PETALING JAYA: Kumpulan Perangsang Selangor (KPS) Bhd has secured a RM18.1mil contract to provide and ship water meters for brand new growth, migration and alternative programme.
In a filling with Bursa Malaysia, KPS stated its 51%-owned subsidiary, Aqua-Flo Sdn Bhd, (AFSD) entered right into a framework settlement with Pengurusan Air Selangor Sdn Bhd (Air Selangor) from Jan 1, 2022 to Dec 31, 2022 .
Air Selangor has the choice to increase the contract for an additional six months.
“The contract is anticipated to contribute positively to KPS Group’s earnings and internet property for the monetary 12 months ending Dec 31, 2022 all through the length of the contract,” it stated within the assertion.
As well as, there’s a efficiency bond equal to five% of the estimated contract sum to be delivered to Air Selangor by AFSB previous to the graduation date. The efficiency bond shall be legitimate all through the contract interval or the prolonged contract interval.
KPS famous that dangers related to the contract have been the fluctuation in international forex towards the ringgit and fluctuation in water meter product costs and materials provide.
Nonetheless, the dangers will likely be mitigated by having a mutual understanding with suppliers relating to the product costs all through the contract interval to make sure that AFSB is ready to retain the revenue margin of the merchandise delivered to Air Selangor.
The board audit committee and board of administrators of KPS be in agreement that the contract is in the very best curiosity of the corporate. In the meantime, in response to the boards, the contract is truthful, cheap and on regular business phrases.