KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 December 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 used in this interim financial report are consistent with the financial statements for the year ended 31 March 2004, except for the adoption of the following new applicable approved Accounting Standard:-

MASB 32 – Property Development Activities
The adoption of the above new MASB Standard have no impact to the results of the current quarter and financial year-to-date.

A2.	Audit report of previous annual financial report

The audit report of the immediate preceding annual financial statements for the year ended 31 March 2004 was not qualified.

A3.	Seasonal or Cyclical Factors

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

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 period of the current financial year or changes in the estimates of amounts reported in previous financial years which have a material effect in the current quarter and financial year-to-date.

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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KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 December 2004

A7.	Dividend Paid
	
	There were no dividends paid during the current quarter or financial year-to-date.

A8.	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) Others			- Not of a sufficient size to be disclosed separately.

	Segment by activity

Current financial year-to-date ended 31/12/2004	
Property 
development
RM’000	
Leisure &
Tourism
RM’000	

Trading
RM’000	Investment
Holding 
and others
RM’000	

Consolidated
RM’000	
						
Revenue						
External sales	14,979	61,712	17,827	746	95,264	

Results						
Segment (loss) / profit	(2,341)	10,875	             57	(5,867)	         2,724        	
Depreciation	(412)	(7,207)	     (64)	  (397)	         (8,080)	
Segment result	(2,753)	3,668	      (7)      	(6,264)	         (5,356)	
Interest income					              189	
Interest expenses					(30,712)	
Share of associated results					                31	
Taxation					               (6)	
						
Loss after taxation					(35,854)	

Segment by geographical 

Current financial year-to-date ended 31/12/2004	
Malaysia
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	77,437	17,827	-	95,264	

A9.	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.

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KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 December 2004

A10.	Material subsequent events

There were no material subsequent events from 31 December 2004 to 17 February 2005.(the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report).
	
A11.	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. 

A12.	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 December 2004 (31 March 2004 : nil). 

Notes (BMSB Revised Listing Requirements) 

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

The Group recorded a revenue of RM 95.3 million for the financial year-to-date ended 31 December 2004 compared to RM 73.8 million for the preceding year corresponding period ended 31 December 2003. It represents an increase of 29% over the previous year corresponding period.

For the nine months period ended 31 December 2004 ,the Group recorded a lower pre tax loss of RM 35.8 million compared to RM 39.4 million in the same period last year. It represents an improvement of 9 %, due to better performance of the Group’s Leisure & Tourism segment and the Property Development segment.
	
In the opinion of the Directors, the results for the current quarter and financial year-to-date have not been affected by any transaction or event of a material and unusual nature which has arisen between 31 December 2004 and 17 February 2005 (the latest practicable date which is not more than 7 days from the date of this Quarterly Report).

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

The Group registered a higher loss before tax in the current quarter compared to immediate preceding quarter. The Group Loss before tax increase from RM 8.8 million to RM 12.6 million , it representing an increase of RM 3.8 million . This is mainly due to higher operational cost incurred in this quarter. 

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KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 December 2004

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.  Concurrently, the Group is continue to focusing on addressing its borrowing costs and resolution of the RM420 million zero-coupon redeemable secured bonds 2001/2005 maturing in year 2005. 

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	10	                          11	
Under / (Over) provision in previous year	-	                          (5)	
Transfer to / (from) deferred taxation	-	                           -	
Total	10	                          6	

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, except as follows:

Arosa Development Sdn Bhd a wholly own subsidiary of Karambunai Corp Bhd ( formerly known as FACB Resorts Berhad) had on 11 September 2004 entered into a Sales and Purchase Agreement with Valencia Homes Sdn Bhd for disposal of a piece of land at Daerah Hulu Langat, Selangor Darul Ehsan, measuring 2.94 acres for a cash consideration of RM 10 million. Upon the completion of the transaction will result in a loss of RM 3.4 million to the company. Announcement was made on 14 September 2004 to BMSB.

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 

There were no announcements of any corporate proposals which have not been completed as at the date of this report.

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KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 December 2004

B9.	Borrowings and Debt Securities
	
(a)	Short Term Borrowings	RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	18,431	
	Term Loan	69,786	
	Revolving Credits	17,000	
	Bank Overdraft	24,177	
			
	Unsecured		
	Bank Overdrafts	317	
	Hire Purchase Creditors	2,162	
			
	Total	131,873	
			
(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	5,100	
			
	Unsecured		
	Hire Purchase Creditors	1,153	
			
	Total	6,253	

B10.	Off Balance Sheet Financial Instruments

As at 17 February 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.

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KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 December 2004

B12.	Dividend

No dividend is recommended for the current quarter and financial year-to-date.

B13.	(Loss)/ Earnings Per Share							Current	          Preceding

Basic (loss)/ earnings per share

 	Current
Quarter ended
31/12/2004
RM’000	Comparative
Quarter ended
31/12/2003 
RM’000	Financial Year-to-date ended
31/12/2004
RM’000	Financial
Year-to-date ended
31/12/2003
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(12,573)	
(8,716)	
(35,787)	
(39,251)	
					
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, Sabah           
24 February 2005

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