General Announcement for PLC

Reference No GA1-08052015-00083

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

08/05/2015

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONS RECURRENT RELATED PARTY TRANSACTIONS ENTERED INTO BY ZOOMIC AUTOMATION (M) SDN BHD, A WHOLLY OWNED SUBSIDIARY COMPANY OF IRE-TEX CORPORATION BERHAD (ITCB or the Company) WITH:- (1) ZESTEK INTEGRATION SDN BHD ("ZI") (2) FSP BUSINESS LINK SDN BHD ("FSP")

IRE-TEX CORPORATION BERHAD
 

Type

:

Announcement
 

Subject

:

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
RECURRENT RELATED PARTY TRANSACTIONS
 

Description

:

RECURRENT RELATED PARTY TRANSACTIONS ENTERED INTO BY ZOOMIC AUTOMATION (M) SDN BHD, A WHOLLY OWNED SUBSIDIARY COMPANY OF IRE-TEX CORPORATION BERHAD (ITCB or the Company) WITH:-
(1) ZESTEK INTEGRATION SDN BHD ("ZI")
(2) FSP BUSINESS LINK SDN BHD ("FSP")
 


We refer to the Company’s announcement on 29 April 2015, Bursa Malaysia Securities Berhad’s (“Bursa Securities”) query on 5 May 2015 and the Company’s reply to Bursa Securities’s query on 6 May 2015. With reference to the Company’s reply to Bursa Securities on 6 May 2015, the Company wishes to provide the following additional information:

1) The reconciliation of the Impaired Debts amount to the actual RRPTs are set out in Attachment 1.

2) The Company wishes to clarify that there was a typographical error in the reply to question 2 and the reply should read as follows:

The Board of ITCB formed the opinion based on the weak financial position of ZI and FSP and hence it was prudent to impair the debts.

The Board formed the opinion after obtaining a summary of the latest financial position of ZI and FSP from a search conducted at the Companies Commission of Malaysia.

3) The Vendors have paid RM2.5 million out of the total Profit Guarantee to ITCB on 27 April 2015.

4) Based on the Sale & Purchase Agreement with the Vendors, the balance of the profit guarantee compensation should be paid by the Vendors within 7 days upon receipt of a demand from ITCB.

5) The adjustment for reversal of DTA (Deferred Tax Asset) amounting to RM4,249,000 in year 2013 as set out in Attachment 1 in the reply to Bursa Securities on 6 May 2015 was in accordance with the terms of the Sale and Purchase Agreement dated 18 November 2013 between the Vendors and ITCB whereby the 2013 Profit After Tax of Zoomic Automation (M) Sdn. Bhd. (“ZASB”) and Zoomic Technology (M) Sdn. Bhd. (“ZTSB”) was defined / interpreted as follows:

“2013 PAT” Audited after tax profit of the ZASB and ZTSB for the 2013 Financial Year (which, for the avoidance of doubt, shall exclude any gains or losses resulting from reversal(s) of provision for doubtful debts, recovery of bad debts written off or reversal(s) of any deferred tax asset(s), if any)

Please refer attachment below.
Attachments:
Attachment 1-Reconciliation of ZASB RRPT.xls