MIRA INFORM REPORT

Report Date :

28.07.2014

IDENTIFICATION DETAILS

Name :	AGRI-HORTI LINK SDN. BHD.
Registered Office :	21b , Room 2, Jalan Usj 10/1c, 47620 Subang Jaya, Selangor
Country :	Malaysia
Financials (as on) :	30.06.2013
Date of Incorporation :	12.10.2007
Com. Reg. No.:	791899-A
Legal Form :	Private Limited Company
Line of Business :	· engaged in trading fertilizers Subject sells all kinds of fertilizers
No of Employees :	06 [2014]

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara 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 earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

Source : CIA

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

EXECUTIVE SUMMARY

REGISTRATION NO.

:

791899-A

COMPANY NAME

:

AGRI-HORTI LINK SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

12/10/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

21B , ROOM 2, JALAN USJ 10/1C, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 20-2, JALAN USJ 21/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.

TEL.NO.

:

03-80232248

FAX.NO.

:

03-80233248

CONTACT PERSON

:

DO HOCK KWONG ( DIRECTOR )

INDUSTRY CODE

:

46692

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 6,477,076 [2013]

NET WORTH

:

MYR 2,112,483 [2013]

STAFF STRENGTH

:

6 [2014]

BANKER (S)

:

CIMB BANK BHD STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

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) trading in fertilizers.

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

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/02/2013	MYR 100,000.00	MYR 100,000.00
12/10/2007	MYR 100,000.00	MYR 2.00

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

Name	Address	IC/PP/Loc No	Shareholding	(%)
DO HOCK KWONG +	33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.	661216-08-5647 A0702643	90,000.00	90.00
HAW SOOK LENG	33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.	660110-10-7292 A0343501	10,000.00	10.00
			---------------	------
			100,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	TAN TEE @ TAN POH KIM
Address	:	33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	0550543
New IC No	:	410105-10-5418
Date of Birth	:	05/01/1941
Nationality	:	MALAYSIAN
Date of Appointment	:	13/02/2008

DIRECTOR 2

Name Of Subject	:	DO HOCK KWONG
Address	:	33, JALAN USJ 4/4C, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	A0702643
New IC No	:	661216-08-5647
Date of Birth	:	16/12/1966
Nationality	:	MALAYSIAN
Date of Appointment	:	12/10/2007

MANAGEMENT

1)	Name of Subject	:	DO HOCK KWONG
	Position	:	DIRECTOR

2)	Name of Subject	:	TONG LEE MEI
	Position	:	FINANCE MANAGER

3)	Name of Subject	:	DO WEY HWANG
	Position	:	HUMAN RESOURCE MANAGER

AUDITOR

Auditor	:	MESSRS WANG & CO.
Auditor' Address	:	CT 10-06, CORPORATE TOWER, SUBANG SQUARE, JALAN SS 15/4G, LEVEL 10, 47500 SUBANG JAYA, SELANGOR, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. ONG SIOK LEAN
	New IC No	:	700802-02-5240
	Address	:	66, JALAN USJ 11/5, UEP, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

2)

Name

:

STANDARD CHARTERED BANK MALAYSIA BHD

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	16/02/2011	FIRST LEGAL CHARGE UNDER THE NATIONAL LAND CODE 1965 DATED 16/02/2011 "THE CHARGE"	STANDARD CHARTERED BANK MALAYSIA BHD	-	Unsatisfied
2	12/04/2011	THIRD PARTY LEGAL CHARGE UNDER THE NATIONAL LAND CODE, 1965 DATED 12/04/2011	CIMB BANK BERHAD	-	Unsatisfied
3	03/08/2012	LOAN AGREEMENT	CIMB BANK BERHAD	MYR 1,426,008.00	Unsatisfied

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
Overseas	:	YES

The Subject refused to disclosed its suppliers and the percentage. 

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	[	X	]	Average 61-90 Days	[	]
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
Type of Customer	:	END USERS

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	2014	2013	2012	2011
GROUP	N/A	N/A	N/A	N/A
COMPANY	6	1	5	5

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) trading in fertilizers. 
The Subject sells all kinds of fertilizers.
The Subject sells the products according to its customers' orders. 

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	03-80232248
Match	:	N/A
Address Provided by Client	:	21 B ROOM 2 JALAN USJ 10/1C, 47620 SUBANG JAY SELANGOR MALAYSIA
Current Address	:	NO 20-2, JALAN USJ 21/4, 47630 SUBANG JAYA, SELANGOR, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

We contacted phone number 03-80232248 but no answered then diverted through Ms. Tong Lee to her mobile number and she provided some information on the Subject.

The address provided belongs to the Subject registered office. However the address is incomplete.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Unfavourable	[	9.53%	]
Return on Net Assets	:	Unfavourable	[	8.26%	]
The fluctuating turnover reflects the fierce competition among the existing and new market players.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Favourable	[	34 Days	]
Debtor Ratio	:	Unfavourable	[	97 Days	]
Creditors Ratio	:	Favourable	[	31 Days	]
The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. 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	:	Favourable	[	1.59 Times	]
Current Ratio	:	Favourable	[	2.06 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Acceptable	[	3.94 Times	]
Gearing Ratio	:	Unfavourable	[	1.19 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 :
The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. 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 : FAIR

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  (Source : Department of Statistics / Economic Report / Bank Negara Report)

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 2007, the Subject is a Private Limited company, focusing on trading in fertilizers. Having been in business for 7 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. 

Over the years, the Subject should have build up its clientele base and received supports from its regular customers. Investigation revealed that the Subject's interest lies mostly in the local market. Thus, any adverse changes to the local economy might have a negative impact on the Subject's business performance. Being a small company, the Subject's business operation is supported by 6 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Given a positive net worth standing at MYR 2,112,483, the Subject should be able to maintain its business in the near terms. 

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises. 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. 

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. 

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.

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	2013-06-30	2012-06-30	2011-06-30	2010-06-30	2009-06-30
Months	12	12	12	12	18
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	SUMMARY	FULL	FULL
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	6,477,076	8,205,761	3,200,125	7,053,014	15,699,422
Other Income	96,638	558,917	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	6,573,714	8,764,678	3,200,125	7,053,014	15,699,422
Costs of Goods Sold	(5,275,448)	(7,037,727)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	1,298,266	1,726,951	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	278,951	770,893	152,467	204,262	1,120,464
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	278,951	770,893	152,467	204,262	1,120,464
Taxation	(77,715)	(97,887)	(45,614)	(40,492)	(249,600)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	201,236	673,006	106,853	163,770	870,864
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	1,811,247	1,138,241	1,031,388	867,618	-
	----------------	----------------	----------------	----------------	----------------
As restated	1,811,247	1,138,241	1,031,388	867,618	-
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	2,012,483	1,811,247	1,138,241	1,031,388	870,864
TRANSFER TO RESERVES - General	-	-	-	-	(3,246)
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	2,012,483	1,811,247	1,138,241	1,031,388	867,618
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Hire purchase	4,519	1,788	-	894	-
Term loan / Borrowing	90,363	96,259	-	-	-
Others	-	113	-	-	-
	----------------	----------------	----------------	----------------	----------------
	94,882	98,160	-	894	-
	=============	=============	=============	=============

BALANCE SHEET

AGRI-HORTI LINK SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	3,143,947	2,999,527	4,129,025	124,888	12,697
Investments	6,000	6,000	-	6,000	6,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	6,000	6,000	6,000	6,000	6,000
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	3,149,947	3,005,527	4,135,025	130,888	18,697
Stocks	606,189	722,425	-	738,416	753,637
Trade debtors	1,724,939	1,480,414	-	1,031,679	1,321,169
Other debtors, deposits & prepayments	90,019	65,000	-	55,460	50,598
Amount due from director	5,086	102,018	-	-	-
Cash & bank balances	245,299	375,215	-	565,583	263,599
Others	4,836	-	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	2,676,368	2,745,072	1,405,340	2,391,138	2,389,003
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	5,826,315	5,750,599	5,540,365	2,522,026	2,407,700
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	449,679	640,770	-	888,873	779,004
Other creditors & accruals	746,054	2,153,699	-	356,165	411,478
Hire purchase & lease creditors	50,005	12,000	-	12,000	-
Short term borrowings/Term loans	54,153	21,031	-	-	-
Provision for taxation	-	61,724	-	89,100	247,000
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	1,299,891	2,889,224	1,625,853	1,346,138	1,437,482
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	1,376,477	(144,152)	(220,513)	1,045,000	951,521
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	4,526,424	2,861,375	3,914,512	1,175,888	970,218
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	100,000	100,000	100,000	100,000	100,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	100,000	100,000	100,000	100,000	100,000
Retained profit/(loss) carried forward	2,012,483	1,811,247	1,138,241	1,031,388	867,618
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	2,012,483	1,811,247	1,138,241	1,031,388	867,618
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	2,112,483	1,911,247	1,238,241	1,131,388	967,618
Long term loans	2,271,431	926,994	-	-	-
Hire purchase creditors	134,825	18,000	-	42,000	-
Deferred taxation	7,685	5,134	-	2,500	2,600
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	2,413,941	950,128	2,676,271	44,500	2,600
	----------------	----------------	----------------	----------------	----------------
	4,526,424	2,861,375	3,914,512	1,175,888	970,218
	=============	=============	=============	=============	=============

FINANCIAL RATIO

AGRI-HORTI LINK SDN. BHD.

TYPES OF FUNDS
Cash	245,299	375,215	-	565,583	263,599
Net Liquid Funds	245,299	375,215	-	565,583	263,599
Net Liquid Assets	770,288	(866,577)	(220,513)	306,584	197,884
Net Current Assets/(Liabilities)	1,376,477	(144,152)	(220,513)	1,045,000	951,521
Net Tangible Assets	4,526,424	2,861,375	3,914,512	1,175,888	970,218
Net Monetary Assets	(1,643,653)	(1,816,705)	(2,896,784)	262,084	195,284
BALANCE SHEET ITEMS
Total Borrowings	2,510,414	978,025	-	54,000	0
Total Liabilities	3,713,832	3,839,352	4,302,124	1,390,638	1,440,082
Total Assets	5,826,315	5,750,599	5,540,365	2,522,026	2,407,700
Net Assets	4,526,424	2,861,375	3,914,512	1,175,888	970,218
Net Assets Backing	2,112,483	1,911,247	1,238,241	1,131,388	967,618
Shareholders' Funds	2,112,483	1,911,247	1,238,241	1,131,388	967,618
Total Share Capital	100,000	100,000	100,000	100,000	100,000
Total Reserves	2,012,483	1,811,247	1,138,241	1,031,388	867,618
LIQUIDITY (Times)
Cash Ratio	0.19	0.13	-	0.42	0.18
Liquid Ratio	1.59	0.70	-	1.23	1.14
Current Ratio	2.06	0.95	0.86	1.78	1.66
WORKING CAPITAL CONTROL (Days)
Stock Ratio	34	32	-	38	18
Debtors Ratio	97	66	-	53	31
Creditors Ratio	31	33	-	46	18
SOLVENCY RATIOS (Times)
Gearing Ratio	1.19	0.51	-	0.05	0.00
Liabilities Ratio	1.76	2.01	3.47	1.23	1.49
Times Interest Earned Ratio	3.94	8.85	-	229.48	0.00
Assets Backing Ratio	45.26	28.61	39.15	11.76	9.70
PERFORMANCE RATIO (%)
Operating Profit Margin	4.31	9.39	4.76	2.90	7.14
Net Profit Margin	3.11	8.20	3.34	2.32	5.55
Return On Net Assets	8.26	30.37	3.89	17.45	115.49
Return On Capital Employed	8.17	30.25	3.89	17.27	115.49
Return On Shareholders' Funds/Equity	9.53	35.21	8.63	14.48	90.00
Dividend Pay Out Ratio (Times)	0.00	0.00	-	0.00	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	-	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.14
UK Pound	1	Rs.102.22
Euro	1	Rs.81.02

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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