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	0
60
0	11,290
55
0	4,903
825
(2)	1,860
(2,957)
(2)	

Inter-segment elimination	60
0	11,345
0	5,726
0	(1,099)
0	
	60	11,345	5,726	(1,099)	

	12 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
285
3	34,307
256
6	7,937
(6,812)
(8)	6,615
(10,097)
(3)	

Inter-segment elimination	17,658
3	34,569
1	1,117
0	(3,485)
0	
	17,655	34,568	1,117	(3,485)	

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
There are no material events subsequent to the end of the period reported on that have not been reflected in the financial statement for the said period.

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 12 months, the Group recorded a turnover of RM17.655 million (2001: RM34.568 million) and profit before taxation of RM1.117 million (2001 : Loss before taxation of RM3.485 million).  The marginal profit recorded was mainly attributable to the share of profit of the associate company,  Hicom Menang Properties Sdn Bhd  amounting to RM9.798 million. The disposal of the 9 acres of land to Diary Farm Giant Properties Sdn Bhd (formerly known as Circular Function Sdn Bhd - a wholly-owned subsidiary of Giant TMC Berhad) have generated an after tax profit of RM14.068 million at the associate company level.

2.	Variation of Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
Profit/(Loss) before taxation	5,726	(1,486)	NA	
   
The change in the current quarter results compared to that of the preceding quarter was mainly due to 49% recognition of profit  on the sale of 9 acres of land as mentioned in note 1.

3.	Current Year Prospects
The Group expects the year 2003  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
31 December, 2002
RM’000	12 months Ended
31 December, 2002
RM’000	
Current Year Provision
Deferred Tax Liability	2,924
-	2,934
-	
Total	2,924	2,934	
The provision for tax payable for the year to date was mainly due the share of profit of an associate. The variance between the effective tax rate of 29.8% and the statutory tax rate of 28% is due to disallowable 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 31 December, 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 31 December, 2002
	Short Term Borrowings
RM’000	Long Term Borrowings
RM’000	
Secured
Unsecured	8,213
-	68,787
-	

	Out of the total long term borrowings of RM68.787 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 31December, 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
31 December, 2002	12 months Ended
31 December, 2002	
Net Profit/(Loss) attributable to shareholders (RM’000)	2,802	(1,817)	
Number of ordinary shares issued (‘000)	267,107	267,107	
Basic earnings/(loss) per ordinary share (sen)	1.05	(0.68)	

b.	Diluted Earnings
Under the MASB 13 on Earning Per Share, the exercise options over shares under the Employee Share Option Scheme (ESOS),  the assumed conversion from the Redeemable Convertible Secured Loan Stocks and Warrants would have no dilutive effect to the loss per share  as the exercise price of RM1.00 per new ordinary share is above the average market of the Company’s shares for the year ended 31 December 2002.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
February 28, 2003