GHL System Berhad Annual Report 2020

166 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 34. MATERIAL LITIGATION On 25 September 2019, a subsidiary, GHL ePayments Sdn. Bhd. (“eGHL” or “Defendant”) had been served with a sealed Writ of Summons together with Statement of Claim both dated 19 September 2019 (“Writ”) by Messrs. Shukor Baljit & Partners, the solicitors acting for Bestinet Sdn Bhd (“Plaintiff”). The Plaintiff alleges that the Defendant has misrepresented and breached the contract with respect to the development, management and maintenance of digital wallet. As a result of that, the Plaintiff suffers loss and claims for the following: a) Judgment for the amount of RM371,000.00; b) Pre-judgment interest at the rate of 5% per annum on the amount of RM371,000.00 from the date of filing of the Writ up to the date of judgment; c) Interest at the rate of 5% per annum on the amount of RM371,000.00 from the date of judgment to the date of full and final payment; d) General damages of RM3,362,492.34 to be assessed by the Court; e) Interest at the rate of 5% per annum on general damages from the date of judgment up to the date of full and final payment; f) Costs; and g) Any further or other relief as the Court deems fit. Messrs. Shearn Delamore & Co. has been appointed as solicitors to represent eGHL. On 30 October 2019, the Defendant had filed Statement of Defence and Counterclaim against the Plaintiff, which the Plaintiff had, on 20 November 2019, served on eGHL with its Reply and Defence to Counterclaim. On 21 November 2019, the matter had been fixed for case management before the Registrar. The new trial dates have been fixed on 9 April 2021 and 16 April 2021. The Directors are of the opinion, after taking appropriate legal advice, that no provision for the abovementioned claims is necessary. 35. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs 35.1 New MFRSs adopted during the financial year The Group and the Company adopted the following Standards of the MFRS Framework that were issued by the Malaysian Accounting Standards Board (“MASB”) during the financial year: Title Effective Date Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 Amendments to MFRS 3 Definition of a Business 1 January 2020 Amendments to MFRS 101 and MFRS 108 Definition of Material 1 January 2020 Amendments to MFRS 9, MFRS 139 and MFRS 7 Interest Rate Benchmark Reform 1 January 2020 Amendment to MFRS 16 Covid-19-Related Rent Concessions 1 June 2020 (early adopt) Amendments to MFRS 4 Insurance Contract - Extension of the Temporary Exemption from Applying MFRS 9 17 August 2020 Adoption of the above Standards did not have any material effect on the financial performance or position of the Group and of the Company.