Frontken Berhad Annual Report 2020

Annual Report 2020 142 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 32. SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD (a) Subsequent to the reporting period, the numbers of new COVID-19 cases increased substantially in Malaysia andmarkets inwhich the Group operates. Followby the declaration of a state of emergency by the Government of Malaysia to control the spread of COVID-19 in early January 2021. As the outbreak is evolving, the full effect of the COVID-19 pandemic is subject to uncertainty and could not be ascertained reliably at this juncture. (b) On 22 February 2021, Ares Green International Corporation, a dormant indirect wholly-owned subsidiary of the Company has been struck off. (c) On 23 February 2021, the Company (“Frontken”) proposed to undertake the following: (i) an issuance of 526,717,565 new ordinary shares in Frontken (“Bonus Share(s)”) on the basis of 1 Bonus Share for every 2 existing ordinary shares held in Frontken (“Frontken Shares”) on an entitlement date to be determined and announced later (“Entitlement Date”) (“Proposed Bonus Issue of Shares”); and (ii) an issuance of 526,717,565 free warrants in Frontken (“Warrant(s)”) on the basis of 1 Warrant for every 2 Frontken Shares held on the same Entitlement Date as the Proposed Bonus Issue of Shares (“Proposed Bonus Issue of Warrants”). The listing application in relation to the Proposed Bonus Issue of Shares and the Proposed Bonus Issue of Warrants was submitted to Bursa Malaysia Securities Berhad (“Bursa Securities”) on 5 March 2021 and subsequently, approved by Bursa Securities on 16 March 2021. 33. FOREIGN EXCHANGE RATES The principal closing foreign exchange rates used (expressed on the basis of one unit of foreign currency to Ringgit Malaysia equivalent) for the translation of foreign currency balances at the end of the reporting period are as follows:- The Group/The Company 2020 2019 RM RM Singapore Dollar 3.04 3.04 United States Dollar 4.01 4.09 Philippine Peso 0.08 0.08 New Taiwan Dollar 0.14 0.14 Euro 4.93 4.59 Great Britain Pound 5.49 5.38 Indonesian Rupiah 0.00029 0.00030