Protasco Berhad ("Protasco" or "Company")

## fields Type :: Reply to query ## fields Reply to Bursa Malaysia's Query Letter - Reference ID :: ZO-090408-56501 Contents :: Shah Alam High Court Suit No. MT1-22-563-2005 - Mohd Redzuan Mohanan (trading as Menuju Asas Enterprise) vs HCM Engineering Sdn. Bhd. ("HCM") Query Letter Contents :: We refer to your Company's announcement dated 7 April 2009 in respect of the above matter. In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa Securities") with the following additional information for public release:- The date of presentation of the Plaintiff's suit and the date the suit was served on HCM and the dates of the subsequent events. Whether HCM is a major subsidiary and total cost of investment in HCM. The financial and operational impact of the suit on the group. The expected losses, if any arising from the suit. Please furnish Bursa Securities with your reply via an announcement within one (1) market day from the date hereof. Yours faithfully KHOO KAY KWAN Head, Issuers Listing Division Regulation MZM / ZOOS c.c.Head, Market Surveillance Department Securities Commission (via fax) ## para With reference to your letter dated 8 April 2009, the Company wishes to inform as follows: ## para 1. The Chronology of Events are as below: ## para 1. ## para Menuju Asas Enterprise’s solicitors’ letter of demand. ## para 28.09.2004 ## para 2. ## para HCM’s response asking for particulars of alleged debt as demand raised approximately 5 years after alleged debt. ## para 10.11.2004 ## para 3. ## para Menuju Asas Enterprise’s solicitors’ letter promising response. ## para 23.11.2004 ## para 4. ## para Change of Solicitors for Menuju Asas Enterprise and Sealed Writ of Summons and Statement of Claim served without giving particulars as promised. ## para 15.07.2005 ## para 5. ## para Conditional Appearance filed. ## para 26.07.2005 ## para 6. ## para Application filed to strike out suit for lack of particulars. ## para 08.08.2005 ## para 7. ## para Learned Senior Assistant Registrar’s Order dismissing application with costs. ## para 16.01.2006 ## para 8. ## para Appeal to Judge In Chambers filed. ## para 19.01.2006 ## para 9. ## para Defence filed. ## para 16.02.2006 ## para 10. ## para Reply to Defence filed. ## para 28.02.2006 ## para 11. ## para Menuju Asas Enterprise change solicitors again. ## para 30.05.2007 ## para 12. ## para Summary Judgment application filed by Menuju Asas Enterprise. ## para 08.06.2007 ## para 13. ## para Appeal against refusal of the Learned Senior Assistant Registrar to strike out suit dismissed with costs. ## para 14.07.2007 ## para 14. ## para Summary Judgment allowed with costs against HCM. ## para 23.03.2009 ## para 15. ## para Notice of Appeal to Court of Appeal filed. ## para 26.03.2009 ## para 16. ## para Application for a stay of execution filed and advance copy served on Menuju Asas Enterprise. ## para 27.03.2009 ## para 17. ## para Sealed copy of application for stay extracted and served. Hearing date fixed on 07.04.2009. ## para 31.03.2009 ## para 18. ## para Sealed copy of Judgment and Order served on HCM’s solicitors. ## para 03.04.2009 ## para 19. ## para Judgment and Order forwarded to HCM. ## para 06.04.2009 ## para 20. ## para Hearing of stay of execution adjourned to 22.04.2009 as Menuju Asas Enterprise wishes to file an Affidavit In Reply. Interim Stay granted pending disposal of stay application. ## para 07.04.2009 ## para 2. HCM is not a major subsidiary of Protasco as it contributes less than 70% of the profit before tax or total assets employed on consolidated basis for the financial year ended 31 December 2007. The total cost of investment in HCM was approximately RM47,201,000. ## para 3. Based on legal opinion, the Company is of the opinion that it has reasonably strong grounds against Menuju Asas Enterprise’s claims due to the absence of any consideration for the alleged RM5,000,000 debt. As such, there is no significant impact financially and operationally to the Company. ## para 4. Based on legal opinion, the amount HCM is liable to pay, if any, would be a sum linked to the actual work done and after proof of consideration, and accordingly no provision was made for any expected losses in the financial statements.