KOOLKES SENDIRIAN BERHAD: How Cool Can The Fridge

Asian Journal of Case Research (AJCR)that we should be all the more aggressive in competing withothers projects. We really need a full time Marketing Managerwho could bring in more projects for KoolKes,” Mr. S. P. Hanfurther commented.PERFORMANCE AND FINANCEAccording to Mr. P. K. Gong, the company’s profitability was only fair in its fouryearsestablishment, taking into account that it was new and thus, would requiremore time to break into the business and gain customers’ confidence. Please referto Table 2: (The company’s balance sheet and the profit-and-loss statement areincluded in Appendix 2 and Appendix 3)Table 2 Company’s ProfitabilityFinancial Year 2001 2002 2003Turnover (RM) 3, 282, 217 3, 819, 625 4, 871,777Profit before tax (RM) 13, 923 20, 51 38, 907Profit after tax 4, 923 13, 519 25, 227KoolKes’s initial profit was from sales and installations of showcases whichwas a one-off event. The real fixed income would roll in when the warrantyperiod of the equipment (12 months) expired and a maintenance services contractwas made. Higher sales of equipment would translate to a bigger maintenancecontract volume which will then be an assured income as long as the refrigeratedshowcases were operational.KoolKes was given a letter of credit facilities of RM 1 million from its bankershould the company need to import equipments for its projects. Its suppliers alsoprovided a 90-day term credit of RM 1 million for showcases to help KoolKesmanages the fund from the date of order to installation before customer paymentwas due.GOVERNMENT POLICIES AND REGULATIONS“The equipments won’t be so costly if not were for the highimport duties,” Mr. S. P. Han had one day commented to Mr.P. K. Gong.“True, but there’s nothing we can do about it. It’s thegovernment’s policy,” said Mr. P. K. Gong. “Let us hope thatin the near future, Malaysia will be able to manufacture andexport the equipments, especially to ASEAN countries when156