PART A: EXPLANATORY NOTES AS PURSUANT TO FRS 134

A1.	Basis of preparation 

The interim financial report is unaudited and has been prepared in accordance with the Financial Reporting Standard (“FRS”) 134: “Interim Financial Reporting” and Paragraph 9.22 Appendix 9B of  Bursa Malaysia Securities Berhad ("Bursa Securities") Listing Requirements. 

The interim financial report should be read in conjunction with the audited financial statements of the Group for the financial year ended 30 April 2006. The explanatory notes attached to the interim financial report provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group.

A2.	Changes in accounting policies

The accounting policies and method of computation adopted for interim financial statements are consistent with those adopted for the audited financial statements for the financial year ended 30 April 2006 except for the adoption of the following new / revised FRSs effective for financial period beginning 1 January 2006:

FRS 2	Share-based Payment
FRS 3	Business Combinations
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 Estimates and Errors
FRS 110	Events after the 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: Disclosure and Presentation
FRS 133	Earnings Per Share
FRS 136	Impairment of Assets
FRS 138	Intangible Assets
FRS 140	Investment Property

The Group has not adopted the following FRSs which effective date of commencement is 1 October 2006:

FRS 117	Leases
FRS 124	Related Party Disclosures

The adoption of the new/revised FRSs did not result in substantial changes to the Group’s accounting policies. The principal effects of the changes in accounting policies resulting from the adoption of the above FRSs by the Group is discussed below:

FRS 101:	Presentation of Financial Statements

The adoption of the revised FRS 101 has affected the presentation of minority interest, and other disclosures. In the consolidated balance sheet, minority interests are now presented within total equity. In the consolidated income statement, minority interests are presented as an allocation of the net profit or loss for the period. A similar requirement is also applicable to the statement of changes in equity. FRS 101 also requires disclosure, on the face of the statement of changes in equity, total recognised income and expenses for the period, showing separately the amounts attributable to equity holders of the parent and to minority interest.

The presentation of the current financial period of the Group’s financial statements is based on the revised requirements of FRS 101, with the comparatives restated to conform with the new presentation.

A3.	Qualification of Annual Financial Statements

There were no audit qualifications on the annual financial statements for the year ended 30 April 2006.

A4.	Seasonal and cyclical factors

The Group’s business operation results were not materially affected by any major seasonal or cyclical factors.
	
A5.	Unusual nature and amounts of items affecting assets, liabilities, equity, net income or cash flows

There were no unusual nature and amounts of items affecting assets, liabilities, equity, net income or cash flows during the current quarter under review.

A6.	Material changes in estimates

There were no material changes in estimates of amounts reported in the current quarter under review. 

A7.	Issuances and repayment of debt and equity securities	

There were no issuance, repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares or resale of treasury shares during the current quarter under review. 
	                                                                                                                                           
A8.	       Dividend Paid	

There was no dividend paid by the company for the current quarter under review. 

A9.	Segment information

	Segmental information is presented in respect of the Group’s business segments:-

| | | | | | | Current
| | | | | | | period
| | | | | Other | Consolidation | ended
| | | Manufacturing | Trading | Operation | adjustment | 31.10.06
| | | RM'000 | RM'000 | RM'000 | RM'000 | RM'000
Revenue from external customers | 61,062 | 834 | | - | 61,896
Inter-segment revenue | | - | 132 | | (132) | -
Total revenue | | 61,062 | 966 | | (132) | 61,896
Segment results | | 5,413 | (63) | (166) | - | 5,184
Interest income | | | | | | 67
Interest expense | | | | | | (1,346)
Share of results of associates | | | | | 107
Profit before taxation | | | | | | 4,012
Tax expense | | | | | | (577)
Net profit for the period | | | | | 3,435

A10.	Valuation of property, plant and equipment

The property, plant and equipment except for freehold land are stated at cost/valuation less accumulated depreciation. There was no revaluation of property, plant and equipment for the current quarter and financial year to date.

A11.	Material events subsequent to the end of the interim period

There were no material events subsequent to the end of the current quarter ended 31 October 2006.

A12.	Changes in the composition of the Group

There were no changes in the composition of the Group during the current quarter under review.

A13.	Changes in contingent liabilities

There were no changes in contingent liabilities and contingent assets of a material nature since the last audited financial statements for the year ended 30 April 2006.
                                             
      A14.     Capital commitments
| RM’000
Approved and contracted for: |
- Purchase of plant and machinery | 1,000
PART B: 	ADDITIONAL INFORMATION REQUIRED BY THE BURSA MALAYSIA LISTING REQUIREMENTS

B1.	Review of performance 
	
The Group achieved revenue of RM28.44 million representing a decrease of 14.9% compared to RM33.43 in the previous year corresponding quarter. The decrease in revenue is mainly due to the discontinuation of several products in Malaysia. 

However, the Group’s profit before tax for the current quarter increased by 195.8% to RM2.13 million from the previous year’s corresponding quarter’s profit before tax of RM0.72 million. This is mainly attributed to the improvement in profit margin and a better results recorded by a subsidiary in Vietnam.

B2.	Variation of results against preceding quarter 

The Group registered a profit before tax of RM2.13 million in the current quarter compared to the profit before taxation of RM1.88 million for the immediate preceding quarter representing an increase of 13.3%. The improvement in the profit before tax is mainly due to the better profit margin achieved in the quarter under review.

B3.	Prospects 

Barring any unforeseen circumstances, the Board expects the Group to continue to achieve satisfactory performance for the next quarter.

B4.	Variance of actual and forecast profit 

The Group has not provided any profit forecast for the current financial year ending 30 April 2007.

B5.	Tax expense 

| | Current | | Current year
| | Quarter | | To date
| | 31.10.2006 | | 31.10.2006
RM' 000 | | RM' 000 |
Tax expense: | | | | |
Current | 316 | | 577 |

									
The effective tax rate for the period under review was lower than the statutory income tax rate of 28% due to the utilization of reinvestment allowances in a wholly-owned subsidiary of the Company.  

B6.	Unquoted investments and/or properties 

The Group has not disposed off any investments in any unquoted investments and/or properties during the financial quarter under review.

B7.	Quoted and marketable investments 

The detail of the investment in quoted shares as at 31 October 2006 are set out below:

Current quarter
RM’000

Total investment at cost | 207
Total investment at book value | 207
Total investment at market value | 203

B8.	Status of corporate proposal announced 

There were no corporate proposals announced as at date of this report.

B9.	Group borrowings 

The Group’s borrowings as at the end of the reporting quarter are as follows:

The above is inclusive of borrowing in foreign currency of USD3.71 million.

B10.	Off balance sheet financial instrument 

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

B11.	Changes in material litigation 

Neither the Company nor any of its subsidiaries is engaged in any litigation or arbitration, either as plaintiff or defendant, which has a material effect the financial position of the Company or any of its subsidiaries and the Board is not aware of any proceedings pending or threatened, or of any fact likely to give rise to any proceedings, which might materially and adversely affect the position or business of the Company or any of its subsidiaries. 

B12.	Dividend payable

The first and final tax exempt dividend of 2% for the financial year ended 30 April 2006 has been paid on 21 November 2006.

B13.	Basic earnings per share 

	The basic earning per share for the current quarter and cumulative year to date are computed as follow:-
   
B14.	Authorisation for issue

	The Second quarterly report was authorised for issue by the Board of Directors in accordance with the resolution of the directors on 20 December 2006.

	By Order of the Board

	
	Yap Toon Choy
	Group Managing Director
	20 December 2006