KT Steel and Investment Matters

I could not find anything about KT Steel when I did my initial look at NLFCS subsidiaries.

It is listed here as K.T. Steel Sdn Bhd (rather than KT Steel Sdn Bhd), so that could be why I missed it. Here as well http://nalfin.com/structure.htm

I still can't find anything about Kewalram Oils Sdn Bhd (does it exist anymore?)

The info on KT Steel is here (right below this posting) http://reform-nlfcs.blogspot.com/2008/09/kt-steel-sdn-bhd.html


KT Steel Sdn Bhd (82.65% Subsidiary)

Latest Accounts as at 31-12-07
Paid Up Capital : 2,400,000 (Actually it is 6,225,000 as there is 3,825,000 preference shares (cash), 400,00 cash and 2m other than cash))
Operating Revenue : 0
Profit After Taxation : -163,908
Net Profit Margin : 0
Unappropriated Profit Brought Forward : -2,898,464.04
Unappropriated Profit Carried Forward : -3,062,372.24

So a loss of 3m till date.

Let's examine the other loss-making investments

Wira Konsep Sdn Bhd (70% subsidiary) - no new accounts since 2005, Accumulates loss -1,004,138. I think it is safe to assume that after 2 years of not submitting accounts, this company is no longer in existence/solvent. So that is a 70% share of the -1m loss and the intial investment of 200,000 gone (Total = -842,896.60).

Lava Protocols Sdn Bhd (40% Associate) - No new accounts since 2006, so I assume this company is defunct as well. Accumulated losses of -42,839. So a 40% of that is -17,135.60 which will be offset by the initial investment of 200,000.

Nalfin Healthcare - Initial Invesment of 9.1m, Accumulated losses of -10m. So the loss is -10m.


However Nalfin Healthcare is the holding company for the investments into Apollo Medical Centre Sdn Bhd (87% subsidiary) and Apollo TTDI Medical Centre Sdn Bhd. The loss is greater if you examine the 2 subsidiaries separately.

Apollo Medical Centre Sdn Bhd - 6.46m initial investment, losses of -6.5m. So all that money is gone too (their 87% share of it).

Apollo TTDI Medical Centre Sdn Bhd - Initial cash investment of 3.27m and other than cash of 3.73m, so the actual investment is 7m. Accumulated losses of -7,653,625. So all that initial investment is gone too.

So the total for the Healthcare is -13.3m.

Status Point Sdn Bhd - Initial investment of 8m, accumulated losses of -10.45m. Revenues of 17,438, so I assume this is defunct as well as explained here http://reform-nlfcs.blogspot.com/2008/08/related-party-transactions-between.html.

Of course some of these co's have net assets so a fire sale will reduce these losses.

The other subsidiaries are barely profitable as I have examined here http://reform-nlfcs.blogspot.com/2008/08/updates-on-nalfin-realities-nalfin.html and here http://reform-nlfcs.blogspot.com/2008/06/look-at-nlfcs-subsidiaries-and.html

I have mentioned this before but what has struck me is that the directors of all these loss-making companies have been there since the mid to late 90's. And all these while these companies have been making all these losses. How can they be trusted to make proper investment decision or to safeguard NLFCS assets? And these are the same directors in all the other subsidiaries as well and at board level too.

In a more commercial organisation, these guys would have been sacked, but here they just go on, existing in an altogether insulated existence. Losing all this money it seems doesn't have any consequences and these are the people who will continue to take NLFCS forward? Would you, if you had your own company and looking at the track record above, hire these guys?

These are the guys who did this and this as well.

And lets not forget about the 18m loss buying Premium Nutrient shares. and the amount loaned by NLFCS to Premium Nutrients, so it could pay Seven M's management fee and dividends to Premium Nutrient shareholders ( how can someone in effective control of a cooperative lend the cooperative's money to a company he is a big shareholder in to pay himself (and other shareholders) dividends?) And the management fee to Seven M Management to which he had a relationship?

How does NLFCS benefit in all of this?