ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 121 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 7. INVESTMENTS IN SUBSIDIARIES (cont’d) (b) Equity contributions to subsidiaries are unsecured, interest-free and settlement is neither planned nor likely to occur in the foreseeable future for the purposes of providing the subsidiaries with a long term source of additional capital. (c) Changes in investment in subsidiaries during the financial year (i) Internal restructuring of ENRA Icon Sdn. Bhd. On 19 October 2020, the Company has made an internal restructuring involving a transfer of 100% shares in ENRA ICON Sdn. Bhd. (“EICON”) held by ENRA Oil & Gas Services Sdn. Bhd. (“EOGS”) to Enra Land for a total cash consideration of RM100,000. EICON subsequently changed its name to Hamptons Homes Sdn. Bhd. (“HHSB”) on 23 October 2020. (ii) Termination of Shareholders’ Agreements in relation to investment in ENRA Nauticawt Sdn. Bhd. and subsequent internal restructuring On 21 October 2020, EOGS has entered into a Deed of Termination with AWT International (Decommissioning) Sdn. Bhd. (“AWT”) to mutually rescind and terminate the Shareholders’ Agreement dated 26 February 2016. Following this, EOGS has acquired the balance 49% shares in ENRA Nauticawt Sdn. Bhd. (“ENSB”) from AWT for a cash consideration of RM54,033. ENSB has effectively become a wholly owned subsidiary of EOGS from 26 October 2020, being the date when the transfer of shares was completed. On 2 November 2020, EOGS has made a transfer of its 100% shares in ENSB to Enra Kimia for a total cash consideration of RM105,033. ENSB subsequently changed its name to ENRA Downstream Services Sdn. Bhd. on 8 December 2020. (iii) Internal restructuring of ENRA Energy Solutions Sdn. Bhd. On 7 January 2021, the Company has made an internal restructuring involving a transfer of 100% shares ENRA Energy Solutions to ENRA Energy for a total consideration of RM5,001,000 in form of equity contribution to ENRA Energy Solutions. (d) Changes in investment in subsidiaries in the previous financial year (i) Subscription of shares in ENRA ICON Sdn. Bhd. In the previous financial year, 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.