DESTINI Annual Report 2020

(i) Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. There were no transfers between levels during current and previous financial years. (ii) Level 1 fair value Level 1 fair value is derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. (iii) Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Non-derivative financial instruments Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the end of the reporting period. (iv) Level 3 fair value Level 3 fair values for the financial assets and liabilities are estimated using unobservable inputs. 39. Material Litigation (i) Shah Alam High Court Appeal No: BA-11BNCvC-22-12/2020 (Shah Alam Magistrate Court No: BA-A72NCvC-2540-10/2019) Maxicont Shipping Agencies Sdn. Bhd. and D&D Control (M) Sdn. Bhd., being plaintiffs are claiming against UWL Freight Forwarding Sdn. Bhd. and Safeair Technical Sdn. Bhd., a wholly-owned subsidiary of the Company (collectively as “defendant”) This is an appeal against the Magistrate Court after full trial whereby the Magistrate had dismissed the Plaintiffs’ claim with fixed costs for the sum of RM5,000.00 to be paid to Safeair Technical Sdn. Bhd. on 7 December 2020. Unsatisfied with the said decision, the Plaintiffs had filed their notice of appeal to the High Court on 18 December 2020. We have been served with the Records of Appeal and the matter is now fixed for first case management via e-review on 10 February 2021 for Court’s directions as to filing of written submission and hearing date for the Appeal. (ii) Shah Alam High Court Suit No. BA-A72NCVC-301-07/2019 Safeair Technical Sdn. Bhd. obtained Order for Summary Judgement against Flyglobal Charter Sdn. Bhd. (“FCSB”) for the sumof RM850,826.93 together with interest at 5% per annum, while pending trial on FCSB’s counterclaim amounting to RM1,404,786.54. 38. Financial Instruments (Cont’d) (d) Fair values of financial instruments (Cont’d) ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 193