ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 90 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 7. INVESTMENTS IN SUBSIDIARIES (Cont’d) c. Acquisition/Incorporation of subsidiaries and subscription of shares in subsidiaries (Cont’d) ii. Internal restructuring of Orlando Manufacturing Sdn. Bhd. (“OMSB”), Tenderly Marketing Sdn. Bhd. (“TMSB”) and Prominent Archway Sdn. Bhd. (“PASB”) On 3 September 2019, the Company had undertaken an internal restructuring exercise involving the 3 transfers of its entire shareholding of 500,000 ordinary shares in OMSB and 200,000 ordinary shares in TMSB and ELAND’s entire shareholding of 2 ordinary shares in PASB to Q Homes at a total cash consideration of RM4.00 and RM2.00 respectively. Upon completion of the transfers, OMSB, TMSB and PASB which were previously wholly owned direct and indirect subsidiaries of the Company, became 51% indirect subsidiaries of the Company. The dilution in the interest of OMSB, TMSB and PASB does not have a material effect to the Group as the carrying amount of net asset for these 3 companies are RM Nil at the date of disposal. Subsequently, the Group changed the names of OMSB to DV Homes Sdn. Bhd. and TMSB to Makmur Homes Sdn. Bhd. iii. Internal restructuring of ENRA Power System Sdn. Bhd. (“EPSSB”) On 31 January 2020, the Company has transferred 100% of its 100,000 shares in EPSSB from ENRA Energy Sdn. Bhd. (“EESB”) to its wholly owned indirect subsidiary, EKSB for a total cash consideration of RM100,000. The internal restructuring of EPSSB does not have any financial impact to the Group. iv. Subscription of shares in ENRA ICON Sdn. Bhd. (“EICON”) On 28 February 2020, ENRA Oil & Gas Services Sdn. Bhd. (“EOGS”), a wholly owned indirect subsidiary of the Company has entered into a Deed of Termination with Icon Oilfield Solutions Sdn. Bhd. (“ICON”) to mutually rescind and terminate a Shareholders Agreement on EICON. As part of the termination arrangement, EOGS has made full payment of RM20,600 in cash for the purchase of 30,000 ordinary shares, equivalent to 30% equity interest in EICON which was previously owned by ICON, resulting in EICON became a wholly owned direct subsidiary to EOGS.