ENRA Group Berhad | Annual Report 2022 112 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 6. INVESTMENTS IN SUBSIDIARIES (Cont’d) (a) (continued) Investments accounted for at cost shall be accounted for in accordance with MFRS 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with MFRS 5. When control of a subsidiary is lost as a result of a transaction, event or other circumstance, the Group would derecognise all assets, liabilities and non-controlling interests at their carrying amount and to recognise the fair value of the consideration received. Any retained interest in the former subsidiary is recognised at its fair value at the date control is lost. The resulting difference is recognised as a gain or loss in profit or loss. (b) Equity contributions to subsidiaries are unsecured, interest-free and settlement is neither planned nor likely to occur in the foreseeable future for the purposes of providing the subsidiaries with a long term source of additional capital. (c) Changes in investment in subsidiaries during the financial year Divestment of the entire issued share capital of ENRA Kimia Sdn Bhd (“ENRA Kimia”) and its subsidiaries On 23 July 2021, ENRA Energy Sdn. Bhd., a wholly-owned subsidiary of the Company had received and accepted a Letter of Offer (“LO”) dated the same date from Hextar Global Berhad (“Hextar Global”) and Ekopintar Sdn Bhd (“Ekopintar”), (collectively the “Acquirors”) to acquire the entire issued share capital of its subsidiary, ENRA Kimia for a total cash consideration of RM50.00 million (“Purchase Consideration”). Ekopintar, is determined as a related party to the Company in view of Dato’ Mazlin bin Md Junid (“Dato' Mazlin”), the then President and Group CEO of the Company, owning 50% of the issued and paid up share capital of Ekopintar and also a Director of Ekopintar. Subsequently, the Group’s divestment of ENRA Kimia and its subsidiaries (collectively known as “ENRA Kimia Group”) was approved by the Company’s shareholders via the Company’s Extraordinary General Meeting held on 22 October 2021. The proposed divestment of ENRA Kimia Group was completed on 30 November 2021 in accordance with the terms and conditions of the agreements. ENRA Kimia Group was not classified as held for sale as at 31 March 2021 and the comparative statement of profit or loss and other comprehensive income has been re-presented to show the discontinued operations separately from continuing operations. Management committed to a plan to sell ENRA Kimia Group upon receiving the offer in late July 2021.
RkJQdWJsaXNoZXIy NDgzMzc=