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, 2004.

	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, 2004.	
	
2.	Audit report for the preceding annual financial statements
The audit report on the audited financial statements for the year ended 31 December, 2004 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 RM2.215 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	
	2005
RM’000	2004
RM’000	2005
RM’000	2004
RM’000	
Property Development
Project Management & Investment holding
Others	4,676
3,448
385	2,856
2,592
490	(3,182)
(1,004)
(160)	2,860
(939)
(320)	

Inter-segment elimination	8,509
(3,435)	5,938
0	(4,346)
0	1,601
0	
	5,074	5,938	(4,346)	1,601	

	9 months ended	
	Revenue	(Loss) before tax	
	2005
RM’000	2004
RM’000	2005
RM’000	2004
RM’000	
Property Development
Project Management & Investment holding
Others	17,221
17,230
1,101	3,060
2,729
1,402	(6,394)
(3,168)
(669)	(2,669)
(3,461)
(969)	

Inter-segment elimination	35,552 (17,164)	7,191
0	(10,231)
0	(7,099)
0	
	18,388	7,191	(10,231)	(7,099)	

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  BURSA SECURITIES LISTING REQUIREMENTS

1.	Review of Performance 
For  the 9  months, the Group recorded a turnover of RM18.388 million (2004: RM7.191 million) and a loss before taxation of RM10.231 million (2004: RM7.099 million). The increase in turnover was due to increased sales of development properties. Increased loss before taxation was mainly due to lower  recognition of profit from our associate.

2.	Variation of Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
(Loss) before taxation	(4,346)	(3,908)	11.21	
   
The change in the current quarter results compared to that of the preceding quarter was mainly  due to lower profits generated from the sales in development properties. 

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

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, 2005
RM’000	9 months Ended
30 September, 2005
RM’000	
Current Year Provision
Deferred Tax Liability	6
-	680
-	
Total	6	680	
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 30 September, 2005:
	RM’000	
Total Investments at Cost
Total Investments at Carrying Value
Total Investments at Market Value	1
1
3	

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, 2005
	Short Term Borrowings
RM’000	Long Term Borrowings
RM’000	
Secured
Unsecured	41,527
-	52,042
-	

	Out of the total long term borrowings of RM52.042 million,  an amount of RM11.626 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 31 December, 2004) 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, 2005	9 months Ended
30 September, 2005	
(Loss) attributable to shareholders (RM’000)	(4,352)	(10,911)	
Number of ordinary shares issued (‘000)	267,107	267,107	
Basic (Loss) per ordinary share (sen)	(1.63)	(4.08)	

b.	Diluted Earnings
Under the MASB 13 on Earnings 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 30 September, 2005.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary

Kuala Lumpur
November 30, 2005