NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 87 - 6. Investment in Subsidiaries (Cont’d) (d) Deconsolidation of a subsidiary During the financial period In accordance with Section 414(2) of the Companies Act 2016 (“CA 2016”), during the financial period for which a judicial management order is in force, all powers conferred, and duties imposed on the directors by CA 2016 or by the constitution of the company shall be exercised and performed by the judicial managers and not by the Directors. In accordance with MFRS 10, Consolidated Financial Statements, the Group controls an entity when it is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. As of 21 March 2024, Destini Berhad has lost control over its management due to the initiation of winding-up proceedings against Destini Shipbuilding and Engineering Sdn. Bhd.’s (“DSESB”) activities as confirmed by DSESB legal counsel, Naqiz & Partners. Accordingly, the Directors have determined that the Company has lost control in DSESB upon initiation of winding-up proceedings against DSESB and the assets and liabilities and the results of DSESB have been deconsolidated from that date. The comparatives for the Statements of Profit and Loss and Other Comprehensive Income of the DSESB have been restated to reflect the discontinued operations. (i) The statement of profit or loss as follows: Unaudited Audited 1.1.2023 1.1.2022 to to 21.3.2024 31.12.2022 RM RM Revenue - 19,205,728 Cost of sales - (36,670) Gross profit - 19,169,058 Other income 36 66,635 Administrative expenses (585,669) (3,222,148) Net loss on impairment of financial instruments - (48,768,551) Finance cost - (6,690) Loss before tax (585,633) (32,761,696) Taxation (2,979,347) 247,913 Loss for the financial period/year (3,564,980) (32,513,783) 164 DESTINI BERHAD ANNUAL REPORT 2024
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