Annual Report - Bina Puri

Review Of Operations (Cont’d)
construction sector, this division has dedicated itself to
enhance production efficiencies and implement effective
cost control measures to mitigate the prevailing
challenging condition.As part of our strategy to enhance
the performance of this division, our Quarry Division has
adopted to upgrade our operations system in line with
the State Government’s proposal to standardize Quarry
operating operations in Selangor.We are also looking to
venture into overseas/international markets by adopting
the successful formula of the Construction Division.
POLYOL DIVISION
The Polyol Division recorded a revenue of RM18.7 million
(RM23.3 million in 2007) and a profit before tax of
RM20,000 (961,000 in 2007). This Division was affected
by the global economic slowdown in the export and
manufacturing sector.We are confident that this Division
will greatly improve on its performance in the immediate
future having successfully sold the first flexible NOP to
Johnson Control Malaysia, one of the largest car seat
maker in Malaysia and also the largest car seat maker in
the world.
As a proactive division, Maskimi Polyol Sdn Bhd has
upgraded its current flexible NOP pilot reactor to cook
larger batch (up to 5 tonne per single cooking) to meet
demands in the immediate future. Although the results of
this division has been volatile the past 5 years, we are
adamant that this division will provide the Group a profit
so that we are not too over reliant on the construction
division in the future.
PROPOSED CORPORATE EXERCISE
For a Company with a Paid-up capital of RM83.6million
undertaking a book order of RM2.7 Billion and the owner
of a highway concession, the Group is very much undercapitalised.
As such we are proposing to undertake a
corporate exercise to capitalize our debt by a restricted
issue of up to 20,00,000 new ordinary shares of RM 1.00
each in Bina Puri Holdings Bhd. If we complete this
corporate exercise, our paid-up capital would be increased
to RM 103.6 million and our gearing ratio reduced from
2.1 to 1.6
We have also started testing our slab stock flexible NOP
with local and overseas slabstock foamers.
20 BINA PURI HOLDINGS BHD
Annual Report 2008