B. I. G. INDUSTRIES BERHAD (195285-D)
(Incorporated in Malaysia)

1.	ACCOUNTING POLICIES

	The quarterly financial statements have been prepared based on accounting policies and methods of computation consistent with those adopted in the 31 December 2000 Annual Report.

2.	EXCEPTIONAL ITEM

	There were no exceptional items during the current quarter.

3.	EXTRAORDINARY ITEM

	There were no extraordinary items during the current quarter.

4.	TAXATION

The breakdown of taxation is as follows:-

	Current Quarter
RM’000	Year-to-date
RM’000	
Current year taxation	(6)	17	
Prior years adjustments	-	-	
Taxation of associated companies	-	-	
Deferred taxation	-	-	
Total Taxation	(6)	17	

The effective tax rate for the current quarter and financial year-to-date is lower than the statutory rate as certain wholly owned subsidiary of the Company has sufficient reinvestment allowance and capital allowances to offset taxable profit. 

5.	PRE-ACQUISITION PROFITS

	There were no pre-acquisition profits during the current quarter.

6.	DISPOSAL OF INVESTMENTS OR PROPERTIES

	There was no disposal of investments or properties during the current quarter.

7.	QUOTED INVESTMENTS
					
(a)	There was no purchases or disposals of quoted securities for the current financial period to date.

(b)	Investments in quoted shares as at end of reporting period are set out below:
														 						RM’000
(i)	Total investment at cost		    	     464
								=======
(ii)	Total investment at carrying
	value/book value (after 
	provision for diminution in 
	Value					 	    464
								=======

(iii)	Total investment at market value
	@ 30/09/2001					    142
								=======

(iv)	Shortfall in value (ii) – (iii)			    322
								=======
	The shortfall in value is deemed to be temporary in nature and the Directors are at the view that provision for diminution is not necessary.

8.	CHANGES IN THE COMPOSITION OF THE COMPANY

There is no change in the composition of the Company during the current quarter

9.	CORPORATE PROPOSALS

Not applicable.

10.	SEASONAL OR CYCLICAL FACTORS

The business operations of the Group are not materially affected by any seasonal or cyclical factors.

11.	CHANGES IN SHARE CAPITAL

There is no movement in share capital for the current financial year to date.

12.	GROUP BORROWINGS AND DEBT SECURITIES

(a)	SHORT TERM BORROWINGS

	RM’000	
Secured	19,356	
Unsecured	5,016	
	24,372	

(b)	LONG TERM BORROWINGS

	RM’000	
Term Loan	9,000	

None of the Group’s borrowings as at the financial year to date are denominated in foreign currency.

13.	CONTINGENT LIABILITIES

	RM’000	
Corporate guarantees given to financial institutions for credit facilities provided to subsidiary and associated companies	
28,953	

14.	OFF BALANCE SHEET FINANCIAL INSTRUMENTS

No off balance sheet instruments are utilized for the current financial period under review.

15.	MATERIAL LITIGATION

There is no material litigation at the latest practicable date.

16.	SEGMENT INFORMATION

By activity

Turnover
(RM’000)		Profit/(loss) before taxation (RM’000)		Total assets employed (RM’000)	
Industrial gases, welding equipment and general trading	15,491		1,584		45,946	
Ready mixed concrete, cement products and stones	16,716		(52)		33,252	
Transportation	1,979		 (31)		914	
	34,186		1,501		80,112	

17.	MATERIAL CHANGE IN PROFIT

Group Results	Current quarter ended 30/09/2001
RM’000		Preceding quarter ended 30/06/2001
RM’000	
Turnover	12,596		11,370	
Net Profit Before Taxation	260		724	

For the period under review, the Group’s turnover registered an increase of RM1.226 million or 11% whereas the profit before tax registered a decrease of RM0.464 million or 64% as compared to the last quarter.  The increase in turnover is mainly due to several projects secured under the ready mixed concrete division which has started to take off.  

Lower profit was achieved during the third quarter due to lower profit margins received from sale of ready mixed concrete as well as increased in the overhead and administration costs.

18.	REVIEW OF PERFORMANCE FOR THE CURRENT QUARTER

For the third quarter of 2001, the Group recorded a pre-tax profit of RM0.26 million as compared to pre-tax loss of RM0.14 million for the same period last year.  The increase in profitability is mainly due to increase in turnover as compared to previous year.  

19.	CURRENT YEAR PROSPECTS

Barring any unforeseen circumstances, the Group is expected to achieve better results for the financial year ended 31 December 2001 as compared to the financial year ended 31 December 2000.

20.	VARIANCES

	Not applicable as the Group is not subjected to profit guarantee

21.	DIVIDEND

No dividend has been declared for the period under review.