42 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 TABLE 6 – Related parties’ transaction Type of transaction FYE 31 March 2020 RM’000 FYE 31 March 2021 RM’000 FYE 31 March 2022 RM’000 FYE 31 March 2023 RM’000 Routine operational transactions • outflow of cash • inflow of cash Purchase of assets (11,236) 265 (11,891) (11,407) 626 - 11,523) 1,047 - (5,883) 66 - All transactions with related parties during the reporting period under review are supported by definitive agreements with terms and conditions that are on an arms’ length basis and usual commercial terms. Related party transactions entered into by the Group for this financial year and the previous three financial years are set out as per TABLE 6 above. b. Monitoring for sustainable business The Group needs to manage its projects and jobs efficiently from the point of inception right through the planning, implementation, completion and post-completion analysis (to address lessons learnt and implement measures and practices for future exercises). The Group places importance on the following: i. Thoroughness in due diligence; ii. Timeliness of execution and completion within assigned budgets; iii. Implementation of contingency plans; iv. Sensitivity and adaptability to changes in market conditions that would require quick intervention or modification to the execution plan; v. Proper monitoring of progress taking into account directives and requirements of the Board and Senior Management; and vi. Balancing progress against financial considerations. The Group uses the following project management platforms to monitor the various projects we undertake: i. Monthly Performance Review The MPR takes place once a month and is attended by the head of each subsidiary, who is accompanied by the subsidiary’s head of finance, and officers to key projects being undertaken. Each subsidiary presents their performance results to the EXCO and a review of the financial performance, top achievements and areas for improvement are discussed. Comparisons between actual and budgeted numbers for the month and year-to-date are reviewed. Projections for the year compared to the approved annual budget, and any remedial plans to achieve or outperform the budget would be discussed as well. ii. Group Management Committee This meeting is usually conducted on the Mondays of the first and third weeks of the month, focusing more on operational updates and business development strategies. Participants are the key management personnel of the Group including the EXCO. The participants will brainstorm practical solutions to support each other during this session. iii. EXCO Activity The EXCO is consistently in communication with each other and the Middle to Senior Management are given a direct channel to engage the EXCO for support and decisionmaking. Communication tools such as Microsoft Teams, direct messaging and conference calls are regularly utilised to ensure smooth and efficient interaction between the EXCO and Management. Sustainability Report (Cont’d)
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