Author: OKA CONCRETE IND SDN. BHD.
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OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements

1.	Review of Performance

The Group recorded a higher turnover of RM13.894 million in this quarter as compared to RM10.620 million in the previous year’s corresponding quarter as a result of the increase in sales generated from its new factories.

However, profit before tax for the same period decreased from RM1.952 million in the preceding quarter last year to RM0.014 million this quarter due to lower gross profit margin. Gross profit margin has decreased as a result of lower selling prices due to stiff competition and higher operating costs incurred. Further, additional allowance has been made for doubtful debts in the current quarter.

Profit before taxation for the previous year decreased from RM7,689,000 to RM6,983,000 this year due to increased allowance for doubtful debts and higher operating and administrative costs.

2.	Variation of Results Against Preceding Quarter

Turnover for the current quarter is 4.4% higher than the preceding quarter. 

However, the profit after tax for the quarter under review is RM0.110 million as compared to the preceding quarter profit of RM1.873 million representing a decrease of 94.1%. This is mainly due to lower gross profit margins and higher operating expense incurred as a result of increase in transport and raw material costs. Further, additional allowance has been made for doubtful debts.
 
3.	Forthcoming Year Prospects

The Group is optimistic that the forthcoming year prospects remain favourable as the Government would commence to implement the planned infrastructure projects. The Directors expect that the Group’s performance for the forthcoming financial year will be satisfactory.

4.	Profit Forecast

Not applicable for the current quarter as no profit forecast was published. 

OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements

5.	Tax Expense

| 12 months | 12months
| 31-Mar | 31-Mar
| 2005 | 2004
| RM’000 | RM’000
Current tax expense | |
Malaysian - Current | 1,303 | 1,101
- Prior period | (127) | (47)
- Deferred | 102 | 312
| 1,278 | 1,366

                 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.

           

       
OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements

6.         Quoted Investments

| 12 months | 12 months
| 31-Mar | 31-Mar
| 2005 | 2004
| RM’000 | RM’000
Purchase of quoted securities | - | -
| As at 31 Mar 2005 | As at 31 Mar 2004
| Book value | Market Value | Book value | Market Value
| RM’000 | RM’000 | RM’000 | RM’000
Total quoted investments | 4 | 4 | 12 | 24

7.         Status of Corporate Proposals

            There were no corporate proposals announced but not completed as at the date of this report.

OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements

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      	         968                    

Acquisition of land & construction costs of factories           10,241

Purchase of plant & machineries                          	5,244                 	

Payment of listing expenses                               	1,411                   

Working capital for the group	4,817

Automation & Upgrading of existing factory	4,088

26,769

       9.      Borrowings 

                  There were no borrowings as at 31 March 2005.

     10.      Off Balance Sheet Financial Instruments

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

OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements
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11.	Dividends

The Board of Directors propose a first and final dividend of 4 sen less tax (2004 : 4 sen less tax) per share amounting to RM1,728,605 for the current financial year subject to shareholders' approval at the forthcoming general meeting.	

     12.      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 : -

Maker Concrete Industry (Plaintiff) vs. OKA Engineering & Trading Sdn Bhd (Defendant)

Claim by Maker Concrete Industry of RM1,603,000 brought against OKA Engineering & Trading Sdn Bhd vide Ipoh High Court civil suit no. 22-250-01 dated 22 December 2001 claiming damages for inter alia loss of reputation due to wrongful attachment. A previous suit on the same matter was withdrawn on 12 December 2001 (Ipoh High Court civil suit no. 22-165-2001). The Defendant has filed a defence and counter-claim for malicious prosecution against the current suit (suit no. 22-250-01) on 26 January 2002. The Plaintiff withdrew its application for summary judgment against the Defendant for the second suit and a notice of pre-trial case management was  filed by the Plaintiff and came up for mention on 2.11.2004. The second mention fixed for the case management was on 18.3.2005 and the plaintiff has reduced the quantum of claim to RM250,000 and is proceeding at the Session Court instead of the High Court. The solicitors handling this matter are of the opinion that the Plaintiff has filed a frivolous case against the Defendant and that there should be no liability attached to the Company whatsoever.  

OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements
________________________________________________________________________

13.       Earnings Per Share

Basic Earnings Per Share

Current Year Quarter
31/03/2005
    ’000

Current Year
To Date
31/03/2005
   ’000

Net profit attributable to ordinary shareholders(RM) | 110 | 5,705
Number of ordinary shares issued | 60,021 | 60,021
Weighted average number of ordinary shares issued | 60,021 | 60,021
Basic Earnings Per Share (sen) | 0.18 | 9.50

OKA CORPORATION BHD

Additional Information Required by the BMSB’s Listing Requirements
________________________________________________________________________

Fully Diluted
Earnings Per Share

Current Year Quarter
31/03/2005
    ’000

Current Year
To Date
31/03/2005
   ’000

Net profit attributable to ordinary shareholders(RM) | 110 | 5,705
Weighted average number of ordinary shares issued | 60,021 | 60,021
Adjustment for share options | 23 | 23
Adjusted number of ordinary shares issued | 60,044 | 60,044
Fully Diluted Earnings Per Share (sen) | 0.18 | 9.50