Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 142 40. Subsequent events (continued) 40.1 Material litigation (continued) (c) The Company vs EY Consulting On 5 November 2021, the Company had filed an Originating Summons (“OS”) at the High Court of Malaya at Kuala Lumpur against EY Consulting. The circumstances leading to the filing of the OS by the Company is based on, inter alia, the Company’s contention that the appointment of EY Consulting as a special auditor to conduct a “Special Independent Review” made pursuant to paragraphs 2.23 and 2.24 of the MMLR was void ab initio: i) EY Consulting is not registered with the Audit Oversight Board; ii) EY Consulting is not an auditor whether as defined in the MMLR or the Companies Act 2016. It is also the Company’s contention that EY Consulting’s appointment is unsuitable because: i) EY Consulting’s affiliate is the auditor of Bursa Securities Malaysia Berhad (“Bursa”) and hence lacked independence; ii) EY Consulting had acted contrary to its undertakings in the letter of engagement when it provided a “Factual Finding Update” to the Securities Commission without seeking the Company’s consent; iii) EY Consulting expected the Company to seek its consent to release the “Factual Finding Update” when it was not an auditor, it did not subject itself to any professional standards in the performance of its work and it disclaimed responsibility for its work. The Company is also seeking interim injunctive relief against EY Consulting pending the full and final disposal of OS to restrain EY Consulting from releasing, revealing, divulging and/or disseminating any findings, report, memorandum, opinion about the Company and its group of companies, whether in whole or in part, to anyone, in any format, whether in print, electronically, or via any media or forum. In addition, the Company is also seeking restitution and/or damages against EY Consulting.