NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 147 - 40. Significant Events Outbreak of coronavirus pandemic As a result of the Covid-19 pandemic outbreak, the Group’s businesses, result of the operation, financial position and cash flows were affected during the financial year with continuing impact in the current and subsequent periods. This has resulted in a significant decline in revenue in the current financial year and after the reporting date. Beginning in April 2020, the Group had implemented various cost saving measures several strategic initiatives and pursued value-accretive business opportunities including a reduction in various general and administrative costs in response to current market conditions. Further, the management believes that the Group has sufficient cash to meet anticipated cash needs including cash needs for working capital for foreseeable future. The Group has been granted by MITI for its application to continue operations in Malaysia and this has allowed the Group’s business to conditionally operate at varying capacities. At the reporting date, the Group is financially strong with a net current asset and positive shareholders’ fund amounting to RM39,071,382 and RM159,006,221 respectively. Additionally, the Group carries cash and cash equivalents of RM29,832,222 as at 31 December 2021, and has no concerns in the foreseeable future. The Group performed an assessment on the overall impact of the situation on the Group’s operations and financial implications, including the recoverability of the carrying amount of assets and subsequent measurement of assets and liabilities, and concluded that there is no material adverse effect on the financial statements for the financial year ended 31 December 2021. As the situation is still evolving and the uncertainty of the outcome of the current events, the Group will continuously monitor the impact of COVID-19 on its business operations and its daily activities. The Group will also be taking appropriate and timely measures in minimising the impact of the pandemic on the Group’s operations and financial performance as well as the financial position for the financial year ending 31 December 2021. 224 DESTINI BERHAD • ANNUAL REPORT 2021
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