MIRA INFORM REPORT

 

 

Report Date :

07.12.2012

 

IDENTIFICATION DETAILS

 

Name :

AGRI-HORTI LINK SDN. BHD.

 

 

Registered Office :

21b , Room 2, Jalan Usj10/1c, Uep Subang Jaya, 47620 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

12.10.2007

 

 

Reg. No.:

791899-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading in Fertilizers

 

 

No. of Employees :

5

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

malaysia - ECONOMIC OVERVIEW

 

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

 

Source : CIA

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

791899-A

COMPANY NAME

:

AGRI-HORTI LINK SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

12/10/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

21B , ROOM 2, JALAN USJ10/1C, UEP SUBANG JAYA, 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 3,200,125 [2011]

NET WORTH

:

MYR 1,238,241 [2011]

STAFF STRENGTH

:

5 [2012]

BANKER (S)

:

CIMB BANK BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

HIGH

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

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 +

NO. 33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

661216-08-5647

90,000.00

90.00

MS. HAW SOOK LENG

33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

660110-10-7292

10,000.00

10.00

 

 

 

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

------

 

 

 

100,000.00

100.00

 

 

 

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

=====

 

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. TAN TEE @ TAN POH KIM @ TAN POH KIM

Address

:

NO. 33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

New IC No

:

410105-10-5418

Date of Birth

:

05/01/1941

Nationality

:

MALAYSIAN

 

DIRECTOR 2

 

Name Of Subject

:

MR. DO HOCK KWONG

Address

:

NO. 33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

New IC No

:

661216-08-5647

Date of Birth

:

16/12/1966

Nationality

:

MALAYSIAN



MANAGEMENT

 

 

 

1)

Name of Subject

:

DO HOCK KWONG

 

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

WANG & CO.

Auditor' Address

:

A13-1, LORONG TUN ISMAIL 10, SRI DAGANGAN 2, 25000 KUANTAN, PAHANG, 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

:

CIMB BANK BHD

 

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

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 AGRICARE (M) SDN BHD
HAP SENG FERTILIZERS SDN BHD
HARRISONS TRADING (PENINSULAR) SDN BHD

 

 

 

 

 

 

Total Number of Employees:

YEAR

2012

2011

GROUP

N/A

N/A

COMPANY

5

5

 

Branch

:

NO

 

 

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

 

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

:

21B RM 2 JALAN USJ10/1C 47620 SUBANG JAYA SELANGOR MALAYSIA

Current Address

:

NO 20-2, JALAN USJ21/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 5th December 2012 we contacted one of the staff from the SC and she provided some information on the SC.

The address provided belongs to the SC's registered office.


FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Decreased

[

2009 - 2011

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2009 - 2011

]

 

Return on Shareholder Funds

:

Unfavourable

[

8.63%

]

 

Return on Net Assets

:

Unfavourable

[

3.89%

]

 

The continuous fall in turnover could be due to the lower demand for the SC's products / services.The dip in profit could be due to the stiff market competition which reduced the SC's profit margin. The unfavourable return on shareholders' funds could indicate that the SC was inefficient in utilising its assets to generate returns.

Liquidity

 

 

 

 

 

 

Current Ratio

:

Unfavourable

[

0.86 Times

]

 

Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC.

Solvency

 

 

 

 

 

 

Liability Ratio

:

Unfavourable

[

3.47 Times

]

 

The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

 

 

 

 

 

 

The SC's performance deteriorated over the years with lower turnover and profit. The SC's liquidity was at an acceptable range. If the SC is able to obtain further short term financing, it should be able to meet all its short term obligations. The SC's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the SC : FAIR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Population ( Million)

27.73

28.13

28.35

28.70

29.10

Gross Domestic Products ( % )

4.6

<0.5>

7.2

5.5

5.3

Domestic Demand ( % )

6.9

2.9

6.3

4.8

7.6

Private Expenditure ( % )

7.1

<2.7>

8.1

7.0

8.7

Consumption ( % )

8.4

0.7

6.7

6.3

7.1

Investment ( % )

1.5

<17.2>

17.7

16.2

15.9

Public Expenditure ( % )

6.5

5.2

3.8

7.6

4.7

Consumption ( % )

11.6

3.1

0.2

8.9

3.0

Investment ( % )

0.7

8.0

2.8

0.6

7.0

 

 

 

 

 

 

Balance of Trade ( MYR Million )

129,563

89,650

118,356

116,058

-

Government Finance ( MYR Million )

<34,462>

<28,450>

<40,482>

<45,511>

<43,021>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<4.8>

<5.6>

<5.4>

<4.7>

Inflation ( % Change in Composite CPI)

<3.3>

<5.2>

5.1

3.1

-

Unemployment Rate

3.7

4.5

3.9

3.3

-

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

388

331

329

415

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

1.91

2.87

2.20

3.50

-

Average 3 Months of Non-performing Loans ( % )

13.24

11.08

15.30

14.80

-

Average Base Lending Rate ( % )

6.72

5.53

6.30

6.60

-

Business Loans Disbursed( % )

11.6

10.5

14.7

15.3

-

Foreign Investment ( MYR Million )

23,261.4

22,156.8

22,517.9

23,546.1

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,599

41,578

44,148

-

-

Registration of New Companies ( % )

<4.0>

<0.1>

6.2

-

-

Liquidation of Companies ( No. )

27,992

39,075

25,585

-

-

Liquidation of Companies ( % )

23.7

39.6

<34.5>

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

269,866

312,581

271,414

-

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

18,885

19,345

19,738

-

-

Business Dissolved ( % )

<7.6>

2.4

2.0

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

497.5

486.3

543.6

363.0

-

Cellular Phone Subscribers ( Million )

25.1

30.1

32.8

35.3

-

Tourist Arrival ( Million Persons )

21.5

23.6

24.6

25.3

-

Hotel Occupancy Rate ( % )

68.0

58.0

63.0

51.3

-

 

 

 

 

 

 

Credit Cards Spending ( % )

17.1

12.8

14.1

15.6

-

Bad Cheque Offenders (No.)

34,834

36,667

33,568

27,208

-

Individual Bankruptcy ( No.)

13,907

16,228

18,119

16,155

-

Individual Bankruptcy ( % )

5.1

16.7

11.7

<10.8>

-

 

INDUSTRIES ( % of Growth ):

2008

2009

2010

2011*

2012**

 

 

 

 

 

 

Agriculture

3.6

0.4

2.1

4.7

4.1

Palm Oil

7.0

<1.1>

<3.4>

7.3

-

Rubber

<1.1>

<19.8>

9.9

6.4

-

Forestry & Logging

<1.5>

<5.9>

<3.3>

<4.7>

-

Fishing

4.0

5.5

5.6

2.8

-

Other Agriculture

5.9

9.0

7.9

8.5

-

Industry Non-Performing Loans ( MYR Million )

393.0

413.7

508.4

634.1

-

% of Industry Non-Performing Loans

<2.0>

1.3

2.1

3.2

-

 

 

 

 

 

 

Mining

<0.8>

<3.8>

0.2

<2.4>

2.5

Oil & Gas

12.7

2.1

0.5

<1.7>

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

36.0

44.2

49.7

46.5

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

1.3

<9.4>

11.4

5.6

4.5

Exported-oriented Industries

2.7

<19.0>

12.1

2.8

-

Electrical & Electronics

2.4

<30.3>

28.4

<4.9>

-

Rubber Products

4.2

<10.1>

25.3

15.4

-

Wood Products

<6.0>

<24.1>

20.1

<7.3>

-

Textiles & Apparel

1.9

<19.5>

<0.4>

14.8

-

Domestic-oriented Industries

9.9

<9.8>

16.3

6.3

-

Food, Beverages & Tobacco

9.5

0.2

3.0

4.2

-

Chemical & Chemical Products

1.4

<7.7>

16.2

5.6

-

Plastic Products

6.5

<9.1>

2.4

3.8

-

Iron & Steel

16.8

<32.7>

29.3

2.4

-

Fabricated Metal Products

14.7

<2.5>

14.9

25.2

-

Non-metallic Mineral

8.3

<15.5>

20.2

16.3

-

Transport Equipment

27.1

<13.5>

36.5

<9.4>

-

Paper & Paper Products

8.6

<5.0>

18.7

15.6

-

Crude Oil Refineries

7.8

0.2

<11.4>

9.3

-

Industry Non-Performing Loans ( MYR Million )

5,729.4

6,007.3

6,217.5

6,537.2

-

% of Industry Non-Performing Loans

16.8

18.3

23.8

25.7

-

 

 

 

 

 

 

Construction

2.1

5.8

5.1

4.4

7.0

Industry Non-Performing Loans ( MYR Million )

4,149.8

3,241.8

4,038.5

3,856.9

-

% of Industry Non-Performing Loans

12.2

9.9

10.7

10.2

-

 

 

 

 

 

 

Services

7.3

2.6

6.5

6.4

6.5

Electric, Gas & Water

5.0

0.4

8.5

5.6

4.8

Transport, Storage & Communication

7.8

1.6

7.7

6.5

7.3

Wholesale, Retail, Hotel & Restaurant

10.0

2.8

4.7

5.2

6.9

Finance, Insurance & Real Estate

9.2

3.8

6.1

6.3

6.5

Government Services

8.6

2.0

6.7

7.6

5.6

Other Services

5.9

4.4

4.2

5.4

5.7

Industry Non-Performing Loans ( MYR Million )

8,281.4

6,631.3

7,384.6

6,825.2

-

% of Industry Non-Performing Loans

24.3

20.2

25.7

23.4

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

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

 

 

 

 

 

 



INDUSTRY ANALYSIS

 

MSIC CODE

51491 : Wholesale of fertilizers

INDUSTRY :

MANUFACTURING


The manufacturing sector is expected to be driven by higher value-added activities in Malaysia.The GDP growth for first quarter 2012 indicating manufacturing maintain its growth of 4.5%, similar to year 2011.Malaysia recorded a 12% jump in approved investments in the manufacturing sector in the first quarter of 2012 compared with the corresponding period 2011. According to Federation of Malaysian Manufacturers (FMM), manufacturing sector expected to improve in the third quarter 2012 despite concerns over external developments and the rising cost of production.


The rubber products sub-sector is expected to remain resilient supported by continuous improvements in medical and healthcare standards in emerging markets as well as demand from niche markets such as the oil and gas sector for rubber hoses. Malaysia rubber exports are forecast to grow at 10%, at the end of 2012 driven by global demand for medical gloves as well as rubber tyres and tubes.Rubber glove exports make up 70 % of total rubber shipments in Malaysia due to hospitals and clinics place more intrest on rising health and hygiene awareness.


The Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.


Chemical production are expected to show 6.2% in year 2012 and 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.


According to Malaysian Iron and Steel Industry Federation, first half of 2012 would remain weak for the local steel industry due to eurozone crisis, slowdown in China's economy and less robust construction activities in the developed countries. At first quarter 2012, the average local steel price is trading atRM2,300 per tonne compared with the average international price of US$740 (RM2,331) per tonne.


According to the Department of Statistics, Malaysia during the first quarter 2012, the manufacturing output increased due to activities in major sub-sectors such as petroleum, chemical, rubber and plastic products (10.5 %), and non-metallic mineral products, basic metal and fabricated metal products (3.9 %). Meanwhile, it's also announced that the manufacturing sector's sales grew by 10 % in May 2012 to record RM52.5 billion compared with RM47.7 billion in May 2011. The Industrial Production Index (IPI ) increased 7.6 % in May (2012) due to increases in manufacturing (6.5 %).


Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such as solar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth



 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2007, the SC is a Private Limited company, focusing on trading in fertilizers. The SC has been in business for 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. With a weak shareholders' backing, the SC's capital position is weak. Inadequate capital may be a constraint to the SC as it limits its ability to expand its business in future. The capital standing of the SC is weak. The SC may face difficulties to expand its business compared to other large corporation.


Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 5 employees. Overall, we regard that the SC's management capability is average.


The SC's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The SC has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the SC may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the SC. The SC has high liabilities ratio and it may face financial difficulties if no additional capital is injected.


The SC's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials.


The SC's payment habit is average. With its adequate working capital, the SC should be able to pay its short term debts.


The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. 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.


In view of the above, we recommend credit be granted to the SC with close monitoring.



PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

AGRI-HORTI LINK SDN. BHD.

 

Financial Year End

30/06/2011

30/06/2010

30/06/2009

Months

12

12

18

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

Currency

MYR

MYR

MYR

 

 

 

 

TURNOVER

3,200,125

7,053,014

15,699,422

 

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

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

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

Total Turnover

3,200,125

7,053,014

15,699,422

 

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

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

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

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

152,467

204,262

1,120,464

 

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

152,467

204,262

1,120,464

Taxation

<45,614>

<40,492>

<249,600>

 

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

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

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

PROFIT/(LOSS) AFTER TAXATION

106,853

163,770

870,864

 

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

As previously reported

1,031,388

867,618

-

 

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

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

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

As restated

1,031,388

867,618

-

 

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,138,241

1,031,388

870,864

- General

-

-

<3,246>

 

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,138,241

1,031,388

867,618

 

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

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

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

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

Hire purchase

-

894

-

 

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

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

 

 

-

894

 

 

 

 

BALANCE SHEET

 

 

AGRI-HORTI LINK SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

FIXED ASSETS

4,129,025

124,888

12,697

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

Investments

-

6,000

6,000

 

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

6,000

6,000

6,000

 

 

 

 

 

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

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

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

TOTAL LONG TERM ASSETS

4,135,025

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

1,405,340

2,391,138

2,389,003

 

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

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

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

TOTAL ASSET

5,540,365

2,522,026

2,407,700

 

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

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

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

 

 

 

 

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

1,625,853

1,346,138

1,437,482

 

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

<220,513>

1,045,000

951,521

 

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

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

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

TOTAL NET ASSETS

3,914,512

1,175,888

970,218

 

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

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

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

 

 

 

 

SHARE CAPITAL

 

 

 

Ordinary share capital

100,000

100,000

100,000

 

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

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

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

TOTAL SHARE CAPITAL

100,000

100,000

100,000

 

 

 

 

RESERVES

 

 

 

Retained profit/(loss) carried forward

1,138,241

1,031,388

867,618

 

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

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

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

TOTAL RESERVES

1,138,241

1,031,388

867,618

 

 

 

 

 

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,238,241

1,131,388

967,618

 

 

 

 

LONG TERM LIABILITIES

 

 

 

Hire purchase creditors

-

42,000

-

Deferred taxation

-

2,500

2,600

 

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

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

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

TOTAL LONG TERM LIABILITIES

2,676,271

44,500

2,600

 

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

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

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

 

3,914,512

1,175,888

970,218

 

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

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

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

 

 

 

 

 

 

 

FINANCIAL RATIO

 

 

AGRI-HORTI LINK SDN. BHD.

 

TYPES OF FUNDS

 

 

 

Cash

-

565,583

263,599

Net Liquid Funds

-

565,583

263,599

Net Liquid Assets

<220,513>

306,584

197,884

Net Current Assets/(Liabilities)

<220,513>

1,045,000

951,521

Net Tangible Assets

3,914,512

1,175,888

970,218

Net Monetary Assets

<2,896,784>

262,084

195,284

BALANCE SHEET ITEMS

 

 

 

Total Borrowings

-

54,000

0

Total Liabilities

4,302,124

1,390,638

1,440,082

Total Assets

5,540,365

2,522,026

2,407,700

Net Assets

3,914,512

1,175,888

970,218

Net Assets Backing

1,238,241

1,131,388

967,618

Shareholders' Funds

1,238,241

1,131,388

967,618

Total Share Capital

100,000

100,000

100,000

Total Reserves

1,138,241

1,031,388

867,618

LIQUIDITY (Times)

 

 

 

Cash Ratio

-

0.42

0.18

Liquid Ratio

-

1.23

1.14

Current Ratio

0.86

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

0.00

Liabilities Ratio

3.47

1.23

1.49

Times Interest Earned Ratio

-

229.48

0.00

Assets Backing Ratio

39.15

11.76

9.70

PERFORMANCE RATIO (%)

 

 

 

Operating Profit Margin

4.76

2.90

7.14

Net Profit Margin

3.34

2.32

5.55

Return On Net Assets

3.89

17.45

115.49

Return On Capital Employed

3.89

17.27

115.49

Return On Shareholders' Funds/Equity

8.63

14.48

90.00

Dividend Pay Out Ratio (Times)

-

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

Contingent Liabilities

-

0

0

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.46

UK Pound

1

Rs.87.63

Euro

1

Rs.71.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.