FIMA CORPORATION ANNUAL REPORT 2019

By invitation, the Company’s Managing Director, Chief Operating Officer and Financial Controller attended the

meetings to facilitate deliberations as well as to provide clarification on audit issues. The Head of Group Internal

Audit (“GIA”) also attended the meetings to present audit reports. The external auditors were invited to the meetings

to discuss their Key Audit Findings/Matters, Management Letters, Audit Planning Memorandum and other matters

deemed relevant. The Audit Committee also met the external auditors without management presence on 23 May

2018 and 22 February 2019, to discuss key issues within their sphere of interest and responsibility.

The Company Secretaries act as secretary to the Audit Committee. The Company Secretaries shall cause minutes

to be entered in the books provided for purpose of recording all resolutions and proceedings of minutes and shall

be kept at the registered office of the Company for inspection of any member of the Audit Committee or the Board.

Such minutes shall be signed by the Chairman of the next succeeding meeting and if so signed, shall be conclusive

evidence without any further proof of the facts. Minutes of each meeting shall also be distributed to all attendees of

the Audit Committee meetings and presented to the members of the Board at the Board meeting for noting.

The Audit Committee, through its Chairman, shall report to the Board at the next Board meeting after each Audit

Committee meeting. When presenting any recommendation to the Board, the Audit Committee will provide such

background and supporting information as may be necessary for the Board to make an informed decision.

SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE DURING THE FINANCIAL YEAR ENDED 31 MARCH 2019

4.1 During the FYE2019, the Audit Committee carried out its duties as set out in its Terms of Reference. Key focus

area of the Audit Committee during the financial year includes:

(a) Financial Reporting:

• Reviewing the Group’s quarterly unaudited financial results and audited financial statements to

ensure compliance with the Bursa Listing Requirements, applicable approved accounting standards

and other statutory and regulatory requirements prior to recommending to the Board for approval.

• Reviewing the impact of any changes to the accounting policies and adoption of new accounting

standards as well as accounting treatments used in the financial statements.

• Obtaining assurance from the Managing Director, Chief Operating Officer and Financial Controller

that:

> appropriate accounting policies had been adopted and applied consistently;

> the going concern basis applied in the audited financial statements and quarterly financial

results was appropriate;

> adequate processes and controls were in place for effective and efficient financial reporting

and disclosures under the MFRSs and Bursa Listing Requirements; and

> the relevant financial statements for the FYE2019 gave a true and fair view of the state of affairs

of the Group.

(b) External Audit:

• Reviewed with the external auditors their audit plan, strategy and scope of the statutory audits of the

Group accounts for the FYE2019. The audit plan outlines their scope of work and proposed fees for

the statutory audit, assurance-related review and review of the Statement on Risk Management and

Internal Control.

• Reviewed the major issues that arose during the course of the audit and their resolution.

• Reviewed the key accounting and audit judgements.

• Reviewed the recommendations made by the external auditors in their management letters and the

adequacy of management’s response.

• Assessed the effectiveness, the qualification and performance of the external auditors, the quality

and the auditors’ communication with the Audit Committee including their independence via

a detailed questionnaires completed by the Audit Committee members as well as the feedback

from the business units evaluating the performance of each assigned audit team and provided the

recommendation on their re-appointment and remuneration to the Board.

Fima CORPORATION Berhad

(21185-P)

Annual Report 2019