MIRA INFORM REPORT

 

 

Report No. :

304870

Report Date :

27.01.2015

 

IDENTIFICATION DETAILS

 

Name :

YENHER AGRO-PRODUCTS SDN. BHD.

 

 

Registered Office :

1172, Jalan Gereja, Permatang Tinggi Village, Simpang Ampat, 14100 Simpang Ampat, Pulau Pinang

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

07.08.1991

 

 

Com. Reg. No.:

222455-P

 

 

Legal Form :

Exempt Private (Limited By Share)

 

 

Line of Business :

·         Engaged in manufacturing and trading of Animal Feeds made of Soya and Maize.

·         Subject also offers Feed Additives, Animal Health Products, Livestock Equipment include Hencoop, Feeder, Castiron, Waste Water Treatment, Genetic Suppliers & Milk Powder

 

 

No of Employees :

50 [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 :

Moderate

Payment Behaviour :

Unknown

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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.

:

222455-P

COMPANY NAME

:

YENHER AGRO-PRODUCTS SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/08/1991

COMPANY STATUS

:

EXIST

LEGAL FORM

:

EXEMPT PRIVATE (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

1172, JALAN GEREJA, PERMATANG TINGGI VILLAGE, SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

BUSINESS ADDRESS

:

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

TEL.NO.

:

04-5880887

FAX.NO.

:

04-5880928

WEB SITE

:

WWW.YENHERAGRO.COM

CONTACT PERSON

:

CHENG MOOH TAT ( MANAGING DIRECTOR )

INDUSTRY CODE

:

10800

PRINCIPAL ACTIVITY

:

·         Engaged in manufacturing and trading of Animal Feeds made of Soya and Maize.

·         Subject also offers Feed Additives, Animal Health Products, Livestock Equipment include Hencoop, Feeder, Castiron, Waste Water Treatment, Genetic Suppliers & Milk Powder

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO 
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 2,000,000.00 DIVIDED INTO 
ORDINARY SHARES 2,000,000 CASH OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

50 [2015]

BANKER (S)

:

CIMB BANK BHD
MALAYAN BANKING BHD
RHB BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

Unknown 

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

PROPOSED CREDIT LIMIT

:

MYR 492,000 (USD 164,000)

 


HISTORY / BACKGROUND

 

The Subject is an exempt private company which is allowed to have a minimum of two and a maximum of twenty shareholders and all the shareholders must be individuals. An exempt company is a type of private limited company. 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, suing or be sued by other companies. The Subject is governed by the Companies Act, 1965 and must file in its annual return. The Subject need not file in its financial statements but it has to file in a document duly signed by its director in charge of its finance, the secretary and its auditor stating that the Subject is able to meet all its obligations as and when they fall due. Although the Subject is not required to file in its financial statements, it also has to prepare its financial account which must be presented at the Annual General Meeting.

 

The Subject is principally engaged in the (as a / as an) manufacturing and trading of animal feeds.

 

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 5,000,000.00

MYR 2,000,000.00

 

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


Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. CHENG MOOH TAT +

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

630324-07-5639 7019090

970,000.00

48.50

MR. CHENG MOOH KHENG +

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

680801-07-5195 A1055211

492,000.00

24.60

MR. CHENG MOOH CHYE +

1628, JALAN IKS SIMPANG AMPAT, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

581117-07-5611 5537598

492,000.00

24.60

MR. CHENG MOOH LIM

1172 PMTG.TINGGI, 14000 BUKIT MERTAJAM, PULAU PINANG, MALAYSIA.

660805-07-5127 A0460150

46,000.00

2.30

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

------

2,000,000.00

100.00

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

=====

+ Also Director


DIRECTORS


DIRECTOR 1

Name Of Subject

:

MR. CHENG MOOH CHYE

Address

:

1628, JALAN IKS SIMPANG AMPAT, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

IC / PP No

:

5537598

New IC No

:

581117-07-5611

Date of Birth

:

17/11/1958

Nationality

:

MALAYSIAN

Date of Appointment

:

02/08/1993

 

DIRECTOR 2

Name Of Subject

:

MR. CHENG MOOH KHENG

Address

:

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

IC / PP No

:

A1055211

New IC No

:

680801-07-5195

Date of Birth

:

01/08/1968

Nationality

:

MALAYSIAN

Date of Appointment

:

02/08/1993

 

DIRECTOR 3

Name Of Subject

:

MR. CHENG MOOH TAT

Address

:

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

IC / PP No

:

7019090

New IC No

:

630324-07-5639

Date of Birth

:

24/03/1963

Nationality

:

MALAYSIAN

Date of Appointment

:

07/08/1991



MANAGEMENT

 

 

 

1)

Name of Subject

:

CHENG MOOH TAT

Position

:

MANAGING DIRECTOR

 

2)

Name of Subject

:

TEOH MOOI TENG

Position

:

FINANCE MANAGER

 

3)

Name of Subject

:

CHENG MOOH KHENG

Position

:

MARKETING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

K.B.WONG & CO

Auditor' Address

:

2-5-33, HTC, 2, GAT LEBUH MACALLUM, 10300 GEORGE TOWN, PULAU PINANG, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. KHONG SIONG WEI

IC / PP No

:

A3764386

New IC No

:

770813-14-5049

Address

:

32, LINGKARAN MERU VALLEY 1A, TAMAN PERANGINAN LEMBAH MERU, 30020 IPOH, PERAK, MALAYSIA.

 

2)

Company Secretary

:

MS. CHUAH LAY NAH

IC / PP No

:

A3200215

New IC No

:

750420-07-5600

Address

:

20, LORONG GAMELAN 2, TAMAN GEMELAN, 14200 SUNGAI BAKAP, PULAU PINANG, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

CIMB BANK BHD

 

2)

Name

:

MALAYAN BANKING BHD

 

3)

Name

:

RHB BANK BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

03/06/1993

MEMO OF DEPOSIT

KWONG YIK BANK BERHAD

MYR 100,000.00

Unsatisfied

2

27/05/1994

N/A

SOUTHERN BANK BERHAD

MYR 70,000.00

Satisfied

3

27/05/1994

N/A

SOUTHERN BANK BERHAD

MYR 70,000.00

Satisfied

4

15/02/1996

N/A

KWONG YIK BANK BERHAD

MYR 700,000.00

Unsatisfied

4P

15/02/1996

MEMO OF DEPOSIT

KWONG YIK BANK BHD

MYR 700,000.00

Unsatisfied

5

03/09/2003

N/A

RHB BANK BERHAD

-

Unsatisfied

6

25/02/2004

N/A

CIMB BANK BERHAD

MYR 400,000.00

Satisfied

7

10/06/2004

N/A

RHB BANK BERHAD

-

Unsatisfied

8

27/04/2007

N/A

RHB BANK BHD

-

Unsatisfied

9

30/04/2008

THE SECURITY DOCUMENTS & THE CHARGE

RHB BANK BHD

-

Unsatisfied

10

17/10/2012

N/A

MALAYAN BANKING BHD

MYR 7,540,000.00

Unsatisfied

11

25/10/2012

N/A

MALAYAN BANKING BHD

-

Unsatisfied

12

02/11/2012

N/A

BANGKOK BANK BHD

-

Unsatisfied

 

LITIGATION 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.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES

Import Countries

:

BRAZIL,ITALY,NETHERLANDS,CHINA,THAILAND

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

Type of Customer

:

POULTRY FARMS

 

 

OPERATIONS

 

Products manufactured

:

ANIMAL FEEDS

Competitor(s)

:

DINDINGS SOYA & MULTIFEEDS SDN BHD
GOLD COIN SARAWAK SDN BHD
PK AGRO-INDUSTRIAL PRODUCTS (M) SDN. BHD.
PTS GOLDKIST INDUSTRIES SDN BHD
ZUE GUAN FEEDMILLS SDN BHD

Member(s) / Affiliate(s)

:

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

Ownership of premises

:

OWNED

 

Total Number of Employees:

 

YEAR

2015

2014

2013

2012

2011


GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

50

50

60

60

60

 

Branch

:

YES

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing and trading of animal feeds. 

The Subject produces feed premixes for poultry including for pigs and chickens.

The Subject's animal feeds are made of soya and maize.

Besides that the Subject also offers feed additives, animal health products, livestock equipment include hencoop, feeder, castiron, waste water treatment, genetic suppliers & milk powder. 


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

045880887

Current Telephone Number

:

04-5880887

Match

:

YES

Address Provided by Client

:

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT,14100,SEBERANG PERAI TENGAH,PULAU PINANG.

Current Address

:

1628, JALAN IKS SIMPANG AMPAT 1, TAMAN IKS SIMPANG AMPAT, 14100 SIMPANG AMPAT, PULAU PINANG, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

NO

 

Other Investigations

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


FINANCIAL ANALYSIS

 

 

The Subject is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

 

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

3.3

4.0

Unemployment Rate

3.3

3.2

3.0

3.0

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

-

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

-

-

Business Loans Disbursed( % )

15.3

32.2

-

-

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

-

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

-

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

-

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

-

-

Registration of New Business ( No. )

284,598

324,761

329,895

-

-

Registration of New Business ( % )

5.0

14.0

2.0

-

-

Business Dissolved ( No. )

20,121

20,380

18,161

-

-

Business Dissolved ( % )

1.9

1.3

(10.9)

-

-

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

-

-

Credit Cards Spending ( % )

15.6

12.6

-

-

-

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)

-

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.6

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

-

-

Plastic Products

3.8

-

-

-

-

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

-

-

-

-

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



INDUSTRY ANALYSIS

 

MSIC CODE

10800 : Manufacture of prepared animal feeds

INDUSTRY :

MANUFACTURING

The manufacturing sector is expected to grow by 5.5% in 2015. It will be bolstered by strong domestic and export-oriented industries in line with growing investment activities and favorable external demand. Moreover, in 2014, the manufacturing sectors have spearheading growth. The manufacturing sector is estimated to grow at a faster pace in 2014 on higher exports of electronics and electrical (E&E) products as external demand improves.

The manufacturing sector expanded strongly during the first half of 2014, the highest growth in three years, spurred by higher global semiconductor sales. Value-added of the manufacturing sector expanded 7.1% during the first half of 2014. Production of the sector rose 6.6% in the first seven months of 2014 supported by resilient domestic demand and recovery in the external sector during the first seven months of the years. The sales value of manufactured products rebounded by 7.7% in the first seven months of 2014. The strong performance of the sector was on account of higher output at 9.4% from the domestic-oriented industries, particularly transport equipment, food and beverage.

The manufacturing sector continued to attract domestic and foreign investment with investment approved by Malaysian Investment Development Authority (MIDA) totaling RM47.4 billion during the first six months of 2014, mainly from Japan, China and Germany. Meanwhile, the capacity utilization rate remained steady at 80.4% during the second quarter of 2014 while average wage per employee and productivity improved to RM2,772 per month and 5.9%, respectively during the first seven months of 2014. Boosted by favorable domestic economic activity and recovery in the external sector, the manufacturing sector is expected to record a better performance with growth of 6.4% in 2014.

In the meantime, production of wood products rebounded by 5.1% largely supported by higher output in the saw-milling and planning of wood segment at 25.9% during the first seven months of 2014. The positive performance was attributed to vibrant residential and commercial construction activities which contributed to increased use of timber frame and glued laminated timber for cost savings compared to the use of concrete and steel. Increased demand from major export destination such as the US, Japan and Australia for Malaysian made furniture contributed to the higher output, particularly wooden and cane furniture which rebounded by 2.2%.

Production of rubber products contracted 0.3% in the first seven months of 2014 on account of slower demand for rubber gloves and rubber tyres. The decline in rubber tyres for vehicles was due to the weaker external demand from the automotive industry, particularly from China. Output of other rubber products contracted 3.8% following the product shift from rubber-based to plastics, silicones and metal alloys in the manufacture of medical devices.

Besides, exports of manufactured products are expected to grow 6.1% in 2014 boosted by the growing demand from advanced economies. However, during the first seven months of 2014, manufactured exports surged 11.4%. The robust growth was buoyed by strengthening demand in the US and EU, reflecting significant exposure of Malaysian exports to the economic performance in the advance economies. The strength in export was broad-based with robust growth in both E&E and non- E&E subsectors.

Under budget 2015, the Government will provide incentive in the form of capital allowance on automation expenditure to encourage automation in the manufacturing sector, which may help in the manufacturing sector.

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 1991, the Subject is an Exempt Private company, focusing on manufacturing and trading of animal feeds. The Subject has been in business for over two decades. It has built up a strong clientele base and satisfactory reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. A paid up capital of MYR 2,000,000 allows the Subject to expand its business more comfortably. However, the Subject does not have strong shareholders’ backing. Without a strong shareholders' backing, the opportunity of the Subject to expand its business is limited. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is operating on a medium scale and it has approximately 50 employees in its business 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. 

As the Subject is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health. 

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. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. 

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 

PROFIT AND LOSS ACCOUNT

 

 

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

YENHER AGRO-PRODUCTS SDN. BHD.

 

Financial Year End

2007-12-31

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

MYR

TURNOVER

43,149,305

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

Total Turnover

43,149,305

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

PROFIT/(LOSS) FROM OPERATIONS

3,242,302

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

PROFIT/(LOSS) BEFORE TAXATION

3,242,302

Taxation

(916,850)

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

PROFIT/(LOSS) AFTER TAXATION

2,325,452

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

PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS

2,325,452

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

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

2,325,452

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

10,430,924

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

As restated

10,430,924

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

PROFIT AVAILABLE FOR APPROPRIATIONS

12,756,376

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

12,756,376

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

2,259

Hire purchase

3,136

Others

355,187

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

360,582

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

 

 

 

BALANCE SHEET

 

 

YENHER AGRO-PRODUCTS SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

8,577,545

Investments

37,600

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

37,600

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

TOTAL LONG TERM ASSETS

8,615,145

Stocks

4,323,827

Other debtors, deposits & prepayments

19,628,536

Short term deposits

441,338

Cash & bank balances

271,732

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

TOTAL CURRENT ASSETS

24,665,433

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

TOTAL ASSET

33,280,578

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

CURRENT LIABILITIES

Trade creditors

6,540,369

Other creditors & accruals

2,283,700

Hire purchase & lease creditors

40,256

Bank overdraft

185,103

Amounts owing to director

814,426

Provision for taxation

421,668

Other liabilities

9,821,000

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

TOTAL CURRENT LIABILITIES

20,106,522

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

NET CURRENT ASSETS/(LIABILITIES)

4,558,911

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

TOTAL NET ASSETS

13,174,056

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

SHARE CAPITAL

Ordinary share capital

400,000

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

TOTAL SHARE CAPITAL

400,000

Retained profit/(loss) carried forward

12,756,376

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

TOTAL RESERVES

12,756,376

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

SHAREHOLDERS' FUNDS/EQUITY

13,156,376

Hire purchase creditors

17,680

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

TOTAL LONG TERM LIABILITIES

17,680

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

13,174,056

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

 

 

 

FINANCIAL RATIO

 

 

YENHER AGRO-PRODUCTS SDN. BHD.

 

TYPES OF FUNDS

Cash

713,070

Net Liquid Funds

527,967

Net Liquid Assets

235,084

Net Current Assets/(Liabilities)

4,558,911

Net Tangible Assets

13,174,056

Net Monetary Assets

217,404

BALANCE SHEET ITEMS

Total Borrowings

243,039

Total Liabilities

20,124,202

Total Assets

33,280,578

Net Assets

13,174,056

Net Assets Backing

13,156,376

Shareholders' Funds

13,156,376

Total Share Capital

400,000

Total Reserves

12,756,376

LIQUIDITY (Times)

Cash Ratio

0.04

Liquid Ratio

1.01

Current Ratio

1.23

WORKING CAPITAL CONTROL (Days)

Stock Ratio

37

Creditors Ratio

55

SOLVENCY RATIOS (Times)

Gearing Ratio

0.02

Liabilities Ratio

1.53

Times Interest Earned Ratio

9.99

Assets Backing Ratio

32.94

PERFORMANCE RATIO (%)

Operating Profit Margin

7.51

Net Profit Margin

5.39

Return On Net Assets

27.35

Return On Capital Employed

26.89

Return On Shareholders' Funds/Equity

17.68


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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