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

Interim Financial Report on Consolidated Results for The Year Ended 31 December 2003

A. 	NOTES REQUIRED UNDER MASB 26

A1 	Accounting Policies

The interim financial report is unaudited and has been prepared in compliance with the Malaysia Accounting Standards (‘MASB’) Standard No. 26, “Interim Financial Reporting” and paragraph 9.22 of Malaysia Securities Exchange Berhad’s (“MESB” formerly known as “the Kuala Lumpur Stock Exchange”) Listing Requirements and should be read in conjunction with the Group’s annual financial statements for the year ended 31st December 2002.

The accounting policies and method 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 31st December 2002 except for the adoption of the following new MASB standards:

•	MASB Standard No. 25 “Income Taxes”
•	MASB Standard No. 29 “ Employee Benefits”

The adoption of MASB Standard No.25 has no impact on the net profit for the current year where all temporary differences are being recognized as prior year adjustment.

The adoption of MASB Standard No. 29 has no material impact on the earnings and net tangible assets of the Group.

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 preceding quarter of the current financial year or changes in estimates of amounts reported in prior financial year that have a material effect in the current quarter 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 Fourth Quarter and Financial year ended 
	31 December 2003

Revenue	Profit/(Loss) before Tax	
------------------ 3 months ended 31 December -------------	
	2003
RM’000	2002
RM’000	2003
RM’000	RM2002
RM’000	
Manufacturing	5,093	5,013	296	257	
Construction	6,520	5,517	563	400	
Transportation	843	703	(21)	1	
Others	2,499	-	220	205	
Total	14,955	11,233	1,058	863	

Revenue	Profit/(Loss) before Tax	
-----------------12 months ended 31 December --------------	
	2003
RM’000	2002
RM’000	2003
RM’000	RM2002
RM’000	
Manufacturing	21,334	18,293	3,422	2,578	
Construction	25,457	25,190	  246	236	
Transportation	3,292	2,644	  111	28	
Others	2,869	-	  (82)	(179)	
Total	52,952	46,127	3,697	2,663	

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 year ended 31 December 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 fourth quarter of 2003 under review, the Group turnover and profit before tax have increased by RM 3.72 million and RM 0.22 million respectively as compared to the corresponding period last year. The improvement was mainly due to the increase in turnover of the construction division and the marginal increase in profit was due to the slight drop in the margin of profit from construction division as against the gas division. Traditionally, the demand for industrial gas from the oil and gas industry is lower in the last quarter of the year.

For the twelve months ended 31 December 2003, the Group recorded an increase in turnover and profit before tax by RM 6.83 million and RM 1.05 million respectively. The increase is attributable to the higher demand from the Oil and Gas industry and better profit margin of all the gas products. 

B2.	Comparison with preceding quarter’s result

Group Results	Current quarter ended 31/12/2003
RM’000		Preceding quarter ended 30/09/2003
RM’000	
Turnover	14,955		13,504	
Net Profit Before Taxation	  1,058		  1,093	

The Group’s turnover and profit before taxation have increased by RM1.45 million (10.74%) and decrease by RM0.035 million (3.2%) respectively as compared to the last quarter.  The increase in turnover was mainly due to the revenue recognized by the property development section (under “Others” in B1). The marginal decrease in profit was due to the slight drop in demand for bulk gas which gives a higher profit margin.

B3.	Current Year Prospects 

Barring any unforeseen circumstances, the Board is satisfied with the financial result achieved for the year ended 31 December 2003 and continued to be optimistic that the Group’s performance in the coming year 2004 remain strong and positive with the measures taken to strengthen all the businesses sectors.

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 31 December 2003:
			
								      31 December 2003				 						RM’000
(i)	Total investment at cost		    	     464
								=======
(ii)	Total investment at carrying
	value/book value (after provision 
	for diminution in value)			       9
								=======

(iii)	Total investment at market value
	@ 31/12/2003	                        			       9
								=======

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

	
B8.	Status of Corporate Proposals

The following proposals announced by the Company on 29 August 2002 have 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”).

The company has completed its Corporate Proposals on item (a) and (b) at the date of this announcement.

The additional 19,218,000 and 9,609,000 new ordinary shares of RM1.00 each issued pursuant to the aforesaid Rights Issue with Warrants and Bonus Issue respectively has been granted listing and quotation on the Second Board of the Malaysia Securities Exchange Berhad with effect from 18th February 2004.

The Company’s 19,218,000 warrants issued pursuant to the Rights Issue with Warrants has been granted listing and quotation on the Second Board of the Malaysia Securities Exchange Berhad with effect from 18th February 2004.

The abovementioned proposals are meant to ensure compliance with the minimum paid up capital of RM40 million as required under the Malaysia Securities Exchange Berhad’s Listing Requirements and to raise additional working capital for the Group.

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

On 5th February 2004, the issued and paid-up share capital of the Company was increased to RM 48,045,000 via Rights Issue with Warrants and Bonus Issue under item (a) and (b) of the Corporate Proposals as highlighted in Item B8 above.

B14.	EARNINGS PER SHARE