MATERIAL LITIGATION NOTICE UNDER SECTION 218(2) OF THE COMPANIES ACT 1965 SERVED ON A SUBSIDIARY

## fields Subject :: MATERIAL LITIGATION ## para Protasco Berhad (“Company”) wishes to announce that a wholly owned subsidiary of the Company, HCM Engineering Sdn. Bhd. (“HCM”), received notice on 25 October 2011 that two judgements in default of appearance was entered against them for the sum of RM507,661.78 in Shah Alam High Court Suit No: 22-1558-2010 and the sum of RM9,960,492.17 in Shah Alam High Court Suit No: 22-1559-2010 respectively. ## para Both judgements were entered on 11 July 2011 and carry interest at the rate of 8% per annum from 6 December 2010 till the date of full realisation. ## para The judgement for RM507,661.78 is premised an alleged wrongful deductions from payments due to Menuju Asas Sdn Bhd in relation to “Projek Pembinaan Kem Group Gerak Khas - Fasa 1” in Mersing, Johor. ## para The judgement for RM9,960,492.17 is allegedly due to Menuju Asas Sdn Bhd, Mohd Redzuan Mohanan bin Abdullah (t/a Menuju Asas Enterprise) and Mohd Redzuan Mohanan bin Abdullah arising from HCM pursuant to the termination of the Settlement Agreement dated 6 May 2010 entered into between the said parties and HCM. ## para HCM also received notice on 25 October 2011 that a notice pursuant to Section 218 of the Companies Act 1965 was served at the registered office of HCM on 20 October 2011 demanding payment within twenty one days of the sum of RM10,468,153.95 failing which winding up proceedings will be filed against HCM. ## para HCM has engaged a firm of solicitors to set aside both the judgements and resist any attempt to file a winding up petition premised on the said judgements which HCM contend is without merit.