GHL System Berhad Annual Report 2020

168 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 37. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (a) The World Health Organisation declared the 2019 Novel Coronavirus infection (‘COVID-19’) a pandemic on 11 March 2020. The Government of Malaysia imposed the Movement Control Order (‘MCO’) on 18 March 2020 and has subsequently entered into various phases of the MCO and Conditional Movement Control Order (‘CMCO’) until 31 March 2021. Since then, the Group and the Company has experienced significant disruption to its operations in the following respects: (i) Decreased demand for certain products and services as a consequence of social distancing requirements and recommendations; and (ii) Significant uncertainty concerning when government lockdowns will be lifted, social distancing requirements will be eased and the long-term effects of the pandemic on the demand for the primary products and services of the Group. Consequently, the Group and the Company recognised total impairment losses on goodwill of approximately RM11 million during the financial year as a result of the COVID-19 pandemic. The details are disclosed in Note 15 to the financial statements. Based on the assessment and information available at the date of authorisation of the financial statements, the Group has sufficient cash flows and undrawn facilities to meet its liquidity needs in the next twelve (12) months after the end of the reporting period. The Group does not anticipate significant supply disruptions and would continuing monitor its fund and operational needs. (b) As disclosed in Note 16(e)(i) of the financial statements, on 17 December 2020, the Group, through its subsidiary, GHL Asia Pacific Limited, disposed of its 51.0% interest in Speed Pay to the minority shareholder.