Annual Report 2020

1. Basis of preparation (continued) (a) Statement of compliance (continued) MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 June 2020 • Amendment to MFRS 16, Leases – Covid-19-Related Rent Concessions MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 January 2021 • MFRS 17, Insurance Contracts MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 January 2022 • Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards 2018−2020) • Amendments to MFRS 3, Business Combinations – Reference to the Conceptual Framework • Amendments to MFRS 9, Financial Instruments (Annual Improvements to MFRS Standards 2018−2020) • Amendments to Illustrative Examples accompanying MFRS 16, Leases (Annual Improvements to MFRS Standards 2018−2020) • Amendments to MFRS 101, Presentation of Financial Statements – Classification of Liabilities as Current or Non-current • Amendments to MFRS 116, Property, Plant and Equipment − Proceeds before Intended Use • Amendments to MFRS 137, Provisions, Contingent Liabilities and Contingent Assets − Onerous Contracts − Cost of Fulfilling a Contract • Amendments to MFRS 141, Agriculture (Annual Improvements to MFRS Standards 2018−2020) MFRSs, interpretations and amendments effective for annual periods beginning on or after a date yet to be confirmed • Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Group and the Company plan to apply the abovementioned accounting standards, interpretations and amendments: • from the annual period beginning on 1 April 2020 for those amendments that are effective for annual periods beginning on or after 1 January 2020 and to early adopt the Amendment to MFRS 16 that is effective for annual period beginning on or after 1 June 2020. • from the annual period beginning on 1 April 2022 for those amendments that are effective for annual periods beginning on or after 1 January 2022, except for Amendments to MFRS 1 which is not applicable to the Group and the Company. The Group and the Company do not plan to apply MFRS 17, Insurance Contracts that is effective for annual periods beginning on or after 1 January 2021 as it is not applicable to the Group and the Company. The initial application of the accounting standards, interpretations or amendments are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and of the Company. (b) Basis of measurement These financial statements have been prepared on the historical cost basis other than as disclosed in Note 2. As at 31 March 2020, the Company’s current liabilities exceeded its current assets by RM177,976,000 (2019: RM128,386,000). The Directors are of the opinion that the Company will be able to generate sufficient cash flows via repayment of advances/dividends from subsidiaries to meet its liabilities as and when they fall due. A Milestone on Our Sustainable Growth Journey 113