1.	Basis of Preparation

The interim financial report is unaudited and has been prepared in accordance with the requirements of Financial Reporting Standard (FRS) 134 - Interim Financial Reporting and Paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad (“BMSB”). The interim financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended 31 March 2006. 

The accounting policies and methods of computation used in the preparation of the interim financial report are consistent with those adopted in the audited financial statements for the financial year ended 31 March 2006, except for the adoption of the following new and revised FRS effective for the financial period beginning on 1 January 2006:

FRS 2	Share-based Payment	
FRS 3	Business Combination	
FRS 5	Non-current Assets Held for Sale and Discontinued Operations	
FRS 101	Presentation of Financial Statements	
FRS 102	Inventories	
FRS 108	Accounting Policies, Changes in Accounting Estimates and Errors	
FRS 110	Events After Balance Sheet Date	
FRS 116	Property, Plant and Equipment	
FRS 121	The Effects of Changes in Foreign Exchange Rates	
FRS 127	Consolidated and Separate Financial Statements	
FRS 128	Investments in Associates	
FRS 131	Interests in Joint Ventures	
FRS 132	Financial Instruments: Disclosures and Presentation	
FRS 133	Earnings Per Share	
FRS 136	Impairment of Assets	
FRS 138	Intangible Assets	
FRS 140	Investment Property	

The adoption of FRS 2, 5,101, 102, 108,110, 116, 121, 127, 128, 131, 132, 133, 136 and 138 do not have significant financial impact on the Group. The principal effects of the changes in accounting policies resulting from adoption of the new/revised FRSs are discussed below:

FRS 3: Business Combination
Goodwill is carried at cost less accumulated impairment losses and is now tested for impairment annually. Any impairment loss is recognized in profit and loss and subsequent reversal is not allowed.

Under FRS 3, any excess of the Group’s interest in the net fair value of acquirees’ identifiable assets, liabilities and contingent liabilities over the cost of acquisitions (previously referred to as “negative goodwill”), after reassessment, is now recognized immediately in profit or loss. Prior to 1 January 2006, the Group has reflected the negative goodwill as reserves on consolidation under equity. In accordance with transitional provisions of FRS 3, the carrying amount of reserves on consolidation amounting to RM2,633,235 has been derecognized to opening retained profits.

FRS 140: Investment Property
The adoption of this new FRS has resulted in certain properties of the Group which are held for rental to external parties previously classified under property, plant and equipment amounting to RM160,000 being reclassified to investment properties.  Investment properties are stated at fair value and gains and losses arising from changes in the fair value of investment properties are recognised in profit or loss in the period in which they arise. Prior to 1 January 2006, the properties were stated at valuation. Revaluations were carried out at least once every five years. Any revaluation increase is taken to equity as a revaluation surplus and any deficit arising is offset against the revaluation reserve to the extent of a previous increase for the same property. 

Comparative

The following comparative amounts have been restated due to the adoption of new/revised FRSs:

	As Previously
Stated	Effects of
Restatement	
As Restated	
At 31 March 2006	RM’000	RM’000	RM’000	
Property, plant and equipment	36,138	(160)	35,978	
Investment properties	-	160	160	
Negative goodwill	2,633	(2,633)	-	
Retained profits	11,926	2,633	14,559	

2.	 Audit Report

The preceding year’s audited financial statements were not subject to any audit qualification.

3.	   Seasonal or Cyclical Factors

Apart from the traditional variations in the level of business activities, the       Group’s activities are not affected by any seasonal or cyclical factors in the first quarter ended 30 June 2006.

4.	Unusual Items

There were no unusual items that affected the assets, liabilities, equity, net income or cash flows for the first quarter ended 30 June 2006.

5.	Material Changes in Estimates 

There were no material changes in the estimates used in the current quarter compared to the estimates used in the previous financial year, which have a material effect in the current quarter or the financial year to date.

6.	Dividend paid

No interim dividend was declared or paid for the period ended 30 June 2006.

7.	Segment Reporting

No segmental reporting by industry and geographical segment is required as the Group’s activities are primarily in one industry segment of manufacturing and trading of concrete products, and is principally conducted in Malaysia.

8.	Property, Plant and Equipment

The Group did not carry out any revaluation on its property, plant and equipment in the financial year to date. The valuations of land and buildings have been brought forward, without amendment from the previous annual report.

9.	Events Subsequent to the Balance Sheet Date 

There were no material events subsequent to the end of the quarter that have not been reflected in the financial statements.

10.	Effect of Changes in Composition of the Group

There were no changes in composition of the Group for the current financial year to date.

11.	Contingent Liabilities And Contingent Assets

The contingent liabilities represent corporate guarantees totaling RM27,050,000 (2006: RM27,050,000) in respect of bank and trade facilities granted to a subsidiary.

The amount of bank and trade facilities utilized which were secured by corporate guarantees as at 30 June 2006:
	RM’000	
Trade balance outstanding	473	
		
Short term borrowings – Bankers’ Acceptances 	380	

There were no contingent assets at the date of this quarterly report.

12.	Trade and Other Receivables

Included in trade and other receivable is an amount of RM4,007,792 being tax instalments prepaid by the Group to Inland Revenue Department.

13.	Capital Commitments

                                                                                                          	30 June 2006	
	RM’000	
Approved and contracted for 		
   landed properties	1,683	
		
	1,683	

14.	Debt and Equity Securities

There is no issuance of debt and equity securities for the current financial year to date.