News
Kedah Marble Sdn Bhd ("KMSB") - Notice Of Demand For Payment Pursuant To Section 218 Of The Companies Act 1965
BackJun 07, 2001
| General Announcement Reference No AS-010607-64988 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 07/06/2001 |
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| Type | : | Announcement |
| Subject | : | KEDAH MARBLE SDN BHD ("KMSB") - Notice of Demand for payment pursuant to Section 218 of the Companies Act 1965 |
Contents :
The Board of Directors of Advance Synergy Berhad ("ASB" or "Company") wishes to inform the Exchange that ASB had been notified by KMSB on 5 June 2001 that KMSB had been served a Notice of Demand pursuant to Section 218 of the Companies Act 1965 for payment due to Mataly (Asia) Pte Ltd ("Mataly") from KMSB ("Notice of Demand").
The Company had on 27 February 2001 made an announcement of a winding up petition against KMSB by a Mr Ng Thoong Chen.
ASB holds an equity interest of 70% in KMSB. However, the management control of KMSB is exercised by the minority shareholder, Perbadanan Kemajuan Negeri Kedah, pursuant to a shareholders' agreement and ASB does not exercise any significant influence over the Board of Directors of KMSB. Accordingly, the accounts of KMSB have not been consolidated with the accounts of ASB Group since the financial year then ended 30 September 1994.
The Notice of Demand dated 23 May 2001 has been served on KMSB by Mataly on 26 May 2001 based on the judgement dated 28 November 2000, requiring KMSB to pay Mataly a judgement sum of RM70,497.71 together with interest at the rate of 8% per annum from 2 December 1999 till date of satisfaction and cost in the sum of RM1,607.00, within 21 days from the date of receipt of the Notice of Demand.
Mataly is a trade creditor of KMSB and the debt was incurred in the normal course of business of KMSB.
The total original cost of investment in KMSB by ASB amounted to RM52,657,500.00. As at 31 December 2000, the book value of ASB's investment in KMSB amounted to RM35,174,203.00 after a provision for diminution in value to reflect the proportionate NTA value of KMSB as at 31 December 1999. As adequate provision for diminution in value of ASB's investment in KMSB has been made, the financial impact that may arise as a result of any legal action is not expected to be material.
Based on the latest audited accounts of KMSB for the financial year ended 31 December 1999, as no other accounts are available to us, the net tangible assets ("NTA") value of KMSB stood at RM50,248,861.00. ASB's proportionate share of 70% of the NTA in KMSB amounts to RM35,174,203.00.
There will be no operational impact on ASB Group as the operations of KMSB are separate and independent of the Group.
At this juncture, ASB has not been advised by the Board of KMSB of any action taken by KMSB with regard to this matter and accordingly ASB will seek clarification from KMSB in this respect.
(This announcement is dated 7 June 2001).