ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 161 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 35. CAPITAL COMMITMENTS Group 2021 2020 RM’000 RM’000 Approved and not contracted for Purchase of property, plant and equipment 1,096 3,522 36. CONTINGENT LIABILITIES Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Secured Bank guarantee given to customers in respect of contracts in subsidiaries 3,609 6,020 – – Bank guarantee given to suppliers in respect of goods supplied to a subsidiary 11,615 1,000 – – 15,224 7,020 – – Unsecured Corporate guarantees given by the Company for credit facilities granted to the subsidiaries – – 39,913 80,591 The Directors are of the opinion that the fair value of the corporate guarantees is negligible as the possibility of any outflow in settlement arising from the default of credit facilities is remote. The Group designates corporate guarantees given to banks for credit facilities granted to subsidiaries as insurance contracts as defined in MFRS 4 Insurance Contracts. The Group recognises these insurance contracts as recognised insurance liabilities when there is a present obligation, legal or constructive, as a result of a past event, when it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.