KUALA LUMPUR (Nov 10): Datasonic Group Bhd (Datasonic) said it had accepted a letter of award for a RM8.72 million contract from Majlis Perbandaran Pulau Pinang (MPPP) to supply, install and maintain closed-circuit television cameras around the island state.
A filing with Bursa Malaysia showed the contract to Datasonic’s subsidiary, Datasonic Technologies Sdn Bhd, was for the period starting Dec 5, 2014 to Mar 27, 2020.
Under the letter of award, Datasonic is obliged to furnished a performance bond of RM436,077.75 to MPPP which will be valid from the beginning of the contract period to Mar 16, 2021.
During the same period, Datasonic must take up workers’ compensation insurance policy and submit a copy of the policy to MPPP. The company also has to take up a public liability insurance policy under joint names with MPPP for a minimum amount of RM100,000 for any accidents and claims from third parties.
“The contract is subject to normal business risks such as increase in cost due to any escalation of material costs and contractual terms including default positions. As such, the management would put in place control measures and operational procedures to reduce the impact or likelihood of such events,” said Datasonic in the announcement.
Datasonic said the contract is expected to contribute positively to the company’s future earnings and net assets per share from the financial period ending Mar 31, 2015 onward.