OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

1.	Review of performance

The Group’s performance for the second quarter is satisfactory. The profit after taxation of the Group of RM3.555 million for the financial year to date is  slightly higher than the proforma  half year profit of the Group in the previous year of RM3.454 million. 

2.	Variation of results against preceding quarter

The profit after tax for the quarter under review is RM1.806 million as compared to the preceding quarter profit of RM1.749 million representing an increase of 3%. This is mainly due to the availability of reinvestment allowance claimable for the second quarter.
 
3.	Current  year prospects

The Group is optimistic that the current year prospects remain favourable as the Government is expected to implement more infrastructure projects i.e. Double Track from Padang Besar to Johor Baru, National Sewerage upgrading works, West Coast Highway, Putrajaya Precinct 17, etc. Overall, sales and deliveries of the Group’s products are expected to improve especially for the southern region as the Senai, Johor plant is expected to increase its production capacity in the third quarter. 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

	6 months	6 months 	
	  30-Sept	  30-Sept	
	      2003	      2002	
	 RM’000	 RM’000	
Current tax expense			
   Malaysian – Current	        1112	      1005	
                    -  Prior period	           -	          15	
	        1112	      1020        	

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	      6 months	
	     30-Sept	        30-Sept	
	         2003	            2003	
	    RM’000	       RM’000	
Purchase of quoted securities	               -	                  -	

	
	    As at 30 Sept 2003	    As at 30 Sept 2002	
	Book value	Market Value	Book value	Market Value	
	    RM’000	        RM’000	    RM’000	        RM’000	
 
Total quoted investments	                  12	               
15	             12	              
  9
	
OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

7.	      Status of corporate proposal announced and not completed

On 27 June 2003 the advising Merchant Banker, Alliance Merchant Bank Berhad had on behalf of the Board of Directors of OKA Corporation Bhd(“OKA” or “the Company”) announced the following:-

a)	Proposed Bonus Issue of 20,000,000 new ordinary shares of RM1.00 each in OKA(“OKA shares”) to be credited as fully paid-up shares on the basis of one (1) new OKA share for every two (2) existing OKA shares held at a date to be determined later (“Proposed Bonus Issue”);

b)	Proposed transfer of the listing of and quotation for the entire issued and paid up share capital of OKA from the Second Board to the Main Board of the Kuala Lumpur Stock Exchange; and

c)   Proposed Executives Shares Option Scheme (ESOS).
     
The Proposed Bonus Issue, Proposed Transfer and Proposed ESOS shall be       collectively referred to as the “Proposals”.

On 18 September 2003, Alliance Merchant Bank Berhad had on behalf of OKA announced that Securities Commission has vide its letter dated 16 Sep 2003 approved the proposals.

On 31 October 2003, Alliance Merchant Bank Berhad had on behalf of OKA
announced that the shareholders of OKA, at the Extraordinary General Meeting held on 31 October 2003 approved all the resolutions in relation to the proposals without any modification .

On 3 November 2003, Kuala Lumpur Stock Exchange has approved in-principal for the following:-

a)	Listing of 20,000,000 new ordinary shares of RM1.00 each to be issued pursuant to the Bonus Issue; and

b)	Proposed Executives Shares Option Scheme.

On 14 November 2003, Alliance Merchant Bank Berhad had on behalf of OKA announced that the ex-date of the Bonus Issue is  4 December 2003 and the entitlement date is 8 December 2003 .
OKA CORPORATION BHD

Additional information required by the KLSE’s Listing Requirements

Pending for approval:

Transfer of listing and quotation for the entire enlarged issued and paid up share capital of RM60,000,000 comprising of 60,000,000 ordinary shares of RM1.00 each from the Second Board to the Main Board of the Kuala Lumpur Stock Exchange upon the completion of the Bonus Shares.

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                              12,365

Acquisition of land                                                                 5,896

Purchase of plant & machineries                                            2,564

Payment of listing expenses                                                    1,411

Working capital for the group                                                 3,669

Automation & Upgrading of existing factory                            864
                                                                                     
                                                                                              26,769

9.	      Borrowings 

                  There are no borrowings as at 30 September 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 
OKA CORPORATION BHD 

Additional information required by the KLSE’s Listing Requirements

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.

12.	      Basic earnings per share

The calculation of basic earnings per share for the quarter ended 30 September 2003 is based on the net profit attributable to ordinary shareholders of RM1,806,000 and the paid up ordinary shares of 40,000,000.

The calculation of basic earnings per share for the cumulative quarter ended 30 September 2002 is based on the net profit attributable to ordinary shareholders of  RM3,454,000 and the weighted average number of ordinary shares outstanding during the cumulative quarter of  38,866,000.