Reference is made to the Announcement dated 24 May 2023 in respect of the aforesaid matter. (“Announcement”) 

(Unless otherwise stated, the words and abbreviations used herein shall have the same meaning as those defined in the Announcement.)

The Board wishes to announce the following additional information as required by Bursa Securities via its letter (ref no: IQL-26052023-00001) dated 26 May 2023:-

Question 1.       Operational impact of the Writ of Summons and Statement of Claim on MTAG group.

The Writ of Summons and Statement of Claim are not expected to have operational impact on the Group.

Question 2.       The estimated potential liability to the MTAG Group arising from the Writ of Summons and Statement of Claim.

The estimated potential liability to the MTAG Group arising from the Writ of Summons and Statement of Claim are as below:-

i.MTAG Group filed a Writ of Summons and Statement of Claim against Jabco Filter System Sdn. Bhd (“Jabco”) in the sum of RM27,551,305.59 ("Claims"). If MTAG Group succeed, MTAG Group will get the Claims from Jabco and there will be no liability to MTAG Group. If MTAG Group do not succeed,  it may result in the impairment of inventories subject to the auditor’s review of the assessment of inventories value;

ii.Storage costs of the balance stock purchased for the period commencing 19 April 2023 until Jabco takes delivery of the said stock which is estimated to be RM50,000 per month; and

iii.Legal Cost estimated to be RM700,000.

This announcement is dated 26 May 2023.