ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 06 CHAIRMAN’S STATEMENT This FYE 2020 marks the 5 th financial year of reporting since the current Board and management joined the Group in FYE 2016. We began our journey seeking opportunities outside of Malaysia for our Property Development division and setting up various businesses in the Energy Division with ENRA Kimia Sdn. Bhd. and ENRA SPM Sdn. Bhd. as the primary anchors. Over these 5 years, the world has experienced a period of volatility – from the 2014/2015 energy crisis, Brexit which started in 2016, various political transformations here at home, a very soft domestic real estate market that is still ongoing, amongst others, and most recently the COVID-19 pandemic that has negatively impacted many businesses globally. Despite this continuous stream of difficulties ENRA recorded revenue of RM226.65 mil and gross profit of RM43.993 mil in FYE 2020, the highest ever over the past 10 years, and a profit after tax of RM4.48 mil. Looking back, I am grateful that we observed and acknowledged the many business obstacles enveloping Malaysia and the world, and applied three principles that have been our driving factors – prudence, conservatism and resilience – in response to these challenges. As a result, our businesses are stable operations that we believe will weather the current difficulties. A major demonstration of the fruits of our labour is the Group’s still growing Energy Division. From their humble inception in FYE 2016, this division generated a combined total of RM174.68 mil in revenue and RM21.54 mil in segmental operating profit for FYE 2020 – 4 consecutive years of growth, an achievement which I am immensely proud of. In supporting ENRA’s growth, the Board recognises the importance of corporate governance best practices in ENRA’s management and operations. Enhancing corporate governance will be an ongoing policy that the Board is actively leading and which, for this year, includes the adoption of an Anti- Corruption Policy & Procedure which sets out the policies and procedures towards compliance with the Malaysian Anti-Corruption Commission Act 2009. We are firmly committed to conducting our businesses with the highest level of integrity and ethics which is important to our reputation, credibility and success. Moving forward, we do not foresee significant pressure on our businesses despite the pandemic and the pandemic’s expected economic side effects. Our Energy Division is deemed an “essential service” under Malaysian law, and as such will continue to operate. Furthermore, we provide products and services that are in niche areas which are currently not significantly affected. Our Property Division is developing products with unique features that we believe will be relevant and sought after under the current circumstances. Operationally, we understand and appreciate the various movement control orders and have implemented stringent standard operating procedures so as to ensure a safe and effective conduct of our businesses and to protect the health and wellbeing of our staff. We are ready to meet the future head on and I extend my sincere gratitude and appreciation to the ENRA team for all that they have achieved to date. Datuk Ali bin Abdul Kadir Chairman Dear Shareholders, On behalf of the Board of Directors of ENRA Group Berhad and its subsidiaries (“ENRA” or “the Group”) (the “Board”), I am pleased to present the Annual Report and Audited Financial Statements for the financial year ended 31 March 2020 (“FYE 2020”), as attached.