Notes 

1.	 Group Accounting Policies
The quarterly financial statements have been prepared based on the same accounting policies and methods of computation adopted in the last annual financial statements.

2.	Exceptional items
During the financial quarter, there were no exceptional item.

3.	Extraordinary items
During the financial quarter, there were no extraordinary item.

4.	Taxation
The tax figures do not contain any deferred tax and/or adjustment for under or over provisions in respect of prior years.

5.	Pre-acquisition Profits
There were no pre-acquisition profits included in the results of the Group for the current financial quarter.

6.	Sale of Investments and/or Properties
There were no amount of profits arising from the sale of investment and properties for the current financial quarter.

7.	Quoted Securities
There were no dealings in quoted securities during the period under review.

The cost, carrying and market value of the quoted investments of the Group as at end of the reporting quarter are as follows :-
							RM’000		
		Cost				      	      2			
		Carrying Value			      2	
		Market Value				      5

8.	Changes in the Composition of the Group
On May 18,  2001, the Company has effected the following under its restructuring exercise as detailed in item 9 :-
1)	the issued and paid-up share capital of the Company was reduced from RM223,690,000 to RM67,107,000;
2)	the Share Premium Account of RM16,224,027.15  and the Capital Reserves of RM392,801.72 were also set off against the audited accumulated losses of the financial year  ending December 31, 2000.

9.	Status of Corporate Proposals
a)	Proposed Schemes of Arrangement Pursuant to Section 176 of the Companies Act, 1965 between Menang Corporation (M) Berhad, Menang Development (M) Sdn Bhd and Menang Saujana Sdn Bhd and their respective scheme creditors. (“Proposed Schemes Of Arrangement”);
b)	Proposed share capital reduction and proposed consolidation and sub-division of share capital. (“Proposed Capital Reconstruction”);
c)	Proposed share premium account reduction pursuant to Section 60(2) and 64 of the Companies Act, 1965; (“Proposed Share Premuim Reduction”)
d)	Proposed Acquisition of the ongoing Seremban 3 integrated township development project (comprising 797.947 acres of freehold development land and 2.573 acres of access land) from Titian Hartanah (M) Sdn Bhd (“Titian”), a wholly owned subsidiary of Maymerge (M) Sdn Bhd for a total purchase consideration of RM200 million to be satisfied in full by the issue of 200,000,000 fully paid up new ordinary shares at par of RM1.00 each in Menang. (“Proposed Acquisition”);
e)	Proposed issue of 40,070,400 new warrants 2001/2006 to the minority shareholders of Menang on the basis of two (2) warrants for every three (3) ordinary shares held upon completion of the Proposed Capital Reconstruction at an issue price of RM0.10 per warrant, (“Proposed Warrants Issue”);
f)	Proposed non-renounceable restricted offer for sale of 20,035,200 ordinary shares of RM1.00 each in Menang by Titian to the minority shareholders of Menang on the basis of one (1) ordinary share of Menang (to be issued pursuant to the Proposed Acquisition) for every three (3) ordinary shares held after the Proposed Capital Reconstruction at an offer price of RM1.00 per ordinary share (“Proposed ROS”); and
g)	Proposed Exemption to the major shareholders of Menang and parties acting in concert from the obligation to extend a mandatory general offer for the remaining shares in Menang upon the completion of the Proposed Acquisition. (“Proposed Exemption from MGO”).
		(Collectively “The Proposals”)

As at the date hereof,  the Company had secured all the relevant approvals for the Proposals and had completed the following :-
	
1)	Proposed Exemption from MGO on March 14, 2001,
2)	Proposed Share Premium Reduction on  May 18,  2001,
3)	Proposed Capital Reconstruction on May 18, 2001, and
4)	Proposed Acquisition on July 26, 2001.

The Company targets to complete the rest of the Proposals within the next 3 months.

10.	Seasonal or Cyclical Factors 
The Group’s business operations were not significantly affected by any seasonal and cyclical factors.

11.	Issuances and Repayment of Debt and Equity Securities
Except as disclosed under item 8,  there were no issuances of repayment of debt and equity securities,  share buy backs,  share cancellations,  shares held as treasury shares and resale of treasury shares for the current financial year to date.

12.	Group borrowings and debt securities as at the end of the reporting period :-

	Short Term Borrowings	Long Term Borrowings	
	RM’000	RM’000	
Secured	50,114	35,041	
Unsecured	-	-	

	Out of the total group borrowings of  RM85.155  million,  an amount of RM36.936 million will be converted to 8% Redeemable Covertible Secured Loan Stocks 2001/2006 after the completion of the Proposed Schemes of Arrangement  as mentioned under item 9 above.

13.	Contingent Liabilities
There were no contingent liabilities as at the date of this report other than mentioned in item 15.
									
14.	Off Balance Sheet  Financial Instruments
No off balance sheet financial instruments were utilised for the current financial quarter.

15.	Material Litigation
There are  pending material litigations  as at August 03, 2001 as follows :-

a)	A legal suit has been instituted by a creditor against Maztri Padu Sdn Bhd, a subsidiary on August, 13 1992 to claim an amount of RM404,806.96 plus interest  thereon at 8% per annum from November 1990 for goods sold/delivered and services rendered in connection with a building contract.

The subsidiary had disputed the claim and made a counterclaim against the creditor for RM144,345.96 plus interest.

On June 29, 2001,  the Plaintiff’s solicitors requested for a mention date to determine whether there is a need to write to apply for this case to be transferred to the Civil Division.  The Court has fixed  August 30, 2001 for mention.

The solicitors representing the subsidiary are of the opinion that it is too early to determine the final outcome at this stage of the subsidiary’s counterclaim and the creditor’s claim against the subsidiary at the current stage.

b)	A contractor,  has initiated legal action on May 22, 1998 against Hicom Menang Properties Sdn Bhd (HMP), a 49% associate company for a sum of RM1,264,367.68 together with interest at 8% per annum from December 03, 1997 to date of full settlement for loss and expenses from breach of contract.

The learned Senior Assistant Registrar has on November 11, 1999 awarded Judgement in  favour of the contractor.  HMP had filed an application for stay of execution on the Judgement and also an Appeal against the Judgement. 

The Appeal was heard on February 28, 2001 before the High Court  and was dismissed with costs in favour of the Contractor by the learned Judge on March 29, 2001.  HMP  had decided to file an application for a Stay of Execution and an appeal against the decision of the learned Judge.  The Notice of Appeal was filed with the  Court of Appeal on April 06, 2001.  Meanwhile,  HMP’s application to the High Court for the Stay of Execution pending the appeal was made on May 17, 2001.  The hearing of the application for the Stay of Execution has been fixed for  October 24, 2001.

The solicitors representing HMP are of the opinion that HMP  has a fair chance of succeeding in the Appeal.

The Group has already provided for its 49% share of the potential loss arising from the above in the accounts.

16.	Segmental Reporting

SEGMENTAL ANALYSIS	TURNOVER

(RM’000)	LOSS AFTER TAXATION (RM’000)	ASSETS EMPLOYED
(RM’000)	
Property Development	 - 	(3,091)	116,550	
Project Management & Investment holding	113	(3,885)	9,590	
Others	-	(9)	6	
	113	(6,985)	126,146	

17.	Comparison with the Results of the Preceding Quarter
The marginal increase in loss after taxation for the current quarter as compared to the preceding quarter was mainly due to the profit from sales of investment properties in the preceding quarter amounted  to RM777,000.

18.	Review of Performance of the Company and its Principal Subsidiaries
The Group is presently in the midst of completing the Proposals as mentioned under item 9 above. The losses reported for the period under review were mainly interest expense and fixed overheads.

19.	Current Year Prospects
With the completion of the Proposals as mentioned under item 9 above, prospects for the current financial year ending 2001 are expected to improve as the Group  will recognise the contributions from the ongoing development of Seremban 3 in the second half of the current financial year. 

20.	Variance on the following

a.	Actual vs forecast
Not Applicable 

b.	Profit guarantee
Not Applicable

21.	Dividend 
No interim dividend has been recommended by the Board for the financial quarter ended 30 June 2001.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur

August 08, 2001