WE DESIGN LOGISTICS

We refer to the Company’s announcement dated 6 August 2015 and the query letter from Bursa Malaysia Securities Berhad dated 10 August 2015 in relation to the Letter of Demand served on Century Total Logistics Sdn Bhd (“CTL”). In this connection, we wish to furnish the following additional information for public release.

The particulars of the claim under the Letter of Demand, including the amount claimed for under the Letter of Demand and the interest rate

The particulars of the claim under the Letter of Demand are as follows:

i.            Air Freight costs                                                  RM5,584,049.00

ii.           Detention, Demurrage & other related costs            RM8,847,069.32

iii.          Nestle Staff Mobilization costs                               RM2,707,151.00

iv.          Stock write off/Bad goods                                       RM4,511,112.32

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                Total:                                                                 RM21,649,381.64

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There was no interest claimed under the Letter of Demand.

The details of the default or circumstances leading to the filing of the Letter of Demand against CTL

The issuance of the Letter of Demand against CTL arose out of an interim assignment for the provision of logistics services by CTL in November 2013, which commenced on 23 December 2013 until 23 January 2014. 

Nestle's demand arose after CTL has requested payment of RM859,097.95 from Nestle and its other associated companies for settlement of outstanding invoices due to CTL. Further in reply, CTL has responded to Nestle that the alleged damages were in fact created or caused by Nestle.  CTL in turn has a claim for the amounts outstanding, due and unpaid, for services rendered and performed.  CTL will be making separate claims against Nestle and its other associated companies for this amount and other claims.

A confirmation as to whether CTL is a major subsidiary

CTL is a major and wholly-owned subsidiary of the Company.

The total cost of investment in CTL

The total issued and paid-up share capital of CTL is RM500,000 comprising 500,000 ordinary shares of RM1.00 each.

Operational impact of the winding-up proceedings on the group

There is no winding-up proceeding against the Group. The letter of demand is not expected to have any material impact on the operations of the Group.

This anouncement is dated 11 August 2015.