1. INTRODUCTION

The Board of Directors of SDHB wishes to inform that the Company, had on 22 June 2021,filed a Writ of Summon together with the Statement of Claim at the High Court of Malaya at Shah Alam against KPMG.

2. PARTICULARS OF THE CLAIMS UNDER THE WRIT OF SUMMON AND STATEMENT OF
CLAIM (“SOC”)

The claims pursuant to the Writ of Summon and SOC are as follows:

(i) General Damages to be assessed;
(ii) Punitive damages;
(iii) Aggravated damages;
(iv) Interest at the rate of 5% per annum on such damages as may be awarded in
favour of the Plaintiff from the date of filing of this Writ until the date of realization;
(v) Costs; and
(vi) Any such further or other reliefs that the Court deems fit.
The claims were made after taking into consideration the following loss and damage:
(i) A loss of RM4,933,800,223.74 in SDHB’s market capitalisation;
(ii) A loss of confidence in the market from SDHB’s shareholders, investors, and
financial institutions; and
(iii) A loss of confidence with SDHB’s customers, domestically and internationally.

3. CIRCUMSTANCES LEADING TO THE SUIT

The circumstances leading to the filing of the Writ of Summon and SOC by SDHB is based on SDHB’s contention that KPMG had failed and/or neglected to complete the audit report until and unless a 3rd party independent reviewer is being appointed and complete the findings as
raised by KPMG. Ultimately in June 2021, KPMG had suddenly changed their stance.

SDHB contends that the findings raised by KPMG were not substantive in nature that warrants an independent review and that the issues faced by KPMG were entirely attributable to their own negligence in the course of the audit process.

At this juncture, SDHB is of the view that KPMG’s act of halting the audit process pending a 3rd party independent review was in the circumstances negligent as it would have delayed the preparation of the audit report and would under normal circumstances create unnecessary speculation in the market.

For the avoidance of doubt, the findings raised by KPMG has been announced on 28 May
2021.

that is the reality

Posted by information > Jun 22, 2021 7:55 PM | Report Abuse

even if what Leno said is true, the point is SD is maneuvering the game such that they will win

what market care is who wins, not who is truthful

later how if KPMG resort to settle this out of court and complete the audit report?

ya, we dont know....just giving benefit of doubt to SD sincere they are so confident now...

Posted by gohkimhock > Jun 22, 2021 6:36 PM | Report Abuse

@probalility how do you know KPMG did not liaise with the client? Now all words are from Serbadk side.

and can KPMG refuse to conclude audit without following SD's request to meet or talk to their clients?

Does GAAP says no need to talk to the clients?

Posted by gohkimhock > Jun 22, 2021 6:32 PM | Report Abuse

If KPMG does the audit in accordance with generally accepted accounting principles (GAAP), Serbadk will not going to win this civil suit..

special announcement hit the core of the issue....KPMG not meeting or talking to their clients, aggravated by covid 19 from beginning of last year

my frank view on SD now....they definitely not white earlier but grey...now they must have done something to clean up such that they will look white now.....

this is what i get from this special announcement (no reason to ask for additional trouble by suing KPMG unless you know the odds of winning is high)

to protect against margin call sounds bullshit at this price level

right from beginning i always felt this is the major thing....if you see the way they take pictures of unrelated building as something substantial....i feel they are not mature already

whats most disturbing revelation of the 10 min special briefing is ......KPMG never attempted to meet or talk to the customers

anybody can tell what price it will open tomorrow...i declare he is the ultimate investor of serba here

SD also really upset with SC since thet had went to their office last time.....this time SD really got weapons to fight back looks like

tomorrow have to chase high with strong will power...no choice...high risk ...high gain

aisei...i missed the boat....:(

big possibility is there...imagine this meeting was held straight away after the suspension of serba last time...no way price could have dropped below RM 1

Posted by DepecheM > Jun 22, 2021 6:01 PM | Report Abuse

LU tomorrow please... no less

no reason for SD to look for additional trouble with KPMG unless they can get away with it....


SD discovered and escape route looks like

looking at SD's confidence...at least RM 1 it can go i think

but i really pity KPMG

tomorrow what will be the opening price? how far can we chase?

really nerd auditor like i suspected last time kah??

KPMG really junior auditor kah?? sued for negligence leh....

one word: MALAYSIA BOLEH!

new chairman suddenly know so much....

how about kpower and scib....becomes more safer now?

serba want to revenge due market cap loss kah?

like this means next time no auditors dare to highlight any mistake lorr...infact they had been politely highlighting this to serba last 1 year...

really pity KPMG

malaysia the place where they shoot the messenger

DARE TO SUE lorr....this is crazy

luks like serba already clean all their smelly rooms and decorate nicely now...

pity KPMG

like that back to original price kah?

Now all the illegal entity discovered by KPMG earlier would have been converted to real entity by master Karim already...

thats whey he so daring to sue KPMG wor!!

With such oil price tomorrow open 80 cents kah?

dare to sue KPMG...really asking for double trouble kah? Makes me wonder now...

tomorrow open 75 cents kah?

anybody can see the Q&A session??

yes abu dhabi use LLC.... deleted may be coz of it was causing confusion (to correct it) may be

Posted by Windy1974 > Jun 22, 2021 5:28 PM | Report Abuse

Ok. then why delete?
LLC means limited liability company. Although i am not familiar with Abu Dhabi, they use LLC?

please ask gently ah...

because incorporated and based may be different?

Posted by Windy1974 > Jun 22, 2021 5:25 PM | Report Abuse

supporter of serba. can you answer 1 question since i can't ask uncle karim? Why serba said Block 7 abu dhabi company and serba website said US based? And the site was deleted by serba?

business as usual ka? omg...

Karim still dare to say done nothing wrong wo...

waiting for covid to be over to meet customer...walao eh...when will that happen...which year??

substanstial sum of damages....omg..kpmg bankrupt liao

kpmg dont want to meet customer ka...aiyoo...

already filed this morning....walao eh...kpmg very scared

exactly in short span he learn a lot a lot already...ka kaka

Posted by leno > Jun 22, 2021 5:15 PM | Report Abuse

wah ... new chairman know so much .... KAKAKAKAKAK ...

legal action on KPMG ka?? ka ka ka..

too much of bull shit intro....

as long as still got hopeful people here...its hopeless serba

Posted by future > Jun 21, 2021 11:20 PM | Report Abuse

When too many sour grapes here, its time to BUYYY!!

for serba, even 'arul kanda' cant take it and resign

Posted by UPlanet > Jun 21, 2021 11:17 PM | Report Abuse

WoW! Very similar to 1mdb? Arul Kanda replace Mhd Hazem as the chairman post in 2015 after letup?

Malaysia is a place for all crooks to be safe....Zakir Naik, Zahid, Najib.....since the 'one and only god' will protect them here

a 100m turnover company with fake billions of revenue

will make malaysia famous & proud again in the world

1mdb is only once...this had been a recurring 1mdb for years