KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2005

Notes In Compliance with FRS 134 (previously known as MASB 26)

A1.	Accounting Policies

The Quarterly Report has been prepared in accordance with FRS 134 (previously known as 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 ended 31 March 2005.

	As previously 
Reported
RM’000	Effects of reclassification RM’000	As restated

RM’000	
As at 31 March 2004				
Property development costs	31,967	1,787	33,754	
Progress Billings	-	1,787	1,787	

Progress Billings are the excess billings to the purchasers over revenue recognised.

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 ended 31 March 2005 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 ended 31 March 2005.	

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 ended 31 March 2005.

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 ended 31 March 2005.

																Page 5
KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2005

A7.	Dividend Paid
	
	There were no dividends paid during the current quarter or financial year ended 31 March 2005.

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 
ended 31/03/2005	
Property 
development
RM’000	
Leisure &
Tourism
RM’000	

Trading
RM’000	Investment
Holding 
and others
RM’000	

Consolidated
RM’000	
						
Revenue						
External sales	30,152	83,739	26,094	979	140,964	

Results						
Segment (loss) / profit	(6,025)	13,055	            790	(10,036)	         (2,216)        	
Depreciation	(652)	(9,816)	     (88)	  (549)	         (11,105)	
Segment result	(6,677)	3,239	      702      	(10,585)	         (13,321)	
Interest income					              189	
Interest expenses					(46,039)	
Share of associated results					                77	
Taxation					              (250)	
						
Loss after taxation					(59,344)	

Segment by geographical 

Current financial year 
ended 31/03/2005	
Malaysia
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	128,870	12,094	-	140,964	

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 March 2005

A10.	Material subsequent events

There were no material subsequent events from 31 March 2005 to 20 May 2005.(the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report),except as disclosed in A11.

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 ended 31 March 2005,except the following:

On 29 April 2005 the company has subscribed for an additional of 1,790,000 ordinary share of RM1.00 each for total consideration of RM1,790,000 in First Travel and Tour (M) Sdn Bhd (“FTT”),a subsidiary of the company .The company share holding interest in FTT has increase to 95.69% after the subscription. This acquisition has no material impact on the Group financial statement as at 31 March 2005.

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 March 2005 (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 140.9 million for the financial year ended 31 March 2005 compared to RM 97.6 million for the preceding financial year ended 31 March 2004. It represents an increase of 44.4% over the previous financial year .The improvement was mainly derive from Group leisure & tourism segment and property development segment.

For the year ended 31 March 2005 ,the Group recorded a higher pre tax loss of RM 59.1 million compared to RM 58.2 million in previous financial year . There is no significant difference from previous financial year 
		
In the opinion of the Directors, the results for the current quarter and financial year end have not been affected by any transaction or event of a material and unusual nature which has arisen between 31 March 2005 and 20 May 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 12.5 million to RM 23.2 million, an increase of 10.7 million.This is mainly due to increase in finance cost and higher operation 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 March 2005

B3.	Current Year Prospects

The Group continue to experience growth in leisure & tourism industry and property development sector. Hence the Group is optimistic that barring any unforeseen circumstances, the Group would continue to benefit from these two industries. Concurrently the Group have continue to focus on the Asset Securitisation Programme and  Proposed Extension and Restructuring of the RM420 million nominal value of zero-coupon redeemable secured bonds 2001/2005 maturing in November 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 ended 31 March 2005 are as follows:

Tax Charge	Current Quarter
RM’000	Current Financial Year
RM’000	
Current quarter / year provision	245	                          255	
Under / (Over) provision in previous year	-	                          (5)	
Transfer to / (from) deferred taxation	-	                           -	
Total	245	                          250	

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 ended 31 March 2005, 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 ended 31 March 2005 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 20 May 2005 ( the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report)
	
(A)	On 31 March 2005, Karambunai Corp Bhd (“KCB”) announced to Bursa Malaysia that it had entered into the following:

1.	Appointment of Affin Merchant as the principal adviser and lead arranger for the proposed asset securitisation programme and principal adviser to the proposed extension and restructuring of the existing RM420 million nominal value zero-coupon redeemable secured bonds (Bonds 2001/2005).

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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 March 2005

2.	The proposed asset securitisation programme would involve an asset backed securitisation exercise of approximately RM1.04 billion to raise proceeds of about RM200 million from the issuance of approximately RM200 million nominal value of Senior Notes and approximately RM840 million nominal value of Junior Notes repayable over a period of seven (7) years, subject to finality of the terms and conditions acceptable to both parties (“Asset Securitisation Programme”) pursuant to the propose Asset Securitisation Programme.

3.	KCB and Abrar Discounts Berhad (“ADB”) had on 31 March 2005 entered into the Head of Agreement (“HOA”) which outline the principal terms and conditions in relation to the proposed extension and restructuring of the existing RM420 million nominal value zero-coupon redeemable secured bonds (2001/2005) (“2001/2005 Bond”) of which ADB is the sole holder.

				The salient terms of the restructuring involves:
				
Settlement of RM 437 million to be satisfied by cash payment of RM110 million and the balance of RM327 million to be satisfied by issuance of redeemable secured loan stock (“RSLS”)within 5 years repayment.

(B)	On 8 April 2005, KCB announced that the Bonds 2001/2005 shall mature and is due for redemption on 11 April 2005, an application to the Securities Commission for the proposed extension was made on the same day pursuant to the HOA for the restructuring of the Bonds 2001/2005 signed between KCB and ADB (the sole bondholder) on 31 March 2005.

B9.	Borrowings and Debt Securities

 (a)	Short Term Borrowings	RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	18,133	
	Term Loan	69,791	
	Revolving Credits	17,000	
	Bank Overdraft	24,794	
			
	Unsecured		
	Bank Overdrafts	65	
	Hire Purchase Creditors	2,712	
			
	Total	132,495	
			
(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	5,100	
			
	Unsecured		
	Hire Purchase Creditors	583	
			
	Total	5,683	

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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 March 2005

B10.	Off Balance Sheet Financial Instruments

As at 20 May 2005, 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 for the current quarter and financial year ended 31 March 2005.

B13.	(Loss)/ Earnings Per Share	
					
Basic (loss)/ earnings per share

 	Current
Quarter ended
31/03/2005
RM’000	Comparative
Quarter ended
31/03/2004 
RM’000	Financial Year 
ended
31/03/2005
RM’000	Financial
Year
 ended
31/03/2004
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(22,864)	
(17,784)	
(58,652)	
(57,035)	
					
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	

Page 10

KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 31 March 2005

Fully diluted (loss)/ earnings per share

The effect on the diluted loss per share for the current quarter and financial year ended 31 March 2005 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           
27 May 2005

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