MIRA INFORM REPORT

 

 

Report No. :

337598

Report Date :

22.08.2015

 

IDENTIFICATION DETAILS

 

Name :

AGRI-HORTI LINK SDN. BHD.

 

 

Registered Office :

21B, Room 2, Jalan USJ10/1C, UEP Subang Jaya, 47620 Subang Jaya, Selangor

 

 

Country :

Malaysia

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

12.10.2007

 

 

Com. Reg. No.:

791899-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading in Fertilizers.

 

 

No. of Employees :

6 [2015]

 

 

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 :

Small Company 

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

 

The NAJIB administration 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. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously 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. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

 

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB 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.

 

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

791899-A

COMPANY NAME

:

AGRI-HORTI LINK SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

12/10/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

21B, ROOM 2, JALAN USJ10/1C, UEP SUBANG JAYA, 47620 SUBANG JAYA, SELANGOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 20-2, JALAN 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 7,386,281 [2014]

NET WORTH

:

MYR 2,229,199 [2014]

STAFF STRENGTH

:

6 [2015]

BANKER (S)

:

CIMB BANK BHD
STANDARD CHARTERED BANK MALAYSIA BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

N/A

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

31/12/2014

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 :


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. DO HOCK KWONG +

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

661216-08-5647 A0702643

90,000.00

90.00

MS. HAW SOOK LENG

NO 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

:

MS. TAN TEE @ TAN POH KIM

Address

:

NO. 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

:

MR. DO HOCK KWONG

Address

:

NO 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

 

 

 

AUDITOR

 

Auditor

:

MESSRS WANG & CO.

Auditor' Address

:

15-3, JALAN USJ 9.5Q, SUBANG BUSINESS CENTRE, UEP SUBANG JAYA, 47620 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, 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

STANDARD CHARTERED BANK MALAYSIA BHD

-

Unsatisfied

2

12/04/2011

THIRD PARTY LEGAL CHARGE UNDER THE NATIONAL LAND

CIMB BANK BERHAD

-

Unsatisfied

3

03/08/2012

LOAN AGREEMENT

CIMB BANK BERHAD

MYR 1,426,008.00

Unsatisfied

 

 

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

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

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

 

 

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

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

6

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 JAYA SELANGOR

Current Address

:

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

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


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

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


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2010 - 2014

]

Profit/(Loss) Before Tax

:

Decreased

[

2010 - 2014

]

Return on Shareholder Funds

:

Unfavourable

[

5.24%

]

Return on Net Assets

:

Unfavourable

[

6.33%

]

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

[

28 Days

]

Debtor Ratio

:

Favourable

[

54 Days

]

Creditors Ratio

:

Favourable

[

29 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the 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

:

Favourable

[

1.96 Times

]

Current Ratio

:

Favourable

[

2.53 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

:

Unfavourable

[

2.62 Times

]

Gearing Ratio

:

Unfavourable

[

1.08 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. 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. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. 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 : POOR

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-



INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

46692 : Wholesale of fertilizers and agrochemical products

INDUSTRY :

TRADING

The wholesale and retail trade is expected to increase 7.1% in 2015 (2014: 7.7%) driven by strong domestic consumption and higher tourist arrivals following the Malaysia Year of Festivals 2015. Besides, in 2014, the wholesale and retail trade subsector is expected to increase 7.7% (2013: 6.4%) supported by strong domestic consumption.

According to Retail Group Malaysia (RGM), the pharmacy and personal care sub-sector had slow growth rate of 2.6% for the first quarter of 2014, while "other specialty stores" grew at a rate of 3.5%. During the first quarter of 2014, fashion and fashion accessories recorded a sustainable growth of 6.3% as compared with the same period last year (3.6%).

The retail segment increased 10.1% (January - June 2013: 7.1%) attributed to brisk sales in retail outlets such as hypermarkets and large-scale superstores. Since the launch of the Small Retailer Transformation programme (TUKAR) in January 2011 up to end-July 2014, 1,761 small retailer stores (end-July 2013: 1,381) have been modernized to improve their competitiveness. In addition, the strong growth of the retail segment was supported by 1Malaysia Unified Sales held from 29 June 2014 to 1 September 2014 to attract foreign and local tourists to shop in Malaysia. Meanwhile, the wholesale segment expanded 8.2% (January - June 2013: 4.9%) due to higher sales of non-agricultural intermediate products, such as petrol, diesel, lubricants and household goods. Furthermore, food and beverage outlets, laundry outlets, car wash centres, abd health and beauty outlets took a hit from the water rationing in the Klang Valley since February this year.

On the other hand, in 2014, Malaysia's total trade is expected to grow 5.2% to RM1.44 trillion (2013: 4.5%; RM1.37 trillion) underpinned by recovery in key advanced economies, resilient regional demand, and partly due to the base effect arising from sluggish exports in the corresponding period last year. Gross exports are anticipated to expand 6% to RM762.8 billion while import decreased 4.3% to RM677.2 billion (2013: 2.4%; RM719.8 billion; 7%; RM 649.1 billion). Consequently, the trade surplus is expected to be higher at RM85.6 billion or 7.9% of GDP in 2014 (2013: RM70.7 billion; 7.2%).

Furthermore, gross exports rebounded by 10.7% to RM441.3 billion during the first seven months of 2014 (January - July 2013: -2.8%; RM398.5 billion), with manufactured and mining exports rising at a double digit pace of 11.4% and 12.5%. Shipment of agriculture products grew at a slower pace of 2.7%, primarily due to lower receipts of crude rubber (-24.6%) while export growth of other commodities remained steady. Consequently, exports of manufactured and mining products are expected to grow 6.1% and 6.4% in 2014 (2013: 5.1%; 3.3%). Meanwhile, agriculture exports are expected to rebound sharply by 4.5% in 2014 (2013: -14.4%) despite moderating commodity prices. Malaysia's top 3 trading partners are China, Singapore, and Japan.

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 more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Presently, the issued and paid up capital of the Subject stands at MYR 100,000. We considered that the Subject's business position in the market is much dependent on the efforts of its director.

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.

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. 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. Thus, the Subject is exposed to high financial risk.

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)

AGRI-HORTI LINK SDN. BHD.

 

Financial Year End

2014-06-30

2013-06-30

2012-06-30

2011-06-30

2010-06-30

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

SUMMARY

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

7,386,281

6,477,076

8,205,761

3,200,125

7,053,014

Other Income

92,077

96,638

558,917

-

-

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

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

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

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

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

Total Turnover

7,478,358

6,573,714

8,764,678

3,200,125

7,053,014

Costs of Goods Sold

(6,120,960)

(5,275,448)

(7,037,727)

-

-

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

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

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

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

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

Gross Profit

1,357,398

1,298,266

1,726,951

-

-

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

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

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

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

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

PROFIT/(LOSS) FROM OPERATIONS

178,091

278,951

770,893

152,467

204,262

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

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

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

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

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

PROFIT/(LOSS) BEFORE TAXATION

178,091

278,951

770,893

152,467

204,262

Taxation

(61,375)

(77,715)

(97,887)

(45,614)

(40,492)

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

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

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

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

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

PROFIT/(LOSS) AFTER TAXATION

116,716

201,236

673,006

106,853

163,770

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

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

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

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,012,483

1,811,247

1,138,241

1,031,388

867,618

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

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

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

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

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

As restated

2,012,483

1,811,247

1,138,241

1,031,388

867,618

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

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

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

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

2,129,199

2,012,483

1,811,247

1,138,241

1,031,388

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

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

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

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,129,199

2,012,483

1,811,247

1,138,241

1,031,388

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

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

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

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

5,697

4,519

1,788

-

894

Term loan / Borrowing

103,024

90,363

96,259

-

-

Others

1,150

-

113

-

-

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

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

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

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

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

109,871

94,882

98,160

-

894

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

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

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

-

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

DEPRECIATION (as per notes to P&L)

131,723

131,723

79,114

-

25,095

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

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

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

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

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

131,723

131,723

79,114

-

25,095

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

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

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

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

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

 

 

 

BALANCE SHEET

 

AGRI-HORTI LINK SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

3,012,224

3,143,947

2,999,527

4,129,025

124,888

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

3,018,224

3,149,947

3,005,527

4,135,025

130,888

Stocks

573,776

606,189

722,425

-

738,416

Trade debtors

1,094,554

1,724,939

1,480,414

-

1,031,679

Other debtors, deposits & prepayments

42,307

90,019

65,000

-

55,460

Amount due from director

-

5,086

102,018

-

-

Cash & bank balances

828,237

245,299

375,215

-

565,583

Others

-

4,836

-

-

-

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

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

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

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

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

TOTAL CURRENT ASSETS

2,538,874

2,676,368

2,745,072

1,405,340

2,391,138

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

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

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

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

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

TOTAL ASSET

5,557,098

5,826,315

5,750,599

5,540,365

2,522,026

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

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

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

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

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

CURRENT LIABILITIES

Trade creditors

490,000

449,679

640,770

-

888,873

Other creditors & accruals

408,602

746,054

2,153,699

-

356,165

Hire purchase & lease creditors

44,005

50,005

12,000

-

12,000

Short term borrowings/Term loans

50,862

54,153

21,031

-

-

Amounts owing to director

7,873

-

-

-

-

Provision for taxation

3,649

-

61,724

-

89,100

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

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

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

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

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

TOTAL CURRENT LIABILITIES

1,004,991

1,299,891

2,889,224

1,625,853

1,346,138

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

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

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

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

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

NET CURRENT ASSETS/(LIABILITIES)

1,533,883

1,376,477

(144,152)

(220,513)

1,045,000

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

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

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

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

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

TOTAL NET ASSETS

4,552,107

4,526,424

2,861,375

3,914,512

1,175,888

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

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

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

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

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

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

2,129,199

2,012,483

1,811,247

1,138,241

1,031,388

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

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

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

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

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

TOTAL RESERVES

2,129,199

2,012,483

1,811,247

1,138,241

1,031,388

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

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

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

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

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

SHAREHOLDERS' FUNDS/EQUITY

2,229,199

2,112,483

1,911,247

1,238,241

1,131,388

Long term loans

2,221,356

2,271,431

926,994

-

-

Hire purchase creditors

94,987

134,825

18,000

-

42,000

Deferred taxation

6,565

7,685

5,134

-

2,500

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

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

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

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

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

TOTAL LONG TERM LIABILITIES

2,322,908

2,413,941

950,128

2,676,271

44,500

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

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

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

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

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

4,552,107

4,526,424

2,861,375

3,914,512

1,175,888

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

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

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

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

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

 

 

 

FINANCIAL RATIO

 

AGRI-HORTI LINK SDN. BHD.

 

TYPES OF FUNDS

Cash

828,237

245,299

375,215

-

565,583

Net Liquid Funds

828,237

245,299

375,215

-

565,583

Net Liquid Assets

960,107

770,288

(866,577)

(220,513)

306,584

Net Current Assets/(Liabilities)

1,533,883

1,376,477

(144,152)

(220,513)

1,045,000

Net Tangible Assets

4,552,107

4,526,424

2,861,375

3,914,512

1,175,888

Net Monetary Assets

(1,362,801)

(1,643,653)

(1,816,705)

(2,896,784)

262,084

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

287,962

373,833

869,053

-

205,156

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

419,685

505,556

948,167

-

230,251

BALANCE SHEET ITEMS

Total Borrowings

2,411,210

2,510,414

978,025

-

54,000

Total Liabilities

3,327,899

3,713,832

3,839,352

4,302,124

1,390,638

Total Assets

5,557,098

5,826,315

5,750,599

5,540,365

2,522,026

Net Assets

4,552,107

4,526,424

2,861,375

3,914,512

1,175,888

Net Assets Backing

2,229,199

2,112,483

1,911,247

1,238,241

1,131,388

Shareholders' Funds

2,229,199

2,112,483

1,911,247

1,238,241

1,131,388

Total Share Capital

100,000

100,000

100,000

100,000

100,000

Total Reserves

2,129,199

2,012,483

1,811,247

1,138,241

1,031,388

LIQUIDITY (Times)

Cash Ratio

0.82

0.19

0.13

-

0.42

Liquid Ratio

1.96

1.59

0.70

-

1.23

Current Ratio

2.53

2.06

0.95

0.86

1.78

WORKING CAPITAL CONTROL (Days)

Stock Ratio

28

34

32

-

38

Debtors Ratio

54

97

66

-

53

Creditors Ratio

29

31

33

-

46

SOLVENCY RATIOS (Times)

Gearing Ratio

1.08

1.19

0.51

-

0.05

Liabilities Ratio

1.49

1.76

2.01

3.47

1.23

Times Interest Earned Ratio

2.62

3.94

8.85

-

229.48

Assets Backing Ratio

45.52

45.26

28.61

39.15

11.76

PERFORMANCE RATIO (%)

Operating Profit Margin

2.41

4.31

9.39

4.76

2.90

Net Profit Margin

1.58

3.11

8.20

3.34

2.32

Return On Net Assets

6.33

8.26

30.37

3.89

17.45

Return On Capital Employed

6.27

8.17

30.25

3.89

17.27

Return On Shareholders' Funds/Equity

5.24

9.53

35.21

8.63

14.48

Dividend Pay Out Ratio (Times)

0

0

0

-

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

-

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.83

UK Pound

1

Rs.103.39

Euro

1

Rs.74.27

 

 

 

 

 

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%)

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.