KUALA LUMPUR (Jan 17): Shares in Mudajaya Group Bhd fell 2.81% this morning after the company said the decision in an adjudication process will have a negative impact of RM98.35 million on its earnings for the year ended Dec 31, 2016, as the amount has been recognised as revenue in prior years.

At 9.36am. Mudajaya fell 2.5 sen to 86.5 sen with 199,600 shares traded.

The group's wholly-owned subsidiary, Mudajaya Corporation Bhd (MCB), had commenced adjudication proceedings against CMC Machipex Sdn Bhd in October 2015 for a principal sum of RM175.3 million together with late payment interest and cost.

MCB sought payment claim for work done and due to non-payment by CMC. CMC admitted some of the claims and in turn made a counter claim in the form of a set-off in the amount of RM61.8 million.

"MCB intends to pursue this claim matter in accordance to the provisions of the subcontract agreement which includes negotiations via Dispute Adjudication Board and arbitration," it said.

Mudajaya said it will make the necessary announcement as and when there is a material development on the matter.