Sex, Lies... and company annual report

OK, let me just admit that the above title has nothing to do with what I have to say at all :) Hey, its catchy, and thought it would be a nice shock factor for a mundane friday posting!


Anyway, getting back on track..... let's just admit it. Sex in the office.... whether we like to admit it or not, is rampant. Full stop. That's the last time I am mentioning the word sex in this posting. Got your attention for 5 seconds didn't I ? :-))

I have presented my proposal for the company rescue plan to two different investors and hoping the meet the third today. I admit that time is of the essence and I would really like to see this come through. However, if I succeed in convincing the investor to come up with the money to save the company, I may have to move to the next painful step.... cutting down on the headcount. I have done this twice in my career and this time around, it will be very different as I am dealing with people who have been with the company for 30 years or so. The survival of the company totally depends on it being mean, at least for the first two years. Given the pedigree of its name in the market, I am confident of bringing the company up to the market leader position.


Still, need to get the funds in first....

The Move...

This week, I am moving my HQ to a new premises.. not at a premier address yet but it'll do. Never knew I had that many "rubbish" in my room! Plan to keep the place simple this time, with lots of space to move around. Also need to recruit additional sales staff for my new venture too..

Boardroom Tussle....

I felt as if it was just recently I read about boardroom tussle and power struggle at KFCH. Here I am, reading The Star on saturday and The Edge too, with news on the same thing. I guess Dato' Johari and Dato' Izhar are having sleepless nights during this few weeks.

I was in the midst of a boardroom tussle once. Well, I wasn't the one being removed but close associates of mine. We were already losing control of the company at that time and I guess we are actually living on borrowed times. To cut the story short, there was a compromise and in the end both parties ended up with an amicable settlement. If only more people are willing to listen to each other's view...

The Tales of Boldy and Tommy...the intro

Heheheh... I feel really wicked doing this but what the heck... If this is the only way I have to just vent out a "bit" of my frustration at these two clowns, then so be it!

To begin with, Boldy and Tommy are quite smart people in their own right but somehow for reasons not to be revealed as yet, they have been quite vindicative and going on a witch-hunt of some sort.

Background..

Boldy and Tommy have been made the Executive Directors of a major automotive parts supplier upon the takeover of the company (also another story on its own.. coming soon later) about a year ago. In fact, these two people are almost self-appointed as out of the blue, by association with the new major shareholder, they are the EDs of the company. The company is not bad by any Malaysian standard, producing an important part for the automotive industries with turnover of reaching in the hundreds of millions. Prior to the arrivals of these two "management gurus", the company was managed well... it did ok. Profit was there... cost could be a bit on the high side but fundamentally it was ok. So, here comes Mr Boldy and Mr Tommy... unleashing their "cost cutting blades" almost as swiftly as a surgeon in an operating theatre. Everything was cut... allowances, company cars... what can be cut we cut. Of course, it made them look oh-so-good to major shareholder but the problem with these two "gurus" is that they are just not addressing the real issue of the company (I am sorry, I just can't reveal that... ethical issue here...). Of coursem they also did the usual shuffling people here and there... which for me, does not create any value whatsoever to the company. Why make changes just for changes sake ? Come on, address the real issue la!

The best thing... while they are cutting and snipping here and there... these two management experts had the gall to increase their own salary. Yes, they did that. Of course, hidden under the ever vague Entertainment Allowance. What the heck does an ED handling finance need RM2k in entertainment allowance for?? Where is the corporate gorvanance issue here? Being directors they need to present any of these increase to the Rumeneration Commitee for approval, which in turn, would propose it to the board and get it endorse. Did they do that ? Of course not! How to bypass ? Easy.... also propose for an increase in the Chairman's allowance and he would gladly sign it too ! But wait a minute... despite having majority control, there are other shareholder's and directors too. Governance, Boldy and Tommy... kata professional sangat ! Mengutuk orang kiri kanan tak ingat dunia... semua org salah... (btw, I know the things you have said about me behind my back... trust me, you'll get it one day... esp you Boldy).

We will continue again.... it gets juicier...

How Much Is Enough

What is a reasonable return to a funder ? I really need to rescue this operations and I am selling to them something that I whole-heartedly believe in. Yes, the previous management may have been a bit ambitious and over-optimistic on the company and I still blame them for putting me in this mess now (I'll get back to them when I am done with this, for sure). I could do this... I would like to prove to Baldy and Tummy (you'll come across them as my entries progress - a lot of bean to spill on them, so God help us all !)

I have been mulling in my mind about the kind of return to give that investor. For the first half million, payable in three years, I am looking at 12% per annum... that's the 36% in three years. With banks giving a mere 3-4% and ASB/ASN/TH at no more than 7%, it should pique the interest of our good funder here. The cash flow is doable... I can fill up the place almost immediately and see the revenue sky-rocket...

Enough ?

Forecast...

Back at my desk after friday prayer...

Still need to polish up the paper I am presenting tonight this investor. Yeah, its not easy to get someone to part with RM1 million ringgit, based on faith and future potential of a company that has seen better days before. How do you tell someone, that look... figure doesnt tell the whole story (but with the company so deep in the red, it does tell something la..)