(Unless otherwise stated, all abbreviations used herein shall have the same meaning as those mentioned in the announcements dated 16 January 2019 and 01 March 2019 in relation to the Writ and Statement of Claims filed by Public Bank Berhad (Plaintiff) VS Kilang Bihun Bersatu Sdn Bhd and Chin Seak Huat (Defendants) (“Announcements”))

Further to the Announcements, the Company wishes to inform that the vehicle were sold for RM150,000.00 on 25 March 2019 through a public auction. However, there is still an outstanding amount of RM89,060.38 as at 22 April 2019 owing by Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of EKA.

KBBSB had on 18 June 2019 been served with another Writ and Statement of Claim dated 31 May 2019 issued by Magistrate Court of Georgetown in relation to the claims filed by the Plaintiff through a firm of lawyers acting on its behalf.

KBBSB is required to file a Memorandum of Appearance in the Magistrates Court, Georgetown within 14 days from 18 June 2019 failing which, Judgement in Default will be entered against KBBSB.

Particulars of claims and circumstances leading to filing of the Writ and Statement of Claim dated 31 May 2019.

The Plaintiff had through a firm of lawyers acting on their behalf issued a Notice of Demand dated 24 April 2019 to KBBSB demanded the sum of RM89,060.38 due to the Plaintiff. As a result of KBBSB fails to comply with the Notice of Demand, the Plaintiff has institute a legal proceedings for the recovery of the outstanding sum under the Hire Purchase Agreement dated 10 June 2014.

The Plaintiff seeks against KBBSB for the following:-

1. The outstanding sum of RM89,060.38 as at 22 April 2019;
2. interest at the rate of 8% per annum on the outstanding sum of RM83,248.08 calculated on daily basis from 23 April 2019 until the date of full settlement; and
3. costs; and
4. such further and/or other relief

Financial and Operational Impact

The above will not have any financial or operational impact on the 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 will appoint a firm of lawyers to act on its behalf.

This announcement is dated 18 June 2019.