Registration No. 200301030845 (633265-K) - 144 - 37. Material Litigation (Cont’d) (i) Singapore International Arbitration Centre Suit No. ARB181/24/VKH (Cont’d) The Claimant has claimed for the following reliefs in the Notices of Arbitration: (Cont’d) (b) Post-award interest on any sum awarded by the tribunal until the date of full repayment; (c) Alternative to the abovementioned prayers for relief, damages to be assessed; (d) Such further or other reliefs that the tribunal deems fit to grant; and (e) All costs and expenses incurred by the Claimant occasioned by these proceedings (including but not limited to legal costs and disbursements, the costs and expenses of the tribunal, transcription services, the costs of expert advice and/or assistance required by the tribunal and the fees and expenses of the appointing authority) to be paid by the Respondent. Under the SIAC Rules, the Respondents are both required to file a Response to the Notices of Arbitration with SIAC within 14 days from receipt of the Notices of Arbitration. As at 2 December 2024, the amount claimed by Damen (the Claimant) is €3,525,474.79 (with any post-award interest). Destini has responded to the claim on 27 February 2025. On 7 April 2025, Destini has filed a counterclaim application amounting to €2,171,504.67 being the overpayment to the Claimant (“Counterclaim 1”) and USD1,419,464.84 for the loss suffered by Destini due to the unproven hull design (“Counterclaim 2”). On 9 June 2025, the tribunal has allowed Destini’s Counterclaim 1 application and rejected the Counterclaim 2. The parties are required to revise the cause papers to adopt the decision of the tribunal on the counterclaim application. Witness statements were exchanged between December 2025 and January 2026, and the evidentiary hearing was held from 3 to 5 March 2026. Pursuant to Procedural Order No. 4 dated 5 March 2026, the tribunal ordered Destini to furnish security for costs of €100,000, which has been furnished and is included in deposits. The parties filed their respective written submissions on 14 May 2026, and the arbitral award is expected to be issued in or around November 2026. No provision has been recognised in respect of the claim as the Directors, having considered the status of the proceedings, are of the view that an outflow of resources is possible but not probable. The maximum exposure of the Group and of the Company in respect of the claim is €3,525,474.79 (equivalent to approximately RM17,451,100), excluding tribunal and legal costs and any post-award interest, the timing and amount of which are uncertain. The counterclaim of €2,171,504.67 (Counterclaim 1) filed by Destini represents a contingent asset which has not been recognised in the financial statements and has not been offset against the amount claimed. Counterclaim 2 of USD1,419,464.84 was not allowed by the tribunal on 9 June 2025 and no longer forms part of the proceedings. DESTINI BERHAD 257 ANNUAL REPORT 2026
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