OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

1.	Review of performance

The Group’s performance for the third quarter is satisfactory taking into account the slowdown in the construction sector after the repatriation of foreign workers in July 2002. The profit after taxation of the Group of RM5.521 million for the financial year to date is slightly higher than the proforma nine months profit of the Group in the previous year of RM5.16 million. 

2.	Variation of results against preceding quarter

The profit after tax for the quarter under review is RM2.067 million as compared to the preceding quarter profit of RM1.499 million representing an increase of 38%. This is mainly due to the increase in Gross Profit margin as a result of the reduction in prices of certain raw materials during the period. 

3.	Current year prospects

The Group is optimistic that the current year prospects remain favourable as the labour shortage is expected to ease gradually from November 2002. As a result, sales and deliveries of the Group’s products are expected to improve. The Directors are confident that the Group’s performance for the current financial year will be satisfactory.

4.	Profit forecast

Not applicable for current quarter.

OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

5.	Tax expense

	3 months	9 months 	
	  31-Dec	  31-Dec	
	      2002	      2002	
	 RM’000	 RM’000	
Current tax expense			
   Malaysian - Current	        447	     1,452	
                    -  Prior period	            -	          15	
	        447	     1,467        	

The Group’s effective tax rate is lower than the prima facie tax rate due to the availability of the Reinvestment Allowance claimed by one of its subsidiaries.

6.         Quoted investments

	   3 months	      9 months	
	     31-Dec	        31-Dec	
	         2002	            2002	
	    RM’000	       RM’000	
Purchase of quoted securities	               -	                  1	

Investments in quoted securities as at 31 December 2002	
			
	Book value	Market Value	
	    RM’000	        RM’000	
Total quoted investments	             12	                   9	

OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

7.	      Status of corporate proposal announced and not completed

There were no corporate proposal as at date of issuance of this quarterly report.      

8.	      Utilization of Listing Proceeds
 
                                                                                            RM’000
Placement under fixed deposits for the purchase
of land, plant & machineries and factory
upgrading which have yet to be effected                             15,180

Acquisition of land                                                                5,354

Purchase of plant & machineries                                           1,183

Payment of listing expenses                                                  1,411

Working capital for the group                                               3,641
                                                                                     
                                                                                            26,769

OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

9.	      Borrowings 

	31 December 2002	
	                RM’000	

Short term		
  Hire purchase financing	                       120	
		
Long term		
  Hire purchase financing	                         27	
	                       147	

10.	      Off balance sheet financial instruments

There were no financial instruments with off balance sheet risks as at the date of this report.

11.	      Changes in material litigation

Saved as disclosed below neither OKA Corporation nor any of its subsidiaries is engaged in any material litigation either as plaintiff or defendant and the Directors do not have any knowledge of any proceedings pending or threatened or of any fact likely to give rise to any proceedings which might materially and adversely affect the financial position or the business of the company or any of its subsidiaries : -

Ipoh High Court Suit No 22-165-2001

A claim is pending against OKA Engineering & Trading Sdn Bhd, a subsidiary of OKA Corporation Bhd, for damages allegedly due to loss of reputation over an execution of a writ of seizure and sale. An earlier claim by the same claimant, namely Maker Concrete Industry was struck out by the High Court on 12 December 2001. However, the claimant has filed a fresh summons quantified at the date of filing to be in the sum of RM1,603,000. The Company’s solicitors have written to the Company to advise the abovementioned case and they are of the opinion that Maker Concrete Industry has filed a frivolous case against the Company as some of the evidence adduced is fictitious. The solicitors are of the opinion that there 
OKA CORPORATION BHD 

Additional information required by the KLSE’s Listing Requirements

should be no liability attached to the Company or whatsoever. The Directors of the Group concur with the opinion of the solicitors and as such, no provision has been made in the financial statements of OKA Engineering & Trading Sdn Bhd.
 
 12.	      Basic earnings per share

The calculation of basic earnings per share for the quarter ended 31 December 2002 is based on the net profit attributable to ordinary shareholders of RM2,067,000 and the paid up ordinary shares of 40,000,000.

The calculation of basic earnings per share for the cumulative quarter ended 31 December 2002 is based on the net profit attributable to ordinary shareholders of  RM5,521,000 and the weighted average number of ordinary shares outstanding during the cumulative quarter of  39,244,000. 

Weighted average number of ordinary shares
									     RM’000

Issued ordinary shares at beginning of the period		       33,197

Effect of shares issued in May 2002				         6,047    

Weighted average number of ordinary shares		       39,244