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

Interim Financial Report on Consolidated Results for The Period Ended 30 September 2003

A. 	NOTES REQUIRED UNDER MASB 26

A1 	Accounting Policies

The interim financial report is unaudited and has been prepared in compliance with MASB 26, Interim Financial Reporting and Chapter 9 part K of the Listing Requirements of Kuala Lumpur Stock Exchange.

The interim financial report should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2002.

The accounting policies and methods of computation used in the preparation of this   interim financial report are consistent with those adopted in the Annual Financial Report for the financial year ended 31 December 2002.

A2.	Qualification of the Financial Accounts	

The audit report of the Group’s preceding year financial statements for the year ended 31 December 2002 was an unqualified opinion.

A3.	Seasonal or Cyclical Factors

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

A4.	Unusual Items Affecting Interim Financial Report

	There were no unusual items affecting assets, liabilities, equity, net income or cash flow during the current quarter under review.

A5.	Changes in Estimates

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

A6. 	Debts and Equity Securities

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

A7.	Dividend Paid

No dividend was paid during the current financial quarter.

A8.	Segmental Information for the Third Quarter and Financial period ended 
	30 September 2003

Revenue	Profit/(Loss) before Tax	
------------------ 3 months ended 30 September 2003 -------------	
	2003
RM’000	2002
RM’000	2003
RM’000	RM2002
RM’000	
Manufacturing	5,822	4,746	1,056	1,049	
Construction	6,414	6,259	21	(344)	
Transportation	898	641	89	1	
Others	370	0	(73)	(165)	
Total	13,504	11,646	1,093	541	

Revenue	Profit/(Loss) before Tax	
-----------------9 months ended 30 September 2003 --------------	
	2003
RM’000	2002
RM’000	2003
RM’000	RM2002
RM’000	
Manufacturing	16,241	13,280	3,126	2,321	
Construction	18,936	19,673	(317)	(164)	
Transportation	2,450	1,941	133	27	
Others	370	0	(303)	(384)	
Total	37,997	34,894	2,639	1,800	

A9.	Valuation of Property, Plant and Equipment

The valuation of Group’s landed properties, plant and equipment has been brought forward, without amendment from the previous annual financial statements.

A10.	Material Subsequent Events

There are no material events subsequent to the current financial period ended 30 September 2003 which are likely to substantially affect the result of the operations of this group.

A11.	Changes in Composition of the Group

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

A12.	Changes in Contingent Liabilities or Assets

There are no material changes in the contingent liabilities or assets of the Group since the last balance sheet date.

B.	  ADDITIONAL INFORMATION - THE KLSE LISITNGREQUIREMENTS

B1.	Review of Performance 

For the third quarter of 2003 under review, the Group turnover and profit before tax have increased by RM 1.86 million and RM 0.55 million respectively as compared to the corresponding period last year. The increase was mainly due to the increase in turnover of the industrial gas division, which had better profit margin.

For the nine months ended 30 September 2003, the Group recorded an increase in turnover and profit before tax by RM 3.10 million and RM 0.84 million respectively. The increase is attributable to the higher demand from the Oil and Gas industry.  

B2.	Comparison with preceding quarter’s result

Group Results	Current quarter ended 30/09/2003
RM’000		Preceding quarter ended 30/06/2003
RM’000	
Turnover	13,504		13,020	
Net Profit Before Taxation	 1,093		1,001	

The Group’s turnover and profit before taxation have increased by RM0.48 million (3.72%) and RM0.09 million (9.19%) respectively as compared to the last quarter.  The increase in turnover was mainly due to increase in demand of industrial gases by the shipbuilding and oil & gas industry.

B3.	Current Year Prospects 

Barring any unforeseen circumstances, the Group is expected to achieve better results for the financial year ended 31 December 2003 as compared to the financial year ended 31 December 2002.

B4.	Profit Forecast

	The company has not provided any profit forecast in a public document.

B5.	Taxation

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. 

B6.	Unquoted investment and Properties
					
	There were no profits/losses on sale of unquoted investments and properties for the current quarter and financial year to date.

B7.	Quoted Investment
					
(a)	There were no purchases or disposals of quoted securities for the current financial year to date.

(b)	Total Investments in quoted securities as at 30 September 2003:
			
								      30 September 2003				 						RM’000
(i)	Total investment at cost		    	     464
								=======
(ii)	Total investment at carrying
	value/book value (after provision 
	for diminution in value)			    184
								=======

(iii)	Total investment at market value
	@ 30/09/2003	                        			      51
								=======

(iv)	Shortfall in value (ii) – (iii)			    133
								=======
	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.

B8.	Status of Corporate Proposal 

There were no corporate proposals announced but not completed as at the date of issue of these interim financial statements other than: -
	
The following proposal announced by the Company on 29 August 2002 has been approved by Securities Commission (“SC”) vide its letter dated 3 December 2002 and Foreign Investment Committee (“FIC”) vide its letter dated  20 November 2002: -

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”).

B9.	Group Borrowings and Debt Securities

              a) Short Term Borrowings

              b) Long Term Borrowings

	 ** Note: For term loans repayable within 1 year – include under short-term borrowings.

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

B10.	Off Balance Sheet Financial Instruments

The Group did not have any financial instruments with off balance sheet risk at the date of issue of these interim financial statements.

B11.	Changes in Material Litigation

There was no material litigation as at the date of issue of these interim financial statements.

B12.	Dividend

No dividend has been proposed or declared for the current quarter.

B13. 	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 B8 above.

B14.	EARNINGS PER SHARE