Notes to the Accounts

1.	 Basis of Preparation
	The interim financial report  is unaudited and has been prepared in accordance with MASB 26 Interim Financial  Reporting and Chapter 9 part K of the Listing Requirement of the Kuala Lumpur Stock Exchange.

	The interim financial report should be read in conjunction with the audited financial statements of the Group for the year ended 31 December, 2001.

	The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the financial statements for the year ended 31 December, 2001.	
	
2.	Audit report for the preceding annual financial statements
The audit report on the financial statements for the year ended 31 December, 2001 was an unqualified opinion. 
			
3.	Seasonal or Cyclical Factors
The Group’s business operations were not significantly affected by any seasonal and cyclical factors.

4.	Unusual Items because of nature, size or incidence
There were no unusual items during the period under review.
 
5.	Changes in estimates
There were no changes in the nature or amount of estimates reported in prior interim period. 

6.	Issuances and Repayment of Debt and Equity Securities
There were no debt and equity securities issued, cancelled, repurchased, resold or repaid during the period under review.

7.	Dividends 
	No dividend has been paid, proposed or declared during the period under review.

8.	Segmental Reporting

	3 months ended	
	Revenue	Profit/(Loss) before tax	
	2002
RM’000	2001
RM’000	2002
RM’000	2001
RM’000	
Property Development
Project Management & Investment holding
Others	8,010
85
0	23,016
88
5	517
(2,002)
(1)	6,484
(1,947)
5	

Inter-segment elimination	8,095
0	23,109
0	(1,486)
0	4,542
0	
	8,095	23,109	(1,486)	4,542	

	9 months ended	
	Revenue	Profit/(Loss) before tax	
	2002
RM’000	2001
RM’000	2002
RM’000	2001
RM’000	
Property Development
Project Management & Investment holding
Others	17,370
225
3	23,016
201
6	782
(5,383)
(7)	3,443
(5,828)
(1)	

Inter-segment elimination	17,598
3	23,223
0	(4,608)
0	(2,386)
0	
	17,595	23,223	(4,608)	(2,386)	

9.	Property,  plant and equipment
The valuation of land and building have been brought forward without amendment from the previous annual report.

10.	Material Events Subsequent To The End Of The Period Reported
The disposal of 9 acres of land belonging to Hicom Menang Properties Sdn Bhd,  a 49% associate of the Company to Diary Farm Giant Properties Sdn Bhd (formerly known as Circular Function Sdn Bhd - a wholly-owned subsidiary of Giant TMC Berhad) for a cash consideration of RM57,147,400.00 was deemed completed on 17 October, 2002.  The disposal is expected to generate an after tax profit of approximately RM18.0 million at the associate company level.

11.	Changes in the Composition of the Group
There were no changes in the composition of the Group for the period under review. 

12.	Changes In Contingent Liabilities 
	There were no material changes in contingent liabilities since the end of the previous financial year.

ADDITIONAL INFORMATION REQUIRED BY THE KLSE’S LISTING REQUIREMENTS

1.	Review of Performance 
For 9 months, the Group recorded a turnover  of RM17.595  million (2001: RM23.223 million) and loss after taxation of RM4.618 million (2001 : Loss after taxation of RM2.442 million).  The decrease in turnover was mainly due to lower sales from Seremban 3 project. Emphasis had been placed on infrastructure development in preparation for future launches. High interest expense and overheads continue to weigh on the Group.

2.	Variation of Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
(Loss) before taxation	(1,486)	(1,772)	16	
   
There were no material changes in the current quarter results compared to that of the preceding quarter.

3.	Current Year Prospects
The Group expects the year 2002  continues to be tough and challenging for the Group.

4.	Profit forecast or profit guarantee
Not applicable as no profit forecast or profit guarantee was published or provided. 

5.	Tax Expense

	Quarter Ended
30 September, 2002
RM’000	9 months Ended
30 September, 2002
RM’000	
Current Year Provision
Deferred Tax Liability	16
-	10
-	
Total	16	10	
Although the operations of the Group for the current quarter and year to date resulted in losses,  the provision for tax payable was due to unallowable tax expenses.

6.	Unquoted Investments and Properties
There were no sales of unquoted investments or properties during the period under review.

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

Investments in quoted securities as at 30 September, 2002 :

	RM’000	
Total Investments at Cost
Total Investments at Carrying Value
Total Investments at Market Value	2
2
5	

8.	Status of Corporate Proposals
There were no corporate proposals announced at the date of this report.

9.	Borrowings and debt securities 
	As at 30 September, 2002
	Short Term Borrowings
RM’000	Long Term Borrowings
RM’000	
Secured
Unsecured	15,755
-	73,254
-	

	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) expiring on 13 March, 2007.
									
10. 	Balance Sheet  Financial Instruments
No off balance sheet financial instruments contracts were entered at the date of this report.

11.	Changes in Material Litigation
As the date of this report,  there are no significant changes in the status of the material litigation (reported in the financial statements for the year ended 31 December, 2001) since the last annual balance sheet date.

12.	Dividends 
	No dividend has been proposed or declared during the current quarter under review.

13.	Earnings Per Share
a.	Basic Earnings

	Quarter Ended
30 September, 2002	9 months Ended
30 September, 2002	
Net loss attributable to shareholders (RM’000)	(1,502)	(4,618)	
Number of ordinary shares issued (‘000)	267,107	267,107	
Basic loss per ordinary share (sen)	(0.56)	(1.73)	

b.	Diluted Earnings
The effects on the basic earnings per share for the current quarter and year to date arising from the assumed conversion of the Employee Share Option Scheme (ESOS), Redeemable Convertible Secured Loan Stocks and Warrants is anti-dilutive

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
November 12, 2002