Frontken Berhad Annual Report 2020

Annual Report 2020 141 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 30. CASH FLOW INFORMATION (Cont’d) (b) The cash and cash equivalents comprise the following:- (Cont’d) The Group The Company 2020 2019 2020 2019 RM RM RM RM Payment of short-term leases 500,821 1,449,156 – – Payment of low value assets 11,549 29,410 – – Interest paid on lease liabilities 653,936 665,726 4,848 9,480 Payment of lease liabilities 3,387,979 2,366,158 97,272 92,640 4,554,285 4,510,450 102,120 102,120 31. SIGNIFICANT EVENTS DURING THE FINANICAL YEAR (a) On 11 March 2020, the World Health Organisation declared the COVID-19 outbreak as global pandemic. Following the declaration, the Government of Malaysia has on 18 March 2020 imposed the Movement Control Order (“MCO”) and subsequently entered into various phases of the MCO until 31 December 2020 to curb the spread of the COVID-19 pandemic in Malaysia. The MCO implementation had resulted in some disruption in the Group’s operations in Malaysia and to a lesser degree, the Group’s oil and gas business operation in Singapore and the Philippines. However, most of the Group’s operations were not affected during this period as they were deemed as essential services under the MCO. Notwithstanding the above, the Group recorded a higher profit after tax by approximately 19% as compared to the previous financial year. The increase in the Group’s profit was mainly due to the strong performance by its subsidiary in Taiwan. As the COVID-19 pandemic is still on-going, the Group will continue to practice safety measures to contain and prevent the spread of COVID-19 to ensure the safety and well-being of its employees as well as to enable production and delivery to continue as usual for its customers. The Group shall further closely monitor and take the necessary steps to navigate its post-pandemic recovery to drive the performance of its business. (b) On 21 October 2020, a subsidiary, AGTC entered into a sales and purchase agreement withWuntaix Chemistry Co, Ltd. (“Wuntaix”) to acquire two plot of lands with a total consideration of TWD118,000,000. Subsequently, on 13 January 2021, both Wuntaix and AGTC have mutually agreed to terminate the sales and purchase agreement via the signing of a letter of cancellation.