167 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 37. LEGAL CLAIMS DURING THE YEAR (CONT’D) (a) Disputes between a contractor and ESPM Group (Cont’d) Arbitration on claim against ESPML (Cont’d) A settlement agreement dated 10 August 2022, was entered into between PT CMS, ESPML, ESPM, Sea Trust Marine Pte. Ltd., PT Adidaya Energi Mandiri (“AEM”) and SPM Terminals. Under the terms of settlement, ESPML has agreed to pay the sum of USD3.2 million to PT CMS and USD0.15 million to AEM in full and final settlement of any and all the various disputes between the parties with such settlement being without any admission of liability to any of the respective claims as against each other (“ESPML Settlement Agreement dated 10 August 2022”). Upon payment for the settlement sum made on 2 September 2022, PT CMS and ESPML have withdrawn all claims and counterclaims in the arbitration, and Ratu ENRA was subsequently released on 5 September 2022. With the settlement, the case has been officially closed. The settlement has decreased the Group’s profit or loss by RM9.85 million during the current financial year. (b) Claim against SPM Terminal Pty Ltd (“SPMT”) as the “1st Respondent” and ESPML as the “2nd Respondent” On 11 January 2021, ESPML received from Controval USA LLC (“Controval”) a Notice of Arbitration to commence arbitration proceeding following the rules of the Singapore International Arbitration Centre. The alleged dispute arises out of a Purchase Order purportedly entered into between Controval and both Respondents relating to the engineering, procurement and fabrication of a Leased Automated Custody Transfer with 8” Coriolis Flow Meters unit installed on a condensate storing, offloading facilities belonging to ESPML known as “Ratu ENRA”. The Claimant is claiming a sum of USD381,211 allegedly for unpaid invoices under the Contract, interest on the amount awarded from 7 July 2020 until settlement of the award, all arbitration costs including the Claimant’s representative’s costs and expenses and such other amounts deemed appropriate by the Arbitral Tribunal. ESPML served its Defence and Counterclaim on the 9th of July 2021. The parties reached a settlement agreement and the arbitration has been resolved by mutual acceptance on 10 August 2022. The tribunal awarded and directed that in full and final settlement of the claim by the Claimant against the Respondents, the Respondents shall jointly and severally pay the sum of USD90,000 to the Claimant within 14 days of the award. This payment of the sum of USD90,000 that was made on 24 August 2022 constitutes settlement of all claims and counterclaims between the Claimant and the Respondents. With this settlement payment, the case has been officially closed. The settlement has no impact to the Group’s profit or loss as the amount was accrued in the previous financial year.
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