35 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 In relation to the targets set for this MSM we are pleased to report that for FY 2022/23: a. We were in full adherence to internal rules and regulations, including SOPPs. b. Except for our IT infrastructure and systems, we were in full compliance with relevant rules and regulations with zero penalties, fines, summons, imprisonment, blacklisting and sanctions. The audit conducted on our IT infrastructure had recommended some improvements which we are either evaluating or are in the process of implementation. c. Our zero tolerance on corruption, fraud and corrupt practice has ensured that no such activities had taken place during the year under review. 2. Business development and expansion (Governance) The Group is determined to not just be a going concern entity, but one that thrives. It is constantly on the lookout for growth and expansion opportunities. We are dedicated to fostering sustainable growth and expansion by actively cultivating a positive social presence and minimising negative environmental impacts as we pursue our goals. To achieve this, we have identified two key strategies: organic growth and accelerated learning through collaborative operations with experienced partners, especially in the MRO and energy logistic segments. Our focus is on cultivating organic growth by enhancing our capabilities and expanding our operations in new prospects and the business that we are already in. Additionally, we recognise the immense value of collaborating with established industry players, who not only bring a wealth of experience and a proven track record but also provide us with opportunities for synergy and knowledge exchange. By combining these approaches, we are confident in our ability to achieve sustainable growth while maintaining a strong commitment to environmental and social responsibility. For the MRO and energy logistics segments we are looking into the following: a. Market penetration We aim to penetrate the existing market further through increasing market share, targeting new customer segments and enhancing brand recognition. Our subsidiary, ENRA Energy Solutions Sdn Bhd, had rebranded itself to EES, to enhance market awareness of ENRA’s presence and its ability to provide 360-degree solutions with regards to MRO services. The team from EES has embarked on an aggressive marketing campaigns and customer engagement initiatives to capture a larger share of the market. b. Product and service development The Group, via its operating companies in both MRO and energy logistics is determined to offer new innovative products and services to its target customers as follows: • The MRO division has set up its own service centre and are putting together a strong technical team to ensure better quality services and profit margins. • The energy logistic division has secured a five plus five years contract for the bareboat chartering business, moving away from its previous business of providing FSO services. Although the margin will be slightly lower in terms of quantum, the tenure is longer and the percentage margin will be higher, while also providing opportunities to earn higher rates should the bareboat chartering market move upwards. Based on the current brent price, the industry’s future looks promising. This contract will enable the company’s asset to be deployed outside of South East Asia and will indirectly improve recognition of the Group to other parts of the globe. c. Strategic partnership and alliances ENRA is also taking an approach of forming strategic partnerships and alliances to support its organic growth initiative. For example, our MRO division has linked up with a local specialised service provider to offer wider range of services to its prospective customers. Sustainability Report (Cont’d)
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