D.B.E GURNEY RESOURCES BERHAD
(535763-A)

Consolidated Income Statement

1. 	Under the cumulative quarter section, the heading “Preceding Year Corresponding Year 31 March 2004” should read as “Preceding Year Corresponding Period 31 March 2004”.

2.	There was a typing error for the figure for revenue in respect of the current year individual quarter column and current year to date cumulative quarter column. The revenue figure should read 27,457 and not 27,467.

Consolidated Statement Of Changes In Equity

Reference is made to the changes in equity for the preceding year corresponding period, whereby the figures for the reserves should be compared with the period ended 31 March 2004 and not 31 December 2004. The correct statement should read as follows:-

			Reserves		
	
Share Capital RM’000	
Preference Shares 
RM’000	Non-Distributable Share Premium RM’000	Distributable Retained Profit 
RM’000	

Total
RM’000	
As at 1 January 2004	34,200	-	-	12,083	46,283	
Issue of share capital	5,800	-	8,120	-	13,920	
Share issue expenses	-	-	(1,083)	-	(1,083)	
Net profit for the year	-	-	-	146	146	
As at 31 March 2004	40,000	-	7,037	12,229	59,266	

…2/-

Page 2 (Cont’d)

Consolidated Cash Flow Statements

Reference is made to the Consolidated Cash Flow Statement for the preceding year to date corresponding period column, whereby the heading and figures were wrongly stated. The comparison corresponding period should be “(Unaudited) Year To Date 31 March 2004” and not “(Audited) Year To Date 31 December 2004”.

The amended corresponding period and figures are as follows:-

	(Unaudited)  
Year To Date 
31 March 2004
(RM’000)	
		
CASH FLOW FROM OPERATING ACTIVITIES 		
Profit before taxation	183	
Adjustments for :		
Depreciation for property, plant and equipment	1,417	
Amortisation of goodwill	-	
Amortisation of leasehold land	5	
Provision for doubtful debts	39	
Finance costs	-	
Property, plant and equipment written off	-	
Loss on disposal of property, plant and equipment	1	
Operating Profit Before Working Capital Changes	1,645	
		
Changes in working capital :		
Net change in current assets	(7,644)	
Net change in current liabilities	                   3,463	
Income tax paid	                       (84)	
Finance costs paid 	(564)	
Net Cash (Used In)/Generated From Operating Activities	(3,184)	
		
CASH FLOWS FROM INVESTING ACTIVITIES		
Proceeds from issue of share capital	                 12,837	
Proceeds from disposal of property, plant and equipment	                       73	
Purchases of property, plant and equipment	(9,586)	
Net Cash Generated from/(Used In) From Investing Activities	                   3,324	
		
CASH FLOWS FROM FINANCING ACTIVITIES		
Dividends paid	-	
Proceeds from hire purchase	                    5,138	
Proceeds from share issue	-	
Drawdown of term loans	-	
Drawdown of banker acceptance	(1,627)	
Repayment of term loans	(552)	
Repayment of hire purchase liabilities	(2,320)	
Net Cash Used In Financing Activities	                      639	

…3/-
Page 3 (Cont’d)

	(Unaudited)  
Year To Date 
31 March 2004
(RM’000)	

NET DECREASE IN CASH AND CASH EQUIVALENTS	
                779	
		
CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR	(4,592)	
		
CASH AND CASH EQUIVALENTS AT END OF FIRST FINANCIAL QUARTER	(3,813)	

Reference is also made to the Note section in the same Consolidated Cash Flow Statement for the current year to date and preceding year to date corresponding period columns, whereby the heading and figures were wrongly stated. 

The heading for current year to date column should be “(Unaudited) Year To Date 31 March 2005” and not “(Unaudited) Year To Date 31 December 2004” whilst the heading for preceding year to date column should be “(Unaudited) Year To Date 31 March 2004” and not “(Audited) Year To Date 31 December 2003”.

The amended figures are as follows :

	(Unaudited)
Year To Date
31 March 2005
RM’000	(Unaudited)
Year To Date
31 March 2004
RM’000	
			
Cash and cash equivalent comprises:			
			
Deposits with licensed banks	-	5,692	
Cash and bank balances	1,755	335	
Overdraft	(8,055)	(9,840)	
			
Cash and cash equivalents	(6,300)	(3,813)	

EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS
Note 13 Earnings Per Share

In the first paragraph, the sentence, “The basic earnings per share for the financial period ended 31 December 2004 were calculated by dividing the net profit attributable to ordinary shareholders by the number of ordinary shares in issue during the reporting period as follows” has been amended to “The basic earnings per share for the financial quarter ended 31 March 2005 were calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the reporting period as follows”.