ENRA Group Berhad Annual Report 2018

91 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 18. REDEEMABLE CONVERTIBLE PREFERENCE SHARES Group Number of shares Amount ’000 RM’000 Issued and fully paid redeemable convertible preference shares (“RCPS”): At 1 April 2016 - - Issued during the year 800 409 At 31 March 2017/31 March 2018 800 409 The carrying amount of the liability component of RCPS at the reporting date is arrived at as follow: Group RM’000 Face value of RCPS 1,057 Less: Equity component (409) Liability component at initial recognition 648 At 1 April 2016 - Issued during the year 648 At 31 March 2017 648 Unwinding of discount 55 At 31 March 2018 703 On 2 March 2017, ENRA Labuan Sdn. Bhd. (“ELSB”), a wholly-owned direct subsidiary of the Company, had entered into a Subscription Agreement with a third party subscriber for the issuance and subscription of 800,000 Redeemable Convertible Preference Shares Series A (“RCPS-A”) at the subscription price of RM10.12 per RCPS-A amounting to RM8,096,000. ELSB shall utilise the said subscription amount solely for the purpose of or in relation to their acquisition of land (that is to be reclaimed) in Labuan. On 2 March 2017, ELSB had also entered into a Shareholder Agreement with the third party subscriber of the RCPS-A and the Company, being its shareholder to regulate the management of the ELSB, the relationships of each other and certain aspects of the affairs of, and their dealings with ELSB.