DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 43. Subsequent Events (Cont’d) (a) Proposed acquisition, diversification and dilution (Cont’d) On 3 April 2020, the Company had submitted an application to Bursa to seek its approval for an extension of time of up to 3 months to submit the draft Circular. Bursa Securities had, vide its letter dated 20 April 2020 (which was received on 21 April 2020), resolved to grant an extension of time of 3 months up to 18 July 2020 to submit the draft Circular pursuant to Paragraph 9.33(1)(a) of the Listing Requirements. Effect on partly disposal of the group of subsidiaries is not presented. (b) Private placement On 5 February 2020, the Company has issued 50,000,000 new ordinary shares through second tranche of private placement at issue price of RM0.1960 per share for total consideration of RM9,800,000 for working capital purposes. (c) Outbreak of coronavirus pandemic On 11 March 2020, the World Health Organisation declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. The emergence of Covid-19 since early 2020 has brought about uncertainties to the Group’s and the Company’s operating environment and has impacted the Group’s and the Company’s operations in Malaysia and oversea and its financial position subsequent to the financial year end. The Group and the Company are cognizant of the challenges posed by these developing events and the potential impact on the business sector of the Group and of the Company. The Group will continuously assess the situation, work closely with the local authorities to support their efforts in containing the spread of Covid-19, and put in place measures to minimise impact to its business. For the Group’s and the Company’s financial statements for the financial year ended 31 December 2019, the Covid-19 outbreak and the related impacts are considered non-adjusting events in accordance with MFRS 110 Events after the Reporting Period. Consequently, there is no impact on the recognition and measurement of assets and liabilities as at 31 December 2019. The Group and the Company are unable to reasonably estimate the financial impact of Covid-19 for the financial year ended 31 December 2019 to be disclosed in the financial statements as the situation is still evolving and the uncertainty of the outcome of the current events. It is however certain that the local and worldwide measures against the spread of the Covid-19 will have adverse effects on the Group’s and the Company’s sales, operations and supply chains. The Group and the Company will continuously monitor the impact of Covid-19 on its operations and its financial performance. The Group and the Company will also be taking appropriate and timely measures to minimise the impact of the outbreak on the Group’s and on the Company’s operations. 44. Capital Management The Group’s management manage its capital is to maintain a strong capital base and safeguard the Group’s ability to continue as a going concern and maintains an optimal capital structure, so as to maximise shareholders value. The management reviews the capital structure by considering the cost of capital and the risks associated with the capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 201