PETALING JAYA: Salcon Bhd’s wholly owned subsidiary Salcon Engineering Bhd, which will be appealing to the Court of Appeal in relation to its lawsuit against Terra Environment Management Sdn Bhd, could see a potential liability of RM3 million from the litigation.
“A total of RM3 million will be provided for in the audited financial statements for the financial year ending Dec 31, 2017 in respect of above litigation,” the group explained on the financial impact that could arise from the suit.
However, Salcon Engineering could see positive financial impact for the financial year ending Dec 31, 2018, should it be successful in its appeal.
The judgement ruled against Salcon Engineering was in relation to a sewer pipes project awarded to Terra, for which the former is looking to appeal.
Terra sought RM2.31 million via a writ of summons claim filed in November 2015 on the basis of being underpaid for works completed as per the agreement.
The project based in Kota Kinabalu involved high power water jetting (HPWJ) cleaning, CCTV inspection work and non-dig repair works.
Salcon’s share price was unchanged at 46 sen with some 1.02 million shares done.
Source: The Sun Daily