ENRA Group Berhad Annual Report 2018

73 A N N U A L R E P O R T 2 0 1 8 NOTES TO THE FINANCIAL STATEMENTS 31 March 2018 cont’d 6. INVESTMENTS IN SUBSIDIARIES (Cont’d) (a) Acquisition/Incorporation of subsidiaries and subscription of shares in subsidiaries (i) On 6 October 2017, ENRA SPM Labuan Limited was incorporated with an issued and paid-up share capital of USD1 comprising 1 share held by ENRA SPM Sdn. Bhd. (“ESPM”), an indirect subsidiary of the Company, to undertake leasing business in, through and from the Federal Territory of Labuan. The paid up share capital was increased to USD10,000 representing 10,000 ordinary shares on 22 March 2018 with cash injection from ESPM. (ii) On 16 November 2017, ENRA Energy Sdn. Bhd. (“EESB”), a wholly-owned direct subsidiary of the Company, subscribed for an additional 1,500,000 ordinary shares at a total consideration of RM1,500,000 in ENRA Kimia Sdn. Bhd., an indirect subsidiary of the Company, by cash. (iii) On 16 November 2017, EESB subscribed for an additional 1,500,000 ordinary shares at a total consideration of RM1,500,000 in ENRA Oil & Gas Services Sdn. Bhd. (“EOGS”), an indirect subsidiary of the Company, by cash. Subsequently, on 31 December 2017, EESB subscribed for an additional 7,500,000 ordinary shares at a total consideration of RM7,500,000 in EOGS by cash. (iv) On 16 November 2017, EOGS subscribed for an additional 1,500,000 ordinary shares issued by ENRA Engineering And Fabrication Sdn. Bhd. (“EEFAB”). The issuance of new shares increased the ordinary share capital of EEFAB from RM1,000,000 to RM2,500,000 and bringing the effective shareholding of EOGS from 75% to 90% whilst reducing the non-controlling interests in shareholding in EEFAB from 25% to 10%. Subsequently, on 20 November 2017, the non-controlling interests of EEFAB disposed off its entire 10% shareholding in EEFAB to EOGS for a cash consideration of RM1. As a result, EEFAB has become a wholly-owned subsidiary of EOGS and an indirect wholly-owned subsidiary of the Company. On 31 December 2017, EOGS subscribed for an additional 7,500,000 ordinary shares at a total consideration of RM7,500,000 in ENRA Engineering And Fabrication Sdn. Bhd. (“EEFAB”) by cash. (v) On 2 March 2018, ENRA Power Systems Sdn. Bhd. was incorporated with an issued and paid-up share capital of RM100,000 comprising 100,000 ordinary shares held by ENRA Energy Sdn. Bhd., a wholly-owned direct subsidiary of the Company, to carry out the business of marketing, selling and distribution of power generation-related equipment and machineries as well as provision of after-sales services which include maintenance, repair and overhauling. (vi) On 13 March 2018, the Company has transferred 2 ordinary shares representing the entire issued and paid-up share capital of Prominent Archway Sdn. Bhd. (“PASB”) [f.k.a. ENRA Management Services Sdn. Bhd.] to ENRA Land Sdn. Bhd. (“ELSB”), a wholly-owned direct subsidiary of the Company, for a cash consideration of RM2.00. As a result, PASB has become a wholly-owned subsidiary of ELSB and an indirect wholly-owned subsidiary of the Company. (vii) On 27 March 2018, the Company subscribed for an additional 2,339,998 ordinary shares at a total consideration of RM2,339,998 in wholly-owned direct subsidiary, ENRA Engineering and Construction Sdn. Bhd. (“EEC”) by way of capitalising of amount owing by EEC to the Company. (b) Disposal of interests in a subsidiary On 30 January 2018, Barnes Avenue Limited (“BAL”), a wholly-owned indirect subsidiary of the Company, had been struck off from the register of Companies House in the United Kingdom. BAL was incorporated in the United Kingdom with an issued and paid-up share capital of £1 on 15 October 2015 and had remained dormant from its incorporation until the date it was struck off.