Announcement of Quarterly Results to KLSE

Notes to the Accounts:

1	Accounting Policies
There have been no changes to the accounting policies and methods of computation in these quarterly financial statements as compared with the most recent annual financial statements except for the translation of the revenue and expense items of the foreign subsidiaries which have been translated at average rate for the quarter to conform with the MASB 6.

The effect as a result of the change in the above accounting policy is not material to the Group results and as such does not warrant separate disclosure.

The Group has adopted the MASB 1 to MASB 13, which are applicable to the Group, and these have been reflected in the financial statements.

2	Exceptional Items
There were no exceptional items in these quarterly financial statements.

3	Extraordinary Items
There were no extraordinary items in these quarterly financial statements.

4	Taxation
Taxation for the current financial period were as follows:
	Individual Quarter
Current Year Quarter
31/1/2001
RM’000	Cumulative Quarter
Current Year To Date
31/1/2001
RM’000	
- Taxation for the current financial period to date	(8,526)	5,512	
- Transfer (from)/to deferred taxation	689	689	
- Share of taxation of associated companies	-	(101)	
- Over provision of taxation in previous years	(9,431)	(19,124)	
	(17,268)	(13,024)	

5	Pre-acquisition Profit
There were no pre-acquisition profits for the current financial period.

6	Profit on sale of Investments and/or Properties
	Total profits on sale of investments by the Group for the current financial period was RM15.2 million.
	There was no sale of properties for the current financial period.
7	Purchase / Disposal of Quoted Securities
(a) 	There were purchases of quoted securities by the Group other than the stockbroking and financial institution subsidiaries for the current financial year to date amounting to RM 11,143,401.

(b) 	Total investments in quoted securities by the Group other than the stockbroking and financial institution subsidiaries as at 31 January 2001 were as follows:-
	   RM’000	
Quoted securities, at cost	34,751	
Less : Provision for diminution in value		  (  20,185)	
Quoted securities, at book value	     14,566	
		
Market value of quoted securities	  14,785  	

8	Changes in the Composition of the Group
During the current financial period to date:

a)	The Company disposed its 100% equity interest in TA Ventures Sdn. Bhd., for a total cash consideration of RM2, to TA Properties Sdn. Bhd., a wholly owned subsidiary incorporated in Malaysia.

b)	Shore Holdings Investment Limited, a wholly owned subsidiary incorporated in The British Virgin Islands, issued 5,000 new units of 5,000% fixed cumulative redeemable preference shares of RM1 each at par, at a premium of RM999 each, to a third party. Subsequently, the same preference shares were fully redeemed at par together with a redemption premium of RM999 each.

c)	The Company acquired 100% equity interest in TA Dotcom Sdn. Bhd. (formerly known as Botly Asset Management Sdn. Bhd.), a company incorporated in Malaysia, from the existing shareholders, both of which are directors of a subsidiary, for a total purchase consideration of RM2.

d)	The Group disposed its entire effective equity interest of 100% in TA Securities South Africa Limited (TASSA), a subsidiary incorporated in South Africa, for a total sales consideration of RM0.8 million,  which resulted in neither a gain or loss.  The disposal indirectly resulted in TAS Nominees (Pty) Ltd., a subsidiary incorporated in South Africa, ceasing to be a subsidiary of the Group as TASSA held 100% equity interest in TAS Nominees (Pty) Ltd.

e)	The Group disposed its entire effective equity interest of 49% in PT Meridian Capital Indonesia (formerly known as PT TA Ongko Securities), a company incorporated in Indonesia, for a total sales consideration of RM1.9 million, which resulted in a loss of RM609,000.

f)	TA Properties Sdn Bhd, a wholly owned subsidiary incorporated in Malaysia acquired the remaining 20% equity interest in both TA First Credit Sdn Bhd and Power Launch Sdn Bhd from the existing shareholders for a total cash consideration of RM2 each respectively.   As a result, TA First Credit Sdn Bhd and Power Launch Sdn Bhd  became 100% wholly owned subsidiaries of  TA  Properties Sdn Bhd.

g)	TA Hotel Sdn Bhd, TA Leisure Management Sdn Bhd and Sasaran Cerah Sdn Bhd, all of which are dormant companies, has been gazetted to be struck-off from the Register.

9	Status of Corporate  Proposals
All corporate proposals announced have been completed at the date of this quarterly report except for the followings:-
a)	partially completed Special Issue first implemented in 1997;
b)	disposal of TA Bank of Philippines, an associated company incorporated in the Republic of the Philippines;
c)	exit plan of TA Bank of South Africa Limited, a subsidiary incorporated in South Africa;
d)	acquisition of the entire effective equity interest of 100% in FA Securities Sdn. Bhd., a company incorporated in Malaysia;
e)	acquisition of the entire effective equity interest of 100% in Kota Bharu Securities Sdn. Bhd., a company incorporated in Malaysia.

10   Seasonal or Cyclical Factors
The Group’s operations are not affected by any seasonal or cyclical factors other than the volatility in the trading volume on the KLSE.

11	Issuance and repayment of Debt and Equity securities
During the current financial period to date, 1,933 units of  1999/2004 warrants were converted to ordinary shares at RM1.00 each.

12	Group Borrowings and Debt Securities
	Total Group borrowings as at 31 January, 2001 were as follows:-
			Secured	Unsecured			RM’000	  RM’000
Long Term Loans
	Term loans	6,400	-
	Foreign currency loan	191,667	62,963					
Short Term Borrowings
Bank overdrafts	6,879	38		
Revolving credits	180,000	-		
Term loans	1,600	-			Foreign currency loans	3,168
	
			191,647	38		
	  Denomination of foreign currency loans: -
			Secured 	Unsecured
			RM’000	  RM’000
	Long Term Loans
		C$ 	50,323,196	126,513	-
		C$    	        376,960	948	-
		A$  	31,112,378	64,206	-
		Rand 	129,874,300	-	62,963
	
			191,667	62,963

			Secured 	Unsecured
			RM’000	  RM’000

	Short Term Borrowings
		C$ 	731,325	1,838	-
		C$ 	 529,016	1,330	-

			3,168	-

The secured foreign currency loan of C$51,054,521 (RM128,351,065 equivalent), which long-term portion amounting to C$50,323,196 (RM126,512,515 equivalent) and short-term portion amounting to C$731,325 (RM1,838,551 equivalent), is repayable in full upon maturity on 5 December, 2005.  The interest rate of 7.59% per annum is compounded semi-annually and repayable monthly. The foreign currency loan is secured against a freehold building which is located in Canada and against the assignment of rentals from the said building.

The secured foreign currency loan of C$905,976 (RM2,277,623 equivalent), which long-term portion amounting to C$376,960 (RM947,677 equivalent) and short-term portion amounting to C$529,016 (RM1,329,946 equivalent),  is repayable in full in two payments upon maturity on 1 June, 2001 and 1 April, 2010 respectively.  The loan bears interest at 8.75% - 9.00%.  This foreign currency loan is secured by a demand collateral mortgage on certain development property and against the assignment of future rentals of the developed property.

The unsecured foreign currency loan is in the form of 150 million discounted irredeemable convertible unsecured debentures issued by a foreign subsidiary at a total face value of Rand150,000,000 (RM72,720,000 equivalent) of Rand1 each.  The debentures are discounted at 15.80% per annum and are convertible into ordinary shares in the foreign subsidiary on 31 October, 2002 in the same proportion as each Rand1 debenture bears to the net asset value per ordinary share at the time of conversion.  This amount includes interest which has been accrued annually and is payable in full at the time of the conversion of the debentures.

13  Contingent Liabilities
			 RM’000
Guarantee issued by a foreign subsidiary to a financial institution 
    in respect of credit facilities granted to a fellow subsidiary		82,548		Guarantee issued by a foreign subsidiary on behalf of its customers		242	

14	Off Balance Sheet Financial Instruments
TA First Credit Sdn Bhd (TAFC) had on 9 February, 2001 entered into a call and put options for TAFC to sell 19,473,294 shares and 12,982,196 warrants of PJ Development Holdings Berhad (PJD) to a client. The options are exercisable for a  one year period from 7 November, 2000.
TAFC are exposed to market risks on the prices of the PJD shares and warrants in the event the options are not completed.
The quoted securities are stated in the accounts at the lower of cost and market value. 

15	Material Litigation
The following constitutes the material litigation exposure of the Group where legal action is at various stages of proceedings.  
		Legal action against		Legal action by 
			third parties	third parties
		   	RM’000	RM’000
a. 	TA Securities Berhad	741,755	428,000
b. 	TA First Credit Sdn. Bhd.	145,296	-
c. 	TA Properties Sdn. Bhd.	-	6,116
d. 	Binaprestij Maju Sdn. Bhd.	12,507	6,250
	
The legal action by third parties against TA Securities Berhad  relates to the following:

Omega Holdings Berhad and Omega Securities Berhad have instituted a RM428 million and RM391 million civil suits respectively against TA Securities Berhad on a similar subject matter.  Our lawyers are of the opinion that both claims are completely unfounded and we have applied to court to strike out the Writ of Summons and Statement of Claim.

16	Segmental Information
	Analysis by activity:-

	Turnover	Profit/(Loss)
Before Taxation	Total Assets Employed	
	RM’000	RM’000	RM’000	
Stockbroking and related services	299,095	138,091	1,691,956	
Investment holding	36,545	(41,742)	2,649,904	
Banking, finance and related services	31,565	196	542,174	
Property investment, construction,  				
  development and management	54,107	(48,858)	1,469,615	
Others	4,914	1,094	61,281	
	426,226	49,781	6,414,930	
Consolidation adjustments	(48,962)	(28,638)	(4,054,784)	
	377,264	21,143	2,360,146	

Analysis by geographical location:-
	Turnover	Profit/(Loss)
Before Taxation	Total Assets Employed	
	RM’000	RM’000	RM’000	
Malaysia	344,303	69,645	5,390,928	
Hong Kong	6,170	4,693	87,605	
Australia	27,725	(2,653)	344,615	
The Republic of The Philippines	-	109	5,699	
The Republic of South Africa	26,995	(14,872)	202,029	
Canada	20,908	(1,795)	244,788	
The British Virgin Islands	125	(5,999)	136,400	
Sri Lanka	-	653	2,866	
	426,226	49,781	6,414,930	
Consolidation adjustments	(48,962)	(28,638)	(4,054,784)	
	377,264	21,143	2,360,146	

17	Materials Changes in the Quarterly Results 
The Group suffered a pre-tax loss of RM18.1 million for this quarter compare to the pre-tax loss of RM31.7 million for previous quarter. The reduced loss in this quarter was mainly attributable to the  unrealised foreign currencies translation gain in this quarter.  

18	Review of performance of the Company and its Principal Subsidiaries
The Group’s financial performance has declined in this quarter as compared to the same quarter of the previous financial period.  

The Group recorded a turnover and profit before taxation of RM377.3 million and RM21.1 million respectively for the current financial period whereas for the financial period ended 31 January 2000, turnover and profit before taxation were RM498.4 million and RM146.0 million respectively.  This decrease was mainly due to the unrealised foreign currencies translation losses relating to advances to the Group’s overseas subsidiaries. The performance of the Group was further aggravated by the reduction in brokerage rates and the adverse stock market conditions on the KLSE.

19	Prospects for the Current Financial Period
Current year prospects are closely linked to the performance of the KLSE and the Malaysian economy.  Any increase in volume and value of turnover on the KLSE will have a positive effect on the Group.  However, the proposed further reduction in brokerage rates on 1 July 2001 may affect the performance of the Group for the following  financial period.

20	Variance of Actual Profit from Forecast Profit
Not applicable.

21	Dividend
A final dividend of 1 sen per share less 28% income tax for the financial year ended 31 January 2001 (2000: 1 sen less 28% income tax) has been recommended by the Directors for approval by shareholders at the forthcoming Annual General Meeting.  The date of payment of the recommended final dividend shall be determined by the Directors and will be announced at a later date.

BY ORDER OF THE BOARD		Kuala Lumpur
Khoo Poh Kim @ Kimmy (LS04542)	30 March 2001