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
There were no exceptional items reported in this quarter. 
			
3.	Extraordinary items
During the financial quarter, there was  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 Investment Properties
There were no sale of investments and investment 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
There were no changes in the composition of the Group for the current financial quarter including business combination, acquisition or disposal of subsidiaries and long term investments, restructuring and discontinuing operations.

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 referred to as “the Proposals” or “the Scheme”)

The Scheme had been completed on March 13, 2002.

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 12,  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 reporting quarter 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	8,904	73,254	
Unsecured	-	-	

	Borrowings of RM36.936 million had been converted to 5 years 8% Redeemable Convertible Secured Loan Stocks on March 13, 2002.

13.	Contingent Liabilities
There were no contingent liabilities as at the date of this report other than as 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
Status of the pending material litigations  as at May 30, 2002 are as follows :-

a)	A legal suit has been instituted by a creditor against Maztri Padu Sdn Bhd, a subsidiary of Menang (“the subsidiary”) on August 13, 1992 to claim an amount of RM404,806.96 plus interest  thereon at 8% per annum from November 23, 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 February 08, 2002,  the High Court had approved the creditor’s application to transfer the case to the Civil Division and the matter is currently pending case management on June 11, 2002.

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 had on May 22, 1998 initiated legal action against Hicom Menang Properties Sdn Bhd (HMP), a 49% associate company for a sum of RM1,264,367.68 plus interest thereon at 8% per annum from December 03, 1997 until the date being full settlement for loss and expenses arising from breach of contract.

On  February 19, 2002 ,  the  High Court had delivered the following order that :- 

(1)	all proceedings on the Eexcution of Order and Judgement dated November 11, 1999 be suspended until the Notice of Appeal dated April 6, 2001 is disposed at the Court of Appeal,
 
(2)	the sum of RM1,264,367.68 currently being held by the contractor’s solicitors as stakeholder,  will remain with them until HMP’s appeal is disposed at the Court of Appeal,  and

(3)	HMP to pay only RM300,000 from the judgement sum to the contractor.

Meanwhile,  no date has been fixed yet by the Court of Appeal.

16.	Segmental Reporting

SEGMENTAL ANALYSIS	TURNOVER
(RM’000)	(LOSS) AFTER TAXATION (RM’000)	ASSETS EMPLOYED
(RM’000)	
Property Development	5,771	(106)	210,235	
Project Management & Investment holding	76	(1,216)	133,589	
Others	1	(3)	333	
Total	5,848	(1,325)	344,157	

17.	Comparison with the Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
(Loss) before taxation	(1,350)	(1,099)	23	

There were no material changes in the current quarter results compared to that of the preceding quarter.

18.	Review of Performance of the Company and its Principal Subsidiaries
The Group recorded a turnover  of RM5.848  million (2001: RM0.06 million) and loss after taxation of RM1.325 million (2001 : RM3.524 million).  The increase in turnover was mainly attributed to the Seremban 3 project.  High interest expense and overheads continue to weigh on the Group.

19.	Material Events Subsequent To The End Of The Period Reported
There were no material events subsequent to the end of the period reported.

20.	Current Year Prospects
The prospects for the financial year ending 2002 are expected to be challenging as the Group anticipate strong competition from the industry players who are also focussing on the affordable houses up to RM150,000.

21.	Variance on the following

a.	Actual vs forecast
Not Applicable 

b.	Profit guarantee
Not Applicable

22.        Dividend 
No interim dividend has been recommended by the Board for the financial quarter ended 31 March  2002.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
May 30, 2002