BASIS OF PREPARATION

The Interim Financial Report is audited and has been prepared in compliance with Financial Reporting Standard (“FRS”) 134 Interim Financial Reporting and paragraph 9.22 of the Listing requirements of Bursa Malaysia Securities Berhad. The Interim Financial Report should also be read in conjunction with the audited Annual Financial Report for the year ended 31 March 2007.

The Interim Financial Report has been prepared in accordance with the same accounting policies adopted in the Annual Financial Report for the year ended 31 March 2007, except for the changes arising from the adoption of following FRSs as issued by Malaysian Accounting Standards Board:-

1. Amendment to FRS 1192004 Employee Benefits - Actuarial Gains and Losses, Group Plans and Disclosures which is effective for accounting periods beginning on or after 1 January 2007. The adoption of this FRS has no impact on the Group’s consolidated financial statements.
2. FRS 124 Related Party Disclosures which are effective for accounting periods beginning on or after 1 October 2006. The adoption of this FRS has no financial impact on the Group’s consolidated financial statements.
3. FRS 117 Leases which are effective for accounting periods beginning on or after 1 October 2006. The chance in this accounting policy has been reflected in this Interim Financial Report.
   
   Prior to 1 April 2007, leasehold land held for own use was classified as Property, Plant and Equipment and was stated at cost less accumulated depreciation and impairment loss.
   
   FRS 117 requires that lease of land and building are classified as operating or finance leases in the same way as leases of other assets. The land and building elements of the lease are considered separately for the purpose of lease classification. Leasehold land held for own use is now classified as operating lease.
   
   Consequent to the change in accounting policies arising from the adoption of FRS 117, the Group has reclassified upfront payments of leasehold land as prepaid lease payments. These payments are amortised on a straight-line basis over the remaining lease period.
   
   The Group has applied the change in accounting policy with respect to leasehold land in accordance with the transitional provisions of FRS 117. This reclassification has been applied retrospectively. Consequently, certain comparatives within the Consolidated Balance Sheet and Consolidated Cash Flow statement as at 31 March 2007 have been restated as set out below.
   
   Effect on opening balance of Property, Plant and Equipment and Long Term Receivables at 1 April 2007 (as adjusted)
   
   The following table sets out the adjustments that have been made to the opening balances as at 1 April 2007.
   
   

   	As restated (RM’000)	As previously stated (RM’000)
   Consolidated Balance Sheet
   Property, Plant and Equipment	2,806,926	3,086,920
   Prepaid Lease Payments	561,821	-
   Long Term Receivables	-	281,827
   Consolidated Cash Flow Statement
   Purchase of property, plant and equipment	(405,749)	(446,259)
   Prepayments of leases	(90,247)	-
   Prepaid rental of service station sites	-	(49,737)
   Proceeds from disposal of property, plant and equipment	337	1,047
   Proceeds from disposal of prepaid leases	710	-

AUDIT QUALIFICATION

Not applicable.

SEASONAL OR CYCLICAL FACTORS

The Group’s operations in relation to sales volume is not significantly affected by seasonal or cyclical fluctuations of the business/industry.

None.

There were no changes in accounting estimates in the current quarter.

Outstanding commitments in respect of capital expenditure at balance sheet date not provided for in the interim financial report are:-

ISSUANCE OR REPAYMENT OF DEBTS AND EQUITY SECURITIES

None.

During the twelve months period ended 31 March 2008, the following dividend payments were made:

1. A final dividend of 20 sen per share less tax at 27% amounting to RM145,044,284 (2006: 15 per share less tax at 28% amounting to RM107,293,032) was paid on 23 August 2007 in respect of financial year ended 31 March 2007.
2. An interim dividend of 12 sen per share less tax at 27% amounting to RM87,026,570 (2006: 10 sen per share less tax at 28% amounting to RM71,528,688) was paid on 28 December 2007 in respect of financial year ended 31 March 2008.

SEGMENTAL INFORMATION

The Group’s principal activity is domestic marketing of petroleum products. Segment reporting is deemed not necessary.

PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment except for freehold land are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Freehold land is stated at cost less accumulated impairment losses, if any.

EVENTS AFTER BALANCE SHEET DATE

In the opinion of the Directors, no transaction or event of a material or unusual nature had occurred between 31 March 2008 and the date of this announcement.

CHANGES IN THE COMPOSITION OF THE GROUP

None.

CONTINGENT LIABILITIES

None.

The Directors are of the opinion that revenue is expected to remain high and market leadership will be maintained with continued aggressive marketing initiatives. However, profits for the next financial year will continue to be impacted by fluctuations in petroleum product costs as a consequence of volatile international crude oil prices.

UNQUOTED INVESTMENTS AND PROPERTIES

There were no disposals of unquoted securities and no material gains or losses from disposal of properties during the financial period.

QUOTED INVESTMENTS

There were no investments in quoted securities during the financial period.

There were no corporate proposals announced but not completed at the latest practicable date for the Group.

There were no borrowings as at the date of this report.

There are no off balance sheet risks as at the date of this report that may materially affect the position or business of the Group.

MATERIAL LITIGATION

There has been no material litigation at the date of this report.

The Board has declared an interim dividend of 12 sen per share less tax at 27% for the six months ended 30 September 2007 amounting to RM87,026,570 (2006: 10 sen per share less tax at 28% amounting to RM71,528,688) was paid on 28 December 2007.

The Directors propose a final dividend of 33 sen per share less tax at 25% amounting to RM245,879,865 (2007: 20 sen per share less tax at 27% amounting to RM145,044,284) to shareholders to be tabled at the next Annual General Meeting, payable on a date to be announced later.

The earnings per share is derived based on the profit for the year attributable to shareholders of the Company of RM661,665,000 (March 2007: RM640,307,000) and on the number of ordinary shares as at 31 March 2008 of 993,454,000 (March 2007: 993,454,000)