Biosis Group Bhd

It triggered PN17 based on its latest financial results and Bursa Malaysia Securities Bhd’s rules.

The personal and healthcare product distributo
r could have slipped into PN17 since its latest financial results seem to have fulfilled some of the criteria for companies classified under this category. However the company deputy chairman Khairul refuted talk that this was so….

UMNO politician Khairul Azwan Harun emerged as a new substantial shareholder in the company. His entry has reinforced talk of a possible change in the company’s business direction.

Khairul Azwan is head of the BN Perak Youth and is Perak UMNO youth chief. He had acquired seven million shares representing a 5.83% stake. He is the third largest shareholder in the company after Ideal Jacobs Corp (30.38%) and Foo Chong Lee (22.8%).

With Khairul’s extensive network in Perak, it could see more doors opened to the company in the state.

The only son of former PKNP CEO Datuk Harun Ahmad Saruji, Khairul Azwan has been Perak UMNO Youth chief since 2010 and is also a former personal aide of Perak Menteri Besar Datuk Seri Dr Zambry.

He is closely linked to several UMNO youth leaders including UMNO Youth Treasurer Datuk Rozabil Abdul Rahman, who is also group MD of aircraft maintenance, repair and overhaul company Destini.

He stressed that the company has not triggered PN17 status. It is still in the process of auditing Biosis Group’s accounts. The NTA of the company are still healthy.

It is looking at re engineering the pharmaceutical business of Biosis Group. It has partnership arrangement with Pharmaaniaga Bhd to supply certain drugs. With Pharmaniaga expanding its business overseas, the Biosis Group can take advantage of Pharmaniaga’s strengths to tap into its overseas markets.

For the 15 months ended March 31 2012, the company has group shareholders’ funds of rm30.92 million. In the last financial year ended March 31, 2013 the shareholders’ equity of the Biosis Group on a consolidated basis plunged to rm14.8 million.

According to Bursa rules, a company listed on Main Board will be classified under PN17 when it triggers one or more of the criteria for the category, including that the shareholders’ equity of the listed issuer on a consolidated basis is 25% or less of its issued capital, and such shareholder equity is lower than rm40 million.

As long as a listed issuer triggers the criteria under the PN17 category the company will become a PN17 status company. Basically a company’s shareholders’ equity consists of total assets minus total liabilities or share capital plus retained earnings minus Treasury shares.

In the last six financial years since 2008, the company reported losses ranging from rm2.39 million to rm19.59 million.

The company’s total borrowings as of March 31 2013 stood at rm30.2 million and total liabilities at rm52.05 million. It has a paid capital of rm52.5 million.

The company has embarked on several corporate proposals, including a capital reduction exercise, rights issue and a special issue to bumiputera investors, to improve its financial condition.


In Dec 2012, the company proposed capital reduction exercise. It also proposed to capitalize its rm14 million debt through the issue 140 million shares to certain financial creditors.

It also proposed a rights of up to 242 million new shares and a special issue of up to 180 million new shares representing 28.13% of the enlarged paid up share capital to independent third party Bumiputera investors.