Notes to the Accounts

1.	Basis of Preparation
	The interim financial report  is unaudited and has been prepared in accordance with FRS 134:  Interim Financial  Reporting and Chapter 9 part K of the Listing Requirements 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, 2006.

	The accounting policies and methods of computation adopted by the Group in this interim financial statements are consistent with those adopted in the financial statements for the financial year ended 31 December 2006.

2. 	Audit report for the preceding annual financial statements
The audit report on the audited financial statements for the year ended 31 December, 2006 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 that have a material effect in the current quarter. 

6.	Issuances, Repayment and Cancellations of Debt and Equity Securities
On 13 March 2007,  11.625 million of Redeemable Convertible Loan Stocks (RCLS) of RM1.00 each has expired. None of the RCLS was converted into ordinary shares of the Company on that date.

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

8.	Segmental Reporting

	Quarter ended	
	Revenue	(Loss) before tax	
	2007
RM’000	2006
RM’000	2007
RM’000	2006
RM’000	
Property Development   
Project Management & Investment holding
Others	1,743
15
192	2,163
21
200	(3,534)
(418)
(186)	(3,593)
(1,105)
(202)	

Inter-segment elimination	1,950
(4)	2,384
(5)	(4,138)
0	(4,900)
0	
	1,946	2,379	(4,138)	(4,900)	

	6 months ended	
	Revenue	(Loss) /Profit before tax	
	2007
RM’000	2006
RM’000	2007
RM’000	2006
RM’000	
Property Development   
Project Management & Investment holding
Others	15,531
52
393	6,233
9,603
349	(5,894)
(1,151)
(362)	3,175
(1,380)
(467)	

Inter-segment elimination	15,976
(9)	16,185
(9,565)	(7,407)
0	1,328
0	
	15,967	6,620	(7,407)	1,328	
 
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 6  months, the Group recorded a turnover of RM15.967 million (2006: RM6.620 million) and a loss before taxation of RM7.407 million (2006 - Profit before taxation RM1.328 million). The increased in turnover in the period under review was due to higher sales of development properties. 
Higher profit in the previous comparative period  was attributed  to the contribution from our associate company.

2.	Variation of Results of the Preceding Quarter

	Current quarter
RM’000	Preceding quarter
RM’000	Change
%	
(Loss) before taxation	(4,138)	(3,269)	27%	
   
Increase in loss before taxation compared to that of the preceding quarter was due to decrease in  properties sales.

3.	Current Year Prospects
The Group expects the year 2007 remains challenging. 

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 June, 2007
RM’000	6 months Ended
30 June, 2007
RM’000	
Current Year Provision
Deferred Tax Liability	0
-	0
-	
Total	0	0	

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 June, 2007
	RM’000	
Total Investments at Cost
Total Investments at Carrying Value
Total Investments at Market Value	2
2
9	

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 June, 2007
	Short Term Borrowings
RM’000	Long Term Borrowings
RM’000	
Secured
Unsecured	87,602
-	115	

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, 2006) since the last annual balance sheet date.

12.	Status On The Agreement Of Collaboration 
As at the date of this report, there are no changes in the status of the Agreement Of Collaboration dated 12 March 2007 between the Company and Sinohydro Corporation (M) Sdn Bhd since the last announcement on 14 March 2007.

13.	Letter Of Award from YBS Tenaga Sdn Bhd to Menang Construction (M) Sdn Bhd dated 16 April 2007 –Inanam Project                
The conditions precedent contained in the Letter Of Award between YBS Tenaga Sdn Bhd and Menang Construction (M) Sdn Bhd have not been met and as such the Group is not proceeding with the said Letter Of Award. 

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

15.	Earnings Per Share
a.	Basic Earnings

	Quarter Ended
30 June, 2007	6 months Ended
30 June, 2007	
Loss attributable to shareholders (RM’000)	(4,115)	(7,383)	
Number of ordinary shares issued (‘000)	267,107	267,107	
Basic Loss per ordinary share (sen)	(1.54)	(2.76)	

b.	Diluted Earnings
Under the FRS 133 on Earnings Per Share, the assumed conversion from the Employee Share Option Scheme (ESOS) 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 June, 2007.

By Order of the Board
MENANG CORPORATION (M) BERHAD

Ng Ah Wah  (MIA  No.  10366)
Secretary
Kuala Lumpur
27 August, 2007