ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 96 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 8. INVESTMENT IN AN ASSOCIATE Group 2020 RM’000 2019 RM’000 Unquoted shares at cost 30 30 Share of post-acquisition reserves (30) (13) - 17 The summarised financial information of the associate is as follows: Group 2020 RM’000 2019 RM’000 Assets and liabilities Total assets 574 743 Total liabilities (2,899) (682) Results Revenue 2,334 1,092 (Loss)/Profit for the financial year (2,386) 7 Details of the associate is as follow: Name of company Effective interest in equity Principal activities 2020 % 2019 % Perunding ENRA Sdn. Bhd. 30 30 Project management and engineering, procurement and construction contracts Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control or joint control, over the financial and operating policy decisions. Investments in associates are accounted for in the consolidated financial statements using the equity method less any impairment losses. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity accounted associates, after adjustments, if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interests in an equity accounted associate, the carrying amount of that interests including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.