54 MATERIAL LITIGATION (CONTINUED) (v) On 4 November 2024, FGV Bulkers Sdn. Bhd. (“FGVB”), an indirect subsidiary of the Company (“the Defendant”), had been served with a Writ of Summon by South Asian International Distribution Sdn. Bhd. (“the Plaintiff”). FGVB had received the above Suit which among others contends that FGVB has breached the Supply and Delivery Agreement (“SDA”) dated 28 February 2023 for the supply and delivery of Palm Kernel Shells (“PKS”). Based on the alleged breach, the Plaintiff has now filed the Suit against the Defendant. The particulars of the claims among others are a) A declaration that any agreement (whether expressly or impliedly made by the Plaintiff) to the increase of price of PKS within the 6-month period under Clause 5.1 of the SDA shall be null and void; b) Damages in the sum of RM4,443,859.70, being losses pleaded in paragraph 17 of the Statement of Claim (“SOC”); c) Damages in the sum of RM86,399,575, being losses pleaded in paragraph 24 of the SOC; d) Further and/or alternatively, general damages to be awarded pursuant to the findings of this Honourable Court; e) Pre-judgment interest pursuant to Section 11 of the Civil Law Act 1956; f) Post-judgment interest; g) Cost; and h) such further and/or other reliefs that this Honourable Court deems just and proper (“Main Suit”). FGVB was required to enter an appearance within fourteen (14) days hereof and case management has been held on 20 November 2024. FGVB filed the Statement of Defence on 4 December 2024. The plaintiff filed its Reply to Defence on 26 December 2024. On 15 January 2025, the Court had fixed the hearing of the Summary Judgment Application on 25 August 2025. The Plaintiff had on 25 November 2024 served on FGVB with a Notice of Application and Affidavit in Support (“Plaintiff’s Summary Judgment Application”). The Plaintiff is seeking for the following reliefs summarily under Order 14, rule 1 & 2 and Order 92, rule 4 of the Rules of Court 2012 through the Plaintiff’s Summary Judgment Application: (a) a declaration in favour of the Plaintiff that any agreement (whether expressly or impliedly made by the Plaintiff) to the increase of price of PKS within the 6-month period under Clause 5.1 of the SDA shall be null and void; (b) the Defendant to pay to the Plaintiff a sum of RM4,443,859.70; (c) alternatively, general damages to be assessed; (d) pre-judgment interest pursuant to Section 11 of the Civil Law Act 1956; (e) post-judgment interest to the judgment debt at the rate of 5% per annum from the date of judgment until the date of full settlement; (f) cost; and (g) such further and/or other reliefs that this Honourable Court deems just and proper. The Main Suit is currently put on hold until the disposal of the Summary Judgment Application and the Court will give further direction on the Main Suit during the Case Management fixed on 25 August 2025. Based on legal opinion, there is a good chance of FGVB in defending the claim by Plaintiff. Accordingly, no provision has been recognised as the cash outflow is not probable. The remaining claims are not material to be disclosed in the financial statements and deemed remote by the Directors. Notes to the Financial Statements For the financial year ended 31 December 2024 183
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