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

1.	ACCOUNTING POLICIES AND METHODS OF COMPUTATION

The interim financial report is unaudited and has been prepared in compliance with MSDB 26, Interim Financial Reporting.

The interim financial report should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2001.

The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the financial statements for the year ended 31 December 2001.

The following notes explain the events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the financial year ended 31 December 2001.

2.	AUDIT REPORT FOR THE PRECEDING ANNUAL FINANCIAL STATEMENTS

The audit report on the financial statements for the year ended 31 December 2001 was an unqualified opinion.

3.	SEASONAL OR CYCLICAL FACTORS

The business of the Group was not affected by any significant seasonal or cyclical factors.

4.	ACTUAL AND AMOUNT OF ITEMS AFFECTING ASSETS, LIABILITIES, EQUITY, NET INCOME, OR CASH FLOWS THAT ARE UNUSUAL BECAUSE OF THEIR NATURE, SIZE OR INCIDENCE

	There were no unusual items during the current periods under review.

5.	NATURE AND AMOUNT OF CHANGES IN ESTIMATES OF AMOUNTS REPORTED IN PRIOR INTERIM PERIODS OF THE CURRENT FINANCIAL YEAR, WHICH GIVE A MATERIAL AFFECT IN THE CURRENT INTERIM PERIOD

	There were no changes in the nature or amount of estimates reported in prior interim periods of the current financial year or in estimates reported in prior financial year that have a material effect in the current periods under review.

6.	ISSUANCES, CANCELLATIONS, REPURCHASES, RESALE AND REPAYMENTS OF DEBT AND EQUITY SECURITIES

There were no debt and equity securities issued, cancelled, repurchased, resold or repaid during the current periods under review.

7.	DIVIDENDS

No dividend has been paid, proposed or declared during the current period under review.

8.	SEGMENTAL INFORMATION

Revenue	Profit/(Loss) before Tax	
------------------------	3 months ended----------------------------	
	2002
RM’000	2001
RM’000	2002
RM’000	RM2001
RM’000	
Industrial gases, welding equipment and general trading	4,828	5,214	917	271	
Ready mixed concrete, cement products and stones	6,177	6,654	(336)	(13)	
Transportation	641	727	1	5	
Property Development	-	-	(41)	(3)	
Total	11,646	12,595	541	260	

Revenue	Profit/(Loss) before Tax	
------------------------	9 months ended----------------------------	
	2002
RM’000	2001
RM’000	2002
RM’000	RM2001
RM’000	
Industrial gases, welding equipment and general trading	
13,673	
15,491	
2,047	
1,586	
Ready mixed concrete, cement products and stones	19,280	16,716	(191)	(52)	
Transportation	1,941	1,979	27	(31)	
Property Development	-	-	(83)	(3)	
Total	34,894	34,186	1,800	1,500	

9.	VALUATION OF PROPERTY, PLANT AND EQUIPMENT

The valuation of lands and building has been brought forward, without amendment from the previous annual report.

Land and building of the Group with carrying value of RM4.395 million are charged to a financial institution for an overdraft facility granted to the Company.

10.	MATERIAL EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE

There are no material events subsequent to the end of the current periods under review.

11.	CHANGES IN COMPOSITION OF THE GROUP

There are no material changes in the composition of the Group during the current periods under review.

12.	CHANGES IN CONTINGENT LIABILITIES OR ASSETS

There are no material changes in the contingent liabilities or assets of the Group since the end of the previous financial year.

13.	REVIEW OF PERFORMANCE 

For the third quarter of 2002, the Group recorded a pre-tax profit of RM0.54 million as compared to pre-tax profit of RM0.26 million for the same period last year.  The increase in profitability is mainly due to higher profit margin received from the industrial gas division.

14.	VARIATION OF RESULTS AGAINST PRECEDING QUARTER 

Group Results	Current quarter ended 30/09/2002
RM’000		Preceding quarter ended 30/06/2002
RM’000	
Turnover	11,646		12,297	
Net Profit Before Taxation	541		854	

For the period under review, the Group’s turnover registered a decrease of RM0.651 million or 5% whereas the profit before tax registered an decrease of RM0.31 million or 37% as compared to the last quarter.  The decrease in turnover is mainly due to slow down of projects implemented in Sabah as a result of shortage of construction worker during the current quarter.

15.	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.

16.	PROFIT FORECAST 

	Not applicable as the Group is not subjected to profit guarantee

17.	TAX EXPENSES

The breakdown of taxation is as follows:-

	Individual Quarter		Cumulative Quarter	
	Current Year Quarter 
30 Sep 02		Preceding Year Quarter 
30 Sep 01		Current Year To Date 
30 Sep 02		Preceding Year To Date 
30 Sep 01	
	RM’000		RM’000		RM’000		RM’000	
Current taxation								
  Malaysian taxation								
  - Based on profit for the period	(10)		(5)		7		18	
  -  Over provision in respect of prior period	-		-		-		-	
								
Deferred taxation								
  -  Under provision in respect of prior period	-		-		-		-	
								
	(10)		(5)		7		18	

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. 

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

19.	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:

								      30 September 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
	@ 30/09/2002					    56
								=======

(iv)	Shortfall in value (ii) – (iii)			    408
								=======
	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.

20.	STATUS OF CORPORATE PROPOSAL ANNOUNCED

The Company has announced and submitted the following proposals to the relevant authorities for approval:
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”).

NOTES TO THE ACCOUNTS:-

21.	GROUP BORROWINGS AND DEBT SECURITIES

(a)	SHORT TERM BORROWINGS

	RM’000	
Secured
  Bank Overdrafts
  Revolving Credit
  Term Loans
	
2,336
3,300
1,228	
Unsecured
  Bank Overdrafts
  Revolving Credits
  Bankers’ acceptance
  Term loans	
7,281
5,405
2,321
600	
	22,471	

(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)	
1,228
4,982

600
1,800
8,610
1,828
6,782	
			
None of the Group’s borrowings as at the financial year to date are denominated in foreign currency.

22.	OFF BALANCE SHEET FINANCIAL INSTRUMENTS

The Group did not have any financial instruments with off balance sheet risk as at 20 November 2002 (the latest practicable date which is not earlier than 7 days from the date of issue of this quarterly report).

23.	CHANGES IN MATERIAL LITIGATION

There were no material litigation at the latest practicable date.

24.	EARNINGS PER SHARE

Basic	Current quarter
Ended 30.09.2002	
Net profit attributable to ordinary shareholders (RM’000)		
Number of ordinary shares in issue as of 1 July 2002	19,218,000	
Effect of shares issued in the quarter	-	
Weighted average number of ordinary shares in issue	19,218,000	
Basic earnings per ordinary share (sen)	9.33	
		
Diluted		
Net profit attributable to ordinary shareholders (RM’000)		
Weighted average number of ordinary shares in issue	19,218,000	
ESOS:		
   Weighted average number of unissued shares	-	
   Weighted average number of share that would have been issued at fair value	-	
Adjusted weighted average number of ordinary shares for calculating diluted earnings per ordinary share	19,218,000	
Diluted earnings per ordinary share (sen)	9.33