(1) Date of presentation of the Writ and Statement of Claim

The Board of Directors of Top Builders Capital Berhad (formerly known as Ikhmas Jaya Group Berhad) (“Top Builders” or “the Company”) wishes to announce that Ikhmas Jaya Sdn Bhd (“IJSB”), a wholly-owned subsidiary of the Company, had on 2 April 2021 been served a Writ and Statement of Claim both dated 25 March 2021 from Messrs Chetan Jethwani & Company, the solicitors of Halfen Moment Sdn Bhd (“the Plaintiff”).

(2) Details of the default or circumstances leading to the receipt of the Writ and Statement of Claim

The circumstances leading to the filing of the Writ and Statement of Claim was due to the fact that the Plaintiff has alleged IJSB has failed to settle the outstanding amount of RM218,596.68 owing to the Plaintiff for the goods and threading services provided by the Plaintiff to IJSB.

(3) The particulars of the claim under the Writ and Statement of Claim, including the amount claimed for and the interest rate

The Plaintiff claims the following from the Defendant:

a)  The sum of RM218,596.68 (“Outstanding Principal”);

b)  The sum of RM8,853.17 being the late payment interests on the Outstanding Principal at 1.5% per month from 10 December 2020 to 1 March 2021 (81 days);

c)  The sum of RM5,000.00 being the cost of initiating this civil litigation;

d)  Interest rate of 1.5% per month on the outstanding debt due and owing from 1 March 2021 to judgment date;

e)  Interest rate of 5% per annum on the judgment debt from the judgement date to the date of satisfaction;

f)  Costs on solicitor-client basis; and

g)  Any other and further order and/or reliefs as the Honorable Court thinks fit and proper.

(4) Confirmation as whether IJSB is a major subsidiary

IJSB is a major subsidiary of the Company.

(5) Cost of investment in IJSB

The total cost of investment in IJSB is amounting to RM30,000,000.00.

(6) The financial and operational impact of the Writ and Statement of Claim on the Group

The Writ and Statement of Claim will not have any additional financial and operational impact on the Group.

(7) The expected loss, if any, arising from the Writ and Statement of Claim

The Company is not expected to incur any further loss arising from the Writ and Statement of Claim.

(8) Steps taken and proposed to be taken in respect of the Writ and Statement of Claim

IJSB is seeking the necessary legal advice to resolve and/ or defend against this matter.

At the same time, the Company had on 26 March 2021, announced that the extension of the Restraining Order dated 31 December 2020 has been granted by the High Court of Malaya at Kuala Lumpur for another 3 months from 31 March 2021 pursuant to Sections 368 (1) of the Companies Act, 2016, whereby all proceedings and/or further proceedings and/or future proceedings in any action or proceedings against the Top Builders Group and/or its assets be and is hereby forthwith restrained and stayed except by Leave of Court, for a period of three (3) months from 31 March 2021.

Further announcement(s) to Bursa Malaysia Securities Berhad on any material development on the above will be made in due course.

This announcement is dated 2 April 2021.