ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 36 SUSTAINABILITY REPORT H. How we Manage our Material Sustainability Matters (Cont’d) 1. Material Economic Sustainability Matters (Cont’d) 1.2 Project Management (Cont’d) iii. EXCO The EXCO meet at least once a month depending on the agenda and discuss strategies, operational and project management issues, and deliberate proposals presented that require EXCO’s approval. Whilst such formal EXCO meetings have been in place since early March 2019, the EXCO regularly communicate and discuss Group matters amongst each other via other forums and channels. iv. QHSE Review All projects undertaken by the Group, are subject to periodic review by our QHSE Department. These reviews are crucial to ensure compliance with applicable rules, regulations and standards and all QHSE related issues are resolved promptly to avoid any delays in project completion. 1.3 Tender Management The preparation and timely management of tender proposals to meet prospective client requirements whilst providing for the right price structure is important to the Group. Although the Group does not have a standalone policy on tender management, the following processes and parameters have been put in place to ensure that the Group’s order books remain healthy. They cover the general approach undertaken by the Group when bidding for job opportunities: i. General process a. An asset light approach (i.e. involving minimal upfront cost) shall be applied where possible. b. Ensuring the opportunity is within the ambit of the management’s expertise or that the opportunity is sufficiently managed by existing management/promoters (e.g. in situations where ongoing or operating business or company acquisitions are pursued). c. Preliminary desktop research and assessment on the industry involving the opportunity (case-by- case basis depending on type of project/business/industry/opportunity). d. If necessary, in a situation where the management has very basic knowledge of the industry, external advisors shall be consulted (e.g. industry experts, tax consultants, regulators etc.). e. Detailed financial projections shall be prepared with assistance from the Group Finance Department on financing, accounting and tax issues. If the opportunity is considered viable, Group Commercial shall formally propose and seek EXCO’s approval to pursue the opportunity further via the submission of a proposal paper for EXCO’s approval or during an EXCO meeting after which the terms and conditions will be reviewed by Group Legal. Subject to prospective client requirements and approvals, the involvement of potential business partners and the expertise, financial position and track records that they bring with them, are considered for such tenders in order to fully reap the benefits presented by the opportunity. ii. Assessment of prospective clients’ reputation, ability and willingness to pay, track record, capabilities and connections are carried out as well as whether such companies have dealings with sanctioned countries as the Group has compliance obligations including to its business partners in respect of sanctioned countries.