The Board of Directors of EKA wishes to announce that Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of the Company had, on 04 January 2018 been served with a Notice Pursuant to Section 465 and 466 of the Companies Act, 2016 (“Notice”) in relation to the claims by Tan Hooi Ming (NRIC No. 750326-07-5567) and Tan Hooi Kang (NRIC No. 770918-07-6107) [Both trade under the name and style of SEV Partnership Enterprise (Business Registration No. PG0259549-K)] of No. 26-T, Jalan Satu, Mukim 13, Ayer Itam, 11400 Pulau Pinang through a firm of lawyers acting on their behalf.

Particulars of claims

Tan Hooi Ming and Tan Hooi Kang, both trading under the name and style of SEV Partnership Enterprise seeks against KBBSB for the following to be paid within 21 days from the date of the receipt of the Notice:

1.         Principal Sum of RM1,625,475.10 being the debt remaining due for the goods sold and delivered upon KBBSB’s request as at 30 August 2017

2.         The sum of RM21,376.11 being interest of 4% on the outstanding amount of RM1,625,475.10 calculated on per annum basis from 30 August 2017 until the date of the Notice

3.         The costs of RM5,000.00

Financial and Operational Impact

The above will not have any financial or operational impact on Group.

Expected losses to the Group, if any

KBBSB is exposed to the claim, interests and expenses as stated above.

KBBSB will be appointing a firm of lawyers to act on its behalf.

This announcement is dated 04 January 2018.