NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 146 - 38. Financial Instruments (Cont’d) (c) Fair values of financial instruments (Cont’d) The carrying amount of long-term floating rate loans approximate their fair value as the loans will be re-priced to market interest rate on or near reporting date. The fair value of lease liability is estimated based on future contractual cash flows discounted at incremental borrowing rate for similar type of borrowing at the end of the reporting period. 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. 39. Material Litigation (i) Shah Alam Sessions Court Suit No. BA-B52C-22-08/2020 Clamshell Dredging Sdn. Bhd. obtained Summary Judgement application against Destini Shipbuilding and Engineering Sdn. Bhd. (“DSE”) for the sum of RM850,000 and interest at 5% per annum. Parties reached a settlement consensus wherein DSBE shall pay RM944,865.64 via instalments. To date, DSBE have paid RM900,000 and the remaining RM44,865.64 shall be paid on 13.05.2022. (ii) Shah Alam High Court Suit No. BA-21NCVC-65-09/2020 LHDN obtained a summary judgment for suit 65 against DSBE on 15.06.2021. Judgment sum is RM6,035,736.74 with costs of RM4,000. LHDN issued a settlement proposal letter dated 24.03.2022, wherein suit 65, to be paid as one amount and to be settled in 7 instalments payment. (iii) Shah Alam High Court Suit No. BA-21NCVC-64-09/2020 LHDN obtained a summary judgment for suit 64 against DSBE on 10.08.2021. Judgment sum is RM14,141,278 with costs of RM5,000. LHDN issued a settlement proposal letter dated 24.03.2022, wherein suit 64, to be paid as one amount and to be settled in 7 instalments payment. 223 ANNUAL REPORT 2021 • DESTINI BERHAD
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