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
There were no corporate proposals announced at the date of this report.

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	8,748	73,254	
Unsecured	-	-	

	Out of the total long term borrowings of RM73.254 million,  an amount of RM36.936 million is a 5 years 8% Redeemable Convertible Secured Loan Stocks (RCLS).

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 August 15, 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.

The High Court had fixed the matter for further case management on September 18, 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 Execution 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	9,359	(512)	209,204	
Project Management & Investment holding	140	(2,598)	133,672	
Others	1	(7)	335	
Total	9,500	(3,117)	343,211	

17.	Comparison with the Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
(Loss) before taxation	(1,772)	(1,350)	31	

A drop in the contribution from Seremban 3 project in the current quarter (RM0.808 million) compared to that of the preceding quarter (RM2.195 million) had attributed to the material change.

18.	Review of Performance of the Company and its Principal Subsidiaries
The Group recorded a turnover  of RM9.500  million (2001: RM0.113 million) and loss after taxation of RM3.117 million (2001 : RM6.985 million).  The increase in turnover was mainly attributed to the Seremban 3 project. High interest expense and overheads continue to weigh on the Group. However,  the loss was reduced by a writeback of an overprovision of interest in prior years amounting to RM0.825 million.

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  continued to be tough and challenging for the Group.

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 30 June 2002.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
August 12, 2002