Pursuant to Paragraph 9.03 of Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of JCB wishes to inform that the Company had on 18 January 2023 received a Writ of Summons and Statement of Claim filed by Messrs. Shahinuddin & Ranjit, the Solicitors acting on behalf of KWSP, the Plaintiff.

1) THE DATE OF THE PRESENTATION OF THE WRIT OF SUMMONS AND STATEMENT OF CLAIM AND THE DATE OF THE WRIT OF SUMMON AND STATEMENT OF CLAIM WAS SERVED ON THE COMPANY

The Writ of Summons and Statement of Claim are both dated 29 December 2022. Both were served to the Defendants vide Messrs. Shahinuddin & Ranjit, the Solicitors acting on behalf of the Plaintiff on 9 January 2023.

2) THE PARTICULARS OF THE CLAIM UNDER THE WRIT OF SUMMONS AND STATEMENT OF CLAIM, INCLUDING THE AMOUNT CLAIMED FOR AND THE INTEREST RATE

The details of the claim pursuant to the Writ of Summons and Statement of Claim are as below:-

a) the 1st Defendant, 2nd Defendant and 3rd Defendant to pay jointly and separately to the plaintiff:

(i) the outstanding Employees Provident Fund (“EPF”) contribution amounting to RM3,086,585.00 to the employee responsible for the period January 2020 to May 2022;

(ii) dividend on the EPF contribution payable for the period January 2020 to May 2022 which is at a rate of 4.90% per annum for the period 01.01.2020 to 31.12.2020, 5.65% per annum for the period 01.01.2021 to 31.12.2021 and subsequent dividends at the rate that will declared by the plaintiff for each subsequent year calculated from 16.01.2020 until the date of full settlement;

(iii) late payment charges of EPF contribution due for the period January 2020 to May 2022 which is at a rate of 5.90% per annum for the period 01.01.2020 to 31.12.2020, 6.65% per annum for the period 01.01.2021 to 31.12.2021 and subsequent late payment charges at any rate and in any manner and calculation by the plaintiff for each subsequent year calculated from 16.01.2020 until the date of full settlement;

b) the 4th Defendant to pay jointly and separately to the plaintiff:

(i) the outstanding EPF contribution amounting to RM3,080,605.00 to the employee responsible for the period January 2020 to April 2022;

(ii) dividend on the EPF contribution payable for the period January 2020 to April 2022 which is at a rate of 4.90% per annum for the period 01.01.2020 to 31.12.2020, 5.65% per annum for the period 01.01.2021 to 31.12.2021 and subsequent dividends at the rate that will declared by the plaintiff for each subsequent year calculated from 16.01.2020 until the date of full settlement;

(iii) late payment charges of EPF contribution due for the period January 2020 to April 2022 which is at a rate of 5.90% per annum for the period 01.01.2020 to 31.12.2020, 6.65% per annum for the period 01.01.2021 to 31.12.2021 and subsequent late payment charges at any rate and in any manner and calculation by the plaintiff for each subsequent year calculated from 16.01.2020 until the date of full settlement;

c) the 5th Defendant to pay jointly and separately to the plaintiff:

(i) the outstanding EPF contribution amounting to RM2,840,191.00 to the employee responsible for the period January 2020 to November 2021;

(ii) dividend on the EPF contribution payable for the period January 2020 to November 2021 which is at a rate of 4.90% per annum for the period 01.01.2020 to 31.12.2020, 5.65% per annum for the period 01.01.2021 to 31.12.2021 and subsequent dividends at the rate that will declared by the plaintiff for each subsequent year calculated from 16.01.2020 until the date of full settlement;

(iii) late payment charges of EPF contribution due for the period January 2020 to November 2021 which is at a rate of 5.90% per annum for the period 01.01.2020 to 31.12.2020, 6.65% per annum for the period 01.01.2021 to 31.12.2021 and subsequent late payment charges at any rate and in any manner and calculation by the plaintiff for each subsequent year calculated from 16.01.2020 until the date of full settlement;

d) cost of action; and

e) such other reliefs as the Court may deem fair and appropriate.

3) THE DETAILS OF THE DEFAULT OR CIRCUMSTANCES LEADING TO THE FILING OF THE WRIT OF SUMMON AND STATEMENT OF CLAIM ON ITS SUBSIDIARY

JASB is the registered employer as defined under Section 2 of the Employees Provident Fund Act 1991 and is responsible for making monthly contribution of its employees to the Plaintiff.

The circumstances leading to the filing of the Writ of Summons and Statement by the Plaintiff was due to the claim that JASB and its Directors had failed to pay the outstanding EPF contributions for the months of January 2020 to May 2022, for a total sum of RM3,086,585.00.

4) THE FINANCIAL AND OPERATIONAL IMPACT OF THE WRIT OF SUMMON AND STATEMENT OF CLAIM ON THE GROUP

Save for the amount of RM3,086,585.00 claimed by EPF together with the interest to be charged on the outstanding amount and legal cost to be incurred by the Company, the litigation is not expected to have other financial and operational impact to the Group.

5) THE STEPS TAKEN AND PROPOSED TO BE TAKEN BY THE COMPANY IN RESPECT OF THE WRIT OF SUMMON AND STATEMENT OF CLAIM

The Company is seeking the necessary legal advice to resolve and/or defense against this matter.

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 19 January 2023.