Economic profit or loss is an amount earned for a period by a business after deducting the operating expenses and a charge of opportunity cost of capital employed. The Economic Profit and Loss Statement set out below is disclosed on a voluntary basis.

The assumptions used in computing the economic profit are set out below:

(i) The cost of equity is calculated based on the following formula:

Cost of equity = (Beta x Market Risk Premium) + Risk Free Rate

(ii) The Beta used in the calculation is the 5 years adjusted Bloomberg Rate:

Quarterly Period Beta
1st Quarter 2008 = 1.303
4th Quarter 2007 = 1.332

(iii) The risk free rate is the rate of return of a 10-year Malaysian Government Securities at the closing of the reporting period:

Risk Free Rate
At 31 March 2008 3.792%
At 31 December 2007 4.130%

(iv) The market risk premium is assumed at 5.2%, which represents the market return in excess of the return earned on risk free asset.

	1stQtr 2008 3 months (Unaudited) RM'000	2007 12 months (Audited) RM'000
Group profit after taxation	19,607	53,319
Less: Cost of capital employed	(12,930)	(49,158)
Economic profit	6,677	4,161