150 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 32. CONTINGENT LIABILITIES Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Secured Bank guarantee given to customers in respect of contracts in subsidiaries - 2,522 - - - 2,522 - - Unsecured Corporate guarantees given by the subsidiary of the Company for loan facility granted to the Company 2,000 - - - Corporate guarantees given by the Company for credit facilities granted to the subsidiaries - - 721 3,877 2,000 - 721 3,877 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. 33. RELATED PARTY DISCLOSURES (a) Identities of related parties Parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Related parties of the Group include: (i) Direct and indirect subsidiaries as disclosed in Note 6 to the financial statements; (ii) Key management personnel, which comprises persons (including the Directors of the Company) having authority and responsibility for planning, directing and controlling the activities of the Group directly or indirectly; and (iii) Company in which a Director is also a Director cum shareholder of the Company.
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