GPERAK-AnnualReport2009 (1MB).pdf - Bursa Malaysia

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CHAIRMAN’S STATEMENT (Cont’d)
CORPORATE DEvELOPMENT
annual report 2009 | Gula peraK BerHaD (8104-X)
The Group announced on 22 April 2008 its plan to restructure the Redeemable Convertible Secured Notes 2003/2008 (“RCSN”)
which will address its default in payment of the coupon of the RCSN amounting to RM17.24 million due on 22 April 2007 as well
as the default in redemption of the RCSN. The RCSN has since matured on 22 April 2008.
Following the announcement, the Group is continuing its negotiations with the RCSN holders to restructure the RCSN with a
view to undertake and complete the restructuring exercise of the RCSN with the RCSN holders in the coming financial year.
As announced in the financial year ended 31 March 2007, the Group has discontinued operations of the Plantation Division
as part of the redemption plan of the 3% Redeemable Secured Bonds 2000/2005 by selling the plantation assets which it has
negotiated for a full settlement at a discount of RM26.124 million. During the financial year, the Group has completed the sale
of the Bernam Oil Palm Estate.
On 21 November 2008, the Company held an Extraordinary General Meeting pursuant to the proposal to undertake a share
capital reduction. The share capital reduction exercise in which the par value of the Company’s shares was reduced from
RM1.00 to RM0.50 became effective on 13 March 2009.
PROSPECTS
The overall outlook for the hotel and tourism industry is expected to remain challenging for 2009/2010 under the volatility of
the global economy as well as the financial markets as leisure and business travel will tighten in line with economic activities of
the country as well as in the region.
The Group will remain vigilant in controlling costs and apply greater efforts in marketing initiatives. The hospitality industry is
expected to remain weak and challenging but the Group is confident that it will be able to ride out the economic challenges .
We look forward to a recovery in the global economy and are prepared to capitalise in the economic recovery phase by being
competitive and maintaining the quality of services offered to our guests and customers.
The property industry is dependent on demand which is slowing as a result of the uncertainty and volatility of the economy
and market. Slowing economic activities have reduced demand and simultaneously increased material and construction costs ,
making the year ahead very challenging for the property industry. The Group will continue to monitor the trend and economic
developments to revive the property development project in Setapak to capture the high-end market as well as the Batang
Berjuntai Industrial Park project.
DIvIDEND
The Board does not recommend any dividend payments for the financial year under review.
DIRECTORATE
On behalf of the Board, I would like to extend our deepest condolences to the family of the late Tan Sri Dato’ Ahmad Sabki bin
Jahidin who passed away on 15 September 2008. The late Tan Sri Dato’ Ahmad Sabki had been a big contributor to the success
of the Group since 1994 and his demise has been a great loss to our Group.
On behalf of the Board, I would like to express our appreciation to Mr Leow Thang Fong who resigned as Executive Director on
23 January 2009, for his 20 years of contributions, services and leadership to the Group and Company.
I would also like to take the opportunity to welcome Mr Lim Soo Ka who was appointed to the Board as a Non-Independent,
Non-Executive Director on 30 January 2009.