ENRA Group Berhad | Annual Report 2022 169 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 38. LITIGATIONS AGAINST THE GROUP (Cont’D) (b) Claim against SPM Terminal Pty Ltd (“SPMT”) as the “1st Respondent” and ESPML as the “2nd Respondent” (Cont’d) Controval has requested for a mutual settlement and suspended the Arbitration process on 25th October 2021. Both parties are negotiating for the settlement agreement. At this stage, the Company is unable to determine reliably the potential financial impact on the Group’s results for the period ended 31 March 2022. 39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (a) COVID-19 Pandemic The 2019 Novel Coronavirus infection (“COVID-19”) was declared a pandemic by the World Health Organisation on 11 March 2020. The Government of Malaysia imposed a Movement Control Order (“MCO”) on 18 March 2020 and subsequently entered into various phases and intensity of MCO depending on the statistic and the severity of the active cases. Since then, the Group and the Company have experienced certain disruption to its operations including: (i) distorted level of demand for certain products and services as a consequence of cashflow management and cost optimisation exercises by certain customers; and (ii) uncertainty of the various movement control orders in practice in respect of permitted political, economic and social activities. On 8 March 2022, the Government of Malaysia announced that the Country will begin its transition to endemic phase of COVID-19 from 1 April 2022 with the opening of its international borders and abolishment of certain COVID-19 restrictions. As at the date of authorisation of the financial statements, the COVID-19 pandemic situation is still evolving and uncertain. The Group and the Company have therefore considered the impact of the COVID-19 pandemic across its business operations and took the necessary precautions and provisions where necessary. The Group and the Company will also continue to actively monitor and manage its funds and operations to minimise any impact arising from the COVID-19 pandemic. (b) Disposal of subsidiary As disclosed in Note 6(c) to the financial statements, the Group disposed ENRA Kimia Group during the year for a total cash consideration of RM50.00 million. The disposal was completed on 30 November 2021. (c) Proposed acquisition and lease-back of assets On 8 July 2021, the Company issued a Non-Binding Indicative Offer (“NBIO”) to MTU Services (Malaysia) Sdn. Bhd, (“MSM”), a company incorporated in Malaysia, for the proposed acquisition and subsequent lease-back of certain properties, plant and machineries of MSM. The estimated purchase consideration amounting to RM60.0 million. MSM has accepted the NBIO on the same date. As at the date of authorisation of the financial statements, the proposed acquisition and lease back of assets has yet to be completed.
RkJQdWJsaXNoZXIy NDgzMzc=