ENRA Group Berhad Annual Report 2019

124 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 32. TAX EXPENSE (cont’d) (c) Numerical reconciliation between the tax expense and the product of accounting (loss)/profit multiplied by applicable tax rate of the Group and of the Company are as follows: Group Company Continuing operations 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 (Loss)/Profit before tax (23,284) (1,390) 26,976 7,275 Tax at Malaysian statutory tax rate of 24% (2018: 24%) (5,588) (334) 6,474 1,746 Difference in tax rate 600 13 - - Non-allowable expenses 2,032 1,593 1,329 1,813 Non-taxable income (432) (583) (8,468) (4,405) Tax incentive (55) - - - Deferred tax assets not recognised 6,930 1,502 665 846 3,487 2,191 - - (Over)/Under provision in prior years: - income tax (451) (1,740) - - - deferred tax (3) 1,693 - - 3,033 2,144 - - (d) Tax on each component of other comprehensive income is as follows: Group Before tax RM’000 Tax effect RM’000 After tax RM’000 2019 Items that may be reclassified subsequently to profit or loss Foreign currency translations (48) - (48) 2018 Items that may be reclassified subsequently to profit or loss Foreign currency translations 22 - 22 33. DISCONTINUED OPERATIONS (a) On 15 May 2017, the Company had entered into six (6) agreements to dispose of the Group’s property, plant and equipment, investment properties and the entire equity interests in Nautical Gold Sdn. Bhd. (“NGSB”), Evergreen Sprint Sdn. Bhd. (“ESSB”) and Essential Vista Sdn. Bhd. (“EVSB”) for a total cash consideration of RM85,149,000. The decision to dispose these investment properties and investment assets was caused by low net rental income and rental yields and the disposal will provide an avenue for the Group to realise substantial cash proceeds which is intended to be utilised for repayment of bank borrowings associated with these investment properties, defrayment of expenses relating to the disposal, investment in new businesses, project and acquisition, and to fund the working capital.