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	3	24	
Prior years adjustments	-	-	
Taxation of associated companies	-	-	
Deferred taxation	41	41	
Total Taxation	45	65	

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
	@ 31/12/2001					    181
								=======

(iv)	Shortfall in value (ii) – (iii)			    283
								=======
	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	21,175	
Unsecured	5,015	
	26,190	

(b)	LONG TERM BORROWINGS

	RM’000	
Term Loan	6,429	

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	
32,619	

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	26,203		1,778		50,330	
Ready mixed concrete, cement products and stones	23,319		628		32,231	
Transportation	2,578		 (3)		1,048	
	52,100		2,403		83,609	

17.	MATERIAL CHANGE IN PROFIT

Group Results	Current quarter ended 31/12/2001
RM’000		Preceding quarter ended 30/09/2001
RM’000	
Turnover	17,914		12,596	
Net Profit Before Taxation	904		260	

For the period under review, the Group’s turnover registered an increase of RM5.318 million or 42% whereas the profit before tax registered a increase of RM0.6 million or 248% as compared to the last quarter.  The increase in turnover is mainly due to several projects secured under the Sabah Subsidiaries has started to take off.  

Higher profit was achieved during the forth quarter due to increase in the turnover.  

18.	REVIEW OF PERFORMANCE FOR THE CURRENT QUARTER

For the fourth quarter of 2001, the Group recorded a pre-tax profit of RM0.90 million as compared to pre-tax loss of RM0.004 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 2002 as compared to the financial year ended 31 December 2001.

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.

22.	MINIMUM SHARE CAPITAL OF RM40 MILLION PURSUANT TO THE KLSE LISTING REQUIREMENTS

The Company has yet to increase its paid up capital to RM40 million as required under the KLSE Listing Requirements as at the date of this report.  However, the Company is expected to fulfill the said requirement before the deadline of 31 December 2002.