191 / 204
Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110)
(21185-P)
• Annual Report 2020
189
40. Material litigation (cont’d.)
Hak Guna Usaha No. 01/Nunukan Utara (cont’d.)
PTNJL is also seeking an order from the Court to stay the enforcement of the Ministerial Order dated 25 July 2016 pending full
and final determination of the matter by the Indonesian Courts.
On 6 May 2020, the mediation held between PTNJL, Defendants and Co-defendants has failed. Accordingly, the matter will now
proceed to Court for determination.
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.
The matter has been fixed for trial on 13, 14, 27 and 28 August 2020.
This civil suit is not expected to have any material impact on the financial and operational position of the Company.
41. Significant event
Covid-19 outbreak
Prior to the financial year end, the World Health Organization (“WHO”) had on 11 March 2020 declared Covid-19 a pandemic and
there has since been growing concerns on the effects of the Covid-19 pandemic globally. On 18 March 2020, the Government of
Malaysia imposed a Movement Control Order (“MCO”) and on 19 April 2020, the Government of Indonesia imposed a Large-scale
Social Restrictions (“LSR”) for North Kalimantan area which involves movement restrictions and closure of all government and
private premises. The Covid-19 pandemic has significantly disrupted many businesses operations around the world. For the Group,
the impact on business operations has not been a direct consequence of the Covid-19 outbreak, but a result of the measures taken by
the governments of both Malaysia and Indonesia to contain it. As the outbreak continues to evolve subsequent to the financial year,
it is challenging to predict the full extent and duration of its impact on business and the economy.
Up to the date of these financial statements, the Group has seen an impact of COVID-19 outbreak on the Group’s revenue, earnings,
cash flow and financial condition. At this juncture, it is not possible to estimate the full impact of the outbreak’s short-term and
longer-term effects or the Governments’ varying efforts to combat the outbreak and support businesses.
However, there is uncertainty about the length and severity of Government or regulatory intervention which could have unexpected
impacts. A prolonged economic downturn could also lead to further Government or regulatory intervention and more adverse
outcomes to the Group’s business.
TheGroupwill continue tomonitor thedevelopment of theseevents andhave implementedmeasures tomitigate the impact of COVID-19
to the Group’s business, including the prudent management of its cash flows from its operating, investing and financing activities.