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Please be informed that the Company's auditors, Messrs Moores Rowland had qualified the audited accounts for the year ended 31 December 2000 in the following manner :-

QUOTE

We have audited the financial statements of the Group and of the Company set out on pages 10 to 56. The preparation of the financial statements is the responsibility of the Company's directors. Our responsibility is to express an opinion on the financial statements based on our audit.

We conducted our audit in accordance with approved auditing standards issued by the Malaysian Institute of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes an assessment of the accounting principles used and significant estimates made by the directors as well as an evaluation of the overall presentation of the financial statements.

We believe our audit provides a reasonable basis for our opinion. We report as follows:

1. We have been unable to ascertain the recoverability of amounts owing by customers totalling RM36,285,000 included as part of "Trade receivables" on the consolidated balance sheet.

2. We have also been unable to ascertain the recoverability of amounts owing by subsidiaries to the Company totalling RM29,220,000 included as part of "Amount owing by subsidiary companies" on the balance sheet.

3. As stated in explanatory note 6 to the financial statements, deferred project expenditure of the Group and Company represents expenditure incurred and advances given in connection with projects which have still not been awarded, or which have been awarded but not commenced by the Group and Company to date, as well as awarded projects which have been commenced but shelved pending renegotiation of contractual terms and/or the raising of the necessary project financing. We have not been able to ascertain if these projects will be awarded or commenced or revived (as the case may be) in the foreseeable future, and if so, whether future revenues will be sufficient to recover these expenditure and advances in addition to meeting future contract expenditure.

4. The continuation of the Group's and Company's operations are dependent on continuing financial support from creditors, as explained in more detail in explanatory note 1(a) to the financial statements. We have not been able to ascertain if such continuing financial support will be available, and consequently, whether the going concern concept used in the preparation of the financial statements is appropriate.

In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as to the abovementioned matters:

(a) the financial statements have been properly drawn up:

(i) so as to give a true and fair view of the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Group and of the Company;

(ii) in accordance with the provisions of the Act so as to give a true and fair view of the state of affairs of the Group and of the Company at 31 December 2000 and of their results and cash flows for the year ended on that date;

(iii) in accordance with applicable approved accounting standards.

(b) the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiary companies have been properly kept in accordance with the provisions of the Act.

Except for those financial statements which were subject to audit qualifications as indicated in explanatory note 3 to the financial statements, we are satisfied that the financial statements of the subsidiary companies that have been consolidated with the Company's financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes.

Except for those financial statements as indicated in explanatory note 3 to the financial statements, the auditors' reports on the financial statements of the subsidiary companies were not subject to any qualification, and in respect of subsidiary companies incorporated in Malaysia, did not include any comment made under Section 174 (3) of the Act.

UNQUOTE

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


THY