The Company wishes to announce that Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of EKA had on 20 December 2017 been served with a Writ dated 30 October 2017 and Statement of Claim dated 30 October 2017 issued by Kuala Lumpur Magistrate Court in relation to the claims filed by Plaintiff through a firm of lawyers acting on their behalf.

KBBSB is required to enter appearance to the above action within 14 days from 20 December 2017, failing which, default judgement and execution may be entered against KBBSB.

The matter had been fixed for case management on 21 December 2017.

Particulars of claims and circumstances leading to filing of the Writ dated 30 October 2017.

According to the Statement of Claims, the Plaintiff had from period of January 2016 to August 2017 issued several invoices (“Invoices”) to KBBSB for the pallets hired under the Hire Agreement. The total outstanding amount up to 26 August 2017 is RM60,103.12 (“Outstanding Amount”). The Plaintiff had demanded for the Outstanding Amount and KBBSB have despite repeated reminders from the Plaintiff, failed and/or refused and/or neglected and/or omitted to pay the Outstanding Amount.

The Plaintiff seeks against KBBSB for the following:-

(a) the Outstanding Amount of RM60,103.12;

(b) interest at the rate of 12% per annum from 30.08.2014 to 30.10.2017 in the sum of RM3,318.09;

(c) interest at the rate of 5% per annum on the Outstanding Amount from the date of judgement to the date of full and final settlement;

(d) costs; and

(e) such further and/or other relief that the Honourable Court deems fit and proper to grant.

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 21 December 2017.