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Fima Corporation Berhad
(21185-P)
sustainability & governance
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14. The Board is supported by qualified and competent Company Secretaries. The Company Secretaries play an advisory role to
the Board, particularly on issues relating to compliance with the MMLR, the Companies Act 2016 and other relevant laws and
regulations.
15. Code of ethics are established and adopted by the Board and all employees to ensure high standards of conduct and ethical
values in all business practices.
16. The Group has in place a whistle blowing policy to provide an avenue for employees or other stakeholders to raise genuine
concerns about possible improprieties in matters relating to financial reporting, compliance and other malpractices or misconduct
that may have occurred. The police is available in the Governance section of the Company’s website at
www.fimacorp.com.
17. Sufficient insurance coverage and physical safeguards on major assets are in place to ensure the Group’s assets are adequately
covered against any mishap that could result in material loss.
INTERNAL AUDIT FUNCTIONS
The internal audit function is undertaken by the Group Internal Audit Department (“GIA”) of the penultimate holding company, Kumpulan
Fima Berhad. The principal role of GIA is to independently review whether a framework of controls and an effective risk management
framework are in place to manage risks and management responses to these risks are acceptable.
GIA engages in regular communication with the management team and various departments within the organization in relation to its
internal audit activities and efforts for continuous improvement in operations and systems. Scheduled internal audits are carried out by
GIA based on the audit plan presented to and approved by the Audit Committee.
GIA reports directly to the Audit Committee and is independent of the activities it audits. Follow-up reviews and deliberation of internal
audit reports are carried out to ensure that appropriate actions are taken to address internal control weaknesses are highlighted.
During the year, GIA has evaluated the adequacy, integrity and effectiveness of the Group’s internal controls in safeguarding shareholders’
investment and the Group’s assets. The internal controls cover financial, operational and compliance and enterprise risk management.
The cost incurred by GIA in respect of internal audit function during the financial year was RM150,000.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
Pursuant to paragraph 15.23 of the MMLR, the external auditors have reviewed this Statement and reported to the Board that nothing
has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process
adopted by the Board in reviewing the adequacy and integrity of internal controls.
ADEQUACY AND EFFECTIVENESS OF THE GROUP’S RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM
The Board is of the view that the system of internal control and risk management in place for the year under review, and up to the date
of approval of this Statement, is sound and sufficient to safeguard the Group’s assets, as well as the shareholders’ investments, and
the interests of customers, regulators, employees and other stakeholders.
The Board has received assurance from the Managing Director and Chief Financial Officer that the Group’s overall risk management
and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal
control system of the Group. No material losses, contingencies or uncertainties have arisen from any inadequacy or failure of the
Group’s risk management and internal control system that would require separate disclosure in the Group’s Annual Report.
This statement is made in accordance with a resolution of the Board of Directors dated 24 May 2017.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL