INVESTOR RELATIONS

We refer to our announcement dated 5 May 2017.  Naim Engineering Sdn. Bhd. (“NESB”), a wholly-owned subsidiary of the Company had on 25 April 2017 received a payment claim dated 20 April 2017 under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) from its sub-contractor, H&K Engineering Sdn. Bhd. (“H&K Engineering”) for a sum of RM4,610,378.17. 

NESB had responded vide payment response dated 11 May 2017 and subsequently on 14 July 2017 paid a sum of RM468,459.20 to H&K Engineering being work certified under payment certificate no. 5. 

The Company wishes to announce that following the adjudication under CIPAA, the Adjudicator had on 28 November 2017 delivered his decision (“Adjudication Decision”) on H&K Engineering’s claim.  Out of the total sum of RM4,610,378.17 claimed, the Adjudicator only allowed H&K Engineering’s claim for Material & Equipment Cost and exercised his powers under CIPAA to review and revise payment certificate no. 5 to include the sum of RM216,574.00 for Materials and Equipment. All other claims, pertaining to variation costs, prolongation and loss & expense, release of monies retained as performance bond and release of 50% of retention sum, were not allowed. 

The Adjudicated Sum of RM216,574.00, together with late payment interest thereon at 5% per annum from 25 June 2016 till date of satisfaction, is to be paid by NESB within thirty (30) days from the date of the Adjudication Decision. 

The Adjudication Decision will not have a material impact on the Naim Group for the financial year ending 31 December 2017. 

This announcement is dated 30 November 2017.