FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

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 Bursa Malaysia Securities Berhad (“BMSB”).

The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the financial statements for the year ended 31 March 2003, except for the adoption of Malaysian Accounting Standards Board (“MASB”) 25, Income Taxes, which took effect within this financial year. The comparative figures have been restated retrospectively to reflect the impact of the recognition.

The effects of the changes in accounting policies are as follows:

							31/3/2003	31/3/2002
							RM’000	RM’000
Effects on accumulated losses:

At 1 April, as previously stated				(118,196)	 (42,404)

Effects of adopting MASB 25				  (59,552)	 (51,688)
							-----------	-----------
At 1 April, as restated					(177,748)	 (94,092)
							-----------	-----------

Effects on other reserves:

At 1 April, as previously stated				147,038		153,209

	Effects of adopting MASB 25				 (29,608)	 (36,110)
								-----------	-----------	
At 1 April, as restated					117,430		117,099
							-----------	-----------

Total reserves as restated				(60,318)	  23,007	
							======	  ======				

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

	Effects on loss for the period:
						                        3 months ended		         12 months ended
						  	     31/03/2004      31/03/2003     31/03/2004      31/03/2003
						 	    RM’000	   RM’000	RM’000           RM’000

	Loss before changes in accounting policies	     (12,772)	     (17,262)	 (46,124)	 (75,792)

	Effects of adopting MASB 25			       (1,987)               (1,966)          (7,885)               (7,864)
							-----------------------------------------------------------------------	Loss for the period				     (14,759)             (19,228)	  (54,009)            (83,656)
							-----------------------------------------------------------------------

	Comparative amount as at 31 March 2003 have been restated as follows:
						
							Previously stated		Restated
							 RM’000			RM’000
	
Goodwill on consolidation			  14,796				   33,325

	Other deferred liabilities			  22,226				 129,915
							 ======			 ======

A2.	Audit report of previous annual financial report

The audit report of the preceding annual financial statements 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 cash flows 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 year-to-date.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

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. 
					
	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 year ended   31/03/2004	Property 
development
RM’000	Leisure &
Tourism
RM’000	
Trading
RM’000	Investment
holdings
RM’000	
Consolidated
RM’000	
						
Revenue						
External sales	5,171	65,542	22,059	-	92,772	

Results						
Segment (loss) / profit	(3,982)	9,953	          380	(8,706)	           (2,355)        	
Depreciation	  (512)	(9,316)	(103)	  (829)	         (10,760)	
Segment result	(4,494)	 637	277	(9,535)	         (13,115)	
Interest income					              186	
Interest expenses					(41,246)	
Share of associated results					               9	
Taxation					               (12)	
						
Loss after taxation					(54,178)	

Segment by geographical 

Current year ended   31/03/2004	
Malaysia
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	70,713	22,059	-	92,772	

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 31 March 2004 to 26 May 2004 (the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report).

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

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   year-to-date, including business combinations, acquisition or disposal of subsidiaries and long-term investments, restructuring, and discontinuing operations except on 11 May 2004, a wholly-owned subsidiary, Karambunai Resorts Sdn Bhd have subscribed for entire issued and paid up share capital of a newly incorporated subsidiary, namely Dapan Construction Sdn Bhd (formerly known as Simfoni Istimewa Sdn Bhd), comprising of 2 ordinary shares of RM1/- each for a cash consideration of RM2/-. This acquisition has no material impact on the Group financial statements as at 31 March 2004.

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 31 March 2004 (31 March 2003 : nil). 

Notes (BMSB Revised Listing Requirements) 

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

The Group recorded a lower pre-tax loss of RM54.1 million for current financial year ended 31 March 2004 compared to a pre-tax loss of RM84.2 million for preceding financial year. The improvement was mainly due to the better performance of the Group’s leisure & tourism industry despite the SARS outbreak and lower operating cost incurred. 

For the current quarter ended 31 March 2004 the Group recorded a lower pre-tax loss of RM14.8 million compared with a loss of RM19.4 million in the corresponding quarter ended 31 March 2003 in the preceding year. The improvement was mainly due to higher contribution from the leisure & tourism industry, property sector and lower operating cost incurred.

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

The increase of pre-tax loss for the current quarter as compared to the previous quarter is mainly caused by the impact of seasonal fluctuation in the leisure & tourism industry.

B3.	Current Year Prospects

With the increasing growth trends in the leisure & tourism industry, the Group is optimistic that barring any unforeseen circumstances, the Group would continue to benefit from the performance of this industry.  

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

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

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	6	                          6	
Under / (Over) provision in previous year	-	                          6	
Transfer to / (from) deferred taxation	-	                           -	
Total	6	                          12	

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

There were no material sales of unquoted investment or properties for the current quarter and financial year-to-date.

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

B8.	Status of Corporate Proposals Announced But Not Completed as at 26 May 2004 (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”) includes the injection of 2 assets/business undertakings namely BUEMC Undertaking and NRK Undertaking by the Group and the other 50 shareholders of FACB Marketing and Sales Services Sdn Bhd (“FMSS Minority Shareholders”) into Hartamas Group Bhd (“HGB”) for an aggregate consideration of RM660 million to be settled by way of issue of 660 million new ordinary shares of RM1/- each in HGB to the Group and FMSS Minority Shareholders at an issue price of RM1/- per HGB share.

Pengurusan Danaharta Nasional Berhad (“PDNB”) had approved the Proposed Scheme of Arrangement of SHB Exercise 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”) had approved the abovementioned SHB Exercise on 19 March 2002 and 9 July 2002 respectively. The Company had on 20 March 2003 and 30 May 2003 entered into a Second Supplemental Reconstruction Agreement and an Supplement Letter to the Reconstruction Agreement with SHB and HGB respectively 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. The SC had  vide its letter  dated 29 December 2003 granted an extension to SHB to complete the SHB Exercise by 31 May 2004.  On 16 April 2004 an application to the SC was made to seek their approval for a further extension of time till 31 December 2004 for the completion of the SHB Exercise.  The Company is awaiting the SC’s decision on the application.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

B9.	Borrowings and Debt Securities
	
(a)	Short Term Borrowings	RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	18,133	
	Term Loan	65,226	
	Revolving Credits	21,000	
	Bank Overdraft	24,183	
			
	Unsecured		
	Bank Overdrafts	167	
	Hire Purchase Creditors	1,932	
			
	Total	130,641	
			
(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	5,100	
			
	Unsecured		
	Hire Purchase Creditors	952	
			
	Total	6,052	

B10.	Off Balance Sheet Financial Instruments

As at 26 May 2004, 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 quarter and financial year-to-date.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2004

B13.	(Loss)/ Earnings Per Share

 Basic (loss)/ earnings per share	Current quarter ended
31/03/2004
RM’000	Comparative quarter ended
31/03/2003 
RM’000	Current 
 year ended
31/03/2004
RM’000	Preceding 
year ended
31/03/2003
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(14,759)	
(19,228)	
(54,009)	
(83,656)	
					
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 effect on the diluted loss per share for the current quarter and financial year-to-date arising from the assumed conversion of outstanding Warrants is anti-dilutive.

By order of the Board

_______________________
LIM TIONG JIN
Chief Financial Officer

Kota Kinabalu           
31 May 2004

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