KURNIA SETIA BERHAD (7770-D)
 Quarterly  Financial Report Ended 31.3.2000

Notes

1. 	Accounting Policies
There has been no change in the existing accounting policies and methods of computation in the financial statements, as compared to the most recent annual financial statements.

2. 	Exceptional Item       					   
      There was no exceptional item arising 		 

3. 	Extraordinary Item
There was no extraordinary item being incurred.

4. 	Taxation
The tax is paid to the IRA based on schedule for the current year, provided by the authority.

5. 	Pre-acquisition Profit
There is no pre-acquisition profit for the current financial year to date.

6. 	Profits On Sale Of Investment
There was no profit on sale of investment.

7. 	Quoted Securities
Investment in quoted shares as at 31.3.2000 are as follows:	                  RM

	At Cost								     894,309
	At Carrying Value							     388,721
	At Market Value						                524,975

8. 	Change In Composition Of The Group
There has been no change in the composition of the company.

9. 	Status Of Corporate Proposals
The Securities Commission has granted a 50 percent waiver on profit guaranteed by Kurnia Setia Development (previously known as PAMARA Sdn Bhd) and the balance would be settled by disposal of the security of 506,329 company’s shares held.

10. 	Seasonal Or Cyclical Factors
Hot and dry season may affect the group’s plantation production

11. 	Corporate Development
There were no issuance and repayment of debt and equity securities, share buy-backs, share cancellations, shares held on treasury shares and resale of treasury  shares for the current quarter under review.

12. Group Borrowings

Borrowings are as follows:
										RM

BANK OVERDRAFTS

Secured							                  8,669,234
Unsecured							     	      7,445,869
								                 16,115,103

BANKER ACCEPTANCE

      Interest rates						        10.30%-11.55%

TERM LOANS

Loan 1 (fully paid during the year)					        _
Loan 11 - GE Sunny Dale					                       89,341
Loan 111 - Sunny Dale Surface Treatment		                     183,151
								                     272,492
Repayable within next 12 months			                  	         (140,230)
								                     132,262
	 						
13. 	Contingent Liabilities
Corporate guarantee for Public Bank facilities 
granted to GE-Sunny Dale Industries Sdn Bhd			RM 400,000 	
Bank Guarantee							RM   11,000
      Total Amount Granted						RM 411,000

14. 	Financial Investments
There are no financial investments with off balance sheet risk as at the financial period under review.

15. 	Material Litigation
There is no material litigation pending during the financial period under review.

16. 	Segmental Reporting
All activities of the Group and Company are wholly carried out in Malaysia. The activities are:

				Turnover	Profit/Loss		Total Assets
						Before Taxation	Employed

			RM’000	RM’000		RM’000
Plantation			4,584	 	   536			138,804
Manufacturing			   280	 	  (225)	               	    4,429
Construction		 	  280	 	  (185)	                  	       320
Trading			   125	               (28)		       	       565
				5,270	 	    97			144,118
Consolidation adjustment    	  					(11,182)
				5,270	 	    97			132,936

17. 	Material Changes In Quarterly Results In Comparison With The Preceding Quarter.
Not applicable as the announcement of the preceding quarter’s result is  not required.

18. 	Review of Performance
Though the plantation sector  improves  in its production of oil palm but the downward trend  of the commodity prices has much affected the Group and company’s profit. All other sectors in the group suffered losses due to low sales in manufacturing and trading, and no new contract secured by the construction sector. The company has paid taxes according to schedule provided by the authority, that resulted in loss after tax. 

19. 	Current Year Prospects
Barring unforeseen circumstances, the Group’s prospect in the current financial year is expected to improve in line with improving national recovery.

20. 	Variance On Forecast Profit
 No profit forecast or profit guarantee is made in the financial period under   review.

21. 	Dividend
 No dividend has been declared or recommended.

By Order of the Board

SUZILAH HAJI WAHID (LS0585)
Company Secretaries
27 May 2000