the market.
Being a small company with a share capital of RM100,000 contributed from
individual shareholders, the SC does not have strong shareholders' backing.
|
|
Based on our investigation we revealed that the SC's main incomes are
generated via the local market. We believe that this narrow market segment
would limit the SC's business opportunities and the SC is likely to be
affected by the uncertainties in local economy. However, large quantities
of fertilizers are required annually for argirculture industry to sustain
high crop yields and ultimately profitability. Hence, the SC's business
potential remains favourable. The SC can be recognised as a small entity
with a work force of 5 employees in the operations. Its management
capability is considered average.
|
|
During the financial year 2010, the SC's business performance showed a
reverse trend as both its turnover and pre-tax profit have decreased
compared to the previous year. Its turnover has moderated to RM7.05 million
whilst its pre-tax profit dropped to RM204,262, in view of decline in
margin as a result of a challenging and competitive business environment.
Return on shareholders' funds of the SC was at an acceptable range which
indicated that the management was efficient in utilising its funds to
generate income. Besides that, the SC managed to maintain an adequate
liquidity level, indicating that the SC has the ability to meet its
financial obligations. Being a lowly geared company, the SC is exposed to
low financial risk as it is mainly dependent on its internal funds to
finance its business needs. With the comfortable networth standing at
RM1.13 million, the SC is able to sustain its business performance in the
near terms.
|
|
We noted that the SC's raw materials are sourced from the local market and
overseas market. Therefore the SC is exposed to foreign currency risk.
|
|
The SC's payment habit is average. With its adequate working capital, the
SC should be able to pay its short term debts. Based on our databank, the
SC is clear of any litigation action.
|
|
The chemical industry remains robust with continuing strong local demand
for its products. With the positive outlook from these industries, the SC's
business opportunity in the future should be bright. Nonetheless, the SC
should adopt better competitive strategies in order to sustain its business
position and to compete with other well established players in the same
industry.
|
|
Based on the above condition, we recommend a moderate amount of credit be
granted to the SC normally.
|
PROFIT AND LOSS ACCOUNT
|
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
|
|
AGRI-HORTI
LINK SDN BHD
|
|
For The Year
Ended 30-June-2010
|
|
|
|
18 month
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
TURNOVER
|
7,053,014
|
15,699,422
|
|
|
==========
|
==========
|
|
PROFIT/(LOSS) FROM OPERATIONS
|
204,262
|
1,120,464
|
|
|
|
|
|
|
------------
|
------------
|
|
PROFIT/(LOSS) BEFORE TAXATION
|
204,262
|
1,120,464
|
|
Taxation
|
<40,492>
|
<249,600>
|
|
PROFIT/(LOSS) AFTER TAXATION
|
------------
163,770
|
------------
870,864
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS
|
------------
163,770
|
------------
870,864
|
|
|
|
|
|
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS
RETAINED PROFIT/(ACCUMULATED LOSS) BROUGHT FORWARD
|
------------
163,770
|
------------
870,864
|
|
As previous reported
|
867,618
|
-
|
|
|
|
|
|
As restated
|
------------
867,618
|
------------
-
|
|
|
------------
|
------------
|
|
PROFIT AVAILABLE FOR APPROPRIATIONS
|
1,031,388
|
870,864
|
|
|
|
|
|
TRANSFER TO RESERVES - General
|
-
|
<3,246>
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAINED PROFIT/(ACCUMULATED LOSS) CARRIED FORWAD
|
------------
1,031,388
==========
|
------------
867,618
==========
|
|
RETAINED BY: The Company
|
1,031,388
|
867,618
|
|
|
|
|
|
|
|
|
|
|
------------
1,031,388
==========
|
------------
867,618
==========
|
|
INTEREST EXPENSE (as per notes to PL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase
|
894
|
-
|
|
|
------------
894
==========
|
------------
-
==========
|
|
|
|
|
BALANCE SHEET
|
AGRI-HORTI
LINK SDN BHD
|
|
As At
30-June-2010
|
|
|
|
18 month
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
ASSET EMPLOYED:
|
|
|
|
FIXED ASSETS
|
124,888
|
12,697
|
|
LONG TERM INVESTMENTS/OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
6,000
|
6,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS
|
------------
6,000
|
------------
6,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM ASSETS
|
------------
130,888
|
------------
18,697
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
738,416
|
753,637
|
|
|
|
|
|
|
|
Trade debtors
|
1,031,679
|
1,321,169
|
|
|
Other debtors, deposits & prepayments
|
55,460
|
50,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash & bank balances
|
565,583
|
263,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS
|
------------
2,391,138
|
------------
2,389,003
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Trade creditors
|
888,873
|
779,004
|
|
|
Other creditors & accruals
|
356,165
|
411,478
|
|
|
Hire purchase & lease creditors
|
12,000
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxation
|
89,100
|
247,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES
|
------------
1,346,138
|
------------
1,437,482
|
|
NET CURRENT ASSETS/(LIABILITIES)
|
------------
1,045,000
|
------------
951,521
|
|
TOTAL NET ASSETS
|
------------
1,175,888
==========
|
------------
970,218
==========
|
|
|
|
|
|
|
FINANCED BY:
|
|
|
|
|
|
|
|
|
SHARE CAPITAL
|
|
|
|
|
Ordinary share capital
|
100,000
|
100,000
|
|
|
|
|
|
|
TOTAL SHARE CAPITAL
|
------------
100,000
|
------------
100,000
|
|
|
|
|
|
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retain profit/(Accumulated loss) carried forward
|
1,031,388
|
867,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL RESERVES
|
------------
1,031,388
|
------------
867,618
|
|
SHAREHOLDERS' FUNDS/EQUITY
|
------------
1,131,388
|
------------
967,618
|
|
|
|
|
|
|
|
|
|
|
|
LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase creditors
|
42,000
|
-
|
|
|
Deferred taxation
|
2,500
|
2,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LONG TERM & DEFERRED LIABILITIES & PROVISIONS
|
------------
44,500
|
------------
2,600
|
|
|
------------
|
------------
|
|
|
1,175,888
|
970,218
|
|
|
==========
|
==========
|
|
|
|
|
|
FINANCIAL RATIOS
|
AGRI-HORTI
LINK SDN BHD
|
|
As At
30-June-2010
|
|
|
|
18 month
|
|
|
2010
|
2009
|
|
|
MYR
|
MYR
|
|
|
|
|
|
|
|
|
|
|
|
TYPES OF FUNDS
|
|
|
|
|
Cash
|
565,583
|
263,599
|
|
|
Net Liquid Funds
|
565,583
|
263,599
|
|
|
Net Liquid Assets
|
306,584
|
197,884
|
|
|
Net Current Assets/(Liabilities)
|
1,045,000
|
951,521
|
|
|
Net Tangible Assets
|
1,175,888
|
970,218
|
|
|
Net Monetary Assets
|
262,084
|
195,284
|
|
|
|
|
|
|
BALANCE SHEET ITEMS
|
|
|
|
|
Total Borrowings
|
54,000
|
0
|
|
|
Total Liabilities
|
1,390,638
|
1,440,082
|
|
|
Total Assets
|
2,522,026
|
2,407,700
|
|
|
Net Assets
|
1,175,888
|
970,218
|
|
|
Net Assets Backing
|
1,131,388
|
967,618
|
|
|
Shareholders" Funds
|
1,131,388
|
967,618
|
|
|
Total Share Capital
|
100,000
|
100,000
|
|
|
Total Reserves
|
1,031,388
|
867,618
|
|
|
|
|
|
|
LIQUIDITY(Times)
|
|
|
|
|
Cash Ratio
|
0.42
|
0.18
|
|
|
Liquid Ratio
|
1.23
|
1.14
|
|
|
Current Ratio
|
1.78
|
1.66
|
|
|
|
|
|
|
WORKING CAPITAL CONTROL (Days)
|
|
|
|
|
Stock Ratio
|
38
|
18
|
|
|
Debtors Ratio
|
53
|
31
|
|
|
Creditors Ratio
|
46
|
18
|
|
|
|
|
|
|
SOLVENCY RATIOS (Times)
|
|
|
|
|
Gearing Ratio
|
0.05
|
0
|
|
|
Liabilities Ratio
|
1.23
|
1.49
|
|
|
Times Interest Earned Ratio
|
229.48
|
0
|
|
|
|
|
|
|
PERFORMANCE RATIO (%)
|
|
|
|
|
Operating Profit Margin
|
2.90
|
7.14
|
|
|
Net Profit Margin
|
2.32
|
5.55
|
|
|
Return On Net Assets
|
17.45
|
115.49
|
|
|
Return On Capital Employed
|
17.27
|
115.49
|
|
|
Return On Shareholders' Funds/Equity
|
14.48
|
90.00
|
|
|
Dividend Pay Out Ratio (Times)
|
0
|
0
|
|
|
|
|
|
|
NOTES TO ACCOUNTS
|
|
|
|
|
Contingent Liabilities
|
0.00
|
0.00
|
|
|
|
|
|
|
