The Board of Directors of EKA wishes to announce that Rasayang Food Industries Sdn Bhd (“Rasayang”), a wholly-owned subsidiary of the Company had, on 17 August 2016 been served with a Notice Pursuant to Section 218 of the Companies Act 1965 (“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)] through a firm of lawyers acting on their behalf.

Particulars of claims

Tan Hooi Ming & Tan Hooi Kang, both trading under the name and style of SEV Partnership Enterprise seeks against Rasayang for the following to be paid within 3 weeks of the receipt of the Notice:

1. the principal sum of RM581,835.68
2. the sum of RM1,976.65 being interest of 4% on the outstanding amount of RM581,835.68 calculated on per annum basis from 18 July 2016 until the date of the Notice;
3. costs of RM1,000.00

Financial & Operational Impact

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

Expected losses to the Group, if any

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

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

This announcement is dated 18 August 2016.