ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 35 SUSTAINABILITY REPORT H. How we Manage our Material Sustainability Matters (Cont’d) 1. Material Economic Sustainability Matters (Cont’d) 1.2 Project Management It is important for the Group to manage its projects efficiently from the point of inception right through planning, project implementation, completion and post completion analysis. Post completion analysis is a crucial activity to address lessons learnt and implement measures and practices for future projects. The lessons learnt by the Group during the financial year under review: i. The need to analyse the thoroughness of our due diligence activities; ii. Project completion needs to be timely and within assigned budgets; iii. Contingency plans need to be set to mitigate any materially adverse effects of reasonably foreseeable events occurring which are beyond the control of the Group; iv. The project team must be sensitive to the changes to market conditions that require quick intervention or modification to the execution of projects or the need for an exit plan; v. Project progress must be properly monitored given cognisance to the directives of the Board and top management; and vi. The physical progress of each project must be properly monitored against financial progress; both need to be balanced. The Group uses the following project management platforms to monitor the various projects we undertake: i. Monthly Financial Review Meeting (“MFR”) MFR takes place once a month and attended by the head of each subsidiary and accompanied by the subsidiary’s head of Finance, and officers to key projects undertaken by the subsidiary. Each company presents their performance results to our EXCO during which time a review of the financial performance of each subsidiary and top 5 achievements and areas for improvement are discussed. Comparisons would be made between actual and budgeted numbers for the month, and year to date. Projections for the year versus the approved annual budget and plan to meet or exceed the budget would be examined and discussed. ii. Management Committee Meeting (“MCM”) MCM comprises two sessions - operations and corporate. MCM operations sessions discuss operational matters comprising the latest progress of ongoing projects, issues faced and interventions needed. Project teams are expected to circulate weekly and monthly project progress reports to be deliberated during this meeting. MCM corporate sessions on the other hand, focus on business development strategies for various aspects of business targeted by the Group’s subsidiaries including: a. Extension of existing contracts; b. Expansion of existing markets; c. Potential joint venture opportunities; d. Potential merger and acquisition opportunities; and e. Potential investments.