OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

1.	Review of performance

The Group’s performance for the fourth quarter is satisfactory. The profit after taxation of the Group of RM8.3 million for the financial year is  higher than the proforma profit of the Group in the previous year of RM6.89 million. 

2.	Variation of results against preceding quarter

The profit after tax for the quarter under review is RM2.779 million as compared to the preceding quarter profit of RM2.067 million representing an increase of 34%. This is mainly due to the increase in Gross Profit margin as a result of the reduction in prices of certain raw materials in addition to the commencement of production for new products during the period. 

3.	Forthcoming year prospects

The Group is optimistic that the forthcoming year prospects remain favourable as the labour shortage has been eased by the Government’s new directives on intake of foreign workers. Overall, sales and deliveries of the Group’s products are expected to improve. The Directors are confident that the Group’s performance for the forthcoming financial year will be satisfactory.

4.	Profit forecast variance                

The twelve (12) months group profit before tax of RM10,134,000 for the financial year ended 31 March 2003 was 7.3% lower than the forecasted figure as stated in the Prospectus of the Company dated 30 April 2002. This was mainly due to the fluctuation in raw material prices during the year and the slower demand for concrete products as a result of the Government’s repatriation of foreign workers during the year which had affected construction activities. The profit after tax of RM8,300,000 for the financial year ended 31 March 2003 was 9.7% lower than the forecasted amount of RM9,188,000. This is due to the abovementioned factors in addition to the re-scheduling of the commencement of new factories hence the expected reinvestment allowance was not available for the financial year ended 31 March 2003.

OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

5.	Tax expense

	3 months	12months 	
	  31-Mar	  31-Mar	
	      2003	      2003	
	 RM’000	 RM’000	
Current tax expense			
   Malaysian – Current	        367	     1,819	
                    -  Prior period	            -	          15	
	        367	     1,834        	

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

6.         Quoted investments

	   3 months	      12 months	
	     31-Mar	        31-Mar	
	         2003	            2003	
	    RM’000	       RM’000	
Purchase of quoted securities	               -	                  1	

Investments in quoted securities as at 31 March 2003	
			
	Book value	Market Value	
	    RM’000	        RM’000	
Total quoted investments	             12	                   8	

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                             13,445

Acquisition of land                                                                5,877

Purchase of plant & machineries                                           2,367

Payment of listing expenses                                                  1,411

Working capital for the group                                               3,669
                                                                                     
                                                                                            26,769

OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

9.	      Borrowings 

                  There are no borrowings as at 31 March 2003.

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 
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.

OKA CORPORATION BHD 

Additional information required by the KLSE’s Listing Requirements

12.	      Basic earnings per share

The calculation of basic earnings per share for the quarter ended 31 March 2003 is based on the net profit attributable to ordinary shareholders of RM2,779,000 and the paid up ordinary shares of 40,000,000.

The calculation of basic earnings per share for the cumulative quarter ended 31 March 2003 is based on the net profit attributable to ordinary shareholders of  RM8,300,000 and the weighted average number of ordinary shares outstanding during the cumulative quarter of  39,433,000. 

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				         6,236    

Weighted average number of ordinary shares		       39,433