SUPERMAX CORPORATION BERHAD by c2CbV38A

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									     SUPERMAX CORPORATION BERHAD
                               (Co No: 420405 – P)


Notes to the quarterly report for the first (1) quarter ended 31 March 2003 as
per KLSE listing requirements


1.    Review Of The Performance Of The Company And Its Principal
      Subsidiaries

      Group turnover increased marginally from RM 29.8 Million in the preceding
      quarter to RM 31.1 Million in current quarter. However, Group profit before
      tax has increased by RM 0.84 Million from RM 2.58 Million in preceding
      quarter when compared to current quarter of RM 3.42 Million.

      The effective cost control measures coupled with the increase in the share of
      profit from associated companies has contributed to the substantial increase in
      profit for current quarter as compared to preceding quarter.


2.    Comparison With Preceding Quarter’s Result

      The Group achieved slight increase in turnover and higher profit before tax
      for current quarter as compared to immediate preceding quarter. The reasons
      as stated in Note 1.


3.    Commentary On Current Year Prospect

      Based on the 1st quarterly result of the Group, the Directors anticipate that the
      Group will remain profitable for financial year 2003.


4.    Variance Of Actual And Forecasted Profit And Shortfall In Profit
      Guarantee

      This is not applicable to the Company for the current quarter under review.




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5.   Income Tax Expenses And Variance Between The Effective And
     Statutory Tax Rate

                                    Current                Cumulative
                                    Quarter ended          Quarter ended
                                    31. 3. 2003            31. 3 .2003

     Income tax                     85                     85
     Deferred tax                   109                    109
                                    _____                  _____
                                    194                    194
                                    =====                  =====

     The effective tax rate of the Group is lower than statutory income tax due
     mainly to reinvestment allowance claimed by certain subsidiary companies.


6.   Properties On Sale Of Investment And / Or Properties

     There were no sales of investment and / or properties for the financial period
     under review.


7.   Quoted Investment

     There were no purchases or disposal of quoted securities for the financial
     period under review.


8.   Status Of Corporate Proposals Announced But Yet To Be Completed

     Save as disclosed below, there were no Corporate Proposal announced and
     not completed as at 28.5.2003 (the latest practicable date that shall not earlier
     than 7 days from the date of issue this quarterly report):-

     On 10 October 2002, the Company via its adviser announced that the
     Company has obtained approval from the Securities Commission (“SC”) vide
     its letter dated 3 October 2002 (received on 9 October 2002) for the
     following:-

     (i)    Proposed bonus issue of 13,333,333 new ordinary shares of RM 1.00
            each in Supermax on the basis of One (1) new ordinary share for
            every three (3) existing ordinary shares held by capitalising
            RM13,333,333 from the share premium account of the Company;

     (ii)   Proposed rights issue of 26,666,667 new ordinary shares of RM 1.00
            each on the basis of two (2) new ordinary shares for every three (3)
            existing shares held;




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(iii)   Proposed employees share option scheme (“ESOS”) for the eligible
        executive directors and employees of up to ten per cent (10%) of the
        issued and paid up share capital of the Company; and

(iv)    Listing of and quotation for all new ordinary shares of Supermax
        issued pursuant to the Proposed Bonus Issue, Proposed Rights Issue
        and the exercise of the ESOS option on the Second Board of the Kuala
        Lumpur Stock Exchange.

The SC has also approved the waiver for the Company from having to
comply with paragraph 2(a) of the SC’s ESOS Guidelines in relation to the
maximum allowable number of shares to be issued pursuant to the Proposed
ESOS in the event of a share buy-back exercise.

The utilisation of proceeds from the Proposed Rights Issue which has been
noted by the SC is shown in Table 1 below and are subject to the following
conditions as follows:-

(i)     Approval from the SC is required for any changes to the original
        utilisation of proceeds if the proceeds are utilised other than for the
        core business of Supermax;

(ii)    Approval from the shareholders of Supermax is required for the
        utilisation of proceeds that deviates by 25% or more from the original
        utlisation of proceeds. Where the deviation is less than 25% proper
        disclosure needs to be made to all shareholders of Supermax;

(iii)   The period for the utilisation of the proceeds from the Proposed
        Rights Issue must be disclosed in the circular and abridged prospectus
        to the shareholder of Supermax. Any extension of time for the
        utilisation of proceeds from the initial time frame determined by
        Supermax needs to be approved via a clear resolution by the Board of
        Directors of Supermax and must be fully disclosed to the KLSE; and

(iv)    Proper disclosure on the status of utilisation of proceeds from the
        Proposed Rights Issue is required to be made in the quarterly report
        and annual report of Supermax until the proceeds have been fully
        utilised.

The shareholders of the Company have at the Extraordinary General Meeting
(“EGM”) held on 11 February 2003 approved all the resolutions set out in the
Notice of the EGM dated 23 January 2003.

On 2 April 2003, the Company announced that it has obtained the approval of
the Securities Commission for an extension of time to 3 October 2003 to
implement the aforementioned proposals.




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      Table 1
                                                                         RM’000

      Capital expenditure                                                18,567
      Implementation and upgrade of existing computer and ICT system       2,000
      Working capital                                                      5,000
      Estimated expenses of the Proposals                                  1,100
                                                                         ----------
                                                                         26,667*
                                                                         ======

      *Based on the proposed Rights Issue price of RM1.00 per share

9.    Group Borrowing And Debt Securities

      Group borrowing as at 31.3.2003 are as follows: -

                                                          Secured
                                                          RM’000

      Bank overdraft                                       746
      Banker acceptance                                    8,863
      Export credit refinancing                            2,164
      Term loan                                           20,908
                                                          ______
                                                          32,681
      Less: Amount due within 12 months                   (17,241)
            (shown under current liabilities)
                                                          ______
      Non current portion                                 15,440
                                                          =====


10.   Off Balance Sheet Financial Instruments

      There were no financial instruments with off balances sheet risk as at 28.5.
      2003 (the latest practicable date which shall not earlier than 7 days from the
      date of this quarterly report).

11.   Pending Material Litigation

      Save as disclosed below, there were no pending material litigation as at
      28.5.2003 (the latest practicable date which shall not be earlier than 7 days
      the date of this quarterly report):-

      1. Supermax Glove Manufacturing Sdn Bhd (“SGM”), a wholly owned
         subsidiary of the Company had commenced action against Top Glove Sdn
         Bhd (“TG“) on 19 October 2000 for the passing off by TG, dispenser
         boxes containing gloves manufactured by TG under the brand name


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           “SAFEMAX” which are similar in terms of colour and design to the
           dispenser boxes containing gloves manufacturing by SGM under the
           brand name of “SUPERMAX”. TG has also printed various certificate of
           quality and / or accreditation belonging to SGM for sale in Brazil.

      2.      Pending disposal of the case, SGM has made an application for
              injunction to prevent TG from passing off their dispenser boxes as
              SGM’s dispenser boxes.

      3.      At the hearing of the application for the injunction on 20 March 2002,
              TG though without admission of liability (which will be decided at the
              full trial), consented to the following orders of the Court : -

              a)     TG undertakes not to manufacture or sell gloves under the
                     brand name “SAFEMAX” packaged in boxes as depicted in
                     Exhibit TKS-1 of the Affidavit of Thai Kim Sim affirmed on
                     31 October 2000 filed in support of SGM’s application for
                     injunction.

              b)     TG undertakes not to reproduce on any packaging material
                     produced by TG any registration number or any other
                     identification number belonging to SGM in respect of any
                     certificate of quality and/or accreditation.

              c)     TG undertakes to deliver to SGM all the unused infringed
                     dispenser boxes in their custody.

              The court has fixed the hearing for pre-trial case management on 14
              April 2003 for the parties to attend court for direction in preparation
              for trial. The above matter has been adjourned to 20 October 2003 for
              further case management.


12.   Dividend

      The directors propose a final dividend of 4.5% tax exempt, amounting to
      RM 1.8 Million in respect of financial year ended 31 December 2002. This
      dividend is subject to approval by the shareholders at the forthcoming Annual
      General Meeting.




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13.   Earnings per share

      Basic earnings per share

                                 2003              2003
                                 Current qtr       3 months
                                 ended 31.3.2003   Cumulative todate


      Net profit (RM’000)        3,235             3,235
      attributable to ordinary   ====              ====
      shareholders


      Weighted average (‘000)    40,000            40,000
      Number of ordinary         =====             =====
      Shares in issue

      Basic earning per          8.09              8.09
      Share (sen)                ===               ====




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