The Company wishes to announce that Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of EKA had on 07 December 2017 been served with a Writ dated 29 November 2017 and Statement of Claims dated 29 November 2017 issued by the Magistrates Court of Georgetown in relation to the claims filed by the Plaintiff through a firm of lawyers acting on their behalf.

KBBSB is required to enter appearance to the above action within 14 days from 07 December 2017, failing which, default judgment may be entered against KBBSB.

The said action had been fixed for Mention on 05 January 2018 at Magistrates Court of Georgetown.

Particulars of claim and circumstances leading to filing of the Writ of Summon dated 29 November 2017

The Plaintiff had granted the Shell Fleet Card to KBBSB upon such terms and conditions as in the Shell Cardholder Agreement. As at 31 December 2016, KBBSB had used the Shell Fleet Card at various petrol stations in Malaysia and had incurred the sum of RM45,374.83 in purchasing fuels. Consequently, the Plaintiff had through a firm of lawyers acting on their behalf issued a letter of demand dated 10 August 2017 to KBBSB demanded the outstanding sum of RM45,374.83 due to the Plaintiff. However to date, KBBSB fails/refuses and/or still fails or refuses to pay the sum demanded by the Plaintiff.

The Plaintiff seeks against KBBSB for the following:

(a)   the sum of RM45,374.83;

(b)   the interest rate of 1% per annum on the outstanding sum of respective invoices which is calculated from the date of the last payment of the invoices up to the date of the Writ;

(c)   the interest rate of 5% per annum on the outstanding sum of RM45,374.83 from the date of Writ up to the date of full settlement;

(d)   cost; and

(e)   other reliefs or orders as the Court deems fit and proper to grant.

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 claims, interests and legal expenses as stated above.

Steps taken by the Company

KBBSB had appointed a firm of lawyers to act on its behalf.

This announcement is dated 07 December 2017.