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Notes To The
Financial Statements
As at 31 March 2019
38. Material litigation (cont’d.)
(b) Legal action against Datasonic Technologies Sdn. Bhd.
On 30 July 2018, the Company’s subsidiary, Percetakan Keselamatan Nasional Sdn. Bhd. (“the Plaintiff”),
has commenced a High Court action against Datasonic Technologies Sdn. Bhd. (“the Defendant”).
The claim is for a sum of RM24,975,000 (excluding interest and cost), being the amount due and owing
by the Defendant to the Plaintiff for 1.5 million Malaysian passport booklets which were supplied by the
Plaintiff to the Defendant.
At the request of the Defendant during the case management on 3 October 2018, the Plaintiff agreed
to attempt mediation with the aim of arriving at an amicable resolution. The mediation took place on 17
October 2018 and 19 October 2018. However, the parties could not reach a resolution.
On 19 April 2019, the Company announced that the settlement negotiation between the parties have failed.
Accordingly, the High Court Judge has fixed the matter for case management on 13 May 2019 (for compliance
with pre-trial directions) and trial on 12 July 2019, 9 August 2019, 8 January 2020 and 9 January 2020.
During the case management on 31 May 2019, the High Court judge has directed the parties to appear
before her on 12 July 2019 as a final attempt to explore settlement as requested by Defendant.
This civil suit is not expected to have any material impact on the financial and operational position of the
company.
39. Explanation of transition to MFRS
As stated in Note 2.1, these are the first financial statements of the Group and of the Company prepared in
accordance with MFRS.
The accounting policies set out in Note 2.3 have been applied in preparing the financial statements of the Group
and of the Company for the financial year ended 31 March 2019, the comparative information presented in these
financial statements for the financial year ended 31 March 2018 and in the preparation of the opening MFRS
statement of financial position at 1 April 2017 (the Group’s and the Company’s date of transition to MFRSs).
In preparing the opening statement of financial position at 1 April 2017, the Group and the Company have
adjusted amounts reported previously in financial statements prepared in accordance with FRSs.
The significant accounting policies adopted in preparing the financial statements are consistent with those of
the audited financial statement for the year ended 31 March 2018, except as discussed below:
(a) Transition from FRS to MFRS Framework
(i) Property, plant and equipment
Under the FRS accounting framework, the Group and the Company elected to account for the
freehold land, leasehold land and buildings included within property, plant and equipment using
the revaluation model. The Group and the Company have elected to use the previous revaluation as
deemed cost under MFRS. Accordingly, the carrying amounts of these property, plant and equipment
have not been restated and the previous revaluation reserve of the Group and the Company were
reclassified to retained earnings.
financial
statements
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