Notes To The Financial Statements 31 March 2024 (Cont’d) 128 ENRA GROUP BERHAD ANNUAL REPORT 2024 6. INVESTMENTS IN SUBSIDIARIES Company 2024 2023 RM’000 RM’000 Unquoted equity shares, at cost 10,146 11,146 Less: Impairment losses (10,044) (2,340) 102 8,806 Equity contributions to subsidiaries 59,537 52,924 Less: Accumulated impairment losses (41,687) (37,282) 17,952 24,448 (a) A subsidiary is an entity in which the Group and the Company are exposed, or have rights, to variable returns from its involvement with the subsidiary and have the ability to affect those returns through its power over the subsidiary. An investment in subsidiary, which is eliminated on consolidation, is stated in the separate financial statements of the Company at cost less accumulated impairment losses, if any. Put options written over non-controlling interests on the acquisition of subsidiary shall be included as part of the cost of investment in the separate financial statements of the Company. Subsequent changes in the fair value of the written put options over non-controlling interests shall be recognised in profit or loss. Investments accounted for at cost shall be accounted for in accordance with MFRS 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with MFRS 5. When control of a subsidiary is lost as a result of a transaction, event or other circumstance, the Group would derecognise all assets, liabilities and non-controlling interests at their carrying amount and to recognise the fair value of the consideration received. Any retained interest in the former subsidiary is recognised at its fair value at the date control is lost. The resulting difference is recognised as a gain or loss in profit or loss. (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 Disposal of equity interest in ENRA Energy Solution Sdn. Bhd. (“EESSB”) On 12 April 2023, a wholly owned subsidiary of the Company, ENRA Engineering & Construction Sdn. Bhd. (“EEC”) disposed of 750,000 ordinary shares in EESSB, representing 30% of the equity interest in EESSB to a third party at a total consideration of RM1,000. Following the disposal, the shareholding of EEC in EESSB has been reduced from 100% to 70%.
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