My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 234 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 49. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD (CONT’D) (l) On 27 April 2021, the Company’s announced that its existing e-commerce platform NAK BELI has been rebranded to BELI e-Mart, which will offer same day delivery for customers residing within Petaling Jaya and the vicinity of its two newly opened BELI Mart grocery stores in Puchong and SS15 Subang Jaya. (m) On 3 May 2021, the Company had informed that the Court of Appeal had dismissed MYEG and MECSB’s appeal against the decision by Kuala Lumpur High Court in affirming the decision by the Malaysia Competition Commission (“MyCC”) for violating the competition law and having a dominant position in relation to the sale of mandatory insurance for online applications of temporary employment permits for foreign workers (“Pas Lawatan Kerja Sementara”). There is no financial impact for the financial year ending 31 December 2020 as MYEG and MECSB has fully paid up the fines amounting to RM9.64 million in previous financial years. (n) On 6 May 2021, the Company received a letter of acceptance from MIMOS Berhad in relation to the provision of service desk and its related services for vaccine traceability system (“the Project”). The tenure of the Project is for a period of one year from 1 June 2021 to 31 May 2022 with an option to extend for a further one year term upon its expiry. The total value of the Project for the first year is approximately RM400,000 and RM250,000 for the optional one (1) year extension. (o) On 21 May 2021, the Company entered into a Memorandum of Understanding with Breathonix Pte Ltd (“BRX”) to pursue the following objectives:- (i) Establish a commercial relationship with BRX and to obtain regulatory approval in Malaysia to sell and/or lease the breath analysis technology developed by BRX for identifying certain Covid-19 bio- markers and correspondingly producing rapid Covid-19 test results. (ii) Establish an exclusive distribution relationship with BRX for the sale and/or lease of BRX Technology and its Associated Systems in Malaysia. (p) Subsequent to the reporting date, the numbers of new COVID-19 cases increased substantially in Malaysia and markets in which the Group operates. As the outbreak is evolving, the full effect of the COVID-19 pandemic is subject to uncertainty and could not be ascertained reliably at this juncture. 50. COMPARATIVE FIGURES (i) The Group has changed its financial year end from 30 September to 31 December effective from the previous reporting period. Consequently, the comparative figures are for the previous 15 months period from 1 October 2018 to 31 December 2019. The current financial statements are for a period of 12 months from 1 January 2020. Due to the change in the financial year end, the amounts presented in the financial statements are not entirely comparable. (ii) The following figures have been reclassified to conform with the presentation of the current financial year:- The Group As Previously Reported As Restated RM’000 RM’000 Statements of Cash Flows (Extract):- Net cash from operating activities 161,729 161,727 Cash and cash equivalents at end of the financial period 63,863 63,861