Net Present Value and Boilermech Holdings Berhad Essay

Submitted By frhnnnn
Words: 3642
Pages: 15

Section A
LOAN APPRAISAL REPORT FOR THE APPLICATION OF BOILERMECH HOLDINGS BERHAD
1.0 INTRODUCTION
The purpose of this report is to determine the creditworthiness of Boilermech Holdings Berhad and deciding whether to approve the loan application of RM 30 million as the company intends to expand its new production capacity by building a new facility with tenure of 7 years.
2.0 COMPANY PROFILE
2.1 Name of company
Boilermech Holdings Berhad.
2.2 Date of incorporation
On September 2005, Boilermech was incorporated as a boiler manufacturer.
2.3 Duration of existence
The company has existed almost a decade until present day and is listed on the Main Board of Bursa Malaysia since May 2011.
2.4 Objects of the company
a) To achieve transparency, accountability and effective performance.
b) To be a regional leader waste-to-energy and sustainable environmental solutions.
c) To be innovative in the boiler production and to produce high quality of product.
2.5 The business of the company
Boilermech is a leading biomass boiler manufacturer with a regional market presence. It has become a reputable and reliable manufacturer of boilers with the ability to provide designs and engineering solutions to suit our customers' individual needs and technical requirement, and the capability to ensure timely delivery and installation of boiler at site even though it only started in 2005. Besides manufacturing boilers for palm oil milling industry, it also designs and manufactures boilers for other agricultural based processing industries such as rubber based manufacturing, palm oil refineries, food processing and sugar milling. It is located at Taman Perindustrian Subang, Subang Jaya, Selangor.
2.6 The organizational structure
The Boilermech Group comprises of Boilermech Holdings Berhad and its wholly owned subsidiary Boilermech Sdn Bhd.

2.7 Capital structure
2.71 Authorized capital
RM 50,000,000 of 500,000,000 ordinary shares with RM 0.10 each.
2.72 Paid up capital
258,000,000 ordinary share with RM 0.10 each totalling RM 25,800,000.
2.8 Board of Directors, Position and Shareholding
NAME
POSITION
Dr. Chia Song Kun
Non-Independent Non-Executive
Chairman
Leong Yew Cheong
Managing Director
Wong Wee Voo
Executive Director
Chia Lik Khai
Executive Director
Chia Seong Fatt
Alternate Director to Executive Director,
Chia Lik Khai
Low Teng Lum
Independent Non-Executive Director
Mohd Yusof bin Hussian
Independent Non-Executive Director

NAME
DIRECT
%
INDIRECT
%
Dr. Chia Song Kun
200,000
0.08
105,023,118
40.71
Leong Yew Cheong
35,702,912
13.84
-
-
Wong Wee Voo
16,322,585
6.33
-
-
Chia Lik Khai
200,000
0.08
-
-
Chia Seong Fatt
100,000
0.04
105,023,118
40.71
Low Teng Lum
200,000
0.08
377,000
0.15
Mohd Yusof bin Hussian
210,000
0.08
25,000
0.01

2.9 Senior Management
Tee Seng Chun, Executive Director has over 22 years of experience and expertise in designing and executing numerous co-generation plants that run on biomass fuel. He holds a Bachelor of Engineering in Agriculture from Universiti Pertanian Malaysia and has acquired extensive training in designing boiler thermal performance and circulation at Babcock Limited Co., United Kingdom. During his career he has held technical positions at a range of industrial companies. In 2005, he became Boilermech’s General Manager. He is responsible for monitoring the operations of Boilermech which emphasises on design, production, business development and project management functions.
Gan Chih Soon, Executive Director started his career as a Project Engineer with a boiler manufacturer in 1997. He led teams in installing and commissioning boilers in countries such as Indonesia, Thailand, Papua New Guinea, Myanmar and Venezuela after being promoted to Senior Engineer. He was then made Project Manager where he was responsible for the overall design, material procurement, and site execution and commissioning of biomass boilers. He holds a Bachelor of Science in Mechanical Engineering from the University of Oklahoma,…