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Reference is made to Bursa Malaysia Securities Berhad’s query letter dated 29 March 2010, requesting for the following additional information for public release:
1.The date on which the Notice was served on Maintenance Engineering Sdn Bhd (“ME”).
The Notice has been served on 19 March 2010 by Zelleco Sdn Bhd.
2.Whether ME is a major subsidiary.
ME is a wholly owned subsidiary of the Company involved in engineering activities. ME contributes 10.45% of the group\’s turnover and reported a loss before taxation of RM1.89million of the group\’s profit before taxation of RM3.41million for the financial year ended 30.03.09.
3.The interest rate claimed for under the Notice.
The claims sum of RM7,282,756.68 is inclusive of interest. However the rate of interest was not spelt out in the Notice.
4. The financial and operational impact of the Notice on the Group.
There is no immediate financial and operational impact of the Notice on the Group as the company has been aware of the disagreement and has been working towards a resolution. However, in the unlikely event of a negative legal judgement, a loss as mentioned in 5 below is foreseen.
5.The expected losses, if any arising from Notice.
Estimated RM1.5 million.
This announcement is dated 30 March 2010. |
