ENRA Group Berhad Annual Report 2021

CORPORATE GOVERNANCE ENRA Group Berhad | Annual Report 2021 50 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 • 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. vi. Tender, quotation and proposal management The preparation and timely management of tender, quotation and proposals to meet prospective clients’ requirements whilst providing for the right price structure is important to the Group. 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 a. General process • An asset-light approach (involving minimal upfront cost) shall be applied where possible. • Ensuring that 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). • Preliminary desktop research and assessment on the industry involving the opportunity (case- by-case basis depending on type of project/business/industry/opportunity). • If necessary, in a situation where the management has very basic knowledge of the industry, external advisors shall be consulted (industry experts, tax consultants, regulators etc.). • 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 clients’ 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. b. Proper assessment of prospective clients’ 4Cs is important for the sake of business sustainability. The 4Cs are: • Character - reputation, integrity, ability and willingness to pay • Credentials - proven track record • Capabilities - present and potential • Connections - for referral and recurring revenue Furthermore, as a matter of risk management policy, the Group will avoid companies that have dealings with sanctioned countries or companies set up in tax havens such as British Virgin Islands, Cayman Island, Isle of Man, Belize and the likes, as well as being very selective in taking sub-contracting jobs. SUSTAINABILITY REPORT