Sunworth Corporations Sdn Bhd, Seven M Management Services Sdn Bhd and the Chairman Of NLFCS

The below is an extract from a document

Information on Sunworth Corporation Sdn Bhd (“SCSB”)
SCSB was incorporated in Malaysia under the Act on 24 November 1993. The principal
activity of SCSB is that of an investment holding company.
The Board of Directors of SCSB comprises Mr Agarwal Pares Nath, En. Abdul Rahim
bin Mohd Zain and Ms Serjit Kaur. The substantial shareholders of SCSB as at 31 July
2002 are Y.Bhg. Tan Sri Dato’ Dr K. R. Somasundram and Seven M Management
Services Sdn Bhd.

The document can be viewed here

http://bankrupt.com/misc/TCRAP_Bridge0821.pdf

And the extract above is on page 7, right at the top.

The extract below is from the Financial Statements of Premium Nutrients for the year ended 31 December 2003. This document is available at the KLSE website.


Company in which a Director, Mr. Agarwal
Pares Nath has substantial financial interest

Sunworth Corporation Sdn. Bhd.

-Loan received 3,000,000 3,000,000 .
-Interest on loan received 82,849.


So 2 things can be determined here. The chairman of NLFCS, the only other shareholder in Sunworth knows or has linkages to Seven M Management (after all would you be a shareholder in a company without knowing the only other shareholder?).
And Mr. Agarwal is linked to Seven M as the above extract says he has a substantial interest in Sunworth whose only other shareholder other than the chairman is Seven M Management.

Questions for the Board.

1. Did they know of the chairman's linkages to Seven M, when they awarded it contracts to manage NLFCS assets?

2. On what basis where these contracts awarded?

3. Where other companies considered?

4. Why was there a need for a management contract in the first place, that was so destructive to the interest of NLFCS members ( I will talk about this again soon)?

5. Could the board of NLFCS explain of what benefit or value to NLFCS members where these management contracts?

6. What was the rationale in awarding a management contract that would be paid on gross profit, regardless of the net profit figure?

7. How where awarding of this management contracts related to their duty to look after the interest of NLFCS members?

And as I have showed and explained before in previous postings and will show again, we are talking about millions of ringgit of value being stripped from NLFCS and transferred elsewhere.

Somebody has to take responsibility.