164 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 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 trial of the case was concluded on 28 January 2022 and is now at the stage of post-trial submissions. 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 Interest Rate Benchmark Reform - Phase 2 (Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16) 1 January 2021 Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to MFRS 16 Leases) 1 April 2021 (early adopt) Adoption of the above Standards and Amendments did not have any material effect on the financial performance or position of the Group and of the Company.
RkJQdWJsaXNoZXIy NDgzMzc=