AwanBiru Technology Berhad - Annual Report 2021

Notes to the Financial Statements For The Financial Year Ended 30 June 2021 53. SIGNIFICANT EVENT OCCURRING AFTER THE REPORTING PERIOD Surat Setuju Terima (Letter Of Acceptance) for “Perolehan Langganan Perisian G Suite Enterprise For Education Bagi Sekolah-Sekolah Di Bawah Kementerian Pendidikan Malaysia” PSSB has successfully procured the contract for the supply of Perisian G Suite Enterprise For Education Bagi Sekolah-Sekolah Di Bawah Kementerian Pendidikan Malaysia (“the Contract”) with the Ministry of Education (“MOE”). The Contract is for a term of three (3) years, effective from 9 July 2021 with a value of RM22,777,509 (inclusive of 6% Sales and Service Tax). MOE had on 8 July 2021 issued the Surat Setuju Terima to PSSB and the terms of the transaction will be embodied in a formal contract to be executed between both parties. 54. MATERIAL LITIGATION On 15 April 2019, PSKIN, a wholly-owned subsidiary of ASV , which in turn is a subsidiary of the Company, filed an Originating Summons (No. WA-21NCvC-20-04/2020) at the Kuala Lumpur High Court (“OS”) as “Plaintiff” against the GOM as “Defendant”, in relation to the termination of the Concession Agreement dated 9 August 2017 (“CA”) by GOM, by way of expropriation pursuant to Clause 31.1 of the CA. Details of Circumstances leading to the Filing of the OS against GOM Following the letter from GOM dated 11 December 2018, confirming the decision of the Cabinet to terminate the SKIN project, PSKIN and GOM had met several times to discuss among others, the payment obligation of GOM and the quantum to be paid by GOM, but both parties were unable to reach an agreement. Hence, PSKIN has filed the OS seeking the following orders:- (a) A declaration that GOM is under an obligation to pay to PSKIN a sum representing the present value of the Availability Charges for the remaining unexpired Concession Period discounted at Weighted Average Cost of Capital of PSKIN as at the effective date of termination of the CA i.e. 22 January 2019, in accordance with Clause 28.3.1(b)(iii) read together with Appendix 14 of the CA and Schedule 1 of the Supplemental Agreement dated 11 April 2019 (“Supplemental Agreement”); (b) A declaration that the sum payable by GOM to PSKIN pursuant to Clauses 28.3.1(b)(iii), 31 and Appendix 14 of the CA and Schedule 1 of the Supplemental Agreement is RM732,860,194.00, or any such amount as ordered by the Court; (c) An order that GOM makes payment to PSKIN of the sums declared and ordered in respect of paragraph (b) above, not later than six (6) months after the termination date i.e. on or before 22 July 2019, in compliance with Clause 28.3.1(b)(iii) of the CA; (d) Interest on the sum of RM732,860,194.00 or any such sum as ordered by the Court, at any such rate as the Court deems fit, calculated from 22 July 2019, or any such date as the Court deems fit, to the date of judgement; Awantec | Financial Review Annual Report 2021 236