Notes To The Financial Statements (Cont’d) 31 March 2026 ANNUAL REPORT 2026 ENRA GROUP BERHAD 111 Registration No: 33 199201005296 (236800 - T) 3. BASIS OF PREPARATION (continued) The financial statements of the Group and of the Company have been prepared under the historical cost convention except as otherwise stated in the financial statements and on the basis of accounting policies applicable to a going concern. As at 31 March 2026, the Group's current assets comprise predominantly property development inventories amounting to RM77.03 million, which are not readily convertible into cash. Excluding property development inventories, the Group's current liabilities exceeded its current assets by RM25.86 million, indicating that the Group's ability to meet its short-term obligations is dependent on the generation of future operating cash flows and continued access to financing facilities. The Directors have prepared cash flows forecast for the next 12 months from the date of the financial statements in assessing whether it is appropriate to prepare the financial statements of the Group and of the Company for the financial year ended 31 March 2026 on a going concern basis, taking into considerations the following: (i) the Group’s ability to generate operating cash flows from their operations; and (ii) available credit facilities to the Group and to the Company. Accordingly, the Directors believe that the preparation of the financial statements on a going concern basis is appropriate to enable the Group and the Company to meet their liabilities as they fall due for the next 12 months from the date of the financial statements. [THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]
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