MIRA INFORM REPORT

Report Date :

19.11.2014

IDENTIFICATION DETAILS

Name :	BEHN MEYER AGRICARE (M) SDN. BHD.
Formerly Known As :	BEHN MEYER & CO. (M) SDN BHD BEHN MEYER & CO MALAYA SDN BHD
Registered Office :	5, Jalan TP2, Taman Perindustrian Sime UEP, 47600 Subang Jaya, Selangor
Country :	Malaysia
Financials (as on) :	31.12.2013
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 [2014]

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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 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

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 200,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 995,182,305 [2013]

NET WORTH

:

MYR 223,877,436 [2013]

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

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

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.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
15/06/2014	MYR 200,000,000.00	MYR 200,000,000.00
15/02/2013	MYR 200,000,000.00	MYR 175,000,000.00
21/05/2010	MYR 150,000,000.00	MYR 150,000,000.00
30/07/2008	MYR 150,000,000.00	MYR 125,000,000.00
17/12/2007	MYR 100,000,000.00	MYR 85,000,000.00
03/12/2007	MYR 100,000,000.00	MYR 75,000,000.00
22/12/2006	MYR 100,000,000.00	MYR 70,000,000.00
15/12/2005	MYR 100,000,000.00	MYR 65,000,000.00
15/07/2005	MYR 100,000,000.00	MYR 60,000,000.00
16/12/2004	MYR 50,000,000.00	MYR 50,000,000.00
29/06/2004	MYR 50,000,000.00	MYR 40,000,000.00
03/05/2002	MYR 50,000,000.00	MYR 30,000,000.00
08/03/1991	MYR 70,000,000.00	MYR 10,000,000.00

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.	XLZ00211532	182,000,000.00	91.00
BEHN MEYER DEUTSCHLAND HOLDING AG & CO KG	BALLINDAMM 1, 20095 HAMBURG, GERMANY, GERMANY.	XLZ00215182	18,000,000.00	9.00
			---------------	------
			200,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	MS. ROHAYA BINTI MUHAMMAD
Address	:	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 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	:	DR. DIRK ALBRECHT LORENZ LORENZ-MEYER
Address	:	32, JALAN U2/50, MAPLEWOODS AT SAUJANA, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
IC / PP No	:	C4K5WYHZ2
Date of Appointment	:	01/01/2012

DIRECTOR 4

Name Of Subject	:	MR. CHONG YIEW ON
Address	:	43 JALAN SS 22/38, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.
New IC No	:	611127-08-6175
Date of Birth	:	27/11/1961
Nationality	:	MALAYSIAN
Date of Appointment	:	10/02/2010

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 SENTRAL, 50706 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

No company secretary was found in our databank.

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

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank againt 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.

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,ASIA

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 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
GROUP	N/A	N/A	N/A	N/A	N/A
COMPANY	150	150	150	150	138

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	:	5, JALAN TP2, TAMAN PERINDUSTRIAN SIME UEP,47600,SUBANG JAYA,SELANGOR.
Current Address	:	5, JALAN TP2, TAMAN PERINDUSTRIAN SIME UEP, 47600 SUBANG JAYA, SELANGOR, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

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

FINANCIAL ANALYSIS

Profitability
Turnover	:	Erratic	[	2009 - 2013	]
Profit/(Loss) Before Tax	:	Decreased	[	2009 - 2013	]
Return on Shareholder Funds	:	Acceptable	[	10.74%	]
Return on Net Assets	:	Acceptable	[	17.89%	]
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 Subject's management had generated acceptable return for its shareholders using its assets.
Working Capital Control
Stock Ratio	:	Unfavourable	[	105 Days	]
Debtor Ratio	:	Favourable	[	41 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 favourable debtors' days could be due to the good credit control measures implemented by the Subject. 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	[	0.60 Times	]
Current Ratio	:	Unfavourable	[	1.56 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	[	3.70 Times	]
Gearing Ratio	:	Acceptable	[	0.99 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's gearing was slightly high. The Subject is utilising the leverage concept to fund its expansion. However, the high gearing has added financial risks to the Subject. It will be more vulnerable in times of economy downturn.
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. 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 was slightly high and its financial risk was also high. If no plans are made to reduce its gearing, the Subject's performance may deteriorate in the coming year.
Overall financial condition of the Subject : FAIR

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2010	2011	2012	2013	2014**
Population ( Million)	28.35	28.70	29.30	29.80	30.30
Gross Domestic Products ( % )	7.2	5.1	5.6	5.3	6.0
Domestic Demand ( % )	6.3	8.2	9.4	5.6	6.4
Private Expenditure ( % )	8.1	8.2	8.0	7.4	7.9
Consumption ( % )	6.7	7.1	1.0	5.7	6.5
Investment ( % )	17.7	12.2	11.7	13.3	12.0
Public Expenditure ( % )	3.8	8.4	13.3	1.2	2.3
Consumption ( % )	0.2	16.1	11.3	(1.2)	2.1
Investment ( % )	2.8	(0.3)	15.9	4.2	2.6
Balance of Trade ( MYR Million )	118,356	116,058	106,300	110,700	52,314
Government Finance ( MYR Million )	(40,482)	(45,511)	(42,297)	(39,993)	(37,291)
Government Finance to GDP / Fiscal Deficit ( % )	(5.6)	(5.4)	(4.5)	(4.0)	(3.5)
Inflation ( % Change in Composite CPI)	5.1	3.1	1.6	2.5	3.3
Unemployment Rate	3.9	3.3	3.2	3.0	3.0
Net International Reserves ( MYR Billion )	329	415	427	-	417
Average Risk-Weighted Capital Adequacy Ratio ( % )	2.20	3.50	2.20	-	-
Average 3 Months of Non-performing Loans ( % )	15.30	14.80	14.70	-	-
Average Base Lending Rate ( % )	6.30	6.60	6.53	6.53	-
Business Loans Disbursed( % )	14.7	15.3	32.2	-	-
Foreign Investment ( MYR Million )	22,517.9	23,546.1	26,230.4	38,238.0	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	44,148	45,455	45,441	46,321	-
Registration of New Companies ( % )	6.2	3.0	(0.0)	1.9	-
Liquidation of Companies ( No. )	25,585	132,476	-	-	-
Liquidation of Companies ( % )	(34.5)	417.8	-	-	-
Registration of New Business ( No. )	271,414	284,598	324,761	329,895	-
Registration of New Business ( % )	-	-	-	-	-
Business Dissolved ( No. )	19,738	20,121	-	-	-
Business Dissolved ( % )	2.0	1.9	-	-	-
Sales of New Passenger Cars (' 000 Unit )	543.6	535.1	552.2	-	-
Cellular Phone Subscribers ( Million )	32.8	35.3	38.5	43.0	-
Tourist Arrival ( Million Persons )	24.6	24.7	25.0	25.7	-
Hotel Occupancy Rate ( % )	63.0	60.6	62.4	62.6	-
Credit Cards Spending ( % )	14.1	15.6	12.6	-	-
Bad Cheque Offenders (No.)	33,568	32,627	26,982	28,876	-
Individual Bankruptcy ( No.)	18,119	19,167	19,575	21,984	-
Individual Bankruptcy ( % )	11.7	5.8	2.1	12.3	-

INDUSTRIES ( % of Growth ):	2010	2011	2012	2013	2014**
Agriculture	2.4	5.8	1.0	2.1	3.8
Palm Oil	(3.4)	10.8	(0.3)	2.6	-
Rubber	9.9	6.1	(7.9)	(10.1)	-
Forestry & Logging	(3.3)	(7.6)	(4.5)	(7.8)	-
Fishing	5.6	2.1	4.3	1.6	-
Other Agriculture	7.9	7.1	6.4	8.2	-
Industry Non-Performing Loans ( MYR Million )	508.4	634.1	-	-	-
% of Industry Non-Performing Loans	2.1	3.2	-	-	-
Mining	(0.3)	(5.4)	1.4	0.9	(0.8)
Oil & Gas	0.5	(1.7)	-	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	49.7	46.5	-	-	-
% of Industry Non-performing Loans	0.1	0.1	-	-	-
Manufacturing #	11.9	4.7	4.8	3.4	6.6
Exported-oriented Industries	12.1	4.1	6.5	3.3	5.6
Electrical & Electronics	28.4	(4.0)	12.7	6.9	13.3
Rubber Products	25.3	20.7	3.0	11.7	(0.3)
Wood Products	20.1	(5.1)	8.7	(2.7)	5.1
Textiles & Apparel	(0.4)	13.2	(7.1)	(2.6)	11.5
Domestic-oriented Industries	16.3	10.7	1.7	6.8	9.4
Food, Beverages & Tobacco	3.0	4.8	2.7	3.6	6.1
Chemical & Chemical Products	16.2	10.0	10.8	5.6	-
Plastic Products	2.4	3.8	-	-	-
Iron & Steel	29.3	2.2	(6.6)	5.0	0.1
Fabricated Metal Products	14.9	21.8	13.8	9.9	2.9
Non-metallic Mineral	20.2	12.1	2.9	(2.0)	5.4
Transport Equipment	36.5	12.0	3.4	13.8	22.9
Paper & Paper Products	18.7	9.5	3.1	1.8	4.7
Crude Oil Refineries	(11.4)	9.3	-	-	-
Industry Non-Performing Loans ( MYR Million )	6,217.5	6,537.2	-	-	-
% of Industry Non-Performing Loans	23.8	25.7	-	-	-
Construction	11.4	4.7	18.6	10.9	10.0
Industry Non-Performing Loans ( MYR Million )	4,038.5	3,856.9	-	-	-
% of Industry Non-Performing Loans	10.7	10.2	-	-	-
Services	7.4	7.0	6.4	5.9	6.2
Electric, Gas & Water	7.8	3.5	4.4	4.2	3.6
Transport, Storage & Communication	7.7	6.5	7.1	7.3	7.5
Wholesale, Retail, Hotel & Restaurant	4.7	5.2	4.7	5.9	6.9
Finance, Insurance & Real Estate	6.10	6.90	9.70	3.70	4.65
Government Services	5.9	12.4	9.4	8.3	6.1
Other Services	4.4	5.1	3.9	5.1	4.8
Industry Non-Performing Loans ( MYR Million )	7,384.6	6,825.2	-	-	-
% of Industry Non-Performing Loans	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 & agro chemicals. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 200,000,000. We are confident with the Subject's business and its future growth prospect. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment.

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. The Subject is a fairly large and rapidly growing company with over 150 staff in its operations 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. 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. 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 gearing level of the Subject is slightly high, therefore it faces moderate financial risk. Given a positive net worth standing at MYR 223,877,436, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth . 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.

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	2013-12-31	2012-12-31	2011-12-31	2010-12-31	2009-12-31
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	995,182,305	1,273,576,723	1,082,093,384	968,937,050	930,116,194
	----------------	----------------	----------------	----------------	----------------
Total Turnover	995,182,305	1,273,576,723	1,082,093,384	968,937,050	930,116,194
Costs of Goods Sold	(922,192,370)	(1,152,948,231)	(955,230,114)	(853,843,854)	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	72,989,935	120,628,492	126,863,270	115,093,196	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	32,091,569	64,575,750	70,978,525	77,987,462	13,797,269
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	32,091,569	64,575,750	70,978,525	77,987,462	13,797,269
Taxation	(8,049,185)	(16,477,589)	(18,227,851)	(19,518,524)	(3,360,440)
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	24,042,384	48,098,161	52,750,674	58,468,938	10,436,829
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	41,335,052	8,236,891	11,986,217	11,517,279	1,080,450
	----------------	----------------	----------------	----------------	----------------
As restated	41,335,052	8,236,891	11,986,217	11,517,279	1,080,450
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	65,377,436	56,335,052	64,736,891	69,986,217	11,517,279
DIVIDENDS - Ordinary (paid & proposed)	(41,500,000)	(15,000,000)	(56,500,000)	(58,000,000)	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	23,877,436	41,335,052	8,236,891	11,986,217	11,517,279
	=============	=============	=============	=============	=============
INTEREST EXPENSE (as per notes to P&L)
Term loan / Borrowing	11,906,005	16,201,887	12,974,330	-	-
Others	-	-	-	7,445,411	12,291,221
	----------------	----------------	----------------	----------------	----------------
	11,906,005	16,201,887	12,974,330	7,445,411	12,291,221
	=============	=============	=============	=============	=============

BALANCE SHEET

BEHN MEYER AGRICARE (M) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	78,117,200	93,004,744	87,635,581	82,813,740	63,305,135
Deferred assets	-	-	-	388,807	553,375
Others	142,470	188,948	249,156	207,800	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	142,470	188,948	249,156	596,607	553,375
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	78,259,670	93,193,692	87,884,737	83,410,347	63,858,510
Stocks	286,035,457	351,521,806	385,222,248	310,471,781	195,024,847
Trade debtors	113,035,898	198,129,296	123,437,770	157,162,147	180,323,824
Other debtors, deposits & prepayments	4,642,192	6,545,913	10,944,139	3,160,597	2,906,381
Amount due from holding company	444,456	-	-	-	-
Amount due from related companies	18,383,410	5,733,285	1,780,366	810,300	1,074,180
Cash & bank balances	35,726,124	44,422,744	29,919,396	12,645,490	37,169,494
Others	7,131,076	1,769,142	399,376	-	15,095,018
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	465,398,613	608,122,186	551,703,295	484,250,315	431,593,744
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	543,658,283	701,315,878	639,588,032	567,660,662	495,452,254
	=============	=============	=============	=============	=============
CURRENT LIABILITIES
Trade creditors	5,988,173	5,117,590	12,615,755	6,441,144	16,991,865
Other creditors & accruals	24,181,704	35,745,076	33,561,847	45,604,565	20,032,453
Short term borrowings/Term loans	20,953,779	4,476,190	-	-	1,828,954
Other borrowings	178,000,764	345,068,000	73,000,000	67,000,000	112,300,000
Bill & acceptances payable	-	-	211,601,309	192,834,032	156,744,759
Amounts owing to related companies	52,105,984	36,116,249	62,986,060	89,662,124	51,036,944
Provision for taxation	-	-	-	4,132,580	-
Dividends payable/proposed	16,500,000	15,000,000	15,000,000	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	297,730,404	441,523,105	408,764,971	405,674,445	358,934,975
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	167,668,209	166,599,081	142,938,324	78,575,870	72,658,769
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	245,927,879	259,792,773	230,823,061	161,986,217	136,517,279
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	200,000,000	175,000,000	175,000,000	150,000,000	125,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	200,000,000	175,000,000	175,000,000	150,000,000	125,000,000
Retained profit/(loss) carried forward	23,877,436	41,335,052	8,236,891	11,986,217	11,517,279
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	23,877,436	41,335,052	8,236,891	11,986,217	11,517,279
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	223,877,436	216,335,052	183,236,891	161,986,217	136,517,279
Long term loans	22,037,913	42,523,810	47,000,000	-	-
Deferred taxation	12,530	933,911	586,170	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM LIABILITIES	22,050,443	43,457,721	47,586,170	-	-
	----------------	----------------	----------------	----------------	----------------
	245,927,879	259,792,773	230,823,061	161,986,217	136,517,279
	=============	=============	=============	=============	=============

FINANCIAL RATIO

BEHN MEYER AGRICARE (M) SDN. BHD.

TYPES OF FUNDS
Cash	35,726,124	44,422,744	29,919,396	12,645,490	37,169,494
Net Liquid Funds	35,726,124	44,422,744	(181,681,913)	(180,188,542)	(119,575,265)
Net Liquid Assets	(118,367,248)	(184,922,725)	(242,283,924)	(231,895,911)	(122,366,078)
Net Current Assets/(Liabilities)	167,668,209	166,599,081	142,938,324	78,575,870	72,658,769
Net Tangible Assets	245,927,879	259,792,773	230,823,061	161,986,217	136,517,279
Net Monetary Assets	(140,417,691)	(228,380,446)	(289,870,094)	(231,895,911)	(122,366,078)
BALANCE SHEET ITEMS
Total Borrowings	220,992,456	392,068,000	331,601,309	259,834,032	270,873,713
Total Liabilities	319,780,847	484,980,826	456,351,141	405,674,445	358,934,975
Total Assets	543,658,283	701,315,878	639,588,032	567,660,662	495,452,254
Net Assets	245,927,879	259,792,773	230,823,061	161,986,217	136,517,279
Net Assets Backing	223,877,436	216,335,052	183,236,891	161,986,217	136,517,279
Shareholders' Funds	223,877,436	216,335,052	183,236,891	161,986,217	136,517,279
Total Share Capital	200,000,000	175,000,000	175,000,000	150,000,000	125,000,000
Total Reserves	23,877,436	41,335,052	8,236,891	11,986,217	11,517,279
LIQUIDITY (Times)
Cash Ratio	0.12	0.10	0.07	0.03	0.10
Liquid Ratio	0.60	0.58	0.41	0.43	0.66
Current Ratio	1.56	1.38	1.35	1.19	1.20
WORKING CAPITAL CONTROL (Days)
Stock Ratio	105	101	130	117	77
Debtors Ratio	41	57	42	59	71
Creditors Ratio	2	2	5	3	7
SOLVENCY RATIOS (Times)
Gearing Ratio	0.99	1.81	1.81	1.60	1.98
Liabilities Ratio	1.43	2.24	2.49	2.50	2.63
Times Interest Earned Ratio	3.70	4.99	6.47	11.47	2.12
Assets Backing Ratio	1.23	1.48	1.32	1.08	1.09
PERFORMANCE RATIO (%)
Operating Profit Margin	3.22	5.07	6.56	8.05	1.48
Net Profit Margin	2.42	3.78	4.87	6.03	1.12
Return On Net Assets	17.89	31.09	36.37	52.74	19.11
Return On Capital Employed	17.89	31.09	36.37	52.74	19.11
Return On Shareholders' Funds/Equity	10.74	22.23	28.79	36.10	7.65
Dividend Pay Out Ratio (Times)	1.73	0.31	1.07	0.99	0.00
NOTES TO ACCOUNTS
Contingent Liabilities	0	0	0	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.81
UK Pound	1	Rs.96.77
Euro	1	Rs.77.09

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NIT

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.