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

1.	GROUP’S ACCOUNTING POLICIES

There are no changes in the Group’s accounting policies and methods of computations used in this quarterly financial statements as compared with the most recent annual financial statements and are in compliance approved accounting standards in Malaysia. 

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:-

	Individual Quarter		Cumulative Quarter	
	Current Year Quarter 31 March 02		Preceding Year Quarter 31 March 01		Current Year To Date 31 March 02		Preceding Year To Date 31 March 01	
	RM’000		RM’000		RM’000		RM’000	
Current taxation								
  Malaysian taxation								
  - Based on profit for the period	14		11		14		11	
  -  Over provision in respect of prior period	-		-		-		-	
								
Deferred taxation								
  -  Under provision in respect of prior period	-		-		-		-	
								
	14		11		14		11	

The Group’s 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.	PROFIT/LOSS ON SALE OF INVESTMENTS AND/OR PROPERTIES

	There were no profit/loss on sale of unquoted investments and/or properties for the current quarter and financial year to date.

6.	QUOTED INVESTMENTS
					
(a)	There were 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:

								      31 March 2002				 						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
	@ 31/03/2002					    135
								=======

(iv)	Shortfall in value (ii) – (iii)			    329
								=======
	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.

7.	CHANGES IN THE COMPOSITION OF THE COMPANY

There were no changes in the composition of the Company during the current quarter

8.	CORPORATE PROPOSALS

There were no corporate proposals that have been announced by the Company but not completed as at the date of this announcement.

9.	EQUITY STRUCTURE

There were no issuance and repayment of debt and equity stocks, stock buy-backs, stock cancellations, stocks held as treasury stocks and resale of treasury stocks for the current financial year to date.

10.	GROUP BORROWINGS AND DEBT SECURITIES

(a)	SHORT TERM BORROWINGS

	RM’000	
Secured
  Bank Overdrafts
  Term Loans
	
4,753
2,058	
Unsecured
  Bank Overdrafts
  Revolving Credits
  Bankers’ acceptance
  Term loans	
4,835
8,345
4,354
600	
	24,945	

(b)	LONG TERM BORROWINGS

	RM’000	
Secured
  Within 1 year
  After 1 year

Unsecured
  Within 1 year
  After 1 year

Less : Amount repayable within 1 year (included under bank borrowings)	
2,058
5,531

600
1,800
9,989
2,658

7,331	
			
None of the Group’s borrowings as at the financial year to date are denominated in foreign currency.

11.	CONTINGENT LIABILITIES

	RM’000	
Corporate guarantees given to financial institutions for credit facilities provided to subsidiary and associated companies	
28,881	

12.	OFF BALANCE SHEET FINANCIAL INSTRUMENTS

The Group did not have any financial instruments with off balance sheet risk as at 27 May 2002 (the latest practicable date which is not earlier than 7 days from the date of issue of this quarterly report).

13.	MATERIAL LITIGATION

There were no material litigation at the latest practicable date.

14.	SEGMENT INFORMATION

By activity

Current Period To Date
31 March 2002		As at
31 March 2002	

Turnover
(RM’000)		Profit/(loss) before taxation (RM’000)		Total assets employed (RM’000)	
Industrial gases, welding equipment and general trading	3,894		372		50,761	
Ready mixed concrete, cement products and stones	6,399		1		32,035	
Transportation	658		32		1,082	
	10,951		405		83,878	

15.	MATERIAL CHANGE IN PROFIT BEFORE TAXATION (“PBT”) COMPARED TO THE RESULTS OF THE PRECEDING QUARTER

Group Results	Current quarter ended 31/03/2002
RM’000		Preceding quarter ended 31/12/2001
RM’000	
Turnover	10,951		17,914	
Net Profit Before Taxation	405		904	

For the period under review, the Group’s turnover registered a decrease of RM6.963 million or 39% whereas the profit before tax registered a decrease of RM0.5 million or 55% as compared to the last quarter.  The decrease in turnover is mainly due to several projects secured under the Sabah Subsidiaries has completed during the last quarter.  The decrease in profit was mainly due to lower turnover contributed from the industrial gas division which contributed higher profit margin.

16.	REVIEW OF PERFORMANCE FOR THE CURRENT QUARTER

For the first quarter of 2001, the Group recorded a pre-tax profit of RM0.40 million as compared to pre-tax profit of RM0.52 million for the same period last year.  The decrease in profitability is mainly due to decrease in turnover in the industrial gas division which contributed higher profit margin as compared to previous year.  

17.	MATERIAL EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE

There were no material events subsequent to the balance sheet date.

18.	SEASONAL OR CYCLICAL FACTORS

The Group performance is normally not affected by the seasonal and cyclical factor except during the first quarter whereby there is shorter production time due to the festive seasons and holidays.

19.	PROSPECTS FOR THE CURRENT FINANCIAL YEAR
	
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.

The Group’s industrial gas division was awarded the ISO 9001:2000 Quality Management System by Sirim on 21 March 2002.  This will be an added advantage for the division in its future undertakings.

20.	VARIANCE OF ACTUAL PROFIT FROM FORECAST PROFIT

	Not applicable as the Group is not subjected to profit guarantee

21.	DIVIDEND

No dividend is recommended for the quarter ended 31 March 2002.

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

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 Securities Commission guideline before the deadline of 31 December 2002.