ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 33 H. How we Manage our Material Sustainability Matters (Cont’d) 1. Material Economic Sustainability Matters (Cont’d) 1.1 Ethics, governance and compliance (Cont’d) vi. Other Policies and Procedures (Cont’d) b. Related party transactions (Cont’d) Transactions with related parties may bring other benefits such as contracting efficiency because the related parties may have proven track records and are familiar friendly parties. There is also valuable market intelligence and knowledge transfer from related parties who are willing to give access to their relevant input and trade connections for the Group to capitalise for its sustainable growth. It can also spare the obstacles or delays that often occur in negotiating contracts with third parties that could be tough negotiators for similar good and services. We closely observe the relevant rules and regulations pertaining to related parties transactions, namely those prescribed by the MMLR of Bursa Securities, the Companies Act 2016, the Malaysian Financial Reporting Standards 124:Related Parties and the Malaysian Transfer Pricing Rules and Guidelines. Related party transactions entered into by the Group for this financial year and the previous financial year are set out in ILLUSTRATION 10 below: ILLUSTRATION 10 Type of transaction FYE 31 March 2020 RM’000 FYE 31 March 2019 RM’000 Routine operational transactions (ordinary course of business) (10,451) (882) Purchase of Assets (22,891) - Total (33,342) (882) SUSTAINABILITY REPORT ILLUSTRATION 10 shows an increase in the value of related party transactions involving routine operational transactions which are justified by our business expansion in both the property and energy sectors as well as the purchase of assets which is in line with the Group’s business solutions offered to clients. vii. Anti-Corruption Policy & Procedure In line with the amendments to the Malaysian Anti-Corruption Act 2009 (“the Act”) and to ensure compliance with anti-corruption laws applicable to the Group’s businesses, Group Legal have since conducted and/or arranged a series of seminars, dialogues and awareness sessions since FYE 2019. Key personnel were also sent for training externally to gain better insight of the new provisions in the Act and its various implications. During FYE 31 March 2019, with approval from our Board, Group Legal was tasked with formulating an internal strategy to guide the Group, its employees and the parties it conducts business with to comply with the provisions of the Act and all other applicable anti-corruption laws.