Investor Relations

Contents :

Reference is made to your letter dated 5 March, 2001 (ref no:MA-010305-37342) pertaining to the above mentioned.

As requested, we append below the additional information for your attention:-

Appointment of Special Administrators

Special Administrators were appointed by Pengurusan Danaharta Nasional Berhad on 9 September, 1999 to manage the operations and assets of the company and prepare a workout proposal to restructure the Company. The Special Administrators’ Proposed Restructuring Scheme for the Company is currently pending the approval from the relevant authorities, namely the Securities Commission and Foreign Investment Committee and consequently, the financial impact and outcome of the scheme cannot be ascertained at the moment.

Accumulated Loss

The turnover of the Group declined by 48.3% to RM49.2 million in the financial year concerned, resulting in a loss before tax of RM97.7 million. Apart from the deteriorating turnover, the loss before tax is also attributable to the Group’s continued exposure to loan interest amounting to RM67.5 million.

As at 30 June, 2000, the Group and the Company incurred a net loss of RM99.9 million and RM59.6 million respectively and shareholders’ deficit stood at RM422.7 million and RM236.5 million respectively.

The Group and the Company had accumulated loss of RM1,040.8 million and RM828.1 million respectively and net current liabilities of RM839.4 million and RM317.9 million respectively.

External Borrowings

The Group and the Company have external borrowings amounting to RM623.5 million and RM285.7 million respectively of which RM613.5 million and RM285.7 million respectively relate to borrowings due within twelve months.


In view of the significance of the above matters, there is substantial doubt on the ability of the Group and the Company to continue as going concerns. Consequently, the Auditors are unable to assess the appropriateness of the going concern basis used in the preparation of the financial statements.

Query Letter Contents :

We refer to your Company's Annual Report 2000.
In accordance with Section 58 of the Exchange's Main Board Listing
Requirements, kindly furnish the Exchange immediately with your detailed
explanation(s) on the qualifications stated in the Auditors' Report of your
Annual Report 2000 for public release.
Yours faithfully


INDERJIT SINGH
Senior Manager
Listing Operations
WR/MF
Copy to : Securities Commission (via fax)