SRJ Bhd (SRJ) has two divisions in two different business segments. The first division

is in the medical devices manufacturing business. In July 2020, the company was

presented with a lawsuit by a group of customers. The customers claimed that SRJ has

provided them with inaccurate blood glucose readers that have jeopardised their health

and life. Based on the evidence and advice by the companys legal team, it is possible for

SRJ to lose the lawsuit. However, until the end of December 2020, the timing and amount

of the lawsuit is yet to be estimated. The next proceeding shall be proceeded in the year

2021.

The second division of SRJ is located in country B. The main business activity of this

division is producing manual transmission for car industry. However, due to changes of

consumers preference toward automatic transmission car and lack of demand on manual

transmission vehicles, the company is planning to close the division to avoid future

losses. The board of directors has announced the plan to close the division in a press

conference held on February 2020. A detail plan has been prepared with the expected

date of closure is by the end of November 2020. The estimated restructuring costs is

RM45,000,