MIRA INFORM REPORT

 

 

Report Date :

05.06.2012

 

 

 

Tel. No.:

603 6138 1332

 

IDENTIFICATION DETAILS

 

Name :

BOON HONG FISHERY SDN BHD

 

 

Registered Office :

5, Jalan Kijang, Taman Suntex, 1st Floor, 43200 Kajang, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

16.06.2000

 

 

Com. Reg. No.:

517017-V

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Trading of seafood

 

 

No. of Employees :

10

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

* Adopted abbreviations :        SC - Subject Company (the company enquired by you), N/A - Not Applicable         

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

517017-V

COMPANY NAME

:

BOON HONG FISHERY SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

16/06/2000

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

5, JALAN KIJANG, TAMAN SUNTEX, 1ST FLOOR, 43200 KAJANG, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO. 52 JALAN 2/3A PUSAT PASAR BORONG KM 12 JALAN IPOH, 68100 BATU CAVES, SELANGOR, MALAYSIA.

TEL.NO.

:

03-61381332

FAX.NO.

:

03-61389382

CONTACT PERSON

:

ANG CHEE KEAN ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF SEAFOOD

AUTHORISED CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARE 1,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,000,000.00 DIVIDED INTO 
ORDINARY SHARES 1,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 34,384,619 [2011]

NET WORTH

:

MYR 1,773,293 [2011]

BANKER (S)

 

MALAYAN BANKING BHD

STAFF STRENGTH

:

10 [2012]

 

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

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 of seafood.

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

MS. YAP LAI KIM +

2, JALAN SG 7/7, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

550527-10-6706 4820434

500,000.00

MR. ANG CHEE KEAN +

2, JALAN SG 7/7, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

780625-14-6107

250,000.00

MR. ANG CHEE LIP +

2, JALAN SG 7/7, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

840424-14-5927

250,000.00

 

 

 

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

 

 

 

1,000,000.00

 

 

 

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

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. ANG CHEE KEAN

Address

:

2, JALAN SG 7/7, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

780625-14-6107

Date of Birth

:

25/06/1978

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. ANG CHEE LIP

Address

:

2, JALAN SG 7/7, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

 

 

 

New IC No

:

840424-14-5927

Date of Birth

:

24/04/1984

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MS. YAP LAI KIM

Address

:

2, JALAN SG 7/7, TAMAN SRI GOMBAK, 68100 BATU CAVES, SELANGOR, MALAYSIA.

IC / PP No

:

4820434

New IC No

:

550527-10-6706

Date of Birth

:

27/05/1955

 

 

 

Nationality

:

MALAYSIAN CHINESE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT

 

 

 

1)

Name of Subject

:

ANG CHEE KEAN

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

CM LIM & CO

Auditor' Address

:

SUITE 1, 18A, JALAN MUTIARA RAYA, TAMAN MUTIARA, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. CHEN FUI MEI

 

IC / PP No

:

A1637555

 

New IC No

:

700925-14-5162

 

Address

:

15, JALAN DAMAI PERDANA 3/2B, BANDAR DAMAI PERDANA, 56000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, 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)


No encumbrance was found in our databank at the time of investigation. 

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

:

SEAFOOD

 

 

 

 

Competitor(s)

:

BOJET HOLDINGS SDN BHD
KWANG YEOW HENG IMPORTER & EXPORTER (MALAYSIA) SDN BHD
SEAPACK FOOD SDN BHD
TM FOODS SDN BHD
TOH TECK LEE MARINE PRODUCTS SDN BHD

 

 

 

 

 

 

 

 

 

Total Number of Employees:

YEAR

2012

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

10

 

 

 

 

 

 

 

 

 

Branch

:

NO

 

 

Other Information:

The SC is principally engaged in the (as a / as an) trading of seafood.
The SC sells seafood such fish, crab, prawns and others.
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

:

603 6138 1332

Current Telephone Number

:

03-61381332

Match

:

YES

 

 

 

Address Provided by Client

:

NO. 52 JALAN 2/3A PUSAT PASAR BORONG KM 12 JALAN IPOH 68100 BATU CAVES KULA LUMPUR

Current Address

:

NO. 52 JALAN 2/3A PUSAT PASAR BORONG KM 12 JALAN IPOH, 68100 BATU CAVES, SELANGOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations

we contacted one of the staff from the SC and she provided some information on the SC.

 

 

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

6.87%

]

 

Profit/(Loss) Before Tax

:

Increased

[

63.45%

]

 

Return on Shareholder Funds

:

Acceptable

[

14.32%

]

 

Return on Net Assets

:

Acceptable

[

26.35%

]

 

 

 

 

 

 

 

 

The higher turnover could be attributed to the favourable market condition.The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

32 Days

]

 

Debtor Ratio

:

Favourable

[

28 Days

]

 

Creditors Ratio

:

Favourable

[

13 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

:

Unfavourable

[

0.69 Times

]

 

Current Ratio

:

Unfavourable

[

1.35 Times

]

 

 

 

 

 

 

 

 

A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

3.55 Times

]

 

Gearing Ratio

:

Favourable

[

0.17 Times

]

 

 

 

 

 

 

 

 

The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. 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 :

 

 

 

 

 

 

Generally, the SC's performance has improved with higher turnover and profit. 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. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. 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

 

 

 

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

52212 : Retail sale of fish and other seafood

 

 

INDUSTRY :

AGRICULTURE

 

 

 


The agriculture sector expanded by 8.2% in the third quarter ended September 30,2011 on a year-on-year basis.The agricultural growth was underpinned by the strong production of both crude palm oil and natural rubber. The production of livestock, fruits and vegetables also expanded strongly.


With the implementation of Government initiatives to expand new sources of growth, particularly edible bird nests, seaweed, ornamental fish and herbal products, the sector is expected to contribute stongly in increasing rural household income and employment.


For 2011, value-added of the agriculture sector is envisaged to expand 4.7%. Aquaculture production is expected to rebound in the second half of the year with the speedy implementation of Aquaculture Industrial Zone (AIZ) projects. The livestock sub-sector is expected to grow 8.6% following increased demand for meat products as household income rises. To further develop the livestock sub-sector, the Government plans to develop three dairy clusters with 27,000 heads of dairy cattle and processing facilities to increase output of dairy products. In addition, padi production is expected to increase 8.1% to 2.7 million tonnes in 2011 contributed by higher output, especially from granary areas and expansion of padi areas. The modernisation of irragation systems, upgrading of infrasturcture, high quality seeds and modern agronomic practices are anticipated to increase overall productivity for padi to 3.9 tonnes per hectare.


Value-added of the oil palm sub-sector rose 7.6% during the first half of 2011 following higher production of crude palm oil. The rubber sub-sector grew 8.4% on account of higher output following improved weather conditions and firm rubber prices. Value-added of the fishing sub-sector moderated to 1.6% in the first half 2011 due to sharp decline in aquaculture production during the second quarter of 2011. Aquaculture declined 2.2%, particularly due to lower production of tilapia, a major aquaculture produce, which was affected by streptococcus infection. Marine fish landings, however increased marginally by 0.5%. The livestock sub-sector grew 9.5% mainly due to higher production of poultry, eggs and cattle. Value-added of vegetables and fruits increased 10.1% and 12.3% respectively as a result of rising productivity following good agricultural practices and modern planting techniques such as fertigation and rain shelter.


Over the years, the agriculture sector has steadily become an important contributor to Malaysia's GDP, employment, export revenue, export tax and duty, as well as the economic development. It is also important especially in the rural areas where it provides income, employment and investment opportunities. Hence, the Government of Malaysia allocates RM3.8 billion in 2011 to increase productivity and generate higher returns in the agriculture sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2000, the SC is a Private Limited company, focusing on trading of seafood. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. The capital standing of the SC is fair. With an adequate share capital, the SC has the potential of expanding its business in future.


At present, the local market remains the SC's biggest market. It depends solely on the sales in the domestic market to achieve its profitability. With the only concentration in the local market, the SC is vulnerable to the changes in the local events. We noted that the demand for the SC's products is on the rise due to the continuing growth of its sales volume and profitability. Hence, the SC's business potential remains favourable. Being a small company, the SC's business operation is supported by 10 employees. Overall, we regard that the SC's management capability is average. This indicates that the SC has greater potential to improve its business performance and raising income for the SC.


We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. 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. 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. Fortunately, 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. Given a positive net worth standing at MYR 1,773,293, the SC should be able to maintain its business in the near terms.


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. Overall the SC has a good control over its resources.


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. 


Based on the above condition, we recommend credit be granted to the SC normally.



 

PROFIT AND LOSS ACCOUNT

 

 

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

BOON HONG FISHERY SDN BHD

 

Financial Year End

30/06/2011

30/06/2010

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

MYR

MYR

 

 

 

TURNOVER

34,384,619

32,174,753

Other Income

-

1,930

 

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

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

Total Turnover

34,384,619

32,176,683

Costs of Goods Sold

<29,988,024>

<28,520,241>

 

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

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

Gross Profit

4,396,595

3,656,442

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

342,175

209,348

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

342,175

209,348

Taxation

<88,217>

<62,664>

 

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

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

PROFIT/(LOSS) AFTER TAXATION

253,958

146,684

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

519,335

372,651

 

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

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

As restated

519,335

372,651

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

773,293

519,335

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

773,293

519,335

 

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

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

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

Bank overdraft

33,842

42,477

Hire purchase

3,961

8,149

Trust receipts

96,494

83,554

 

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

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

 

134,297

134,180

 

 

 

BALANCE SHEET

 

 

BOON HONG FISHERY SDN BHD

 

ASSETS EMPLOYED:

 

 

FIXED ASSETS

202,139

285,811

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

202,139

285,811

 

 

 

CURRENT ASSETS

 

 

Stocks

3,015,036

4,402,385

Trade debtors

2,673,646

3,418,130

Other debtors, deposits & prepayments

266,161

234,391

Amount due from director

78,400

-

Cash & bank balances

137,656

12,437

 

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

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

TOTAL CURRENT ASSETS

6,170,899

8,067,343

 

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

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

TOTAL ASSET

6,373,038

8,353,154

 

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

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

 

 

 

CURRENT LIABILITIES

 

 

Trade creditors

1,090,081

2,763,677

Other creditors & accruals

1,537,747

1,364,089

Hire purchase & lease creditors

20,816

69,637

Bank overdraft

253,882

533,526

Bill & acceptances payable

1,512,000

2,096,000

Amounts owing to director

7,448

563,484

Provision for taxation

142,650

141,947

 

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

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

TOTAL CURRENT LIABILITIES

4,564,624

7,532,360

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,606,275

534,983

 

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

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

TOTAL NET ASSETS

1,808,414

820,794

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

1,000,000

250,000

 

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

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

TOTAL SHARE CAPITAL

1,000,000

250,000

 

 

 

RESERVES

 

 

Retained profit/(loss) carried forward

773,293

519,335

 

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

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

TOTAL RESERVES

773,293

519,335

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

1,773,293

769,335

 

 

 

LONG TERM LIABILITIES

 

 

Hire purchase creditors

23,505

44,321

Deferred taxation

11,616

7,138

 

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

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

TOTAL LONG TERM LIABILITIES

35,121

51,459

 

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

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

 

1,808,414

820,794

 

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

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

 

 

 

 

FINANCIAL RATIO

 

 

BOON HONG FISHERY SDN BHD

 

TYPES OF FUNDS

 

 

Cash

137,656

12,437

Net Liquid Funds

<116,226>

<521,089>

Net Liquid Assets

<1,408,761>

<3,867,402>

Net Current Assets/(Liabilities)

1,606,275

534,983

Net Tangible Assets

1,808,414

820,794

Net Monetary Assets

<1,443,882>

<3,918,861>

BALANCE SHEET ITEMS

 

 

Total Borrowings

298,203

647,484

Total Liabilities

4,599,745

7,583,819

Total Assets

6,373,038

8,353,154

Net Assets

1,808,414

820,794

Net Assets Backing

1,773,293

769,335

Shareholders' Funds

1,773,293

769,335

Total Share Capital

1,000,000

250,000

Total Reserves

773,293

519,335

LIQUIDITY (Times)

 

 

Cash Ratio

0.03

0.00

Liquid Ratio

0.69

0.49

Current Ratio

1.35

1.07

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

32

50

Debtors Ratio

28

39

Creditors Ratio

13

35

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.17

0.84

Liabilities Ratio

2.59

9.86

Times Interest Earned Ratio

3.55

2.56

Assets Backing Ratio

1.00

1.00

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

1.00

0.65

Net Profit Margin

0.74

0.46

Return On Net Assets

26.35

41.85

Return On Capital Employed

22.87

24.12

Return On Shareholders' Funds/Equity

14.32

19.07

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.55.52

UK Pound

1

Rs.85.29

Euro

1

Rs.68.86

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.