ENRA Group Berhad Annual Report 2019

137 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 41. FINANCIAL INSTRUMENTS (cont’d) (b) Types of financial instruments (cont’d) (iv) Redeemable convertible preference shares The redeemable convertiblepreference shares are regarded as compound instruments, consistingof a liability component and an equity component. The component of convertible redeemable preference shares that exhibits characteristics of a liability is recognised as a financial liability in the statements of financial position, net of transaction costs. The dividends on those shares are recognised as interest expense in profit or loss using the effective interest rate method. On issuance of the redeemable convertible preference shares, the fair value of the liability component is determined using a market rate for an equivalent non-convertible debt and this amount is carried as a financial liability in accordance with the accounting policy for other payables. The residual amount, after deducting the fair value of the liability component, is recognised and included in shareholders’ equity, net of transaction costs. The dividends on these shares is recognised in equity in the period in which they are declared. Transaction costs are apportionedbetween the liability and equity components of the redeemable convertible preference shares based on the allocation of proceeds to the liability and equity components when the instruments were first recognised. (c) Categories of financial instruments Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Financial assets Amortised cost Trade and other receivables, net of prepayments and accrued billings in respect of property development 24,114 35,417 60,506 80,804 Contract assets - 5,977 - - Cash and bank balances 23,729 26,101 8,855 10,093 Fair value through profit or loss Short term funds 6,236 20,088 6,236 17 Derivative assets 512 111 512 111 54,591 87,694 76,109 91,025 Financial liabilities Amortised cost Borrowings 16,450 75,862 3,058 49,223 Lease liabilities 86,802 2,164 914 1,370 Trade and other payables 30,046 44,618 5,516 17,633 RCPS liability 5,580 703 - - Fair value through profit or loss Contingent consideration 4,343 - - - 143,221 123,347 9,488 68,226