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Annual Report 2017
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The Audit Committee was satisfied with the suitability of HRM based on the quality of services and adequacy of resources
that they have provided to the Group. The Audit Committee was also satisfied that the provision of non-audit services
during the year by HRM did not in any way impair their objectivity and independence as external auditors of the Group.
Non-audit fees incurred during the financial year was RM8,000 (2016: RM8,000).
Having regard to the assessment of external auditors, the Board was satisfied with the suitability and independence
of HRM and had approved the Audit Committee’s recommendation for the shareholders’ approval to be sought at the
forthcoming AGM on the re-appointment of HRM as external auditors of the Company.
5.3 Related Party Transactions
All related party transactions are reviewed by the Audit Committee on a quarterly basis. Details of the proposed renewal of
shareholders’ mandate for recurrent related party transactions is set out in the Circular to Shareholders dated 28 July 2017.
6. RECOGNIZE AND MANAGE RISKS
6.1 Risk Management Framework
The Directors acknowledge their responsibilities for the Group’s system of internal controls covering not only financial
controls but also operational and compliance controls as well as risk management. The Audit Committee provides advice
and assistance to the Board in meeting these responsibilities and the role of the former in relation thereto is described in
the Statement on Risk Management and Internal Control of this Annual Report.
The system of internal controls is designed to manage and provide reasonable and not absolute assurance against the risk
of material errors, frauds or losses occurring. The Board however, recognizes that the system must continually evolve to
support the type of business and size of operations of the Group. As such, the Board will, when necessary, put in place
the appropriate action plans to further enhance the Group’s system of internal control.
6.2 Internal Audit Function
Internal audit functions of the Group is carried out by the Group Internal Audit Department (“GIA”) of the penultimate holding
company, Kumpulan Fima Berhad, which reports directly to the Audit Committee on its activities based on an internal audit
plan that is approved by the Audit Committee.
The functions of GIA are complementary to, but different from that of external auditors. It undertakes regular monitoring of
the Group’s key controls and procedures, an integral part of the Group’s system of internal control. An internal audit review
highlights major weaknesses in control procedures and makes recommendations for improvements. GIA also undertakes
investigation on behalf of the Audit Committee and follows up on complaints on matters affecting the Group’s operations.
Details of the Company’s internal control system and framework are set out in the Statement on Risk Management and
Internal Control of this Annual Report.
7.
ENSURE TIMELY AND HIGH QUALITY DISCLOSURE
The Company has in place a Corporate Disclosure Policy to provide the Group with appropriate guidance to discharge its
disclosure obligations and ensure that all communications to the public by the Company are timely, complete and accurate in
accordance with all applicable legal and regulatory requirements. Corporate disclosure practices are administered and overseen
by a Corporate Disclosure Committee.
statement on corporate governance