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 Bursa Malaysia Securities Berhad (Bursa Securities).

	The interim financial report should be read in conjunction with the audited financial statements of the Group for the year ended 31 December, 2003.

	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, 2003.	
	
2.	Audit report for the preceding annual financial statements
The audit report on the audited financial statements for the year ended 31 December, 2003 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
During the period under review,  an amount of RM11.095 million of Redeemable Convertible Secured Loan Stocks (RCLS) was redeemed.

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	
	2004
RM’000	2003
RM’000	2004
RM’000	2003
RM’000	
Property Development
Project Management & Investment holding
Others	8,544
4,350
220	256
107
328	3,678
(1,931)
(438)	(2,157)
(1,998)
(525)	

Inter-segment elimination	13,114
6,879	691
50	1,309
0	(4,680)
0	
	6,235	641	1,309	(4,680)	

	12 months ended	
	Revenue	Profit/(Loss) before tax	
	2004
RM’000	2003
RM’000	2004
RM’000	2003
RM’000	
Property Development
Project Management & Investment holding
Others	11,604
7,079
1,622	6,366
328
584	1,010
(5,392)
(1,407)	(5,963)
(6,840)
(824)	

Inter-segment elimination	20,305
6,879	7,278
51	(5,789)
0	(13,627)
0	
	13,426	7,227	(5,789)	(13,627)	

9.	Property,  plant and equipment
The valuation of land and buildings 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  BMSB’S LISTING REQUIREMENTS

1.	Review of Performance 
For  the 12  months, the Group recorded a turnover of RM13.426 million (2003: RM7.227 million) and a loss before taxation of RM5.789 million (2003: RM13.627 million). The increase in turnover was due to increased sales of development properties and the reduced in loss before taxation was mainly due the recognition 49% profit of our associate on the completion of sale of parcels of land in Kelana Jaya Urban Centre .

2.	Variation of Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
Profit/(Loss) before taxation	1,309	1,601	(18.2)	
   
The change in the current quarter results compared to that of the preceding quarter was mainly due the completion of sale of parcels of land in Kelana Jaya Urban Centre to Rayon Development Sdn Bhd by our 49% associate company.

3.	Current Year Prospects
The Group expects the year 2005 to be better.

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, 2004
RM’000	12 months Ended
31 December, 2004
RM’000	
Current Year Provision
Deferred Tax Liability	488
-	2,294
-	
Total	488	2,294	
The provision for tax payable for the period under review was mainly due the share of profit of an associate. 

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, 2004:
	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, 2004
	Short Term Borrowings
RM’000	Long Term Borrowings
RM’000	
Secured
Unsecured	46,413
-	56,562
-	

	Out of the total long term borrowings of RM56.562 million,  an amount of RM13.841 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 at 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, 2003) 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, 2004	12 months Ended
31  December, 2004	
Profit / (Loss) attributable to shareholders (RM’000)	821	(8,083)	
Number of ordinary shares issued (‘000)	267,107	267,107	
Basic Profit / (Loss) per ordinary share (sen)	0.31	(3.03)	

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 price of the Company’s shares for the period  ended 31  December, 2004.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
February 28, 2005