ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 146 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 18. REDEEMABLE CONVERTIBLE PREFERENCE SHARES Group 2021 2020 Number Number of shares Amount of shares Amount ’000 RM’000 ’000 RM’000 Equity component of redeemable convertible preference share (“RCPS”) with no par value At beginning/end of the financial year 800 2,886 800 2,886 The carrying amount of the liability component of RCPS at the reporting date is arrived at as follow: Group 2021 2020 RM’000 RM’000 Face value of RCPS 8,096 8,096 Less: Equity component (2,886) (2,886) Liability component at initial recognition 5,210 5,210 At beginning of the financial year 6,006 5,580 Unwinding of discount 459 426 At end of the financial year 6,465 6,006 On 2 March 2017, ENRA Labuan Sdn. Bhd. (“ELSB”), a wholly-owned direct subsidiary of the Company, had entered into a Subscription Agreement with a third party subscriber for the issuance and subscription of 800,000 Redeemable Convertible Preference Shares Series A (“RCPS-A”) at the subscription price of RM10.12 per RCPS-A amounting to RM8,096,000. ELSB shall utilise the said subscription amount solely for the purpose of or in relation to their acquisition of land (that is to be reclaimed) in Labuan. On 2 March 2017, ELSB had also entered into a Shareholder Agreement with the third party subscriber of the RCPS-A and the Company, being its shareholder to regulate the management of the ELSB, the relationships of each other and certain aspects of the affairs of, and their dealings with ELSB.