KUALA LUMPUR (March 30): Enra Engineering and Fabrication Sdn Bhd (EEFab), a wholly-owned indirect subsidiary of Enra Group Bhd, yesterday served a payment claim of RM10.22 million against Gemula Sdn Bhd for outstanding amounts due and payable.
The claim was made pursuant to Section 5 of the Construction Industry Payment & Adjudication Act 2012 (CIPAA) and relates to outstanding amounts due and payable by Gemula for works completed in relation to two letters of award dated Jan 15 and May 9, 2016, whereby EEFab was appointed by Gemula to undertake construction of a main garage project in Kuantan, Pahang.
In a filing to the stock exchange today, Enra said, "It is necessary for EEFab to pursue the payment claims under CIPAA to best protect its interest. No provision for the impairment loss is needed at this juncture and the cost of carrying out this action under CIPAA is not material in the current financial year ending March 31, 2018."
At the midday break, Enra remain unchanged at RM2.66, giving it a market capitalisation of RM358.88 million.