1. GENERAL INFORMATION Capital A Berhad (“Capital A” or "the Company") (formerly known as AirAsia Group Berhad) is a public limited liability company incorporated and domiciled in Malaysia, and is listed on the Bursa Malaysia Securities Berhad. The address of the registered office and the principal place of business of the Company is as follows: RedQ, Jalan Pekeliling 5, Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA2), 64000 KLIA, Selangor Darul Ehsan, Malaysia. The principal activity of the Company is that of investment holding company. The principal activities of the subsidiaries are described in Note 12. There were no significant changes in the nature of these activities during the financial year. On 27 January 2022, the shareholders of the Company approved the change of name from AirAsia Group Berhad to Capital A Berhad. The financial statements were authorised for issue by the board of directors in accordance with resolution of the directors on 29 April 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. The financial statements of the Group and of the Company have been prepared under the historical cost convention, except as disclosed in the accounting policies below. The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. The COVID-19 pandemic and the resulting measures taken by governments of countries around the world have negatively affected the global aviation industry. The recent Russia and Ukraine conflict and its resulting impact on the volatility of oil and gas prices has also imposed additional challenges to the global aviation industry. All these events have impacted and continue to impact the Group’s financial position, financial performance and cash flows. The Group and the Company reported loss for the year of RM3,721 million and RM64 million respectively for the financial year ended 31 December 2021, as well as net operating cash outflows of RM678 million and RM966 million respectively. As at 31 December 2021, the Group’s current liabilities exceeded the current assets by RM6,754 million. In addition, as at 31 December 2021, the Group reported negative shareholders’ funds of RM3,382 million. These conditions may affect the ability of the Group to meet its financial obligations as and when they fall due. The Group has undertaken several actions to mitigate this risk as disclosed in Note 45 to the financial statements. This is based on the Directors’ cash flow projections with major assumptions being the Directors’ expectations of the recovery in passenger numbers arising from the resumption of domestic and international travel, the volatility of major operating costs and the continuous support of the Group’s aircraft lessors. Whilst the successful renegotiation of terms with major lessors, as further disclosed in Note 45 to the financial statements, have significantly improved the cost and cash flow management of the Group, the Group requires the continuous support from its lessors to allow flexibility in terms of payments of lease rentals until such time the Group reaches a tenable level of operations. To this end, the lessors have been very supportive of the Group since the onset of the COVID-19 pandemic. The Directors believe that the Group will continue to receive support from its lessors. Based on the cash flow forecast which incorporates the actions taken to date in response to the negative effects of COVID-19 and the expectations of continuous support from the aircraft lessors, together with the commitment provided by certain shareholders of the Group to maintain the sustainability of the Group’s operations, the Directors concluded that there is no material uncertainty on the Group’s and the Company’s ability to continue as going concerns. The Directors have accordingly prepared the financial statements of the Group and the Company on a going concern basis. 2 1 8 C A P I T A L A B E R H A D Notes to the Financial Statements for the financial year ended 31 December 2021
RkJQdWJsaXNoZXIy ODU0MjU5