ANNUAL REPORT 2015 |
193
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
38. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a) Investments in subsidiaries during the financial year are disclosed in Note 10 to the financial statements.
(b) Material litigation
The 60% owned subsidiaries of the Company, AMSB and Mcore had filed a civil suit on 3 August 2011 against Leong Tat
Yan. AMSB and Mcore claimed against Leong Tat Yan for a sum of RM946,000 and RM2,250,000 respectively, being the
proceeds of sale from the joint venture business owed by Leong Tat Yan.
Leong Tat Yan owns 40% of AMSB and he is also a controlling shareholder of 388 Venture Corporation Sdn. Bhd. which
owns 40% of Mcore.
There are losses of RM5,389,000 arising from the dispute of which management had made the necessary impairment
in the previous financial year. The losses includes impairment loss of trade receivables amounted to RM3,196,000 and
inventories written off of RM2,193,000 (before non-controlling interest’s share of loss).
On the hearing date of 8 July 2013, the Court of Appeal allowed the Defendant’s appeal with costs of RM10,000 and the
Plaintiffs’ appeal was accordingly be struck out with no order as to costs.
After discussing with their legal advisors, the Plaintiffs (also referred to as‘Applicants’) had on 7 August 2013, filed a Notice
of Motion in the Federal Court for the following orders:
(i) the Applicants be granted leave to appeal to the Federal Court against the whole of the decision of the Court of
Appeal given on the 8 July 2013 in Civil Appeal No. W-02(IM)(NCVC)-797-04/2013 pursuant to Sections 96 and 97 of
the Courts of Judicature Act, 1964 read with Rules 55, 107 and/or 108 of the Federal Court Rules, 1995 and/or the
inherent jurisdiction of the Federal Court.
(ii) in the event that leave to appeal is granted by the Federal Court, the Applicants be granted leave to file and serve a
Notice of Appeal to the Federal Court within 7 days from the date of the order pursuant to Rule 108 of the Federal
Court Rules, 1995.
(iii) the costs of the application filed by the Applicants be costs in the cause.
(iv) such further or other relief of the Federal Court may deem fit.
The Applicants had filed to the Court the Notice of Appeal on 4 February 2015. The appeal is now fixed for hearing on
9 November 2015.
As the application for leave hearing has yet to be heard, the legal advisors are unable to express their opinion as to the
quantum of damages receivable.
(c) Trademark dispute
The 70%-owned subsidiary of the Company and brand representative of the Braun Buffel brand in the Asia Pacific region,
JecoPte Ltd. (“Jeco”), has been engaged in court proceedings in the People’s Republic of China (“PRC”) formatter pertaining
to PRC Trademark No. 1992120 for Bull Device Mark. The Bull Device Mark is owned by Wise Luck International Ltd. T/A
Dat Sun Trading Co (“Wise Luck”). The litigation arose out of trademark cancellation proceedings which commenced in
2008 when Jeco lodged a cancellation action against the registration of the Bull Device Mark with the Trademark Review
and Adjudication Board (China) (“TRAB”). After the TRAB decision was issued (in favour of Jeco) in 2010, Wise Luck filed an
appeal to the Beijing 1st Intermediate Court and succeeded in the appeal. The appeal outcome was upheld by the Beijing
Higher Court in 2012. Jeco has applied for re-trial of the matter and the proceedings are currently pending in the PRC
Supreme Court.
