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					     SUPERMAX CORPORATION BERHAD
                               (Co No: 420405 – P)


Notes to the quarterly report for the forth (4th) quarter ended 31 December
2003 as per MSEB listing requirements

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

      Group turnover for financial year ended 31st December 2003 was
      RM141.2Million as compared to RM 84.6Million achieved in previous
      financial year showing net increased of 66.9 % in turnover. Profit after tax for
      financial year ended 31st December 2003 was RM 17.2 Million as compared
      to that of RM 8.9 Million achieved in previous financial year.

      Supermax Group has achieved higher turnover and better result for financial
      year ended 31st December 2003 as compared to previous year through
      continuing improvement, effective cost control measures, aggressive
      marketing strategies and increase in production capacity.


2.    Comparison With Preceding Quarter’s Result

      Group turnover increased from RM 34.8 Million in the preceding quarter to
      RM 43.1Million in current quarter whereas Group profit before tax recorded
      RM 5.9Million in current quarter as compared to RM 4.8 Million in preceding
      quarter.

      Aggressive marketing strategies and effective cost control has contributed to
      the higher turnover & profit before tax for current quarter as compared to
      preceding quarter.

3.    Commentary On Current Year Prospect

      Based on the 4th quarterly result of the Group, the Directors anticipate that the
      Group will remain profitable for financial year 2004.


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.




                                          1
5.   Income Tax Expenses And Variance Between The Effective And
     Statutory Tax Rate

                                  Current                Cumulative
                                  Quarter ended          Quarter ended
                                  31. 12. 2003           31. 12 .2003
                                  RM’000                 RM’000

     Current taxation              149                   986
     Deferred taxation              596                  596
                                  ______                ______
                                   745                  1,582
                                  ======                ======

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

     Deferred tax liabilities have been recognized in current quarter and
     comparatives for preceding year have been adjusted to reflect the adoption of
     MASB 25, Income Taxes.

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 14.11.2003 (the latest practicable date that shall not
     earlier than 7 days from the date of issue this quarterly report):-

     1)     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;




                                       2
(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;

(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.




                            3
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.

The Company via its Merchant Banker announced on 17 July 2003
that the issue price for the Rights Shares to be issued pursuant to the
Proposed Rights Issue has been fixed at RM 1.00 per Rights Share
(“Rights Issue Price“). The Rights Issue Price of RM 1.00 represents a
discount of 66 sen or approximately 39.6% from theoretical ex-all
price of RM 1.66 per share.

On 30 July 2003, the Company announced to KLSE on the Notice of
Books Closure for the Rights and Bonus Issue, wherein the
Entitlement Date for the Rights Issue and Bonus Issue had been
determined to be on 18 August 2003. In the same announcement, the
Company had announced that the Underwriting Agreement in relation
to the Rights Issue had been entered into on 29 July 2003.

On 3 September 2003, the Company announced that bonus issue of
13,333,333 new ordinary shares of RM1.00 each will be granted
listing and quotation with effect from 9.00 am 5, September 2003.

On 17 September 2003, the Company via its Merchant Banker
announced that the Company has obtained Securities Commission
(“SC“) for an extension of time up to 24 October 2003 for the
Company to implement and complete the Proposals.

On 23 September 2003, AmMerchant Bank Berhad on behalf of the
company announce that based on the subscription received at the
closing of Rights Issue on 18 September 2003, the Rights Issue has
been oversubscribed by 16.7%. The allotment of the share to
successful applicants and the refund of application monies to
unsuccessful excess applicants will be carried out within 15 market
days after the closing date of the Rights Issue on 18 September 2003.




                           4
       On 3 October 2003, the Company announced that Rights Issue of
       26,666,667 new ordinary shares of RM 1.00 each issued will be
       granted listing and quotation with effect from 9.00am 7 October 2003.

       Table 1

                                                                         RM’000

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

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

2)     The Company announced on 14 August 2003 that the Company is
       proposing a transfer of the listing and quotation for its entire issued
       and paid up share capital from the Second Board to the Main Board of
       the Kuala Lumpur Stock Exchange.

       The Proposed Transfer is subject to the following approvals being
       obtained from: -

       (i)       the SC ;

       (ii )     the KLSE, for the listing of and quotation for the entire issued
                 and paid – up share capital of the Company on the Main Board
                 of the KLSE; and

       ( iii )   any other relevant relevant authorities, if required.

       In addition, the Proposed Transfer is subject to the completion of the
       Company‟s on – going Bonus and Rights Issues.

       On 22 September 2003, the Company via its Merchant banker
       announced that the Company has obtained the approval of the
       Securities Commission (“SC”) for the Proposed Transfer vide its
       letter dated 18 September 2003.

       The entire issued and paid up share capital of RM 80,000,000
       comprising 80,000,000 ordinary shares of RM 1.00 each being
       transferred from Second Board to the Main Board of the Exchange
       under the “ Industrial Products “ sector on a “ Ready “ basis pursuant
       to the Rules of the Exchange with effect from 9.00 am, 14 October
       2003.


                                     5
9.    Group Borrowing And Debt Securities

      Group borrowing as at 31.12.2003 are as follows: -

                                                           Secured
                                                           RM’000

      Bank overdraft                                         998
      Banker acceptance                                      9,168
      Export credit refinancing                              2,447
      Vendor financing                                       1,860
      Term loan                                              27,425
                                                            ______
                                                            41,898
      Less: Amount due within 12 months                    (18,771)
            (shown under current liabilities)
                                                           ______
      Non current portion                                  23,127
                                                           =====
10.   Off Balance Sheet Financial Instruments

      There were no financial instruments with off balances sheet risk as at 18.2.
      2004 (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
      18.2.2004 (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 “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.




                                         6
      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. The case management on 20 October 2003
             has been now fixed for further case management on 6 July 2004 for
             parties to file in the Common Agreed Bundle of Documents and the
             Statements of Issues to be Tried.


12.   Dividend

      The amount of final dividend for financial year ended 31st December 2003
      has not been determined by the Board of Directors and announcement will be
      made in due course.




                                        7
13.   Earnings per share

      Basic earnings per share

                                 2003               2003
                                 Current qtr        12 months
                                 ended 31.12.2003   Cumulative todate


      Net profit (RM‟000)        5,225              17,217
      attributable to ordinary   ====               =====
      shareholders


      Weighted average („000)    60,420             60,420
      Number of ordinary         =====              =====
      Shares in issue

      Basic earning per          8.65               28.50
      Share (sen)                ===                ====




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