ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 130 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 8. INVESTMENT IN AN ASSOCIATE Group 2021 2020 RM’000 RM’000 Unquoted shares at cost – 30 Share of post-acquisition reserves – (30) – – The summarised financial information of the associate is as follows: Group 2021 2020 RM’000 RM’000 Assets and liabilities Total assets – 574 Total liabilities – (2,899) Results Revenue – 2,334 Loss for the financial year – (2,386) Details of the associate is as follow: Name of company Country of incorporate/ Principal place of business Effective interest in equity Principal activities 2021 % 2020 % Perunding ENRA Sdn. Bhd. Malaysia – 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. On 18 December 2020, EEC has made a transfer of its entire shareholding equivalent to 30% shares in Perunding ENRA Sdn. Bhd. (“PESB”) to its major shareholder (70% shares) for a total cash consideration of RM130,000.