The Board of Directors of EKA wishes to announce that Rasayang Food Industries Sdn Bhd (“Rasayang”), a wholly-owned subsidiary of EKA had, on 29 April 2016 been served with the Writ of Summon dated 15 April 2016 (No. PA-B52NCC-22-04/2016) and Statement of Claims dated 14 April 2016 issued by the Penang Sessions Court in relation to the claims filed by the Plaintiffs through a firm of lawyers acting on their behalf.

The matter is now fixed for case management and Rasayang is required to be present at the Penang Sessions Court on 16 May 2016 for case management of the matter failing which default judgement may be entered against Rasayang.

Particulars of claim and circumstances leading to filing of the Writ of Summon dated 15 April 2016

According to the Statement of Claims, the Plaintiffs had through a firm of lawyers acting on their behalf issued a letter dated 04 April 2016 to Rasayang demanded the sum of RM628,510.04 as at 28 March 2016 due to the Plaintiffs. However to date, Rasayang fails/refuses and/or still fails or refuses to pay the sum demanded by the Plaintiffs.

The Plaintiffs seek against Rasayang the following :

1. the sum of RM581,835.68 as at 08 April 2016;
2. interest of 4% per annum calculated daily on RM581,835.68 from the date of judgement until full settlement;
3. costs of this action; and
4. further and other reliefs 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

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

The directors will be appointing a lawyer to represent Rasayang for case management of the matter at Penang Sessions Court.

This announcement is dated 29 April 2016.