ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 119 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (cont’d) The Group as a lessor The Group has entered into lease agreements on certain asset for terms of four (4) years and renewable at the end of the lease period. The monthly rental consists of a fixed base rent. Future minimum rentals receivable under agreement at the reporting date are as follows: Group 2021 2020 RM’000 RM’000 Less than one (1) year 33,928 35,098 One (1) to two (2) years 2,417 35,098 Two (2) to three (3) years – 2,500 36,345 72,696 6. INVESTMENT IN A JOINT VENTURE Details of the joint venture is as follow: Name of company Country of incorporate/ Principal place of business Effective interest in equity Principal activities 2021 % 2020 % BRP Homes Sdn. Bhd. (f.k.a. ENRA Sdn. Bhd. and ENRA EMRAIL Sdn. Bhd.) Malaysia – 51 Intended business has yet to commence On 5 June 2017, ENRA Engineering & Construction Sdn. Bhd. (“EEC”), a wholly-owned subsidiary of the Company and Emrail Sdn. Bhd. had entered into a Shareholders Agreement to jointly establish a company to collaborate on providing total engineering solutions and services, civil works, rolling stock, project and asset management and maintenance services for rail and track transportation projects in Malaysia. Subsequently, ENRA Emrail Sdn. Bhd. (“EEM”) was established on 28 August 2017 with an issued and paid-up share capital of RM100 ordinary shares. EEC holds 51% of the shareholdings of EEM. On 23 July 2020, a Deed of Termination was entered into between Emrail Sdn. Bhd. and EEC to mutually rescind and terminate the Shareholder Agreement dated 5 June 2017. Subsequent to the completion of the transfer of shares, EEC has acquired the remaining 49% equity interest in EEM previously held by Emrail Sdn. Bhd. for RM49 in cash being the date, making EEM a wholly-owned subsidiary of EEC with effect from 27 August 2020. On 15 September 2020, ENRA EMRAIL changed its name to ENRA Sdn. Bhd. (“ESB”). On 8 October 2020, ESB was effectively transferred from EEC to Q Homes, a 51% owned indirect subsidiary of the Company for a cash consideration of RM100 and changed its name to BRP Homes Sdn. Bhd. on 14 October 2020. The acquisition of ESB does not materially affect the revenue and profit after tax of the Group for the financial year ended 31 March 2021 as ESB is dormant.