The Board of Directors of EKA wishes to announce that Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of EKA had, on 29 April 2016 been served with the Writ of Summon dated 25 April 2016 (No. PA-22NCVC-66-04/2016) and Statement of Claims dated 14 April 2016 issued by the Penang High 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 KBBSB is required to be present at the Penang High Court on 18 May 2016 for case management of the matter failing which default judgement may be entered against KBBSB.

Particulars of claim and circumstances leading to filing of the Writ of Summon dated 25 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 KBBSB demanded the sum of RM1,588,259.50 as at 31 March 2016 due to the Plaintiffs. However to date, KBBSB fails/refuses and/or still fails or refuses to pay the sum demanded by the Plaintiffs.

The Plaintiffs seek against KBBSB the following :

1. the sum of RM1,625,475.10;
2. interest of 4% per annum calculated daily on RM1,625,475.10 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

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

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

This announcement is dated 29 April 2016.

This announcement is dated 29 April 2015.