The Company wishes to announce that its wholly-owned subsidiary, Teknoserv Engineering Sdn. Bhd., has received a notice of adjudication from Nine Hundred Builders Sdn. Bhd. under the Construction Industry Payment & Adjudication Act 2012 (“CIPA Act”) in relation to the project known as “The Proposed Extension of Phase 2 Sawah Raja Water Treatment Plant and Other Related Works (10MGD), Negeri Sembilan, Pakej 1 – Cadangan Membina dan Menyiapkan Loji Rawatan Air Sawah Raja Fasa 2, Sub-contract for Civil and Structural Works and External Works”.

The Claimant’s contention is that the Respondent has under-valued, under-certified and/or wrongly certified the value of certain work, and is claiming from the Respondent a sum of RM1,613,575.12, interest on the adjudicated amount, costs, and further and other reliefs that the adjudicator may deem fit.

The Respondent intends to dispute the claim and has referred the matter to external counsel.

Under the CIPA Act, an adjudicator may be appointed by agreement of parties within 10 working days from service of the notice of adjudication, or by the Director of the Asian International Arbitration Centre.

FINANCIAL AND OPERATIONAL IMPACT

The management of the Company is of the opinion that in the event that the claim is allowed, there will be a negative impact to the financial position of GUH Group in the current financial year ending 31 December 2019.

There is no operational impact arising from the claim.

Further announcements on material developments in this matter will be made in due course.

This announcement is dated 13 November 2019.