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, 2002.

	The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the audited financial statements for the year ended 31 December, 2002.	
	
2.	Audit report for the preceding annual financial statements
The audit report on the audited financial statements for the year ended 31 December, 2002 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

	Quarter ended	
	Revenue	Profit/(Loss) before tax	
	2003
RM’000	2002
RM’000	2003
RM’000	2002
RM’000	
Property Development
Project Management & Investment holding
Others	6,518
58
258	0
60
0	(2,865)
(1,291)
(524)	4,903
825
(2)	

Inter-segment elimination	6,834
0	60
0	(4,680)
0	5,726
0	
	6,834	60	(4,680)	5,726	

	12 months ended	
	Revenue	Profit/(Loss) before tax	
	2003
RM’000	2002
RM’000	2003
RM’000	2002
RM’000	
Property Development
Project Management & Investment holding
Others	12,628
328
514	17,370
285
3	(6,012)
(6,795)
(820)	7,937
(6,812)
(8)	

Inter-segment elimination	13,470
50	17,658
3	(13,627)
0	1,117
0	
	13,420	17,655	(13,627)	1,117	

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
A)  On 6 February, 2004,  a wholly‑owned subsidiary of Menang entered into two proposed joint venture  with :-
i)  CG & P Consultants Sdn Bhd to develop a parcel of leasehold land measuring approximately 641.237 acres held under HSD 34498, lot pt 6357, Mukim Bukit Katil, District Of Melaka Tengah, Melaka;  and 

ii)	PDIR Developments Sdn Bhd  and Pakatan Laksana (M) Sdn Bhd to develop 4 parcels of freehold land measuring approximately 604.098 acres held under Lots 462, 1163, 1531 and 1669 (Grant nos. 67449, 67450, 67453 and 67452 respectively), Mukim of Rantau, District of Seremban, Negeri Sembilan Darul Khusus. 

B)    On 11 February, 2004, Hicom Menang Properties Sdn Bhd,  a 49% associate of the Company,  has entered into a conditional Sale And Purchase Agreement with Glomac Nusantara Sdn. Bhd. (“GNSB”), a wholly owned subsidiary of Glomac Berhad, to dispose  off parcels of land within Kelana Jaya Urban Centre (“KJUC”) measuring approximately 181,736 s.f. for a cash consideration of RM27,409,736.00.

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 RM13.420 million (2002: RM17.655 million) and a loss before taxation of RM13.627 million (2002 : profit before taxation of RM1.117 million). High interest expenses 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	(4,680)	(2,654)	76.3	
   
The change in the current quarter results compared to that of the preceding quarter was mainly due reduced operating expenses in the preceding quarter.

3.	Current Year Prospects
The Group expects the year 2004  to be better 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, 2003
RM’000	12 months Ended
31 December, 2003
RM’000	
Current Year Provision
Deferred Tax Liability	5
-	84
-	
Total	5	84	

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, 2003 :
	RM’000	
Total Investments at Cost
Total Investments at Carrying Value
Total Investments at Market Value	2
2
6	

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, 2003
	Short Term Borrowings
RM’000	Long Term Borrowings
RM’000	
Secured
Unsecured	30,995
-	59,169
-	

	Out of the total long term borrowings of RM59.169 million,  an amount of RM24.936 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 audited financial statements for the year ended 31December, 2002) 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, 2003	12 months Ended
31 December, 2003	
(Loss) attributable to shareholders (RM’000)	(4,685)	(13,711)	
Number of ordinary shares issued (‘000)	267,107	267,107	
Basic (loss) per ordinary share (sen)	(1.75)	(5.13)	

b.	Diluted Earnings
Under the MASB 13 on Earning Per Share, the assumed conversion from the Employee Share Option Scheme (ESOS), 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 period  ended 31 December, 2003.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
February 26, 2004