Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 146 40. Subsequent events (continued) 40.1 Material litigation (continued) (d) Bursa vs the Company (continued) (f) In relation to Scope 3, in respect of the highlighted concerns raised by KPMG in the s.320 Report concerning the veracity of IT contracts entered into by the Company’s subsidiary, SDIT International Limited, with 6 identified customers and 2 identified suppliers and the inability of KPMG to determine the appropriateness of the contracts / transactions and to ascertain the appropriateness of the revenue and cost recognised, EY Consulting, following investigations, found anomalies with respect to the contracts with 5 of the identified customers and 1 of the identified suppliers. In addition, EY Consulting in conducting the SIR also found anomalies with respect to other customers and suppliers not identified by KPMG. The total sum involved is in excess of USD76.0 million. (g) In relation to Scope 4, in respect of the highlighted concerns raised by KPMG in the s.320 Report in relation to 1 identified customer and 1 identified supplier in Bahrain, EY Consulting, following investigations, found that the Bahrain customer could be related to the Company and that EY Consulting also casts doubt with respect to the veracity of the transactions with the Bahrain supplier. Invoices and delivery orders of the Bahrain customer is in excess of USD12.0 million. iv) An order directing the Company to include in the same public announcement the impact of the Factual Findings Update of EY Consulting pursuant to the SIR in the aggregate sum of RM1.1 billion and USD88.0 million (making a total of RM1.4 billion, calculated as at 22 October 2021, being the date of the Directive) on the business, financial status and operations of the Company. v) An order directing the Company to include in the same public announcement: (a) the impact of the Factual Findings Update of EY Consulting pursuant to the SIR on the Company’s business, financial status and operations of the Company; (b) the course of action or steps, which the Company proposes to take in order to address the Factual Findings Update of EY Consulting pursuant to the SIR; and (c) the timeline required by the Company to carry out and complete each of the proposed course of action or steps.