The Company wishes to announce that EKA and its wholly-owned subsidiaries had on 04 January 2021 been served with a Writ of Summons and Statement of Claim dated 22 December 2020 issued by the Session Court of Georgetown, Penang in relation to the claims filed by the Plaintiff through a firm of lawyers acting on his behalf.

EKA and its subsidiaries are required to file Memorandum of Appearance within 14 days from 04 January 2021, failing which, default judgement and execution will be entered against them.

Particulars of claims and circumstances leading to filing of the Writ of Summons and Statement of Claim dated 22 December 2020.

According to the Statement of Claims, the Defendants owed the Plaintiff, who was a former director of EKA and its subsidiaries, a total sum of RM277,636.00 (“Balance Outstanding Salary”). Despite repeated demands, the Defendants refused, neglected and failed to pay the Balance Outstanding Salary up to the date of this Statement of Claim.

The Plaintiff then seeks against the Defendants for the following:-

1. The outstanding sum of RM277,636.00;
2. Interest at the rate of 5% per annum on the outstanding sum of RM277,636.00 from 22 December 2020 until the date of full settlement;
3. Costs; and
4. Other relief that the Honourable Court deems fit and proper to grant.

Financial and Operational Impact

The above will not have any financial or operational impact on the Group.

Expected losses to the Group, if any

EKA and its wholly-owned subsidiaries are exposed to the claims, interests and legal expenses as stated above.

Steps taken by the Company

EKA and its wholly-owned subsidiaries will appoint a firm of lawyers to act on its behalf.

This announcement is dated 04 January 2021.