Destini wishes to announce that its indirect subsidiary, Destini Shipbuilding and Engineering Sdn Bhd (“DSBE”) had been served with a Writ of Summons and Statement of Claim wherein a Summary Judgment has been granted in favor of LHDN, details of which are as follows:

1)  Date of service of the Writ of Summons and Statement of Claim

LHDN had filed a writ of summons and statement of claim on 18th September 2020 against DSBE (Suit No. BA-21NCVC-65-09/2020 : Outstanding Tax YA2016 amounting RM6,584,440.74 excluding interest and penalty (“Suit 65”).

On 2nd November 2020, Messrs Zairul Zain Syed (the Company’s solicitors) (“ZZS”) filed a memorandum of appearance for and on behalf of DSBE.

On 16th November 2020, ZZS filed a defence Suit 65. Thereafter, LHDN filed a Summary Judgment Application for Suit 65 on 22nd December 2020. Summary Judgment for Suit 65 came up for hearing on 15th June 2021, wherein, the High Court granted the Summary Judgment application.

2) Details of the default or circumstances leading to the filing of the Writ of Summons and the particulars of the claim under the Writ of Summons, including the amount claimed for and the interest rate

The circumstances leading to the filing of the Writ of Summons against DSBE was due to the fact the DSBE had allegedly failed to settle an outstanding tax assessment for year of assessment 2016. The outstanding tax for year Assessment 2016 amounts to RM6,584,440.74, plus 5% interest from date of judgment until full settlement.

3) Confirmation as whether DSBE is a major subsidiary

DSBE is not major subsidiary of the Company.

4) Cost of Investment in DSBE

The Company do not have direct investment in DSBE. The Company’s investment in shipbuilding activities is made through its wholly owned subsidiary, Destini Armada Sdn Bhd. (“DASB”). The Company has made full provisions on its total investment cost in DASB totalling RM77,799,998.00 as at 31 December 2020.

5) The financial and operational impact of the Judgment on the Group

There is no impact on the operation of Destini Group. This is in view that the Judgement sum of RM6,584,440.74 has been incorporated in the financial statements, and the financial impact from the Summary Judgment is the loss of investment in DSBE.

6)  The expected loss, if any, arising from the Writ of Summons

The Company is not expected to incur any further loss arising from the Writ of Summons.

7)  Steps taken in respect of the Writ of Summons

The Company will submit a payment settlement proposal to LHDN with a view to settling the judgement sum for Suit 65. The proposal to be submitted is with the view of fully paying the total amount owing to LHDN without incurring any further financial impact to the Company.

This announcement is dated 29 June 2021.