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 30 June 02		Preceding Year Quarter 30 June 01		Current Year To Date 30 June 02		Preceding Year To Date 30 
June 01	
	RM’000		RM’000		RM’000		RM’000	
Current taxation								
  Malaysian taxation								
  - Based on profit for the period	3		12		17		23	
  -  Over provision in respect of prior period	-		-		-		-	
								
Deferred taxation								
  -  Under provision in respect of prior period	-		-		-		-	
								
	3		12		17		23	

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
	@ 30/06/2002					    137
								=======

(iv)	Shortfall in value (ii) – (iii)			    327
								=======
	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

The Company has announced the following proposals:
a)	Proposed renounceable two-call rights issue of 19,218,000 new ordinary shares of RM1.00 each in B. I. G. (“Rights Shares”) together with 19,218,000 free warrants (“Warrants”) on the basis of one (1) new ordinary share with one (1) free Warrant for every one (1) existing ordinary share held, at an indicative issue price of RM1.00 per Rights Share, whereby the first call shall be in the form of a cash payment and the second call to be capitalized from the retained profits and share premium reserves of the Company (“Proposed Rights Issue with Warrants”);
b)	Proposed bonus issue of 9,609,000 new ordinary shares of RM1.00 each in B. I. G. (“Bonus Shares”) on the basis of one (1) Bonus Share for every two (2) Rights Shares subscribed by the existing shareholders of B. I. G. and/or  their renounces pursuant to the Proposed Rights Issue with Warrants (“Proposed Bonus Issue”);
c)	Proposed establishment of an ESOS by the Company for the eligible directors and employees of the Company and its subsidiaries (“Group”) (Proposed ESOS”); and
d)	Proposed private placement of new ordinary shares of RM1.00 each in B. I. G. representing not more than 10% of the issued and paid-up share capital of the Company after the Proposed Rights Issue with Warrants and Proposed Bonus Issue (“Proposed Placement”).

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
  Revolving Credit
  Term Loans
	
1,080
3,300
1,686	
Unsecured
  Bank Overdrafts
  Revolving Credits
  Bankers’ acceptance
  Term loans	
7,502
4,695
5,016
600	
	23,879	

(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)	
1,686
5,208

600
1,800
9,294
2,286
7,008	
			
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	
32,322	

12.	OFF BALANCE SHEET FINANCIAL INSTRUMENTS

The Group did not have any financial instruments with off balance sheet risk as at 20 August 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
30 June 2002		As at
30 June 2002	

Turnover
(RM’000)		Profit/(loss) before taxation (RM’000)		Total assets employed (RM’000)	
Industrial gases, welding equipment and general trading	8,845		1,086		51,858	
Ready mixed concrete, cement products and stones	13,103		146		33,048	
Transportation	1,300		27		1,065	
	23,248		1,259		85,971	

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

Group Results	Current quarter ended 30/06/2002
RM’000		Preceding quarter ended 31/03/2002
RM’000	
Turnover	12,297		10,951	
Net Profit Before Taxation	854		405	

For the period under review, the Group’s turnover registered an increase of RM1.346 million or 12% whereas the profit before tax registered an increase of RM0.45 million or 111% as compared to the last quarter.  The increase in turnover is mainly due to several projects secured under the Sabah Subsidiaries has completed during the last quarter.  The increase in profit was mainly due to higher turnover contributed from the ready mixed concrete division.

16.	REVIEW OF PERFORMANCE FOR THE CURRENT QUARTER

For the second quarter of 2001, the Group recorded a pre-tax profit of RM0.85 million as compared to pre-tax profit of RM0.72 million for the same period last year.  The increase in profitability is mainly due to increase in turnover in the ready mixed concrete division.

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.

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 30 June 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 with the proposals as highlighted in item (8) above.