Notes To The Financial Statements (Cont’d) 31 March 2026 ANNUAL REPORT 2026 ENRA GROUP BERHAD 139 Registration No: 61 199201005296 (236800 - T) 9. CONTRACT ASSETS/(CONTRACT LIABILITIES) Group 2026 2025 RM’000 RM’000 Contract assets 10,621 3,937 Contract liabilities (12,187) (185) Total (1,566) 3,752 (a) Contract assets represent the timing differences in revenue recognition and the milestone billings. The milestone billings are structured and/or negotiated with customers to reflect physical completion of the contracts. Contract assets are transferred to receivables when the rights to economic benefits become unconditional. This usually occurs when the Group issues billing to the customer typically within 30 days to 90 days. Contract liabilities are recognised as revenue when performance obligations are satisfied. (b) No amounts included in contract liabilities at the beginning of the financial year were recognised as revenue during the financial year (2025: Nil), as the related performance obligations had not yet been satisfied. (c) The movements in the contract assets/(contract liabilities) are as follows: Group 2026 2025 RM’000 RM’000 At beginning of the financial year 3,752 2,665 Revenue recognised during the financial year 76,708 (4,736) Progress billing issued during the financial year (82,026) 5,823 At end of the financial year (1,566) 3,752 (d) Revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period, are as follows: Group 2026 2025 RM’000 RM’000 31 March 2027 102,536 - 31 March 2026 - 1,175 102,536 1,175 (e) Impairment for contract assets that do not contain a significant financing component are recognised based on the simplified approach using the lifetime expected credit losses as disclosed in Note 8(e) to the financial statements. No expected credit loss was recognised arising from the contract asset of the Group as the amount is negligible.
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