MALAYSIAN AE MODELS HOLDINGS BERHAD
(Incorporated in Malaysia)

Notes to the Quarterly Report for the financial year ended 31.5.2000

1.	Accounting Policies

There is no change in the Group’s accounting policies, method of computation and basis of consolidation used in this quarterly financial statement as compared to the most recent annual financial statement.

2.	Exceptional items

There is no exceptional item for the financial period under review.

3.	Extraordinary items

There is no extraordinary item for the financial period under review.

4.	Taxation

Taxation comprises: -
	
	Individual	Cumulative	
	Current quarter	Current	Preceding year	
	RM’000	RM’000	RM’000	

Current taxation	
587	
1,905	
291	
Deferred taxation	1,012	1,012	20	
Associated company	Nil	Nil	-	
(Over)/ under provision in prior years	
(530)	
(520)	
(37)	
	
1,069	
2,397	
274	

5.	Pre-acquisition profit
	
There is no pre-acquisition profit or loss for the financial period under review.

6.	Profit or loss on sale of investment and/or properties
	
	There is no profit or loss on sale of investment and/or properties for the financial period review.

	
	
7.	Quoted securities
	
	There is no purchase and/or disposal of quoted securities for the current financial year to date.
	
	As at 31.05.2000 the Group did not held any quoted securities.

8.	Change in the composition of the Group
	
	As announced on 12 July 2000, AE Datalogic (M) Sdn Bhd, a wholly owned subsidiary of Malaysian AE Models Holdings Berhad acquired 50.1% in Sawar Teguh Sdn Bhd.  Save as disclosed, there is no change in the composition of the Group in the current financial quarter.
	
9.	Status of corporate proposals.
	
	There is no corporate proposal announced since the last announcement of the Company.

10.	Seasonal or cyclical factors
	
	There is no seasonal or cyclical factor that has material impact on the Group performance.

11.	Changes in share capital
	
	The paid up share capital of the Company remained unchanged since the last announcement.

12.	Group borrowings and debts securities
	
	Total Group borrowings and debts securities as at 31/05/2000 are as follows: -
	
	LONG TERM BANK LOANS – Secured	RM’000	

Total outstanding balances	
8,640	
	Amount re-payable within the next 12 months		(3492)	
	
	Amount re-payable after 12 months		
	5,148	
	
	SHORT TERM BANK BORROWINGS			
	
	Secured:-
	Bank overdraft		
	
	2,266	
	Bills payable		10,428	
	
	Current portion of long term loan		
	3,492	
	
	Subtotal		
	16,186	
				
	Unsecured:-			
	Bank overdrafts		981	
	Bills payable		13,487	

	Sub-total		
	14,468	
	
	GRAND TOTAL		
	35,802	

13.	Contingent liabilities
	
		Contingent liabilities of the Company as at 18/07/2000 (the latest practicable date which is not earlier than 7 days from the date of issue of this quarterly report) comprise corporate guarantees of RM56.04 million in respect of facilities granted to subsidiary companies.

14.	Off balance sheet financial instruments
	
	The Group does not have any financial instruments with off balance sheet risks as at 18/07/2000, the latest practical date which is not earlier than 7 days from the date of issue of this quarterly report.

15.	Material litigation
	
	The Group is not involved in any material litigation as at 18/07/2000 the latest practicable date which is not earlier than 7 days from the date of issue of this quarterly report.

16.	Segmental Reporting

	Turnover	Profit before Taxation	Assets Employed	
	RM’000	RM’000	RM’000	
Malaysia	65,266	10,068	108,205	

Outside Malaysia	
24,118	
1,163	
25,126	

89,384	
11,231	
133,331	

17.	Material Change in Profits

 	The profit before taxation of the Group for the current quarter is higher than the last quarter due to the higher turnover from higher utilization of plant capacity.

18.	Review of Performance of the Company and its Principal Subsidiaries.

A total profit before taxation of RM11.2 million was recorded during the year based on the turnover of RM89.4 million.

The Group’s material handling business and contract manufacturing operation continued to be strong contributors to the overall profitability of the Group.

19	Prospect for the Next Financial Year

In general, the improved Malaysian economy condition and the surrounding Asia Pacific region condition has benefited the market for material handling business and contracting manufacturing jobs for supplies to overseas market. Barring any unforeseen circumstances, we expect the improving trend to continue for the next financial year.

20.	Variance of Actual Profit from Forecast Profit

The Group recorded a profit after minority interest but before taxation of RM10.8 million for the financial year ended 31.5.2000 against its forecasted profit after minority interest and before taxation of RM10.5 million. 

21.	The Board of Directors proposed a final dividend of 5% less tax, amounting to RM1,188,000 for the financial year ended 31.5.2000.  This proposed final dividend is subject to the shareholders’ approval at the forthcoming Annual General Meeting.  The entitlement and payment dates will be announced later.