Datasonic Group Berhad Annual Report 2020

3.5 Material Litigation A wholly-owned subsidiary, Datasonic Technologies Sdn Bhd (“DTSB”), has on 1 August 2018 received a writ of summons together with the statement of claim dated 30 July 2018 filed by Percetakan Keselamatan Nasional Sdn Bhd (“PKN”) against DTSB [Reference: Kuala Lumpur High Court Suit No. WA- 22NCVC-486-07/2018 PKN vs. DTSB, or “Suit”)] The Suit is in relation to a disagreement between DTSB and PKN over the price of 1.5 million Malaysian Passport booklets supplied by PKN to DTSB as DTSB’s sub-contractor for the interim period of 6 months from 1 December 2016 to 31 May 2017, before the Malaysian Passport booklets were fully printed and supplied by DTSB to the Government of Malaysia. PKN is now claiming the following against DTSB:- i. The amount of RM24.975 million (inclusive of GST); ii. The interest at the rate of 5% per annum on the amount of RM24.975 million, calculated from the respective due dates until full and final payment or, alternatively, at such rate and period as the Court deems fit; iii. Costs; and iv. Any and all other reliefs as the Kuala Lumpur High Court (“the Court” or “the High Court”) deems fit. For further details pertaining to the Suit, kindly refer to the announcements made by the Company on 1 August 2018, 3 October 2018, 8 October 2018, 22 October 2018, 2 November 2018, 7 December 2018, 15 January 2019, 22 January 2019, 14 February 2019, 1 March 2019, 10 April 2019, 19 April 2019, 13 May 2019, 31May 2019, 12 July 2019, 19 July 2019, 23August 2019, 26November 2019 and8 July 2020. Based on the latest announcement made by the Company on 8 July 2020 pertaining to the above Suit, the High Court has given direction as follows:- (a) That theHearingof thePlaintiff’sNoticeofApplication (Enclosure17) toamend theWrit andStatement of Claim and Case Management of theWrit of Summons (Enclosure 1) is adjourned from 8 July 2020 to 17 July 2020 before YA Dato’ Akhtar bin Tahir. (b) That the Full Trial dates fixed on 13 August 2020, 14 August 2020, 27 August 2020, 28 August 2020 are maintained and will be heard before YA Dato’ Akhtar bin Tahir. The Suit is not expected to have any significant financial and operational impact on the Group for the financial year ended 31March 2020. The Group estimated that the potential financial impact, if any, could be approximately RM5 million. Management Discussion & Analysis (Cont’d) DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 27