FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2003

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 2003. 

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 prior interim periods of the current financial year or changes in the estimates of amount reported in previous financial years which have a material effect in the current quarter under review.

A6.	Issuance and Repayment of Debt and Equity Securities

There is no issuance and repayment of debts and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the current quarter and financial period to date.
 
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. 

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2003

	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) Trading			- 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   30/9/2003	Property 
development
RM’000	Leisure &
Tourism
RM’000	
Trading
RM’000	Investment
holdings
RM’000	
Consolidated
RM’000	
						
Revenue						
External sales	5,669	23,972	11,057	-	40,698	

Results						
Segment profit / (loss)	(412)	1,306	251	(2,197)	(1,052)	
Depreciation	(251)	(4,637)	(58)	(455)	(5,401)	
Segment result	(663)	(3,331)	193	(2,652)	         (6,453)	
Interest income					              87	
Interest expenses					(20,691)	
Share of associated results					               -	
Taxation					               (7)	
						
Loss after taxation					(27,064)	

Segment by geographical 

Current 6 months ended   30/9/2003	
Malaysia
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	29,641	11,057	-	40,698	

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 2003 to 24 November 2003 (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

There were no material changes in the composition of the Group during the current quarter and financial period to date, including business combinations, acquisition or disposal of subsidiaries and long-term investments, restructuring, and discontinuing operations.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2003

A11.	Changes in contingent liabilities or contingent assets
	
Other than corporate guarantees extended by the Company in support of banking facilities of its subsidiaries, there were no contingent liabilities or contingent assets as at 30 September 2003 (31 March 2003 : nil). 

Notes (KLSE Revised Listing Requirements) 

B1. 	Review of the Performance of the Company and Its Principal Subsidiaries

For the six-months period ended 30 September 2003, the Group recorded a loss for the period of RM27.0million, mainly due to high finance cost coupled with weak demand in the leisure & tourism industry during first quarter of the year.

B2.	Material Changes in the Quarterly Results Compared to the Results of the Preceding Quarter 

The reduction of pre-tax loss for the current quarter as compared to the previous quarter is mainly due to higher revenue and profitability achieved in the leisure & tourism industry in the second quarter. 

B3.	Current Year Prospects

With the improved sentiments and economic outlook in the second quarter of the year, the Group experienced a recovery in its leisure & tourism segment. Hence, the Group is optimistic that barring any unforeseen circumstances, the Group would continue to benefit from the performance of this segment.  .

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

B5.	Taxation

The breakdown of tax charge for the current quarter and financial year to date are as follows:

Tax Charge	   Current Quarter
       RM’000	Current Financial Year to Date
                    RM’000	
Current quarter / year provision	              -	                          -	
Under / (Over) provision in previous year	              7	                          7	
Transfer to / (from) deferred taxation	              -	                           -	
Total	              7	                          7	

B6.	Profit/(loss) on Sale of Unquoted Investments and/or Properties

There were no material 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 quoted securities at the end of the reported quarter.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2003

B8.	Status of Corporate Proposals Announced But Not Completed as at 24 November 2003 (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”)

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 (“SC”) have approved the abovementioned SHB Exercise on 19 March 2002 and 9 July 2002 respectively. Subsequently, the SC have granted the approval vide its letter dated 13 January 2003 to SHB an extension of time for a period of six (6) months up to and including 9 July 2003 to complete the implementation of the SHB Exercise. The Company had on 20 March 2003 entered into a second supplemental reconstruction agreement with SHB and HGB to facilitate the implementation of the said SHB Exercise. In an Extraordinary General Meeting of the Company held on the 24 June, 2003, the shareholders have given their approval for the Company to execute and implement the SHB Exercise.

B9.	Borrowings and Debt Securities
	
(a)	Short Term Borrowings	RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	18,021	
	Term Loan	46,670	
	Revolving Credits	17,000	
	Bank Overdraft	23,481	
			
	Unsecured		
	Bank Overdrafts	168	
	Hire Purchase Creditors	2,282	
			
	Total	107,622	
			
(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	17,900	
			
	Unsecured		
	Hire Purchase Creditors	784	
			
	Total	18,684	

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 September 2003

B10.	Off Balance Sheet Financial Instruments

As at 24 November 2003, 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.

	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). It is now up to the petitioner’s lawyers to file the necessary summons for directions to set the petition down for hearing. 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 quarter and year to date.

B13.	(Loss)/ Earnings Per Share

 Basic (loss)/ earnings per share	Current quarter ended
30/9/2003
RM’000	Comparative quarter ended
30/9/2002 
RM’000	Current 
 year ended
30/9/2003
RM’000	Preceding 
year ended
30/9/2002
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(12,390)	
(15,118)	
(27,008)	
(30,400)	
					
Weighted average number of shares used as denominator in the calculation of basic EPS (‘000)	

2,030,060	

2,030,060	

2,030,060	

2,030,060	

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

_______________________
LIM TIONG  JIN
Executive Director, Group Finance

Kuala Lumpur             
28 November 2003

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