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Income Statement by jizhen1947

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									                                           PAN MALAYSIAN INDUSTRIES BERHAD
                                                          Company No : 5138 - W
                                                        (Incorporated in Malaysia)

                                                INTERIM FINANCIAL REPORT
                                        FOR THE FIRST QUARTER ENDED 30 JUNE 2006

                                                   The figures have not been audited

      CONDENSED CONSOLIDATED INCOME STATEMENT
      FOR THE QUARTER ENDED 30 JUNE 2006


                                                                 FIRST QUARTER                    CUMULATIVE 3 MONTHS
                                                            30.06.2006         30.06.2005        30.06.2006         30.06.2005
                                                              RM'000             RM'000            RM'000            RM'000
                                                                              (Restated)                           (Restated)
      Revenue                                                   72,134             66,418            72,134             66,418
      Operating expenses                                       (73,199)              (67,445)        (73,199)           (67,445)
      Other operating income                                       985                2,447             985               2,447

      (Loss)/Profit from operations                                 (80)              1,420              (80)             1,420
      Exceptional item                              1            7,410                   -             7,410                -

      Profit from operations after
          exceptional item                                       7,330                1,420            7,330              1,420

      Finance cost                                             (12,424)              (10,064)        (12,424)           (10,064)
                                                                                                                            -
      Share of results of associated companies                   4,224               (18,029)          4,224            (18,029)

      Loss before taxation                                        (870)              (26,673)           (870)           (26,673)
      Taxation                                                   (1,006)              2,555           (1,006)             2,555
      Net loss for the quarter/period                            (1,876)             (24,118)         (1,876)           (24,118)

      Attributable to:
      Equity holders of the parent                               (1,811)             (24,276)         (1,811)           (24,276)
      Minority interests                                            (65)                158              (65)              158

                                                                 (1,876)             (24,118)         (1,876)           (24,118)

      Loss per share attributable to
      equity holders of the parent:-
          Basic (sen)                                             (0.07)               (0.98)          (0.07)             (0.98)
          Diluted (sen)                                            N/A                  N/A              N/A               N/A

      Notes:-

      (1) The "Exceptional item " for the first quarter ended 30 June 2006 is the gain on foreign exchange.
          (ii) Gain in foreigncorporate guarantees
          (iv) Provision for of a subsidiary company's
          (iii) Settlement exchange
          (i) Reversal of impairment on investment in
      (2) "N/A" - Not applicable as the exercise price of the warrants under the assumed exercise of the warrants is higher
                     than the average market price of the shares.
      (3) The Condensed Consolidated Income Statement should be read in conjunction with the Annual Financial Report for the
          financial year ended 31 March 2006

(2)
(1)
(3)        "N/A" - Not applicable as for the financial period ended beSeptember 2004 is exercise on disposal of investmentfor the
           The "Exceptional item" the Income Statement warrants read in assumed with the Annual Financial Report in an
          The Condensed Consolidatedexercise price of the should30 under theconjunctionthe gain of the warrants is higher than the
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2006

                                                               30.06.2006         31.3.2006

                                                                  RM'000            RM'000
                                                                                 (Restated)
ASSETS
Non-Current Assets
    Property, Plant and Equipment                                 87,581            85,621
    Investments in Associated Companies                          492,838           490,291
    Available-for-Sale Financial Assets                           10,324            10,324
    Goodwill on Consolidation                                     21,895            21,895
    Deferred Tax Assets                                            2,351             2,351
                                                                 614,989           610,482

Current Assets
        Inventories                                               46,407            41,453
        Trade and Other Receivables                               12,535             8,755
        Tax Recoverable                                           16,498            16,498
        Deposits, Bank Balances and Cash                          14,871            75,073
                                                                  90,311           141,779

TOTAL ASSETS                                                     705,300           752,261


EQUITY AND LIABILITIES
Equity Attributable to Equity Holders of the Parent
     Share Capital                                              1,239,662         1,239,662
     Reserves                                                  (1,273,000)       (1,269,512)
     Shareholders' Equity                                         (33,338)          (29,850)
     Minority Interests                                           10,848            25,656
Total Equity                                                     (22,490)            (4,194)

Non-Current Liabilities
    Long Term Borrowings                                         298,835           338,902
    Deferred Tax Liabilities                                         348               348
                                                                 299,183           339,250

Current Liabilities
        Trade and other payables                                  61,538            62,333
        Short term borrowings                                    365,383           353,186
        Tax liabilities                                            1,686             1,686
                                                                 428,607           417,205

Total Liabilities                                                727,790           756,455

                                                                 705,300           752,261

     Net Liabilities per 50 sen share                               (1.34)            (1.20)
     attributable to ordinary equity holders of parent (sen)


     The Condensed Consolidated Balance Sheet should be read in conjunction with the Annual
     Financial Report for the financial year ended 31 March 2006




                                                        2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS ENDED 30 JUNE 2006
                                                                                                                            Minority           Total
                                                     Attibutable to Equity Holders of the Parent                            Interest           Equity

                                       Share       Non-Distributable    Distributable    Accumulated
                                       Capital        Reserves            Reserve          Losses          Total
                                       RM'000          RM'000              RM'000          RM'000         RM'000             RM'000           RM'000

At 1 April 2006
As previously reported                 1,239,662            311,809             3,948      (1,604,294)        (48,875)           25,656          (23,219)

Prior year adjustments due to
- effects of adoption of FRS 5               -                   -                   -        (34,932)        (34,932)                 -         (34,932)
- effects of adoption of FRS 3               -                   -                   -         53,957          53,957                  -          53,957
    by an associated company

As at 1 April 2006 (restated)          1,239,662            311,809             3,948      (1,585,269)        (29,850)           25,656            (4,194)


Group's share of post-
   acquisition reserves in
   associated companies                      -                (1,677)            -                 -           (1,677)                 -           (1,677)
Net loss not recognised in
   income statement                          -                (1,677)            -                 -           (1,677)                 -           (1,677)
Capital repayment to minority
   shareholders of a subsidiary
   company                                   -                   -               -                -               -              (14,743)        (14,743)
Net loss for the quarter                     -                   -               -             (1,811)         (1,811)               (65)         (1,876)

At 30 June 2006                        1,239,662            310,132             3,948      (1,587,080)        (33,338)           10,848          (22,490)



At 1 April 2005
As previously reported                 1,239,662            342,279             3,948      (1,420,409)       165,480             27,828          193,308

Prior year adjustments due to
    adoption of FRS1192004
    by an associated company
    - share of loss in an associated
      company                                -                   -                   -        (10,974)        (10,974)                 -         (10,974)
    - on Group's share of
    post-acquisition reserves
    in an associated company                 -                 1,188                 -             -            1,188                  -           1,188
Prior year adjustments due to
    effects of adoption of FRS 5                                                                                                                     -
    by an associated company                 -                   -                   -        (57,586)        (57,586)                 -         (57,586)

As at 1 April 2005 (restated)          1,239,662            343,467             3,948      (1,488,969)         98,108            27,828          125,936


Difference on translation of
    net assets of overseas
    subsidiary companies                     -                 3,331             -                 -            3,331                  -           3,331
Group's share of post-
    acquisition reserves in
    associated companies                     -               (13,729)            -                 -          (13,729)                 -         (13,729)
Net loss not recognised in
    income statement                         -               (10,398)            -                -           (10,398)                -          (10,398)
Net loss for the quarter                     -                  -                -            (24,276)        (24,276)                158        (24,118)

At 30 June 2005                        1,239,662            333,069             3,948      (1,513,245)         63,434            27,986           91,420




The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Report for the financial year ended
31 March 2006.




                                                                        3
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE THREE MONTHS ENDED 30 JUNE 2006

                                                                                    CUMULATIVE      CUMULATIVE
                                                                                     3 MONTHS        3 MONTHS
                                                                                     30.06.2006      30.06.2005

                                                                                       RM'000          RM'000
                                                                                                     (Restated)
Cash Flows From Operating Activities
  Loss before taxation                                                                      (870)        (26,673)
  Adjustments for non-cash flow items:-
       Depreciation                                                                        2,210           2,184
       Dividend income                                                                       (77)           (105)
       Interest expenses                                                                  12,424          10,064
       Interest income                                                                      (209)         (1,862)
       Share of results of associated companies                                           (4,224)         18,029
       Other non-cash items                                                               (6,291)            470

  Operating profit before working capital changes                                          2,963           2,107
      Net change in current assets                                                        (9,180)        (13,030)
      Net change in current liabilities                                                   (3,857)          6,843
      Interest expenses paid                                                              (7,259)            -
      Interest income received                                                               209           1,862
      Tax paid                                                                            (1,006)         (1,221)

  Net cash used in operating activities                                                  (18,130)         (3,439)

Cash Flows From Investing Activities
       Dividends received                                                                     77              75
       Purchase of property, plant and equipment                                          (4,294)         (1,770)
       Proceeds from disposal of property, plant and equipment                                21               1

  Net cash used in investing activities                                                   (4,196)         (1,694)

Cash Flows From Financing Activities
       Dividend paid to minority shareholders of a subsidiary company                        -            (1,006)
       Capital repayment to minority shareholders of a subsidiary company                (14,743)            -
       Interest expenses paid                                                               (356)         (7,426)
       Proceeds from utilisation of revolving credits and term loans                       2,500             -
       Repayments of term loans and revolving credits                                    (20,619)         (4,326)
  During the financial year, the subsidiary Berhad (PM Holding) and RM372,750,297) totaling
  The effects of the disposal of Group acquired property,the financial certain of its Group for
              of bank Malaysia Holding companies on plant and results             amounting to
  Settlement year, Pan borrowings (including bank overdrafts of equipment the subsidiary
  Net cash used in financing activities                                                  (33,218)        (12,758)
Effects of exchange rate changes                                                             -             2,411
Net decrease in cash and cash equivalents                                                (55,544)        (15,480)
Cash and cash equivalents at beginning of the financial period                            35,049          61,213

Cash and cash equivalents at end of the financial period                                 (20,495)         45,733

Cash and cash equivalents consist of the following:-
  Deposits, bank balances and cash                                                        14,871          77,375
  Bank overdrafts                                                                        (35,366)        (31,642)

                                                                                         (20,495)         45,733

The Condensed Consolidated Cash Flow Statement should be read in conjunction with the Annual Financial Report for
the financial year ended 31 March 2006

                                                           4
NOTES

A.    EXPLANATORY NOTES PURSUANT TO PARAGRAPH 16, FRS 134 INTERIM FINANCIAL REPORTING

A1.   Basis of Preparation

      The interim financial statements are unaudited and have been prepared in accordance with the requirements of
      FRS 134 Interim Financial Reporting and Chapter 9.22 of the Listing Requirements of Bursa Malaysia Securities
      Berhad ("Bursa Securities"). The significant accounting policies and methods of computation applied in this
      unaudited interim financial report are consistent with those adopted in the audited annual financial statements for
      the year ended 31 March 2006 except for the adoption of the following new/revised Financial Reporting
      Standards ("FRS") effective for financial period beginning 1 April 2006:

      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 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 principal effects of the changes in accounting policies resulting from the adoption in the new/revised FRSs
      are discussed below:



      (a) FRS 3: Business Combinations

      FRS 3 requires goodwill acquired in a business combination to be measured at cost and tested annually for
      impairment. Further, in accordance with transitional provisions of FRS 3, the negative goodwill of an associated
      company as at 1 January 2006 of RM53,956,925 was derecognised with a corresponding decrease in opening
      accumulated losses.


      (b) FRS 5: Non-current Assets Held for Sale and Discontinued Operations

      Wth the adoption of FRS 5 and in conjunction with the rationalisation exercise undertaken by the associated
      company, the associated company has classified certain assets as assets held for sale. These assets that are
      classified as held for sale are measured in accordance with FRS 5. The result of this change in accounting policy
      is that an asset held for sale is recognised by the associated company at the lower of carrying amount and fair
      value less costs to sell. The associated company has applied FRS 5 retrospectively.




      (c) FRS 101 : Presentation of Financial Statements

      The adoption of the revised FRS 101 has affected the presentation of minority interests, share of net after-tax
      results of associated companies and profit before taxation. 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 total 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 minority interests.

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




                                                                32
      (d) FRS 121 : The Effects of Changes in Foreign Exchanges Rates

      Items included in the financial statements of each of the Group's entities are measured using the currency of the
      primary economic environment in which the entity operates (the "functional currency"). The consolidated financial
      statements are presented in Ringgit Malaysia , which is the Company's functional and presentation currency.

      On 1 April 2006, foreign subsidiaries which are incorporated in Hong Kong and Singapore changed their
      functional currency from Hong Kong Dollar to Ringgit Malaysia ("RM"), and Singapore Dollar to RM respectively.
      This change in accounting policy has no material impact to the financial statements.


      Comparatives



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

                                                                                   Adjustments
                                                             Previously        FRS 3        FRS 5
                                                               stated       (Note A1(a))  (Note A1(b))         Restated
                                                              RM'000          RM'000        RM'000             RM'000

      At 31 March 2006
      Investment in Associated Company                          471,266          53,957          (34,932)         490,291
                                                                                                                      -
      Accumulated Losses                                     (1,604,294)         53,957          (34,932)      (1,585,269)




                                                             Previously       FRS 101
                                                               stated       (Note A1(c))      Restated
                                                              RM'000          RM'000          RM'000

      3 months ended 30 June 2005
      Share of results of associated companies                  (14,531)          (3,498)        (18,029)
      Loss before taxation                                      (23,175)          (3,498)        (26,673)
      Taxation                                                     (943)           3,498           2,555




A2.   Audit Report of Preceding Annual Financial Statements

      The audit report of the preceding annual financial statements was not qualified.

A3.   Seasonal or Cyclical Factors

      The Group's businesses where seasonal or cyclical factors would have some effects on the operations are as
      follows:-

      (a) Subsidiaries

          The retail operations in Malaysia have seasonal peaks in tandem with the year end school holidays and
          various festive seasons, and also normally record better sales during Blockbuster Sales.

      (b) Associated Companies

          (i)   The retail operations in United Kingdom normally record better sales in the third quarter of the financial
                year due to the Christmas season;

          (ii) The hotel operations in United Kingdom normally experience low trading after Christmas, New Year and
               Easter due to the after effects of the holiday seasons. Additionally, winter periods will also experience a
               decline in trading; and

          (iii) The food and confectionery operations in Australia normally perform well during the winter season due to
                increase in demand. As for the Asia Pacific region such as Malaysia, Singapore and Hong Kong, sales
                are better during the various festive seasons.




                                                                42
A4.   Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows
          Share      of    associated
           share disposal of quoted
      The Gain on noprofits and losses of associated companies income or cash flows that are unusual because of their
      There wereof items affecting assets, liabilities, equity, net for the
      nature, size or incidence in the current quarter ended 30 June 2006.


A5.   Changes in Estimates Reported in Prior Interim Periods

      There were no changes in estimates of amounts reported in prior financial year which may have a material effect
      in the current interim period.

A6.   Issuances, Cancellations, Repurchases, Resales and Repayments of Debts and Equity Securities

      There was no issuance or repayment of debt and equity securities, share buyback, share cancellation, and resale
      of treasury shares in the current quarter ended 30 June 2006.


A7. There are no changes in estimates of accounts reported in prior interim periods of the current financial year or report
      Dividends Paid

      There was no dividend paid in the current quarter ended 30 June 2006.

A8.   Segment Information
      The analysis of the Group operations for the current quarter ended 30 June 2006 is as follows:-
          Basis loss earnings of share is not applicable
          The diluted per shareper the Group is calculated by dividing
                                                                                            Property and
                                                                                             Investment
                                                                             Retailing         Holding           Total
                                                                              RM'000           RM'000           RM'000

              REVENUE

              External revenue                                                   72,124                 10         72,134
              Inter-segment revenue                                                 -               -                 -

              Total                                                              72,124                 10         72,134

              RESULTS

              Segment results                                                       152            (441)             (289)
              Share of results of associated companies                              -             4,224             4,224


                                                                                    152           3,783             3,935
              Exceptional item                                                                                      7,410
              Interest income                                                                                         209
              Finance costs                                                                                       (12,424)

              Loss before taxation                                                                                   (870)

A9.   Property, Plant and Equipment

      The valuations of property, plant and equipment have been brought forward without amendment from the previous
      annual financial statements.

      During the current quarter ended 30 June 2006, the property, plant and equipment acquired by the Group were
      as follows:-
                                                                           RM'000

              Other assets                                                        4,294



A10. Material Events Subsequent to the End of the Interim Period

      There were no material events subsequent to the current quarter ended 30 June 2006 and up to date of this
      report which are likely to substantially affect the results of the operations of the Group.
          On 26 no material the Board of Directors of current financial period ended 30 September 2005 up to
      There wereAugust 2005,events subsequent to the MJB has proposed a capital repayment scheme by MJB to its




                                                                52
A11. Changes in the Composition of the Group

     There were no changes in the composition of the Group during the current quarter ended 30 June 2006.




A12. Contingent Liabilities
     As at 23 August 2006, the Group did not have any material contingent liabilities.



A13. Capital Commitments

     As at 30 June 2006, the Group has capital commitments in respect of property, plant and equipment as follows:-



                                                                                          RM'000


             Approved but not contracted for                                                 5,754



     On 1 August 2005, Metrojaya Berhad ("MJB") had announced that as a part of its continuing business

      The following comparative amounts have been restated due to prior year adjustments.




                                                              62
B.    ADDITIONAL INFORMATION REQUIRED BY PART A OF APPENDIX 9B OF BURSA SECURITIES LISTING
      REQUIREMENTS
B1.   Review of Performance

       The contributions quarter ended main associated company, Malayan a higher revenue of RM72.13 million
      During the currentfrom the Group's30 June 2006, the Group recorded United Industries Berhad ("MUI"), were
      compared to RM66.42 million in the preceding year corresponding period. The increase in revenue was mainly
      due to the better performance of the departmental stores operations of its subsidiary companies .

      The Group recorded a loss before tax of RM0.87 million for the current quarter ended 30 June 2006 compared to
      the loss before tax of RM26.67 million in the preceding year corresponding period. The lower loss before tax for
      the current quarter was mainly due to the better results of associated companies and gain in foreign exchange.




B2. Material Changes in the Quarterly Results Compared to the Results of the Preceding Quarter


      The Group recorded revenue of RM72.13 million and a loss before taxation of RM0.87 million for the current
      quarter compared to revenue of RM95.68 million and profit before taxation of RM58.91 million (restated) in the
      preceding quarter. The higher revenue in the preceding quarter was mainly due to higher sales achieved by the
      retailing operations of its subsidiary companies during the festive seasons. The higher profit before tax in the
      preceding quarter was mainly due to the effects of adoption of FRS 3 and 5 and the reversal of deferred tax by the
      associated companies.


B3.    Prospects for Financial Year Ending 31 March 2007

       In May 2006, Metrojaya Berhad ("MJB") opened its fashion concept store known as "MJ by Metrojaya" and three
       specialty stores at The Curve, Mutiara Damansara and a specialty store in Kuantan. MJB also announced plans
       to open a new department store in Berjaya Times Square and another concept store in Avenue K shopping mall
       in the current financial year. MJB expects its group retail operations for the current financial year to perform
       better.

       The various operations under the Malayan United Industries Berhad ("MUIB") Group are expected to perform
       better in the current financial year. MUIB Group will continue with its rationalisation exercise to dispose of non-
       core and low-incoming generating assets to subtantially reduce its borrowings and to channel additional cash
       raised towards expansion of its core businesses. The rationalisation exercise continues to make good progress.
       Since 2003, the total proceeds from disposal of assets amounted to approximately RM2.6 billion and has enabled
       the MUIB Group to reduce its borrowings from RM3.5 billion to about RM1.7 billion.

       The Company's Proposed Capital Reconstruction and Proposed Rights Issue when completed in the current
       financial year will raise a minimum gross proceeds of approximately RM121.34 million, which will be utilised to
       reduce bank borrowings, for working capital and to defray the expenses of the corporate exercises.

       Based on the minimum gross proceeds of approximately RM121.34 million, the Proposed Rights Issue will enable
       the Company not only to write-off completely the deficit in its unaudited shareholders' equity on a consolidated
       basis of RM33.34 million as at 30 June 2006, but will also on a proforma basis based on the Group's unaudited
       consolidated balance sheet as at 30 June 2006, result in a surplus in its shareholders' equity on a consolidated
       basis of RM87.00 million after defraying RM1.00 million estimated expenses relating to the corporate exercises.
       When the Company has the requisite surplus in its shareholders' equity on a consolidated basis, the Company
       will cease to be an Affected Listed Issuer under PN17.




B4    Variance of Actual Profit from Forecast Profit

      Not applicable




                                                               72
B5.   Taxation

      Taxation comprises:-

                                                                FIRST QUARTER                CUMULATIVE 3 MONTHS
                                                           30.06.2006    30.06.2005        30.06.2006     30.06.2005
                                                             RM'000          RM'000          RM'000           RM'000


          Current taxation - Malaysian
           - Income tax                                        (1,006)          2,555          (1,006)            2,555


      Provision for taxation is made even though the Group recorded a loss before tax mainly due to certain expenses
      which are not tax deductible and non-availability of group relief where tax losses of certain companies of the Group
      cannot be set-off against taxable profits of other companies of the Group.



B6.   Sale of Unquoted Investments and/or Properties

      The profit on sale of unquoted investment for the current financial the ended 31 March 2005 was RM4.65
      There were no disposals of unquoted investments or properties in yearcurrent quarter ended 30 June 2006.million.


B7.   Quoted Securities
      (a) There were no purchases or disposals of quoted securities by the Group in the current quarter ended 30 June
          2006.


      (b) Total investments in quoted securities of the Group as at 30 June 2006, other than investment in an
          associated company, are as follows:-

                                                                                              RM'000

              At cost                                                                          12,566
              Less : Provision for diminution in value                                         (2,242)
              At book value                                                                    10,324

              Market value                                                                      7,426




                                                              82
B8.   Status of Corporate Proposals

  (i) Remaining Procceds in Respect of Rights Issue Completed In 2003

      In May 2006, the Company utilised the remaining proceeds from its rights issue, which was completed in 2003,
      amounting to RM2.68 million to repay inter-company loan owing by the Company to MJB.


  (ii) Proposed Capital Repayment by MJB

       On 26 August 2005, the Board of Directors of MJB proposed a capital repayment scheme by MJB to its
       shareholders via a reduction of the share premium reserve of MJB amounting to RM164.90 million in
       accordance with Section 60(2) and Section 64 of the Companies Act, 1965 ("Proposed Capital Repayment").

       In conjunction with the Proposed Capital Repayment, the Board of Directors of MJB also proposed a change in
       utilisation of the remaining unutilised cash proceeds previously raised from the rights issue of MJB completed
       on 10 October 1996 amounting to RM46.90 million as at 30 June 2005 ("Proposed Change in Utilisation"). The
       balance of rights issue proceeds of RM46.90 million shall form part of the Proposed Capital Repayment.

       The Proposed Capital Repayment is to be funded by a combination of the cash reserves of the MJB Group
       (including the said balance of rights issue proceeds of RM46.90 Miillion) and repayment of the inter-company
       loan owing by the Company to MJB.

       The Proposed Change in Utilisation and Proposed Capital Repayment had been approved by the shareholders
       of MJB at the extraordinary general meeting held on 13 December 2005. The Proposed Change in Utilisation
       had also been approved by the Securities Commission on 14 December 2005. The High Court of Malaya
       approved the Proposed Capital Repayment on 7 April 2006. On 11 May 2006, the Proposed Capital
       Repayment was completed.




 (iii) Affected Listed Issuer pursuant to Practice no. 17/2005 ("PN17") of the listing Requirements of Bursa Securities
       Proposed Capital Reconstruction and Proposed Rights Issue

       The Company (or "PMI') has on 8 March 2006 announced that it is an Affected Listed Issuer pursuant to PN17
       as the Company has a deficit in its unaudited adjusted shareholders' equity on a consolidated basis of RM17.55
       million as at 31 December 2005.


      The Company has also on 8 March 2006 announced the following proposed corporate exercises:-

  a) Proposed share capital reduction pursuant to Section 64(1) of the Companies Act, 1965 (the "Act") involving the
     reduction of the par value of each existing ordinary share of PMI in issue from RM0.50 to RM0.05 via
     cancellation of RM0.45 of the par value of existing ordinary share of RM0.50 each ("Proposed Par Value
     Reduction").


  b) Proposed reduction of the share premium account of PMI of up to RM224.07 million pursuant to Sections 64(1)
     and 60(2) of the Act ("Proposed Share Premium Reduction").



  c) Proposed consolidation of two (2) ordinary shares of RM0.05 each in PMI (after the Proposed Par Value
     Reduction) into (1) ordinary share of RM0.10 each in PMI ("Consolidated PMI Share") resulting in the revision
     of PMI's issued and paid-up share capital from 2,479,324,224 ordinary shares of RM0.05 each in PMI
     amounting to RM123,966,211 (after the Proposed Par Value Reduction) to 1,239,662,112 ordinary shares of
     RM0.10 each in PMI amounting to RM123,966,211 ("Proposed Share Consolidation").


      The Proposed Par Value Reduction, Proposed Share Premium Reduction and Proposed Share Consolidation
      shall collectively be known as the "Proposed Capital Reconstruction".

  d) Proposed amendment to the Company's Memorandum of Association to facilitate the Proposed Capital
     Reconstruction ("Proposed Amendment"); and




                                                              92
   e)    Proposed renounceable rights issue of up to a maximum of 2,674,683,194 new ordinary shares of RM0.10
         each in PMI ("Rights Shares") (assuming that all the existing warrants of PMI are exercised prior to the
         implementation of the Proposed Par Value Reduction) on the basis of three (3) Rights Share for every two (2)
         Consolidated PMI Shares at an indicative issue price of RM0.10 per Rights Share ("Proposed Rights Issue").

         To support and to ensure the successful implementation of the Proposed Rights Issue, the Company shall
         seek the consent of certain major shareholders of PMI, to provide their undertaking to subscribe and/or
         procure the subscription for the entitled rights shares under the Proposed Rights Issue.


        The Company's Proposed Capital Reconstruction and Proposed Rights Issue when completed in the financial
        year ending 31 March 2007 will raise a minimum gross proceeds of approximately RM121.34 million, which will
        be utilised to reduce bank borrowings, for working capital and for defraying the expenses of the corporate
        exercises.

        Based on the minimum gross proceeds of approximately RM121.34 million, the Proposed Rights Issue will
        enable the Company not only to write-off completely the deficit in its unaudited shareholders' equity on a
        consolidated basis of RM33.34 million as at 30 June 2006, but will also, on a proforma basis based on the
        Group's unaudited consolidated balance sheet as at 30 June 2006, result in a surplus in its shareholders' equity
        on a consolidated basis of RM87.00 million after defraying RM1.00 million estimated expenses relating to the
        corporate exercises. When the Company has the requisite surplus in its shareholders' equity on a consolidated
        basis, the Company will cease to be an Affected Listed Issuer under PN17 of the Listing Requirements of Bursa
        Securities.

        On 31 May 2006, the Company submitted its application to the Securities Commission ("SC") to seek its
        approval for the Proposed Share Consolidation and the Proposed Rights Issue. The said application is pending
        the SC's approval.




B9.     Group Borrowings
        Total Group borrowings as at 30 June 2006 are as follows:-

                                                                               RM'000

            Long term borrowings
            - Secured                                                               -
            - Unsecured                                                         298,835

                                                                                298,835

            Short term borrowings
            - Secured                                                           132,300
            - Unsecured                                                         233,083

                                                                                365,383

        The above borrowings include borrowings in Ringgit Malaysia equivalent of RM202,093,702 which are
        denominated in United States Dollars taken by foreign subsidiary companies.
B10. Off Balance Sheet Financial Instruments

        As at 23 August 2006, there were no financial instruments with off balance sheet risk.

B11. Material Litigation

     As at 23 August 2006, there were no material litigation.
     The analysis of the Group operations for the current financial period under review is as follows:-
B12. Dividend
        No dividend has been recommended by the Board for the current quarter ended 30 June 2006.




                                                                102
B13. Loss Per Share
      (a) Basic loss per share

          The basic loss per share is calculated by dividing the net loss for the quarter/period attributable to equity
          holders of the parent by the number of ordinary shares in issue during the quarter/period.


                                                                FIRST QUARTER               CUMULATIVE 3 MONTHS
                                                           30.06.2006       30.06.2005    30.06.2006       30.06.2005
         Net loss attributable to equity holders
   There ofisisNFIL material financial theRegister theStockIbalanceofthe
   Noticeare isherebybought hasthethethe Register ofofStockIExchangeof
     Notice the parentbought onthatintothethe(RM'000)endExchange on
     Notice are herebydeposited intoKualaRegisterwithSecurities(1,811)
     There Shares disposedonthat the theaLumpur Members Account
     The Boardno newgiven thatintoentireLumpurhasSecurities of sheet
      Notice noherebygiven quarter/periodLumpur Members Account
               The Director thatintotreatmentFood & the Exchangeon
               Shares transferred theinto Register of Members Total
               is hereby given of the Kuala shareholding of Securities
                  of transferred thatthe Depositor's Interim effect the
                  materialgiven into instruments of off
                       deposited declared Register of
                        for given its Kuala Depositor's
                        transferredsubsequentSecond Members of
                        deposited
                            accountig the the to Stock
                                           Depositor's
                                                 Depositor's the Total
                                                 Depositor's Dividend
                            events
                            the                                   current      (24,276)       (1,811)          (24,276)

          Number of ordinary shares in issue ('000)         2,479,324       2,479,324      2,479,324         2,479,324

          Loss per share (sen)                                   (0.07)          (0.98)         (0.07)           (0.98)

      (b) Diluted loss per share
          The diluted loss per share is not applicable as the exercise price of the warrants based on the assumed
          exercise of the warrants is higher than the average market price of the shares during the relevant
          quarter/period.




On behalf of the Board
PAN MALAYSIAN INDUSTRIES BERHAD



LEONG PARK YIP
Company secretary

29 August 2006




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