KARAMBUNAI CORP BHD (6461-P)
(Formerly known as FACB Resorts Berhad)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 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 2005.

A2.	Audit report of previous annual financial report

The audit report of the immediate preceding annual financial statements for the year ended 31 March 2005 was not qualified.

A3.	Seasonal or Cyclical Factors

The Group’s operations for the current quarter and the financial year-to-date were 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 previous financial years which have a material effect in the current quarter and the 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 the financial year-to-date.

A7.	Dividend Paid
	
	There were no dividends paid during the current quarter and the 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 30 June 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 main business segments of the Group comprises the following:

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 Quarter  
ended 30/06/2005	
Property 
development
RM’000	
Leisure &
Tourism
RM’000	

Trading
RM’000	Investment
Holding 
and others
RM’000	

Consolidated
RM’000	
						
Revenue						
External sales	7,585	18,266	8,310	262	34,423	

Results						
Segment (loss) / profit	2,037	2,809	            679	(1,718)	         3,807        	
Depreciation	(185)	(2,466)	     (14)	  (123)	         (2,788)	
Segment result	1,852	343	    665	(1,841)	       1,019	
Interest income					              1	
Interest expenses					(9,598)	
Share of associated results					                464	
Taxation					           (1,002)	
Loss after taxation					(9,116)	

Segment by geographical 

Current Quarter 
ended 30/06/2005	
Malaysia
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	26,113	8,310	-	34,423	

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 30 June 2005

A10.	Material subsequent events

There were no material subsequent events from 30 June 2005 to 26 August 2005 (being 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 the financial year-to-date, except for the following:

On 29 April 2005 the Company has subscribed for an additional of 1,790,000 ordinary shares of RM1.00 each for a total cash consideration of RM1,790,000 in First Travel and Tour (M) Sdn Bhd (“FTT”), a subsidiary of the Company. The Company’s equity interest in FTT has increased to 95.69% after the subscription. This acquisition has no material impact on the Group’s financial statement as at 30 June 2005.

On 13 June 2005 the Company has disposed 741,000 ordinary share of RM1.00 each representing its entire 30 % shareholding in FSBM Dapannet Sdn Bhd (“FSBM Dapannet”) to FSBM Holdings Berhad for a total cash consideration of RM261,034.21.The disposal of shares has no material impact on the Net Tangible Assets of the Group as at 30 June 2005. Announcement was made to Bursa Malaysia on 15 June 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 30 June 2005 (31 March 2005 : 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 34.4 million for the current quarter ended 30 June 2005 compared to RM 27.7 million for the preceding year’s corresponding quarter ended 30 June 2004, representing an increase of 24.2%.

For the current quarter ended 30 June 2005, the Group recorded a lower pre-tax loss of RM 8.1 million compared to RM 14 million same period last year. The improvement was mainly derived from the Group’s leisure & tourism segment and property development segment.

In the opinion of the Directors, the results for the current quarter and the financial year-to-date have not been affected by any transaction or event of a material and unusual nature which has arisen between 30 June  2005 and 26 August 2005 (the latest practicable date which is not more than 7 days from the date of this Quarterly 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 30 June 2005

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

For the current financial quarter, the Group registered a lower loss before tax of RM 8.1 million as compared to RM 23.2 million of immediate preceding quarter, representing an improvement of RM 15.3 million or 65%. This is mainly due to the reduction in finance cost and lower operational cost incurred in this quarter. 

B3.	Current Year Prospects

The Group continues to experience growth in the leisure & tourism segment and the property development sector. Hence the Group is optimistic that barring any unforeseen circumstances, the Group would continue to benefit from the performance of these two segments. 

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

B5.	Taxation

The breakdown of tax charge for the current quarter and year-to-date ended 30 June 2005 are as follows:

Tax Charge	Current Quarter
RM’000	Current year-to-date
RM’000	
Current quarter / year provision	456	                       456	
Under / (Over) provision in previous year	-	                          -	
Transfer to / (from) deferred taxation	546	                       546	

Total	---------------
1,002	                     -------------
                       1,002	
																	==========							=========

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

There were no material sales of unquoted investments or properties for the current quarter and the financial year-to-date, except as disclosed in A11.

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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 30 June 2005

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

B8.	Status of Corporate Proposals Announced But Not Completed as at 26 August 2005 (being 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 the following:

1.	Appointment of Affin Merchant Bank Berhad 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).

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 Proposed Asset Securitisation Programme.

3.	KCB and Abrar Discounts Berhad (“ADB”) had on 31 March 2005 entered into the Heads 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 Bonds”) of which ADB is the sole holder.

(B)	On 8 April 2005, KCB announced that, an application has been made to the Securities Commission (“SC”) for the proposed extension of the 2001/2005 Bonds pursuant to the HOA. The Proposed Extension is currently pending the approval of the SC.

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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 30 June 2005

B9.	Borrowings and Debt Securities

 (a)	
Short Term Borrowings	
RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	18,133	
	Term Loan	70,063	
	Revolving Credits	17,000	
	Bank Overdraft	25,516	
			
	Unsecured		
	Bank Overdrafts	104	
	Hire Purchase Creditors	2,393	
			
	Total	133,209	
			
(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	5,100	
			
	Unsecured		
	Hire Purchase Creditors	1,353	
			
	Total	6,453	

B10.	Off Balance Sheet Financial Instruments

As at 26 August 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, First Travel and Tours (M) Sdn. Bhd. (“FTT”) a subsidiary of the Company, 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 the 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 30 June 2005

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

 	Current
Quarter ended
30/06/2005
RM’000	Comparative
Quarter ended
30/06/2004 
RM’000	Current Year-to-date 
ended
30/06/2005
RM’000	Current
Year-to-date
 Ended
30/06/2004
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(9,130)	
(13,986)	
(9,130)	
(13,986)	

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 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           
26 August 2005

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