PRG Holdings Berhad Annual Report 2020

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (iv) Credit risk (continued) Credit risk concentration profile (continued) 2020 2019 RM’000 % of total RM’000 % of total By industry sectors Manufacturing 20,439 58% 31,883 76% Retail - - 10 * Agriculture 51 * - - Property development and construction 14,544 42% 9,831 24% 35,034 100% 41,724 100% * Amount is less than 1% At the end of the reporting period, approximately 21% (2019: 35%) of the Group’s trade receivables were due from 6 (2019: five (5)) major customers located in Malaysia, Asia Pacific (excluding Malaysia), Europe and North America. 40. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (i) 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 until 31 March 2021. Since then, the Group has experienced significant disruption to its operations in the following respects: (a) Decreased demand for certain products and services from the manufacturing segment as a consequence of social distancing requirements and recommendations; and (b) 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. Based on the assessment and information available at the date of authorisation of the financial statements, the Group has sufficient cash flows 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. (ii) On 18 June 2019, PRG Property Sdn. Bhd. (“PRG Property”), a wholly-owned subsidiary of the Company, had received a letter of intent from Liveintent Sdn. Bhd. (“Liveintent”) for a conditional offer to purchase 150,000 ordinary shares in Premier De Muara Sdn. Bhd. (“PDMSB”), representing 60% equity interest in PDMSB. On 26 July 2019, the Company, PRG Property and PDMSB had entered into a conditional share sale agreement (“SSA”) with Liveintent for the proposed disposal of 150,000 ordinary shares representing 60% equity interest in PDMSB by PRG Property to Liveintent for a cash consideration of RM7,200,000. On 19 February 2020, the Company, PRG Property, PDMSB and Liveintent had executed a supplemental agreement to vary the clauses in relation to the manner of payment of the consideration and to extend the Cut-Off Date for a further period of 6 months to fulfil the Conditions Precedent as stated in the SSA. On 10 June 2020, a fully virtual Extraordinary General Meeting was held and the ordinary resolution for the proposed disposal of PDMSB was duly passed by the shareholders of the Company. The disposal of PDMSB was completed on 2 July 2020 in accordance with the fulfilment of the Conditions Precedent of the SSA and supplemental agreement. PRG HOLDINGS BERHAD 188 Notes to the Financial Statements 31 December 2020 cont’d