ENRA Group Berhad Annual Report 2021

CORPORATE GOVERNANCE Annual Report 2021 | ENRA Group Berhad 49 H. How we Manage our MSMs (Cont’d) 1. Material Economics Sustainability Matters (Cont’d) v. Project and job execution a. Monitoring for sustainable business It is important for the Group to manage its projects and jobs efficiently from the point of inception right through planning, 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/ jobs. From experience, the Group appreciates the following points: • The need to analyse the thoroughness of our due diligence process; • Project completion needs to be timely and within assigned budgets; • Contingency plans are need to be set to mitigate any materially adverse effects of reasonably foreseeable events; • 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; • Project progress must be properly monitored given cognisance to the directives of the Board and Senior Management; and • 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: • Monthly Financial Review Meeting (“MFR”) MFR takes place once a month and is attended by the head of each subsidiary and accompanied by the subsidiary’s head of finance, and officers of key projects undertaken by the subsidiary. Each company presents their performance results to our EXCO during which, a review of the financial performance of each subsidiary and top five achievements and areas for improvement respectively 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 implementation of a remedial plan to meet or exceed the budget would be discussed. • Group Management Committee (“GMC”) This meeting is usually conducted on the Monday of the first and third week of the month, focusing more on operational updates and business development strategies from key management personnel including the EXCO. The members will brainstorm on practical solutions to support each other during this session. • EXCO Meeting This EXCO meeting is usually set on Wednesday of the second week of the month focusing on matters that require specific approval from the EXCO. 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. SUSTAINABILITY REPORT