Wednesday, September 10, 2008

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?

Monday, September 8, 2008

Another Resignation

Change in Boardroom
Reference No CP-080908-60099
Company Name : PREMIUM NUTRIENTS BERHAD
Stock Name : PREMIUM
Date Announced : 08/09/2008
Date of change : 04/09/2008
Type of change : Resignation
Designation : Executive Director
Directorate : Executive
Name : AB RAHIM BIN MOHD ZAIN
Age : 69
Nationality : MALAYSIAN
Qualifications : Graduate

Working experience and occupation :
1963 - Assistant State Secretary in Perak
1968- Senior Training Officer of the Government Staff Training Centre
1969 - Assistant Secretary of the National Operations Council, Prime Ministers Department
1972 - Assistant Director, Implementation, Coordination and Development Administration Unit of the Prime Ministers Department
1977- Deputy State Secretary of Selangor & the Director of Economic Planning Unit of the State
1978 - Director General of the Socio- Economic Research Unit, Prime Ministers Department
1988 - seconded as the Director General of the Palm Oil Registration and Licencing Authority, Malaysia
He retired from Civil Service in 1994
He was appointed to the Board on 9th April 2003

Directorship of public companies (if any) : TAIKWONG YOKOHAMA BERHAD

Family relationship with any director and/or major shareholder of the listed issuer : NIL

Details of any interest in the securities of the listed issuer or its subsidiaries : NIL

Remarks
En Ab Rahim bin Mohd Zain will be appointed as an Advisor to the Company.

Details from the 2007 annual report


EN. AB RAHIM BIN MOHD ZAIN

En. Ab Rahim Bin Mohd Zain, a Malaysian, aged 69, was
appointed to the Board on 9 April 2003. Prior to that, he
was on the Board of Premium Vegetable Oils Sdn. Bhd.
since 21 November 1994. Since 1 March 2007, he has been
appointed as Executive Director in charge of Research and
Human Resource Development. He was in the Malaysian Civil
Service from 1963 to 1994. He has held position as the Deputy
Chairman of the Malaysian Fisheries Development Authority
and the Director General of the Socio-Economic Research Unit
of Prime Ministers Department. In 1988, he was seconded as
the Director General of the Palm Oil Registration and Licensing
Authority, Malaysia. He retired from civil service in 1994. For
his services in Perak, he was awarded the Paduka Chura
Simanjakini in 1979.



At the senior level resignations generally are given well in advance so replacements are able to be lined up/found. Usually the annoucements are concurrent, with a resignation and the new appointment being announced at the same time. There will be times when the replacement person has to resign from his existing position/job so the announcement of the replacement will only be made at a later date.

Sometimes of course resignations are accepted with immediate effect. If this is the case then the search for a replacement will only have been started.

And of course it is entirely possible that no replacement has been found within the resignation notice period. Senior appointments usually have a notice period of 3 months, sometimes longer.