MIRA INFORM REPORT

 

 

Report Date :

12.02.2014

 

IDENTIFICATION DETAILS

 

Name :

BEHN MEYER AGRICARE (M) SDN. BHD.

 

 

Formerly Known As :

BEHN MEYER & CO. (M) SDN BHD

 

 

Registered Office :

5, Jalan TP2, Taman Perindustrian Sime Uep, 47600 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

05.12.1959

 

 

Com. Reg. No.:

3636-V

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Distributor of Fertilizers & Agrochemicals

 

 

No of Employees :

150

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has 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 about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB 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.

:

3636-V

COMPANY NAME

:

BEHN MEYER AGRICARE (M) SDN. BHD.

FORMER NAME

:

BEHN MEYER & CO. (M) SDN BHD (23/12/2011)
BEHN MEYER & CO MALAYA SDN BHD (16/02/1990)

INCORPORATION DATE

:

05/12/1959

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

5, JALAN TP2, TAMAN PERINDUSTRIAN SIME UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

5, JALAN TP2, TAMAN PERINDUSTRIAN SIME UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80263333

FAX.NO.

:

03-80263399

WEB SITE

:

WWW.BEHNMEYER.COM

CONTACT PERSON

:

CHONG YIEW ON ( DIRECTOR )

 

 

 

INDUSTRY CODE

:

46692

PRINCIPAL ACTIVITY

:

DISTRIBUTOR OF FERTILIZERS & AGROCHEMICALS

AUTHORISED CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO
ORDINARY SHARE 200,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 200,000,000.00 DIVIDED INTO
ORDINARY SHARES 170,381,564 CASH AND 29,618,436 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 1,273,576,723 [2012]

NET WORTH

:

MYR 216,335,052 [2012]

M1000 OVERALL RANKING

:

385[2011]

M1000 INDUSTRY RANKING

:

22[2011]

 

 

 

STAFF STRENGTH

:

150 [2014]

BANKER (S)

:

HSBC BANK MALAYSIA BHD
MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

 

HISTORY / BACKGROUND

The Subject 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 Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject 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 Subject is insolvent. The Subject 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 Subject is principally engaged in the (as a / as an) distributor of fertilizers & agrochemicals.

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

 

According to the Malaysia 1000 publication, the Subject's ranking are as follows:

 

 

 

 

 

 

YEAR

2011

2009

2008

2005

2004

 

OVERALL RANKING

385

456

478

468

543

 

INDUSTRY RANKING

22

27

28

22

18

 

The immediate holding company of the Subject is BEHN MEYER AGRICARE HOLDING (S) PTE LTD, a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is BEHN MEYER DEUTSCHLAND HOLDING AG & CO KG, a company incorporated in GERMANY.

Share Capital History

 

Date

Authorised Shared Capital

Issue & Paid Up Capital

20/05/2013

MYR 200,000,000.00

MYR 200,000,000.00

15/02/2013

MYR 200,000,000.00

MYR 175,000,000.00

 

The major shareholder(s) of the Subject are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

BEHN MEYER AGRICARE HOLDING (S) PTE LTD

2, BOON LEAT TERRACE, 06-01, HARBOURSIDE 2, 119844, SINGAPORE.

200205629W

182,000,000.00

91.00

BEHN MEYER DEUTSCHLAND HOLDING AG & CO KG

BALLINDAMM 1, HAMBURG, 20095, GERMANY.

HRA55938

18,000,000.00

9.00

 

 

 

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

------

 

 

 

200,000,000.00

100.00

 

 

 

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

=====

+ Also Director

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. CHONG YIEW ON

Address

:

NO 43 JALAN SS 22/38, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6344354

New IC No

:

611127-08-6175

Date of Birth

:

27/11/1961

Nationality

:

MALAYSIAN

Date of Appointment

:

10/02/2010

 

DIRECTOR 2

 

Name Of Subject

:

MR. KHOO SU CHIN

Address

:

12,JALAN JINGGA 5, 80400 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

7943068

New IC No

:

450826-01-5021

Date of Birth

:

26/08/1945

Nationality

:

MALAYSIAN

Date of Appointment

:

01/01/2004

 

DIRECTOR 3

 

Name Of Subject

:

DIRK ALBRECHT LORENZ LORENZ-MEYER

Address

:

NO.32, JALAN U2/50, MAPLEWOODS AT SAUJANA, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

C4K5CKCPH

Nationality

:

GERMAN

Date of Appointment

:

01/01/2012

 

DIRECTOR 4

 

Name Of Subject

:

MS. ROHAYA BINTI MUHAMMAD

Address

:

NO 11A JALAN USJ 3A/12, UEP SUBANG JAYA, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

IC / PP No

:

6870983

New IC No

:

620928-01-6112

Date of Birth

:

28/09/1962

Nationality

:

MALAYSIAN

Date of Appointment

:

01/01/2012

 

DIRECTOR 5

 

Name Of Subject

:

DR. DIRK ALBRECHT LORENZ LORENZ-MEYER

Address

:

NO.32, JALAN U2/50, MAPLEWOODS AT SAUJANA, 40150 SHAH ALAM, SELANGOR, MALAYSIA.

IC / PP No

:

C4K5WYHZ2

Date of Appointment

:

01/01/2012

 

MANAGEMENT

 

1)

Name of Subject

:

CHONG YIEW ON

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

ROHAYA

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

LOW ENG MENG

 

Position

:

MARKETING MANAGER

 

 

 

 

 

4)

Name of Subject

:

TENGKU ZAMIL

 

Position

:

HUMAN RESOURCE MANAGER

 

AUDITOR

 

Auditor

:

PRICEWATERHOUSECOOPERS

Auditor' Address

:

1 SENTRAL, JALAN TRAVERS, KUALA LUMPUR CENTRAL, P O BOX 10192, LEVEL 15, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ROHAYA BINTI MUHAMMAD

 

IC / PP No

:

6870983

 

New IC No

:

620928-01-6112

 

Address

:

NO 11A JALAN USJ 3A/12, UEP SUBANG JAYA, 47610 SUBANG JAYA, SELANGOR, MALAYSIA.

 

 

BANKING

 

Banking relations are maintained principally with :

 

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

15/03/2005

N/A

BUMIPUTRACOMMERCE BANK BERHAD

MYR 10,000,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.


No legal action was found in our databank.

 

No winding up petition was found in our databank.

 

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection 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

Percentage

:

40%

Overseas

:

YES

Percentage

:

60%

Import Countries

:

SINGAPORE,GERMANY,UNITED STATES


The Subject 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

 

 

 

 

 

 

 

 

 

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
CASH

 

 

OPERATIONS

 

Goods Traded

:

FERTILIZERS, SPECIALTY FERTILIZERS AND AGROCHEMICALS

 

 

 

 

Competitor(s)

:

AGROMATE (M) SDN BHD
AGROMATE HOLDINGS SDN BHD
HAP SENG FERTILIZERS SDN BHD
HARRISONS TRADING (PENINSULAR) SDN BHD
RISDA BAJA SDN BHD

 

 

 

 

 

 

 

 

Member(s) / Affiliate(s)

:

MALAYSIAN CROP CARE AND PUBLIC HEALTH ASSOCIATION (MCPA)

MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTRY (MICCI)

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2014

2013

2012

2011

2010

2009

 

 

 


 

GROUP

N/A

N/A

N/A

N/A

N/A

N/A

 

 

 

COMPANY

150

150

150

150

138

133

 

 

 

 

Branch

:

YES

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) distributor of fertilizers & agrochemicals.


The Subject offers a wide range of crop protection such as Fungicides, Herbicides, Insecticides, Rodenticides, Soil Fumigants and Surfactants.


The Subject supplies the fertilizers such as Complex NPK Fertilizers, BM Granulated Compounds Fertilizers, Premium Grade Bulk Blends, Straight Fertilizers and others.

 

 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

 

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-80263333

Match

:

N/A

 

 

 

Address Provided by Client

:

NO 5 JALAN TP2 47600 SUBANG JAYA, SELANGOR,

Current Address

:

5, JALAN TP2, TAMAN PERINDUSTRIAN SIME UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.

Match

:

NO

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We contacted one of the staff from the Subject and she provided some information.


The address provided is incomplete.

 

 

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Decreased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

22.23%

]

 

Return on Net Assets

:

Favourable

[

31.09%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

101 Days

]

 

Debtor Ratio

:

Acceptable

[

57 Days

]

 

Creditors Ratio

:

Favourable

[

2 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Unfavourable

[

0.58 Times

]

 

Current Ratio

:

Unfavourable

[

1.38 Times

]

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Acceptable

[

4.99 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.81 Times

]

 

 

 

 

 

 

 

 

The Subject'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 Subject is able to generate sufficient income to service its interest and repay the loans. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. Due to its weak liquidity position, the Subject 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 Subject. The Subject had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the Subject's profit, we do believe the Subject is able to generate sufficient cash flow to service its interest payment. The Subject's gearing 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 Subject : LIMITED

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

(0.5)

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

(2.7)

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

(17.2)

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

(1.2)

Investment ( % )

8.0

2.8

(0.3)

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

(28,450)

(40,482)

(45,511)

(42,297)

(39,993)

Government Finance to GDP / Fiscal Deficit ( % )

(4.8)

(5.6)

(5.4)

(4.5)

(4.0)

Inflation ( % Change in Composite CPI)

(5.2)

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

(0.1)

6.2

3.0

(0.0)

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

(34.5)

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 

 

INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

(1.1)

(3.4)

10.8

(2.8)

-

Rubber

(19.8)

9.9

6.1

(0.6)

-

Forestry & Logging

(5.9)

(3.3)

(7.6)

(2.2)

-

Fishing

5.5

5.6

2.1

(0.7)

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

(3.8)

0.2

(5.7)

1.5

2.7

Oil & Gas

2.1

0.5

(1.7)

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

(9.4)

11.4

4.7

4.2

4.9

Exported-oriented Industries

(19.0)

12.1

2.8

4.1

-

Electrical & Electronics

(30.3)

28.4

(4.9)

1.6

-

Rubber Products

(10.1)

25.3

15.4

3.6

-

Wood Products

(24.1)

20.1

(4.9)

4.6

-

Textiles & Apparel

(19.5)

(0.4)

14.8

(7.1)

-

Domestic-oriented Industries

(9.8)

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

(7.7)

16.2

5.5

9.9

-

Plastic Products

(9.1)

2.4

3.8

-

-

Iron & Steel

(32.7)

29.3

2.4

-

-

Fabricated Metal Products

(2.5)

14.9

25.2

-

-

Non-metallic Mineral

(15.5)

20.2

27.1

6.6

-

Transport Equipment

(13.5)

36.5

(10.4)

13.7

-

Paper & Paper Products

(5.0)

18.7

14.8

(7.8)

-

Crude Oil Refineries

0.2

(11.4)

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index

 

 

INDUSTRY ANALYSIS

 

MSIC CODE

46692 : Wholesale of fertilizers and agrochemical products

 

 

INDUSTRY :

TRADING

 

 

 

According to the Retail Group Malaysia (RGM), the wholesale and retail trade sector forecast to grow to 6% in year 2013. During the first quarter of year 2013, RGM is estimating the retail industry to grow 6.9%. Many retailers have been enjoying better sales since the government handed out cash from mid-January of 2013 under the second round of Bantuan Rakyat 1Malaysia to more than 12 million Malaysians. Bookstores and related retail stores have also started enjoying rising sales since the RM250 1Malaysia Book Voucher was distributed to 1.3 million private and public university students. Besides, since early February 2013, handphone traders and retailers selling smartphone accessories have started to benefit from the RM200 rebate on smartphones for 1.5 million young adults aged between 21 and 30 years with a monthly income of not more than RM3,000.

 

The wholesale and retail trade sector grew 6.1% in the first half of the year 2012 driven by strong domestic consumption and the increasing number of large format stores operating in Malaysia, including 180 foreign hypermarkets, superstores and departmental stores as at end of August 2012. In addition, other indicators such as imports of consumption goods were higher by 15.2%.

 

In 2012, the wholesale and retail trade sector growth to 5.5% driven by higher consumption which benefited from Government initiatives under the 2012 Budget such as BR1M, Baucar Buku 1Malaysia (BB1M) and the RM100 assistance for all primary and secondary school students. The performance of the sector will also be supported by ongoing efforts to modernise the retail segment under the ETP. In 2012, 500 retail shops and 50 workshops are targeted to be modernised under the Retail Shop Transformation (TUKAR) and Automotive Workshop Modernisation (ATOM) programmes, respectively. As at end of July 2012, 95 workshops have been modernised, surpassing the yearly target, while 393 retail shops have been modernised.

 

Growth of the sector is anticipated to remain encouraging with ongoing efforts by the Government to increase its contribution to the economy. Major initiatives include increasing the number of large format stores such as hypermarkets, superstores and departmental stores are carried out to boost the economy.

 

Over 60% of Gross Domestic Product (GDP) is contributed by domestic consumption, therefore the wholesale and retail sector plays a crucial role in driving Malaysia's growth over the next decade despite the ongoing global economic slowdown. By 2020, Malaysia's wholesale and retail sector is expected to boost the country's total Gross National Income (GNI) by RM156 billion, creating 454,190 new jobs.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

Incorporated in 1959, the Subject is a Private Limited company, focusing on distributor of fertilizers & agrochemicals. Its long establishment in the market has allowed the Subject to build up a good reputation and gain higher market share against its rivals. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject is a large entity with strong capital position. We are confident with the Subject's business and its future growth prospect.


Information revealed that the Subject solely focuses on domestic market rather than overseas market. We believe that this narrow market segment would limit the Subject's business opportunities and the Subject is likely to be affected by the uncertainties in local economy. However, its long presence in the market has enabled the Subject to gain certain market shares and established good rapport with its clients. Thus, its business risk is diversified. The Subject is a fairly large and rapidly growing company with over 150 staff in its operations. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.


Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. However, due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Nevertheless, given a positive net worth standing at MYR 216,335,052, the Subject should be able to maintain its business in the near terms.


The Subject'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 Subject has a good control over its resources.


The Subject's payment habit is average. With its adequate working capital, the Subject 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 Subject is expected to benefit from the favourable outlook of the industry.


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

 

 

PROFIT AND LOSS ACCOUNT

 

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

BEHN MEYER AGRICARE (M) SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

1,273,576,723

1,082,093,384

968,937,050

930,116,194

1,259,551,920

 

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

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

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

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

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

Total Turnover

1,273,576,723

1,082,093,384

968,937,050

930,116,194

1,259,551,920

Costs of Goods Sold

(1,152,948,231)

(955,230,114)

(853,843,854)

-

-

 

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

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

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

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

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

Gross Profit

120,628,492

126,863,270

115,093,196

-

-

 

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

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

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

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

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

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

64,575,750

70,978,525

77,987,462

13,797,269

52,779,774

 

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

64,575,750

70,978,525

77,987,462

13,797,269

52,779,774

Taxation

(16,477,589)

(18,227,851)

(19,518,524)

(3,360,440)

(13,552,849)

 

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

48,098,161

52,750,674

58,468,938

10,436,829

39,226,925

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

8,236,891

11,986,217

11,517,279

1,080,450

1,853,525

 

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

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

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

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

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

As restated

8,236,891

11,986,217

11,517,279

1,080,450

1,853,525

 

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

56,335,052

64,736,891

69,986,217

11,517,279

41,080,450

DIVIDENDS - Ordinary (paid & proposed)

(15,000,000)

(56,500,000)

(58,000,000)

-

(40,000,000)

 

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

41,335,052

8,236,891

11,986,217

11,517,279

1,080,450

 

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

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

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

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

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

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Term loan / Borrowing

16,201,887

12,974,330

-

-

-

Others

-

-

7,445,411

12,291,221

17,197,634

 

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

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

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

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

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

 

16,201,887

12,974,330

7,445,411

12,291,221

17,197,634

 

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

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

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

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

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

 

 

BALANCE SHEET

 

BEHN MEYER AGRICARE (M) SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

93,004,744

87,635,581

82,813,740

63,305,135

54,868,475

 

 

 

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

 

 

 

Investments

-

-

-

-

300,000

Deferred assets

-

-

388,807

553,375

-

Others

188,948

249,156

207,800

-

-

 

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

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

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

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

188,948

249,156

596,607

553,375

300,000

 

 

 

 

 

 

 

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

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

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

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

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

TOTAL LONG TERM ASSETS

93,193,692

87,884,737

83,410,347

63,858,510

55,168,475

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

351,521,806

385,222,248

310,471,781

195,024,847

353,168,676

Trade debtors

198,129,296

123,437,770

157,162,147

180,323,824

197,919,673

Other debtors, deposits & prepayments

6,545,913

10,944,139

3,160,597

2,906,381

8,440,795

Amount due from related companies

5,733,285

1,780,366

810,300

1,074,180

994,898

Cash & bank balances

44,422,744

29,919,396

12,645,490

37,169,494

73,778,289

Others

1,769,142

399,376

-

15,095,018

8,483,621

 

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

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

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

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

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

TOTAL CURRENT ASSETS

608,122,186

551,703,295

484,250,315

431,593,744

642,785,952

 

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

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

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

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

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

TOTAL ASSET

701,315,878

639,588,032

567,660,662

495,452,254

697,954,427

 

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

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

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

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

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

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

5,117,590

12,615,755

6,441,144

16,991,865

7,135,158

Other creditors & accruals

35,745,076

33,561,847

45,604,565

20,032,453

18,250,219

Short term borrowings/Term loans

4,476,190

-

-

1,828,954

1,804,261

Other borrowings

86,000,000

73,000,000

67,000,000

112,300,000

135,000,000

Bill & acceptances payable

259,068,000

211,601,309

192,834,032

156,744,759

401,463,000

Amounts owing to related companies

36,116,249

62,986,060

89,662,124

51,036,944

6,228,144

Provision for taxation

-

-

4,132,580

-

-

Dividends payable/proposed

15,000,000

15,000,000

-

-

-

 

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

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

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

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

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

TOTAL CURRENT LIABILITIES

441,523,105

408,764,971

405,674,445

358,934,975

569,880,782

 

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

166,599,081

142,938,324

78,575,870

72,658,769

72,905,170

 

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

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

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

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

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

TOTAL NET ASSETS

259,792,773

230,823,061

161,986,217

136,517,279

128,073,645

 

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

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

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

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

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

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

175,000,000

175,000,000

150,000,000

125,000,000

125,000,000

 

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

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

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

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

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

TOTAL SHARE CAPITAL

175,000,000

175,000,000

150,000,000

125,000,000

125,000,000

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Retained profit/(loss) carried forward

41,335,052

8,236,891

11,986,217

11,517,279

1,080,450

 

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

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

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

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

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

TOTAL RESERVES

41,335,052

8,236,891

11,986,217

11,517,279

1,080,450

 

 

 

 

 

 

 

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

216,335,052

183,236,891

161,986,217

136,517,279

126,080,450

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Long term loans

42,523,810

47,000,000

-

-

1,828,245

Deferred taxation

933,911

586,170

-

-

164,950

 

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

43,457,721

47,586,170

-

-

1,993,195

 

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

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

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

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

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

 

259,792,773

230,823,061

161,986,217

136,517,279

128,073,645

 

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

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

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

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

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

 

 

FINANCIAL RATIO

 

BEHN MEYER AGRICARE (M) SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

44,422,744

29,919,396

12,645,490

37,169,494

73,778,289

Net Liquid Funds

(214,645,256)

(181,681,913)

(180,188,542)

(119,575,265)

(327,684,711)

Net Liquid Assets

(184,922,725)

(242,283,924)

(231,895,911)

(122,366,078)

(280,263,506)

Net Current Assets/(Liabilities)

166,599,081

142,938,324

78,575,870

72,658,769

72,905,170

Net Tangible Assets

259,792,773

230,823,061

161,986,217

136,517,279

128,073,645

Net Monetary Assets

(228,380,446)

(289,870,094)

(231,895,911)

(122,366,078)

(282,256,701)

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

392,068,000

331,601,309

259,834,032

270,873,713

540,095,506

Total Liabilities

484,980,826

456,351,141

405,674,445

358,934,975

571,873,977

Total Assets

701,315,878

639,588,032

567,660,662

495,452,254

697,954,427

Net Assets

259,792,773

230,823,061

161,986,217

136,517,279

128,073,645

Net Assets Backing

216,335,052

183,236,891

161,986,217

136,517,279

126,080,450

Shareholders' Funds

216,335,052

183,236,891

161,986,217

136,517,279

126,080,450

Total Share Capital

175,000,000

175,000,000

150,000,000

125,000,000

125,000,000

Total Reserves

41,335,052

8,236,891

11,986,217

11,517,279

1,080,450

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.10

0.07

0.03

0.10

0.13

Liquid Ratio

0.58

0.41

0.43

0.66

0.51

Current Ratio

1.38

1.35

1.19

1.20

1.13

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

101

130

117

77

102

Debtors Ratio

57

42

59

71

57

Creditors Ratio

2

5

3

7

2

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

1.81

1.81

1.60

1.98

4.28

Liabilities Ratio

2.24

2.49

2.50

2.63

4.54

Times Interest Earned Ratio

4.99

6.47

11.47

2.12

4.07

Assets Backing Ratio

1.48

1.32

1.08

1.09

1.02

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

5.07

6.56

8.05

1.48

4.19

Net Profit Margin

3.78

4.87

6.03

1.12

3.11

Return On Net Assets

31.09

36.37

52.74

19.11

54.64

Return On Capital Employed

31.09

36.37

52.74

19.11

54.64

Return On Shareholders' Funds/Equity

22.23

28.79

36.10

7.65

31.11

Dividend Pay Out Ratio (Times)

0.31

1.07

0.99

0.00

1.02

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.43

UK Pound

1

Rs. 102.48

Euro

1

Rs. 85.28

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.