NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR AND SUBSEQUENT EVENTS TO THE END OF THE FINANCIAL YEAR (CONT'D) (d) On 2 December 2025, the Company and Hillpark Resources Sdn. Bhd. (“HRSB”), a wholly-owned subsidiary of the Company (“Defendants”) received the Writ of Summons and Statement of Claim by Mohd Zikri bin Md. Zaini and 46 Others (“Plaintiffs") (High Court of Shah Alam: Civil Suit No. BA-22NCvC-546-11/2025)(“the Suit”). Summary of the claims by the Plaintiffs is as follows: (i) the Defendants failed to comply with their legal and engineering duties in the construction, modification and maintenance of the retention pond constructed by HRSB, with regards to the flood incidents on 29 December 2024 and 23 April 2025 at the area of the Plaintiffs’ property; (ii) the Defendants are jointly and/or severally liable to compensate the Plaintiffs for the damage and losses suffered by the Plaintiffs; (iii) the Defendants reconstruct the retention pond in accordance with the design and engineering standards approved by the Department of Irrigation and Drainage (“JPS”), prepare a comprehensive flood mitigation plan approved by the local authority and appoint an independent engineering consultant certified by JPS to conduct a technical audit of the structure of the retention pond and to report the findings of such audit to JPS; (iv) special damages in the sum of RM1,025,609.44; (v) general damages in the amount of RM500,000 for each house (RM500,000 x 28 units), or a total sum of RM14,000,000 or such other amount as the Court deems fit; (vi) exemplary damages in a reasonable sum to be determined by the Court; (vii) interest at the rate of 5% per annum; (viii) costs on client and solicitor basis; (ix) costs of this action; and (x) any other relief and/or orders as the Court may deem fit. The above retention pond was constructed by HRSB, the developer for Bandar Hillpark, Shah Alam project. Based on the legal opinion obtained: i) the Company is of the opinion that it has good grounds to oppose the Suit as the Company is not the developer for the Bandar Hillpark, Shah Alam project and was not involved in the construction of the retention pond. The Company will take the necessary legal action to oppose the Suit; and ii) HRSB has engaged its solicitors to defend the Suit. Based on HRSB’s preliminary assessment, the retention pond was constructed in accordance and in compliance with the authority’s requirements and upon seeking proper professional advice during its construction. PG | 292 ANNUAL REPORT 2025 MKH BERHAD
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