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Kossan Rubber Industries Bhd wishes to inform the Exchange that on 30.04.2002 it received notification from its Attorney in the United States of America that a Writ of Summon (Complaint at Law) has been lodged against LSL Industries, Inc and its director, Ashok Luthra, on 25 April 2002 in the United States District Court for the Northern District of Illinois, Eastern Division for the recovery of trade debts for USD226,325 (approximately RM854,377) together with interest at 5% per annum after the debts become due in respect of rubber/latex gloves sold and delivered by both Kossan Latex Industries (M) Sdn Bhd (169832-K) ("KLI") (USD154,600) (approximately RM583,615) and Perusahaan Getah Asas Sdn Bhd (89708-V)("PGA") (USD71,725)(approximately RM270,762) both wholly owned subsidiaries of Kossan Rubber Industries Bhd. (48166-W).
The expected loss arising from the Writ of Summon (Complaint at Law) against LSL Industries, Inc cannot be ascertained at this point of time as the estimated legal and related expenses have yet to be determined. While the Kossan Group does not forsee the loss to be material, a general provision of 20% (approximately RM116,723 and RM54,152 in the books of KLI and PGA respectively) had been provided in the financial statements for the year ended 31st December 2001. There is no immediate financial and operational impact arising from this Writ of Summon. (Complaint at Law).