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in obtaining merchandise from suppliers. He also explained
that one of the reasons the Company was not able to meet the
sales target last year was due to the withdrawal of certain items
from sale rather than to do so below costs.
Mr. Kung sought clarification on the 1% Management Fees
charged by NKC without evidence of providing proper
management. Ms Kat Yong explained that these fees are in
respect of the share of Costs incurred by NKC on the Group’s
MIS Dept outsourced, centralised purchasing, internal audit
functions outsourced and centralised internal audit functions.
She added that the Company paid the least HQ expenses shared
by all stores.
Tan Sri Lau commented that a cost vs benefit analysis on the
Management fee charged should be computed and presented to
convince the other joint venture partner. He also suggested that
future budget be prepared up to February the following year
instead of up to December for the year. He further emphasized
that the Company should set objective to recoup the share
capital of the Company in three (3) years’ time ie by the year
2006.
Agenda 7 OUTSTANDING RENTAL FOR JULY AND
AUGUST 2003 OF RM387,543.87
Ms Kat Yong reported that HSBC shall release RM1 million by
next week. The fund shall be used to pay suppliers and
consigners so as to facilitate new merchandises to come in to
meet the October sales requirement.
Tan Sri Lau proposed that the Company consider payment to
landlord after the Chinese New Year 2004. He further
suggested that the Board appeal to the Landlord for
consideration.
Mr. Kung remarked that pursuant to the Tenancy Agreement, if
the Company fails to pay three (3) months rental due then the
Company would have breached the Tenancy Agreement. He
added that the company should give confidence to the Landlord
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