FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2002

Notes (In Compliance with MASB 26)

A1.	Accounting Policies
The Quarterly Report has been prepared in accordance with Malaysian Accounting Standards Board (“MASB”) 26 on ‘Interim Financial Reporting’ and Paragraph 9.22 of the Listing Requirements of Kuala Lumpur Stock Exchange (“KLSE”).

The same accounting policies and methods of computation are followed in the interim financial statements as compared with the annual financial statements for the previous financial year ended 31 March 2002. 

A2.	Audit report of previous annual financial report
The audit report of the preceding annual financial statement was not qualified.

A3.	Seasonal or Cyclical Factors
The Group’s operations are not affected significantly by any seasonal or cyclical factors for the current quarter and the financial year-to-date.

A4.	Unusual items
There were no items affecting assets, liabilities, equities, net income or cashflows that are unusual  because of their nature, size or incidence during the current quarter and the financial year-to-date.	

A5.	Nature and Amount of Changes in Estimates
There were no changes in estimates of amounts reported in the previous financial years which have a material effect in the current quarter under review.

A6.	Issuance and Repayment of Debt and Equity Securities
The following are the status of issuance and repayment of debt and equity securities undertaken by the Company for the current financial year-to-date:

a)	Repurchase and cancellation of RM300million nominal value 5-years 5.5% redeemable secured bonds 1997/2002(“Bonds 1997/2002”)

On 12 April 2001, the Company issued RM420million nominal value 4-year zero coupon redeemable secured bonds 2001/2005 for the repurchase and cancellation of RM250million nominal value of the Bonds 1997/2002. On 17 April 2002, the Company further repurchased and cancelled RM20million nominal value of the Bonds 1997/2002. On 27 June 2002, the Company settled the remaining RM30million nominal value of the Bonds 1997/2002.

b)	Employee’s Share Option Scheme (“ESOS”)

No employees of the Company exercised any of the Group’s ESOS for the current quarter. All outstanding unexercised ESOS have expired on 24 July 2002.
 
A7.	Segmental Information
	Segmental information is presented in respect of the Group’s business and geographical segments.

Segment revenue and results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. 
	
					Page 5
FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2002

	The Group comprises the following main business segments :
(a) Property development	- Property development and construction of properties.
(b) Leisure & tourism		- Resorts, golf club and travel agency services.	    	 
(c) Manufacturing & trading	- Manufacturing and trading of wood products.				 
	(d) Investment holdings		- Investment holding, venture capital and management services.
	(e) Other			- Not of a sufficient size to be disclosed separately.

	Segment by activity

Current 6 months ended 
  30/09/2002	Property 
development
RM’000	Leisure &
Tourism
RM’000	Manufacturing
& trading
RM’000	Investment
holdings
RM’000	
Other
RM’000	
Consolidated
RM’000	
							
Revenue							
External sales	2,818	   26,707	16,041	792	-	46,358	

Results							
Segment profit / (loss)	(5,568)	(995)	(480)	(3,382)		(10,425)	
Interest income						 316	
Interest expenses						(20,527)	
Share of associated results	(29)				(58)	(87)	
Taxation						-	
							
Loss after taxation						(30,723)	

Segment by geographical 

Current 6 months ended 
  30/09/2002	
Malayisa
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	30,317	   10,408	5,633	46,358	

A8.	Valuations of property, plant and equipment
The valuations of property, plant and equipment have been brought forward without amendment from the previous annual financial statements.

A9.	Material subsequent events
There were no material subsequent events from 30 September 2002 to 25 November 2002 (the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report).
	
A10.	Changes in the Composition of the Group
Pursuant to the Proposed Scheme of Arrangement of SHB (details are disclosed in note B8. of  this report), the said Proposed Assets Injection by FACB Group into Hartamas Group Sdn. Bhd. (“HGB”) for an aggregate consideration of RM659,993,500 to be settled by way of issue of 659,993,500 new HGB’s ordinary shares to FACB Group at an issue price of RM1.00 each have been completed, representing an effective shareholdings of 99.99% of the issued and paid-up share capital of HGB. As such, HGB has now become a subsidiary of the Company. These changes would not have any financial effects on the group. 

							Page 6
FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2002

A11.	Changes in contingent liabilities or contingent assets
	There were no contingent liabilities or contingent assets as at 30 September 2002 (31 March 2002 : nil).

Notes (KLSE Revised Listing Requirements) 

B1. 	Review of the Performance of the Company and Its Principal Subsidiaries
The Group registered a loss for the period of RM15.1million for the second quarter mainly due to high finance cost of RM11.8million and no new development projects were launched in the second quarter of the current financial year.

B2.	Material Changes in the Quarterly Results Compared to the Results of the Preceding Quarter 
There were no material changes for the current financial quarter as compared to the previous quarter.

B3.	Current Year Prospects
The Group’s cashflow is expected to improve as the Group has embarked on cashflow generating projects including the Bandar Sierra housing project in Sabah and planning to launch its guarded and gated resort homes project in Karambunai, Sabah in the first quarter of year 2003. 

B4.	Profit Forecast / Profit Guarantee 
	Not applicable in this Quarterly Report.

B5.	Taxation
There were no provision for taxation or  under or over provision for taxation for the current financial quarter and year-to-date.

B6.	Profit on Sale of Unquoted Investments and/or Properties
   	There were no sales of unquoted investment or properties for the current financial quarter and year-to-date.

B7.	Quoted Securities
	There were no purchases or sales of quoted securities for the current financial quarter and year-to-date and there was no investment in securities at the end of the reported quarter.

B8.	Status of Corporate Proposals Announced But Not Completed as at 25 November 2002 (the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report)

	The Proposed Scheme of Arrangement of Sri Hartamas Berhad (“SHB”) (“SHB Exercise”).

The SHB Exercise includes the injection of certain of the Group’s business undertakings namely the operations and ownership of Nexus Resort Karambunai and the property development business of the Bukit Unggul Eco-Media City Project measuring approximately 915 acres into a special purpose vehicle (namely, Hartamas Group Sdn. Bhd (“HGB”) which would convert to a public company prior to the implementation of the SHB Exercise) which will assume the listing status of SHB. The said assets are proposed to be injected into HGB for a total consideration of RM660,000,000 to be satisfied by way of issue of 660,000,000 new ordinary shares of RM1.00 each by HGB to the FACB Group and FACB Marketing & Sales Services Sdn. Bhd. (“FMSS”) minority shareholders. (“Proposed Assets Injection by FACB”)

							Page 7
FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2002

Pengurusan Danaharta Nasional Berhad (“PDNB”) has approved the Proposed Scheme of Arrangement of SHB on 28 January 2002 and further approval was obtained from the secured creditors of SHB on 29 January 2002 in accordance with Section 4(4) of the PDNB Act, 1998.

The Foreign Investment Committee and Securities Commission have approved the abovementioned SHB Exercise on 19 March 2002 and 9 July 2002 respectively.

B9.	Borrowings and Debt Securities
	
(a)	Short Term Borrowings	RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	20,613	
	Term Loan	46,919	
	Revolving Credits	17,000	
	Bank Overdraft	22,081	
			
	Unsecured		
	Bank Overdrafts	201	
	Hire Purchase Creditors	2,532	
			
	Total	109,346	

(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	7,900	
			
	Unsecured		
	Hire Purchase Creditors	811	
			
	Total	8,711	

B10.	Off Balance Sheet Financial Instruments
As at 25 November 2002, the Group did not enter into any contract involving financial instruments with off balance sheet risk.

B11.	Material Litigation
The Group is engaged in the following material litigation as at the date of this report.

(i)	On 26 February 1998, the Company filed a claim against Ho See Sin, Halim Ismail & Co. and Sng & Co.. The claim against Ho See Sin is for the sum of RM61,260/- and the claim against Halim Ismail & Co. and Sng & Co. is for the sum of RM1,680,000/- which is due to the Company by reason of the failure of First Travel and Tours (M) Sdn. Bhd. (“FTT”) to meet its guaranteed aggregate pre-tax profit for the period of three (3) consecutive financial year from 1 April 1994 to 31 March 1997 of not less than RM5,040,000/- pursuant to a Profit Guarantee Agreement dated 8 February 1994. Ho See Sin is the director and substantial stakeholder (30%) of FTT. Halim Ismail & Co. is the original stakeholder. The full trial concluded on 8 April 2002. The Judge has yet to deliver his decision.

						Page 8
FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2002

(ii)	A minority shareholder of a subsidiary, First Travel and Tours (M) Sdn. Bhd. (“FTT”), has presented a legal petition against FTT, the Company and a director of the Company (“Respondents”) to wind-up FTT pursuant to Section 181 of the Companies Act, 1965, on allegation that the affairs of FTT were conducted in a manner oppressive to him and in disregard of his interest as shareholder. The Court has now directed that the petitioner file his affidavit in reply (to FTT’s affidavit in opposition to the petition) by 9 December 2002.

No provision has been made for possible losses arising from the above legal proceedings as the legal proceedings are still pending.

B12.	Dividend
No dividend is recommended or paid in the current financial year to date.
 
B13.	(Loss)/ Earnings Per Share

 Basic (loss)/ earnings per share	Current quarter ended
30/9/2002
RM’000	Comparative quarter ended
30/9/2001 
RM’000	Current 
6 months ended
30/9/2002
RM’000	Preceding 
6 months ended
30/9/2001
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(15,118)	
(18,719)	
(30,400)	
(35,155)	
					
Weighted average number of shares used as denominator in the calculation of basic EPS (‘000)	

2,030,060	

1,015,030	

2,030,060	

1,015,030	

	Fully diluted (loss)/ earnings per share

The effects on the diluted loss per share for the current financial quarter and year-to-date arising from the assumed conversion of outstanding Warrants is anti-dilutive.

By order of the Board

_______________________
TAY GUAN KEE
Chief Financial Officer

Kuala Lumpur             
29  November 2002

							Page 9