R&A Telecommunication Group Bhd
+603 55691801 +603 55695730

Company Name

R&A TELECOMMUNICATION GROUP BERHAD

Stock Name

RA

Date Announced

23 Nov 2015

Category

General Announcement for PLC

Reference Number

GA1-19112015-00059

MATERIAL LITIGATION R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") - KUALA LUMPUR MAGISTRATE'S CT. S/NO. A72NCC-688-05/2015: WRIT OF SUMMONS TOGETHER WITH STATEMENT OF CLAIM ("CLAIM") FILED BY KVC INDUSTRIAL SUPPLIES SDN .BHD ("KVC INDUSTRIAL"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB") A WHOLLY OWNED SUBSIDIARY OF R&A ("1ST DEFENDANT") AND MR. FRANCIS TAN HOCK LEONG ("2ND DEFENDANT").

Type

Announcement

Subject

MATERIAL LITIGATION

Description

R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY")

 - KUALA LUMPUR MAGISTRATE'S CT. S/NO. A72NCC-688-05/2015: WRIT OF SUMMONS TOGETHER WITH STATEMENT OF CLAIM ("CLAIM") FILED BY KVC INDUSTRIAL SUPPLIES SDN .BHD ("KVC INDUSTRIAL"), AGAINST R&A TELECOMMUNICATION SDN. BHD. ("RASB") A WHOLLY OWNED SUBSIDIARY OF R&A ("1ST DEFENDANT") AND MR. FRANCIS TAN HOCK LEONG ("2ND DEFENDANT").

The Board of Directors of R&A wishes to inform that RASB, a wholly-owned subsidiary of R&A, had on 19 November 2015 been served a Writ and Statement of Claim from KVC Industrial Supplies Sdn. Bhd. (“the Plaintiff”).

1. The date of the presentation of the Writ and Statement of Claim and the date of the Writ and Statement of Claim was served on the listed issuer and its subsidiary.

The Writ and the Statement of Claim are dated 13 November 2015. Both were served on RASB vide Messrs. Ho, Loke & Koh being the solicitors for the Plaintiff on 19 November 2015.

2. The particulars of the claim under the Writ and Statement of Claim, including the amount claimed for and the interest rate

The claim pursuant to the Writ and Statement of Claim is as below:

(a) The sum of RM35,505.49 as at 9 November 2015;

(b) Late payment interest on the amount of RM31,163.00 at a rate of 1.5% per month from 10 November 2015 until the date of full payment;

(c) Cost; and

(d) Any other orders as they may deem fit.

3. The details of the default or circumstances leading to the filing of the Writ and Statement of Claim on the listed issuer and its subsidiary

The filing of the Writ and Statement of Claim is a result of RASB failing to settle the outstanding amount of RM35,505.49 being the outstanding amount for goods sold.

4. Whether RASB is a major subsidiary of R&A

RASB is a major subsidiary of R&A.

5. The financial and operational impact of the Writ and Statement of Claim on the Group.

 The financial and operational impact of the Writ and Statement of Claim on the Group is limited.

6. The expected losses, if any, arising from the Writ and Statement of Claim

Does not have a profit and loss impact but it will severely impact on cash position.

7. The steps taken and proposed to be taken by R&A in respect of the Writ and Statement of Claim

R&A is expected to address this issue via regularisation plan. Once the regularisation plan is finalised, a settlement proposed is be put forward to our creditors.

Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 23 November 2015.

GROWTH

R&A is aggressively expanding not only in the local Malaysian market.....
More

DIVERSIFY

R&A’s diversification & expansion.....

More

CLIENT

R&A has a solid background and reputation with Operators and MNC vendors.....
More