ENRA Group Berhad Annual Report 2019

91 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 7. INVESTMENTS IN SUBSIDIARIES (cont’d) (d) Disposal of interests in subsidiaries (cont’d) (ii) On 31 May 2018, ENRA Oil & Gas Services Sdn. Bhd., a wholly-owned indirect subsidiary of the Company, has disposed all its shares held in EEFAB comprising 10,000,000 ordinary shares to ENRA Engineering & Construction Sdn. Bhd. (“EEC”), a wholly-owned direct subsidiary of the Company, for a cash consideration of RM16,000,000 (“Reorganisation”). As a result of the Reorganisation, EEFAB has become a wholly-owned direct subsidiary of EEC and remains a wholly-owned indirect subsidiary of the Company. The Reorganisation was carried out to realign the Group structure to place all subsidiaries involved in engineering, construction and fabrication activities under EEC for organisational clarity. The Reorganisation which stems a new segment called engineering, construction and fabrication, has no impact on the financial statements of the Group. (iii) On 5 July 2018, following the completion of share sale agreements between the Company and Atar Irama Sdn. Bhd., the Company had disposed its entire equity interest inNautical Gold Sdn. Bhd. (“NGSB”), Evergreen Sprint Sdn. Bhd. (“ESSB”) and Essential Vista Sdn. Bhd. (“EVSB”) for a cash consideration of RM133,921. Details of the assets, liabilities and net cash outflow arising from the disposal of LZSB, EVSB, NGSB and ESSB during the financial year ended 31 March 2019 are as follows: Group 2019 RM’000 Assets/(Liabilities) disposed: Property, plant and equipment 57 Trade and other receivables 9,874 Cash and cash equivalents 8,045 Assets held for sale 141 Trade and other payables (9,262) Current tax liabilities (71) Hire purchase and lease creditors (5) Minority interests (2,707) Loss on disposal of subsidiaries (338) 5,734 Cash and cash equivalents disposed (8,045) Net outflow from disposal of subsidiaries (2,311) The gain on disposal of subsidiaries of the Company during the financial year is as follows: Company 2019 RM’000 Total disposal proceed 5,734 Cost of investments in LZSB, NGSB, ESSB and EVSB (5,600) Gain on disposal of the subsidiaries 134