Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 144 40. Subsequent events (continued) 40.1 Material litigation (continued) (d) Bursa vs the Company On 25 November 2021, the Company received an Originating Summons (“OS”) from the High Court of Malaya at Kuala Lumpur from Bursa. The Originating Summons is to seek the following reliefs: i) A declaration that the Company has contravened or has breached and is in continuing contravention and breach of its binding obligations under the MMLR when it refused or failed to comply with the instructions or directive issued by the Plaintiff (Bursa) on 22 October 2021 to the Company pursuant to paragraph 2.23 (1) of the MMLR (“Directive”) read together with paragraph 2.04 of the MMLR, namely, the Company was required but failed or refused to make a public announcement on or before 26 October 2021 for thorough public dissemination of the Factual Findings Update as at 30 September 2021 (“Factual Findings Update”) prepared by EY Consulting, the independent reviewer (“IR”) appointed by the Company, to carry out a special independent review (“SIR”) of the financial affairs of the Company for the year ended 31 December 2020, and pursuant to which the Factual Findings Update was prepared by EY. ii) An order that the Company makes a public announcement of the Factual Findings Update of EY Consulting following its SIR pursuant to paragraph 2.23(1) of the MMLR within 2 clear dates from the date of this order. iii) An order that the public announcement of the Factual Findings Update shall contain the statements set out in 3(a), 3(b), 3(c)(i),(ii),(iii) and (iv), 3(d), 3(e), 3(f) and 3(g) below. (a) On 14 June 2021, EY Consulting was appointed by the Company as the IR to carry out the SIR to assess the accuracy and veracity of the matters raised by the Company’s former external auditors, KPMG, pertaining to, and in the course of carrying out, the annual statutory audit of the Company for the year ended 31 December 2020. (b) The matters raised by KPMG formed the subject matter of a report issued by KPMG under s.320 of the CMSA dated 5 May 2021 (“s.320 Report”) to the Securities Commission Malaysia (“SC”) and the Plaintiff. The s.320 Report relates to the recognition by the Company and its subsidiaries of its revenue, purchases, receivables, payables and materials on site balances which may adversely affect to a material extent the financial position of the Company and its subsidiaries for the year ended 31 December 2020.