ENRA Group Berhad Annual Report 2019

111 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 18. SHARE CAPITAL Group and Company Number of shares RM’000 Amount RM’000 Issued and fully paid ordinary shares: At 31 March 2018/31 March 2019 136,208 144,744 In the previous financial year, with the introduction of the newCompaniesAct 2016 (the “Act”) effective 31 January 2017, the concept of authorised share capital and par value of share capital had been abolished. Consequently, balances within the share premium account have been transferred to the share capital account pursuant to the transitional provisions set out in Section 618(2) of the new Act. Notwithstanding this provision, the Company has elected to utilise its share premium account of RM8,536,000 for purposes stipulated in Section 618(3) of the new Act for a transitional period of 24 months from 31 January 2017. The owners of the Company are entitled to receive dividends as and when declared by the Company and are entitled to one (1) vote per ordinary share at meeting of the Company. All ordinary shares rank pari passu with regard to the residual assets of the Company. 19. REDEEMABLE CONVERTIBLE PREFERENCE SHARES Group Number of shares RM’000 Amount RM’000 Issued and fully paid redeemable convertible preference share (“RCPS”): At 1 April 2017/ 31 March 2018 104 409 Issued during the year 696 2,477 31 March 2019 800 2,886 The carrying amount of the liability component of RCPS at the reporting date is arrived at as follow: Group 2019 RM’000 2018 RM’000 Face value of RCPS 8,096 1,057 Less: Equity component (2,886) (409) Liability component at initial recognition 5,210 648 At 1 April 703 648 Issued during the year 4,561 - Unwinding of discount 316 55 At 31 March 5,580 703 On 2 March 2017, ENRA Labuan Sdn. Bhd. (“ELSB”), a wholly-owned direct subsidiary of the Company, had entered into a Subscription Agreement with a third party subscriber for the issuance and subscription of 800,000 Redeemable Convertible Preference Shares Series A (“RCPS-A”) at the subscription price of RM10.12 per RCPS-A amounting to RM8,096,000. ELSB shall utilise the said subscription amount solely for the purpose of or in relation to their acquisition of land (that is to be reclaimed) in Labuan.