Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 145 40. Subsequent events (continued) 40.1 Material litigation (continued) (d) Bursa vs the Company (continued) The scope of SIR undertaken by EY Consulting (c) The defined parameters of the SIR undertaken by EY Consulting comprises of the 4 scopes which were agreed upon between the Plaintiff, EY Consulting and the Company are as set out below. 1. Scope 1: To assess the validity and veracity of the transactions and balances highlighted by KPMG in the s.320 Report in respect of 11 identified customers on sales transactions, trade receivables an materials on site and to quantify the possible financial impact, if any. 2. Scope 2: to assess the validity and veracity of the Company’s purchases from 6 identified local suppliers highlighted by KPMG in the s.320 Report. 3. Scope 3: To assess the validity and veracity of the IT contracts/ transactions entered into with 6 identified customers and 2 identified suppliers highlighted by KPMG in the s.320 Report and to assess the appropriateness of the revenue and costs recognized in the financial year in relation to the identified customers and suppliers. 4. Scope 4: To assess the existence (where possible) and validity of the transactions and balances of 1 identified customer and 1 identified supplier located in Bahrain highlighted by KPMG in the s.320 Report. The updated factual findings of EY Consulting pursuant to the SIR (d) In relation to Scope 1, in respect of the highlighted concerns raised by KPMG in the s.320 Report concerning 11 identified customers of the Company, EY Consulting, following investigations, casts doubt on the veracity of the transactions with the 11 identified customers. The total sum involving the 9 out of the 11 identified customers are in excess of RM435.0 million. (e) In relation to Scope 2, in respect of the highlighted concerns raised by KPMG in the s.320 Report concerning 6 identified local suppliers, EY Consulting, following investigations, raised concerns on the veracity of the transactions with the 6 identified local suppliers. The recorded transactions and other amounts are in excess of RM638.0 million.