Sasbadi Annual Report 2021

122 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 122 30. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR AND SUBSEQUENT TO THE END OF REPORTING PERIOD The World Health Organisation (WHO) declared COVID-19 a global pandemic on 11 March 2020. Following this, the Government of Malaysia had imposed a series of Movement Control Order ("MCO") pursuant to the Prevention and Control of Disease Act 1988 ("PCDA"), which resulted in major disruptions to the Company's business operations all round. The Group had to temporarily suspend its operations periodically throughout the series of MCOs and were only allowed to operate during the CMCO and RMCO periods. This came with the requirements to adhere to the various standard operating procedures and directives issued. The Group had also activated its Business Continuity Plan to ensure the stakeholders’ interests were safeguarded. The Group was impacted financially mainly in terms of its diminished sources of income whilst fixed overheads such as salaries, security expenses and rental continues to be incurred. The Group has assessed the impact of this pandemic across its business operations and has accounted for the necessary provisions in its judgements and assumptions during the preparation of the financial statements for the financial year ended 31 August 2021. The Group will continue to actively monitor and manage its funds and operations to minimise any further adverse impacts arising from this pandemic.