ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 143 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d) iv. Foreign currency risk (Cont’d) Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity analysis of the Group and of the Company to a reasonably possible change of exchange rates in the US Dollar (“USD”), British Pound (“GBP), Australian Dollar (“AUD”), Euro and Singapore Dollar (“SGD”) against RM respectively, with all variables held constant. 3% is the sensitivity rate used when reporting foreign currency risk exposures internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates. Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Profit/(Loss) after tax USD/RM - strengthen by 3% (2019: 3%) 17 71 - - - weaken by 3% (2019: 3%) (17) (71) - - GBP/RM - strengthen by 3% (2019: 3%) (467) (408) 200 1,194 - weaken by 3% (2019: 3%) 467 408 (200) (1,194) AUD/RM - strengthen by 3% (2019: 3%) (69) (40) - - - weaken by 3% (2019: 3%) 69 40 - - EURO/RM - strengthen by 3% (2019: 3%) (136) - - - - weaken by 3% (2019: 3%) 136 - - - SGD/RM - strengthen by 3% (2019: 3%) 1 1 - - - weaken by 3% (2019: 3%) (1) (1) - - 42. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR a. Development on claim against Gemula Sdn. Bhd. On 11 June 2018, ENRA Engineering And Fabrication Sdn. Bhd. (“EEFAB”), a wholly-owned indirect subsidiary of the Company served an Adjudication Claim against Gemula Sdn. Bhd. (“Gemula”) in accordance with Section 9 of Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) for a total amount of RM10,574,663 (“CIPAA Payment Claim”). Gemula appointed EEFAB as a subcontractor for the project known as “Pembinaan Garaj Utama Kenderaan 8 x 8 Dan Kenderaan Pasukan Serta Infrastruktur Di Kem Batu Sepuluh (10) Kuantan, Pahang” (“the Project”). Gemula subcontracted the following works for the Project to EEFAB by way of these respective documents: i. Letter of Award dated 15 January 2016 (“LOA 1”) whereby Gemula appointed EEFAB to undertake the ‘Struktur Besi’ works for the Project; and ii. Letter of Award dated 9 May 2016 (“LOA 2”) whereby Gemula appointed EEFAB to undertake the scope described as “membekal bahan binaan dan menyiapkan segala kerja berbaki” for the Project.