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

Company Name

R&A TELECOMMUNICATION GROUP BERHAD

Stock Name

RA

Date Announced

15 Jan 2016

Category

General Announcement for PLC

Reference Number

GA1-15012016-00040

MATERIAL LITIGATION R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") - STATUTORY DEMAND PURSUANT TO SECTION 218 OF THE COMPANIES ACT, 1965.

Type

Announcement

Subject

MATERIAL LITIGATION

Description

R&A TELECOMMUNICATION GROUP BERHAD ("R&A" OR "THE COMPANY") - STATUTORY DEMAND PURSUANT TO SECTION 218 OF THE COMPANIES ACT, 1965.

  1. 1.   Introduction

The Board of Directors of R&A (“Board”) wishes to announce that R&A Metals Sdn. Bhd. (“RMSB”), a wholly-owned subsidiary of R&A Telecommunication Sdn. Bhd., had received a notice of statutory demand pursuant to Section 218 of the Companies Act, 1965 (“Act”) dated 14 January 2016 from Messrs. Ho, Loke & Koh, the solicitors acting for Sametech Solutions Sdn. Bhd. (“Sametech”) (“Notice of Demand”), demanding for a payment of RM79,315.82 being the Judgment sum due and owing by RMSB to Sametech under a Judgment dated 19 August 2015 obtained by Sametech in the Kuala Lumpur Magistrate’s Court Suit No. A72NCVC-3082-07/2015 together with interest thereon at the rate of 5% per annum from 19 August 2015 until 14 January 2016 which amounts to RM1,618.49 and cost of RM784.00.

  1. 2.   The date of the Notice of Demand served on the Company, its subsidiary or major associated company.

The Notice of Demand was served to RMSB on 14 January 2016 by Messrs. Ho, Loke and Koh, the solicitors acting for Sametech.

  1. 3.   The particulars of the claim under the Notice of Demand, including the amount claimed for and the interest rate.

The claim pursuant to the Notice of Demand are as below:-

(ii) Interest at the rate of 5% per annum from 19 August 2015 until 14 January 2016 amounting to RM1,618.49; and

(iii) cost of RM784.00.

In accordance with the Notice of Demand, if RMSB fails and/or refuse to pay the aggregate sum of RM81,718.31 due and owing as at 14 January 2016 to Sametech within twenty-one (21) days from the date of receipt of the Notice of Demand, RMSB shall be deemed to be unable to pay its debts within the meaning of Section 218 of the Act and winding-up proceedings shall be instituted against RMSB without further reference.

  1. 4.  The details of the default or circumstances leading to the filing of the Notice of Demand against the Company, its subsidiary or major associated company.

The filing of the Notice of Demand is a result of RMSB failing to settle the outstanding amount of RM79,315.82 being the outstanding amount for goods sold.

  1. 5.   A confirmation as to whether RMSB is a major subsidiary.

RMSB is a wholly-owned subsidiary of R&A.

  1. 6.   The cost of investment in RMSB.

The total cost of investment in RMSB is RM100,000.00.

The financial and operational impact of the Notice of Demand on the Group is limited to RM81,718.31 being the judgment sum, the interest rate and cost as per the Notice of Demand.

The expected losses, if any, arising from the Notice of Demand does not have a profit and loss impact but it will impact on the Company’s cash position.

  1. 9.   The steps taken and proposed to be taken in respect of the Notice of Demand

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

This announcement is dated 15 January 2016.

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