ENRA GROUP BERHAD (formerly known as Perduren (M)...

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1 ENRA GROUP BERHAD (formerly known as Perduren (M) Berhad) (Company No. 236800-T) UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) (Audited) As at As at 31 / 03 / 2016 31 / 03 / 2015 RM ' 000 RM ' 000 ASSETS Non-current assets Property, plant and equipment 4,267 31,742 Investment properties 170,400 317,649 174,667 349,391 Current assets Property development cost 65,363 76,598 Inventories 41,208 30 Trade and other receivables 78,294 68,309 Current tax assets 576 61 Cash and cash equivalents 37,176 7,991 222,617 152,989 TOTAL ASSETS 397,284 502,380 EQUITY AND LIABILITIES Equity attributable to equity holders of the company Share capital 136,208 136,208 Reserves 99,320 87,254 Non-controlling interests 11,036 - Total equity 246,564 223,462 Non-current liabilities Deferred tax liabilities 200 864 Trade and other payables 6,104 49,104 Borrowings 19,945 77,112 26,249 127,080 Current liabilities Trade and other payables 86,096 72,549 Borrowings 36,359 78,065 Current tax liabilities 2,016 1,224 124,471 151,838 Total liabilities 150,720 278,918 TOTAL EQUITY AND LIABILITIES 397,284 502,380 Net Assets per shares (RM) 1.83 1.66 The Condensed Consolidated Statement of Financial Position should be read in conjunction with the annual audited financial statements of the Group for the financial year ended 31 March 2015 and the accompanying explanatory notes to the interim financial statements.

Transcript of ENRA GROUP BERHAD (formerly known as Perduren (M)...

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Unaudited) (Audited)As at As at

31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000

ASSETSNon-current assets Property, plant and equipment 4,267 31,742 Investment properties 170,400 317,649

174,667 349,391 Current assets Property development cost 65,363 76,598 Inventories 41,208 30 Trade and other receivables 78,294 68,309 Current tax assets 576 61 Cash and cash equivalents 37,176 7,991

222,617 152,989

TOTAL ASSETS 397,284 502,380

EQUITY AND LIABILITIESEquity attributable to equity holders of the company Share capital 136,208 136,208 Reserves 99,320 87,254 Non-controlling interests 11,036 -

Total equity 246,564 223,462

Non-current liabilities Deferred tax liabilities 200 864 Trade and other payables 6,104 49,104 Borrowings 19,945 77,112

26,249 127,080 Current liabilities Trade and other payables 86,096 72,549 Borrowings 36,359 78,065 Current tax liabilities 2,016 1,224

124,471 151,838

Total liabilities 150,720 278,918

TOTAL EQUITY AND LIABILITIES 397,284 502,380

Net Assets per shares (RM) 1.83 1.66

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the annual audited financialstatements of the Group for the financial year ended 31 March 2015 and the accompanying explanatory notes to the interim financialstatements.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Continuing operations 31 / 03 / 2016 31 / 03 / 2015 31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000 RM ' 000 RM ' 000

Revenue 40,423 28,100 131,727 82,935 Cost of sales (24,362) (21,980) (89,691) (65,321) Gross profit 16,061 6,120 42,036 17,614

Other operating income 792 867 1,629 1,127 Operating expenses (8,024) (4,225) (19,273) (7,492) Profit from operations 8,829 2,763 24,392 11,249

Finance cost (977) (1,203) (3,966) (4,879) Profit before taxation 7,852 1,560 20,427 6,370

Taxation (2,387) (1,216) (6,756) (3,395)

Profit for the financial year from continuingoperations 5,465 344 13,671 2,975

Discontinued operations

Profit for the financial year from discontinuedoperations, net of tax - 2,683 1,057 5,690

Profit for the financial year 5,465 3,027 14,728 8,665

Other comprehensive income, net of tax

Foreign currency translation differences for foreign operations (457) - 74 -

Total comprehensive income for the financial year 5,007 3,027 14,802 8,665

Profit attributable to:-

Owners of the Company 3,171 3,027 9,526 8,665

Non-controlling interests 2,294 - 5,202 -

5,465 3,027 14,728 8,665

Total comprehensive income attributable to:-

Owners of the Company 2,695 3,027 9,582 8,665

Non-controlling interests 2,313 - 5,220 -

5,007 3,027 14,802 8,665

Earnings per share attributable to owners of the Company (sen) :(a) Basic

Profit from continuing operations 2.35 0.25 6.27 2.20

Profit from discontinued operations - 1.99 0.78 4.21 2.35 2.24 7.06 6.42

(b) Fully diluted n/a n/a n/a n/a

Individual Quarter Cumulative Quarter

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the annual audited financialstatements of the Group for the financial year ended 31 March 2015 and the accompanying explanatory notes to the interim financialstatements.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Distributable

Share Capital Share

Premium Capital

Reserves Translation

Reserve Treasury

Shares Retained

Profits Total

Non-controlling Interests Total Equity

RM ' 000 RM ' 000 RM ' 000 RM ' 000 RM ' 000 RM ' 000 RM ' 000 RM ' 000 RM ' 000

12 months ended 31 March 2016

As at 01 April 2015 136,208 8,536 275 - (1,199) 79,642 223,462 - 223,462

Profit for the financial year - - - - - 9,526 9,526 5,202 14,728

Other comprehensive income, net of tax - - - 56 - - 56 18 74

Total comprehensive income - - - 56 - 9,526 9,582 5,220 14,802

Changes in ownership interests in a subsidiary - - - - - 2,484 2,484 5,816 8,300

Total transactions with owners - - - - - 2,484 2,484 5,816 8,300

As at 31 March 2016 136,208 8,536 275 56 (1,199) 91,652 235,528 11,036 246,564

12 months ended 31 March 2016

As at 01 April 2014 136,208 8,536 275 - (1,199) 70,977 214,797 - 214,797

Profit for the financial year - - - - - 8,665 8,665 - 8,665

Other comprehensive income, net of tax - - - - - - - - -

Total comprehensive income - - - - - 8,665 8,665 - 8,665

As at 31 March 2015 136,208 8,536 275 - (1,199) 79,642 223,462 - 223,462

<--------------------------------- Attributable to equity holders of the Company ---------------------------------><---------------------------------- Non-distributable --------------------------------->

The Condensed Consolidated Statements of Changes in Equity should be read in conjunction with the annual audited financial statements of the Group for the financial year ended 31 March 2015 and the accompanying explanatory notes to the interim financial statements.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000

Cash flows from operating activities

Profit before taxation- continuing operations 20,426 6,370 - discontinued operations 1,507 6,844

Adjustments for non cash items 4,490 1,064

Operating profit before changes in working capital 26,423 14,278

Changes in working capital (23,315) (27,733) Tax paid (6,580) (3,568) Interest expense 3,778 8,370 Interest income (785) (96)

Net cash used in operating activities (479) (8,749)

Cash flows from investing activities

Interest received 785 96 Placement of pledged deposits (2,717) (60) Placement of deposits (6,763) - Proceeds from :- disposal of investment properties - 1,940 - disposal of PPE 22 - Purchase of :- investment properties (15) (4,894) - property, plant and equipment (1,648) (453) Advance to a related party (22) 8,400 Non-controlling interest's share of advances 4,914 - Proceeds from dilution of interest in a subsidiary 8,300 - Net cash inflow on disposal of subsidiaries 70,990 -

Net cash from investing activities 73,846 5,029

Cash flows from financing activities

Drawdown from borrowings 29,933 36,263 Interest paid (3,778) (7,714) Repayment of borrowings- Term loans (56,426) (32,592) - Finance lease and hire purchase creditors (218) (93)

Net cash used in financing activities (30,489) (4,136)

Net increase/ (decrease) in cash and cash equivalents 42,878 (7,856)

Cash and cash equivalents at beginning of financial period (22,918) (15,062)

Effect of foreign rate changes in cash & cash equivalent (859) -

Cash and cash equivalents at end of financial period 19,101 (22,918)

Cash and cash equivalents comprise:-

Cash and bank balances 25,715 6,011

Bank overdraft (6,614) (28,929)

19,101 (22,918)

Period ended

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the annual audited financial statements of the Group for the financial year ended 31 March 2015 and the accompanying explanatory notes to the interim financial statements.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

Compliance with Financial Reporting Standard (FRS) 134, Interim Financial Reporting and Bursa Malaysia Securities Berhad ListingRequirements

1 Basis of preparation

2

Amendments to:FRS 10 : Consolidated Financial Statements: Investment EntitiesFRS 12 : Disclosures of Interest in Other Entities : Investment EntitiesFRS 127 : Separate Financial Statements (2011): Investment EntitiesFRS 132 : Offsetting Financial Assets and Financial LiabilitiesFRS 136 : Recoverable Amount Disclosures for Non-Financial AssetsFRS 139 : Novation of Derivatives and Continuation of Hedge Accounting

IC Interpretation 21 : Levies

3 Qualification of auditors' report on preceding annual financial statements

4 Seasonal and cyclical factors

5 Unusual items due to their nature, size and incidence

6 Changes in estimates

7 Debt and equity securities

8 Dividends paid

The interim financial report is unaudited and has been prepared in accordance with the requirements of FRS134, Interim Financial Reporting issued by the Malaysian Accounting Standards Board ("MASB") and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The interim financial report should be read in conjunction with the audited financial statements of the Company for the year ended 31 March 2015.

The significant accounting policies adopted by the Group in this interim financial report are consistent with those adopted in the annual audited financial statements for the financial year ended 31 March 2015, except for the adoption of the following standards, amendments to published standards and interpretations to existing standards which are effective for the financial period commencing on 1 April 2014:

There were no items during the interim financial period under review affecting the assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence.

Changes in Significant Accounting Policies

On 19 November 2011, the MASB issued the new accounting framework, the Malaysian Financial Reporting Standards ("MFRS")framework, which is effective for financial periods beginning on or after 1 January 2012 with the exception of entities that the new accountingframework need not be applied by entities that are within the scope of MFRS 141 and IC interpretation 15 ('hereafter called TransitioningEntities'). On 2 September 2014, MASB allowed Transitioning Entities to defer adoption of the MFRS framework to annual periods beginningon or after 1 January 2017. The Group falls within the scope of Transitioning Entities and has opted to defer the adoption of MFRSframework for the financial periods as allowed.

The auditors' report on the financial statements for the financial year ended 31 March 2015 were not subject to any audit qualification.

There were no changes in estimates which have a material effect on the results of the current financial year under review.

No dividend has been paid in the current financial year under review.

There were no issuance, cancellations, repurchases, resale and repayments of debt and equity securities during the current financial year under review.

The adoption of the above standards, amendments to published standards and interpretations does not give rise to any material effects to the Group.

The business of the Group was not affected by any significant seasonal and cyclical factors during the current financial year under review.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

9 Segmental reporting

Financial year ended 31 March 2016 Investment Hotel Propertyproperties Car park operation development Oil & Gas Consolidated

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000Revenue- External 12,763 981 1,770 108,308 13,946 137,768 - Inter-segment 808 4 - - - 812 Eliminations (808) (4) - - - (812)

Total revenue 12,763 981 1,770 108,308 13,946 137,768

ResultsOperating profit/(loss) (3,122) 99 178 26,128 2,531 25,814 Other income 785 Finance cost (4,668) Tax expense (7,203)

Profit for the financial year 14,728

Financial year ended 31 March 2015 Investment Hotel Propertyproperties Car park operation development Oil & Gas Consolidated

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000Revenue- External 21,531 3,937 6,942 75,094 - 107,504 - Inter-segment 3,298 17 - - - 3,315 Eliminations (3,298) (17) - - - (3,315)

Total revenue 21,531 3,937 6,942 75,094 - 107,504

ResultsOperating profit 11,329 510 (303) 9,952 - 21,488 Other income 96 Finance cost (8,370) Tax expense (4,549)

Profit for the financial year 8,665

The results of the discontinued operations included in the segmental reporting are disclosed in Note 22 Discontinued Operations.

10 Carrying amount of revalued assets

Save for investment properties carried at fair values, there are no revalued assets as at 31 March 2016.

11 Subsequent events

12 Changes in the composition of the Group

(i)

(ii)

(iii)

13 Changes in contingent liabilities

Incorporation of ENRA Pipeline Services Sdn. Bhd. ("ENRA Pipeline") under Companies Act, 1965, on 3 March 2016 with an authorised share capital of RM400,000 comprising of 400,000 ordinary shares of RM1 each and issue and paid-up share capital of RM2 comprising of 2 ordinary shares of RM1 each respectively. ENRA Pipeline is a wholly owned subsidiary of ENRA Energy Sdn. Bhd. (formerly known as Trillion Factor Sdn Bhd) (“ENRA Energy”), which in turn, is a wholly owned by the Company.

Incorporation of Barnes Avenue Limited (“BAL”) in England and Wales on 15 October 2015 with an issued and paid-up share capital of £1 comprising of 1 ordinary share of £1. BAL is wholly owned by ENRA Property (UK) Limited (formerly known as Perduren Holding Company Limited), which in turn, is wholly owned by ENRA Land Sdn. Bhd. (formerly known as Bendera Majujaya Sdn Bhd) ("ENRA Land"). ENRA Land is a wholly owned subsidiary of the Company.

There were no changes in the composition of the Group for the current quarter and financial year under review except for the following:

Disposal of the Company’s entire equity interest in Advantage Equity Sdn. Bhd. (“AESB”), Balance Focus Sdn. Bhd. (“BFSB”), Grand Sentosa Hotel Management Services Sdn. Bhd. (“GSHMSSB”) for RM71.8 million, RM1.3 million and RM0.1 million respectively. These disposals have been completed on 1 July 2015 and these companies ceased to be subsidiaries of the Company.

There were no changes to contingent liabilities or contingent assets since the last financial year ended 31 March 2015.

There are no material events subsequent to the end of the current financial year under review that have not been reflected in the financial statements for the current financial year under review.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

14 Capital commitments

15 Significant related party transactions

16 Review of performance

17 Material change in profit before taxation

18 Current year prospects

19 Profit forecast

20 Profit before tax

Current CumulativeQuarter Quarter

31 / 03 / 2016 31 / 03 / 2016RM ' 000 RM ' 000

Profit before tax is arrived at after charging / (crediting)Interest income (331) (786) Interest expense 88 3,778 Other income including investment income (239) (347) Depreciation of property, plant and equipment 142 938 Impairment loss on trade and other receivables - 162 Gain on disposal of subsidiaries - (295) Loss on revaluation of investment properties 3,700 3,700 Rental of:

- premises 84 712 - equipment 8 43

Foreign exchange gains (117) (123)

For the financial quarter under review, the Group recorded a higher profit before taxation from continuing operations of RM7.852 million as compared to a profit before taxation of RM1.560 million in the comparative quarter ended 31 March 2015, mainly due to higher property development revenue and contribution of profit before taxation from the oil & gas sector of RM1.877 million.

Save for the provision of financial assistance to a subsidiary as disclosed in Note 26 Provision of financial assistance, the disposal of entire equity interest in AESB, BFSB and GSHMSSB and the disposal of 30% equity interest in Landmark Zone Sdn. Bhd. (“LZSB”) as disclosed in Note 23 (i) Status of corporate proposals, there were no other significant related party transactions during the current financial year under review.

The contribution of profit before taxation from the oil & gas sector for the financial quarter under review is RM1.877 million as compared to profit before taxation of RM0.294 million in the immediate preceding quarter. The Group's operation in the oil & gas sector began in the financial quarter ended 31 December 2015.

For the financial year ended 31 March 2016, the Group recorded a higher profit before taxation from continuing operations of RM20.427 million as compared to a profit before taxation of RM6.370 million in the preceding financial year, mainly due to higher property development revenue and contribution from oil & gas sector.

For the financial quarter under review, the Group recorded a lower profit before taxation of RM7.852 million as compared to a profit before taxation of RM10.625 million in the immediate preceding quarter, mainly due to lower property development revenue.

There is no other items as required for disclosure by Chapter 9 Continuing Disclosure - Appendix 9B paragraph 16 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

There were no capital commitments for the purchase of property, plant and equipment as at the end of the financial year ended 31 March 2016.

Barring any unforeseen circumstances, the Group expects both its property and oil and gas divisions to contribute positively to the overall Group's revenue and earnings.

The disposal of the entire equity interest in AESB, BFSB and GSHMSSB have been completed on 1 July 2015. As a result of this corporate exercise, these companies ceased to be subsidiaries of the Company and the Group ceased its business activities of a hotel and car park operation business.

For the financial year under review, the Group's business activities are the holding of investment properties in Johor Bahru and Kuala Lumpur, a joint-venture property development in Taman Shamelin Perkasa and the redevelopment of a property in Central London. The Group also began operations in the oil and gas sector via its two wholly owned subsidiaries, ENRA Kimia Sdn. Bhd. and ENRA Oil & Gas Services Sdn. Bhd.

The Group has not issued any profit forecast in a public document.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

21 Income tax expense

31 / 03 / 2016 31 / 03 / 2015 31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000 RM ' 000 RM ' 000

Current taxationMalaysian income tax :-- current year 2,590 1,169 6,985 3,335 - over provision for prior year (182) - (193) (45)

Deferred tax (20) 47 (36) 105

2,387 1,216 6,756 3,395

22 Discontinued operations

(i) An analysis of the results of the discontinued operations are as follows:

31 / 03 / 2016 31 / 03 / 2015 31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000 RM ' 000 RM ' 000

Revenue - 6,266 6,040 24,569 Cost of sales - (3,962) (1,826) (8,714) Gross profit - 2,304 4,214 15,855 Other operating income - 2,412 21 2,514 Operating expenses - (970) (2,029) (8,034) Profit from operations - 3,745 2,207 10,335 Finance cost - (791) (701) (3,491) Profit before taxation - 2,954 1,506 6,844 Taxation - (271) (449) (1,154) Profit for the financial year from discontinued operations - 2,683 1,057 5,690

(ii) An analysis of the segmental reporting of the discontinued operations are as follows:

Financial year ended 31 March 2016

Investment Hotelproperties Car park operation Consolidated

RM'000 RM'000 RM'000 RM'000Revenue- External 3,289 981 1,770 6,040 - Inter-segment 408 4 - 412 Eliminations (408) (4) - (412)

Total revenue 3,289 981 1,770 6,040

ResultsOperating profit 1,747 102 165 2,015 Other income 192 Finance cost (701) Tax expense (449)

Profit for the financial year from discontinued operations 1,057

The Group disposed of its entire equity interest in AESB, BFSB and GSHMSSB on 1 July 2015 for a total consideration of RM73.2 million settled by cash and set off against other creditors. The subsidiaries were previously reported as part of the investment properties, car park and hotel operation.

The Group's effective tax rate for the interim financial period under review is higher than the statutory tax rate as certain expenses are not allowable for tax deductions.

Individual Quarter Cumulative Quarter

Individual Quarter Cumulative Quarter

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

Financial year ended 31 March 2015

Investment Hotelproperties Car park operation Consolidated

RM'000 RM'000 RM'000 RM'000Revenue- External 13,690 3,937 6,942 24,569 - Inter-segment 1,585 17 - 1,601 Eliminations (1,585) (17) - (1,601)

Total revenue 13,690 3,937 6,942 24,569

ResultsOperating profit 6,466 519 478 7,462 Other income 2,872 Finance cost (3,491) Tax expense (1,154)

Profit for the financial year from discontinued operations 5,690

(iii) The following amounts have been included in arriving at profit before tax of the discontinued operations:

Current Period Quarter ended

31 / 03 / 2016 31 / 03 / 2016RM ' 000 RM ' 000

Profit before tax is arrived at after charging / (crediting)

Interest expense - 701 Other income including investment income - (21) Depreciation of property,plant and equipment - 429 Impairment loss on trade and other receivables - 162 Rental of:

- premises - 229- equipment - 3

Loss on disposal of fixed assets - 25

(iv) An analysis of the cash flow attributable to the discontinued operations are as follows:

Period ended

31 / 03 / 2016RM ' 000

Operating activities (6,101)Investing activities 9,013 Financing activities (2,560)Net cash flow 352

(iv) An analysis of the assets and liabilities for the discontinued operations are disclosed in Note 24 Disposal of Subsidiaries.

23 Status of corporate proposals

(i) Disposal of entire equity interest in AESB, BFSB and GSHMSSB and 30% equity interest in LZSB.

On 8 December 2014, the Group had announced a proposed corporate exercise for the disposal of the entire equity interest in AESB, BFSB and GSHMSSB and 30% equity interest in LZSB.

At the same Extraordinary General Meeting, the shareholders of the Company also approved the disposal of 30% equity interest in LZSB for RM8.3 million. This disposal has been completed on 1 June 2015.

The shareholders of the Company had at an Extraordinary General Meeting held on 18 May 2015 approved the disposal of the Company’s entire equity interest in AESB, BFSB and GSHMSSB for RM71.8 million, RM1.3 million and RM0.1 million respectively. These disposals have been completed on 1 July 2015 and these companies ceased to be subsidiaries of the Company.

There is no other items as required for disclosure by Chapter 9 Continuing Disclosure - Appendix 9B paragraph 16 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

(ii) Proposed acquisition of Hikmah Oil & Gas Assistance Sdn. Bhd. (“Hikmah”)

(iii) Proposed disposal of LZSB

24 Disposal of subsidiaries

31 / 03 / 2016RM ' 000

Assets EmployedProperty, plant and equipment 28,883 Investment properties 143,564 Amount due from related companies 11,734

184,181

Current AssetsInventories 19 Trade debtors 2,159 Other debtors, deposits 603 Amounts due from related companies 3,516 Short term deposit with licensed bank 127 Cash and bank balance 2,044

8,468

Current LiabilitiesTrade creditors (694) Other creditors, deposits (6,135) Bank Borrowings (7,417) Bank Overdraft (9,685) Amounts Due to Related Companies (49,669) Taxation (428)

Net Current Assets (65,560) Total Assets 118,622

Non-current LiabilitiesDeferred Taxation (605) Long term loan (32,597) Lease Creditor (5) Amounts Due to Holding Company (480) Amounts Due to Related Companies (12,030)

(45,717)

Net Assets 72,905

Total disposal proceeds 73,200 Gain on disposal to the Group 295

Cash inflow arising on disposals:Cash consideration 73,200 Set off against other creditor (9,724) Bank overdraft 9,685 Cash and cash equivalent (2,171) Net cash inflow on disposal 70,990

The Group disposed of its entire equity interest in AESB, BFSB and GSHMSSB on 1 July 2015 for a total consideration of RM73,200,000 settled by cash and set off against other creditors. The subsidiaries were previously reported as part of the investment properties, car park and hotel operation.

The disposal had the following effects on the financial position of the Group as at 31 March 2016.

On 5 February 2016, ENRA Oil & Gas Services Sdn. Bhd. (formerly known as Ratus Nusa Sdn. Bhd.)("EOGS"), a subsidiary of the Company had entered into an agreement in respect of the acquisition of 750,000 ordinary shares of RM1.00 each, representing 75% of the total issued and paid-up share capital of Hikmah, from Encik Mohd Arif Shah bin Omar for a total cash purchase consideration up to RM10.29 million.

The acquisition was completed on 12 May 2016 and from that date, Hikmah became a subsidiary of EOGS and accordingly, a subsidiary of the Company.

On 18 March 2016, the Company had entered into an agreement in repects of the disposal of 2,400,000 ordinary shares of RM1 each representing 30% equity held by the Company in LZSB to Meridian Hectares Sdn. Bhd. ("MHSB") for a cash consideration of RM13.90 million.

As at that date, the Company holds 70% equity interest in LZSB while MHSB holds the remaining 30%.

However, on 10 May 2016, the Company and MHSB have mutually agreed to terminate the agreement for the proposed disposal to renegotiate on the terms and conditions to explore the possibility of disposing a higher equity interest in LZSB held by the Company.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

25 Borrowings and debts securities

Short Term Long TermRM ' 000 RM ' 000

SecuredBank overdrafts 6,614 - Term loans 26,062 19,408 Hire-purchase and lease creditors 186 538 Bridging loan 297 -

33,159 19,945 UnsecuredOther borrowings 3,200 -

36,359 19,945

26 Provision of financial assistance

The Group's provision of financial assistance to a subsidiary as of 31 March 2016 are as follows:

As at As at31 / 03 / 2016 31 / 03 / 2015

RM ' 000 RM ' 000

Advances to a subsidiary 11,000 -

27 Material litigation

28 Dividends

29 Earnings per ordinary share

31 / 03 / 2016 31 / 03 / 2015 31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000 RM ' 000 RM ' 000

Profit attributable to equity holders of the Company (RM ' 000)

- continuing operations 3,171 344 8,469 2,975 - discontinued operations - 2,683 1,057 5,690

3,171 3,027 9,526 8,665

Weighted average number of ordinary shares in issue ('000)

Total number of ordinary shares 136,208 136,208 136,208 136,208 Treasury shares (1,199) (1,199) (1,199) (1,199)

135,009 135,009 135,009 135,009

Basic earnings per share (sen) :

- continuing operations 2.35 0.25 6.27 2.20 - discontinued operations - 1.99 0.78 4.21

2.35 2.24 7.06 6.42

Save for the above, there were no dividends declared for the financial year ended 31 March 2015 and no dividend has been paid in the current financial year under review.

The Group is not engaged in any material litigation as at the date of issuance of this financial statements.

The Board had recommended a first interim single-tier dividend of 3 sen per ordinary share of RM1.00 each and a special interim single-tier dividend of 5 sen per ordinary share of RM1.00 each, amounting to RM10.793 million for the financial year ended 31 March 2016. Details of the book closure will be announced at a later date.

There are no diluted earnings per share as the Company does not have any potential dilutive ordinary shares outstanding as at 31 March 2016.

The provision of this financial assistance shall be immediately repayable on written demand and at an interest rate charged equivalent to the Company’s cost of funds for obtaining, sustaining or making available the amount of the provision of financial assistance, which cost of funds shall be solely determined by the Company.

Quarter Ended Period Ended

Total borrowings of the Group as at 31 March 2016 were as follows :

Basic earnings per share are calculated by dividing profit for the period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the period, excluding any treasury shares held by the Company.

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ENRA GROUP BERHAD(formerly known as Perduren (M) Berhad) (Company No. 236800-T)NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2016

30 Analysis of realised and unrealised profitsAs at As at

Total retained earnings of the Group 31 / 03 / 2016 31 / 03 / 2015RM ' 000 RM ' 000

Realised 92,747 13,208 Unrealised (303) 2,558

92,444 15,766

Add:- Consolidation adjustments (792) 63,876 91,652 79,642

By Order of the BoardENRA Group Berhad(formerly known as Perduren (M) Berhad)

Date: 20 May 2016