ENRA Group Berhad Annual Report 2019

31 ENRA GROUP BERHAD ∞ Annual Report 2019 page G. How we Manage our Material Sustainability Matters (cont’d) 1) Ensuring Sustainable Business Growth (Economic) (cont’d) a) Business development and expansion (cont’d) We spend an average of 2 months to evaluate and pursue such deals. The management team focuses on ensuring that our interests are protected and that risks are managed. Our evaluation process includes a fairly high-level due diligence exercise undertaken by our Group Legal, Group Strategy and Group Finance Departments. In FYE 31 March 2019, we introduced a formal and structured investment evaluation process for both merger and acquisition opportunities and new business development initiatives. This evaluation process identifies parameters that each opportunity shouldmeet, and sets out guidelines to evaluate the nature, risks,mitigating factors and risk return trade-off for these opportunities. This evaluation process also provides a more efficient approach to identifying which opportunities should be pursued and which to reject. Each opportunity that is tabled for the evaluation of the EXCOmust go through this evaluation process before being considered by the EXCO. We had successfully concluded the following deals shown in Illustration 8 in FYE 31 March 2019: Illustration 8 Industry Transaction Business Activities Chemical trading for the oil and gas industry (existing business) Expansion of current activities Acquired the entire equity stake in a chemical trading company based in Australia. Land acquisition (business expansion) Established a subsidiary Acquired land in Rugby, United Kingdom to develop senior living retirement homes with shared facilities. Energy (energy saving lighting) (business diversification) Established a jointly controlled company Business of supplying and installing energy saving lighting products. Since 2015 and despite the fall in and volatility of oil prices changing the landscape of the oil and gas industry tremendously, our core focus remains to build and nurture our capabilities in niche sub-segments of the oil and gas industry to provide optimum solutions in a cost sensitive operating environment. As a result, we have expanded oil and gas operations to countries like Myanmar and Australia. Property development also remains one of the Group’s key businesses. We are open to both domestic and overseas opportunities. In general, we believe the industry will continue to remain subdued in the United Kingdom due to pre- and post-Brexit uncertainties. The management is always on the lookout for new opportunities in other industries to create more value to all its stakeholders. Sustainability Report