Chairman's Statement
On behalf of the Board of Directors, I am pleased to present Golsta Synergy Berhad's Annual Report and Audited Financial Statements of the Group and of the Company for the fi nancial year ended 31 December 2009.
OVERVIEW ON GROUP OPERATION AND FINANCIAL PERFORMANCE
Although Malaysia is gradually moving out of recession, the economic growth is still slow and lethargic. In spite of depressed economic conditions, the Group has achieved a positive profi t after taxation of RM2.5 million compared to a net loss of RM1.8 million in the preceding fi nancial year.
The Group is able to deliver a favorable performance albeit lower revenue compared to the preceding year was mainly due to the following reasons:-
- completion of certain rubber and food processing machinery projects with higher profi t margin;
- the booming oil palm seedlings business in Indonesia has contributed substantially to the Group's revenue and profi t; and
- gain from foreign currency exchange due to strengthening of the Ringgit Malaysia.
PROSPECT
Nowadays, consumers relatively seem to be more health cautious, many tend to consume oil palm and its related products which are with lesser cholesterol contents. The palm oil has gradually captured a bigger share in the edible oil and fat products sector. Simultaneously, with the enormous opportunities present in the global market, the Group is expected to grow further with its robust oil palm seedling activities business in its Indonesian subsidiary, P.T Bakti Tani Nusantara, which should perform well in contributing to the bottom line.
Apart from that, the Group is optimistic that the processing plant and machinery sector will be further expanding in the forthcoming years in view of the robust demand for the rubber based products both domestically and globally, which will generate and drive more revenue and profi ts to the Group.
For the year under reviews, it has been very challenging. For the ensuing years, the management will not be sluggish in spite of the Group's growth, but to take more positive measures to strengthen further the Group's net cash position and earnings base. The management is exploring long-term strategies and to undertake more upcoming projects hoping to diversify the Group in various new business ventures, scopes and opportunities. With this, the Group will be well equipped to face the economic downturn and challenges from the intense competitive business environment.
ACKNOWLEDGEMENT
In the tough year under review, we are grateful for those who have worked hard to assist the Group to achieve a better performance. We would like to give our deep appreciation to the Board of Directors for their business insight, acumen, experience, knowledge and invaluable contributions towards the Group's growth.
In the tough year under review, we are grateful for those who have worked hard to assist the Group to achieve a better performance. We would like to give our deep appreciation to the Board of Directors for their business insight, acumen, experience, knowledge and invaluable contributions towards the Group's growth.
Thank you to all our shareholders for the trust and believes and staying with us. To all our fi nanciers, customers, suppliers and business associates, We would say that our success this year will not be achieved without your support.
PUAN SRI DATIN MINUIRA SABKI
Chairperson
3 June 2010
Melaka