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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
83
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT
I.
AUDIT AND RISK COMMITTEE
The Committee which has been renamed as Audit and Risk Committee on 22 June 2020, is an important element of the Group’s
governance structure. The Audit and Risk Committee is chaired by Encik Rezal Zain bin Abdul Rashid and the members are Dato’ Adnan
bin Shamsuddin, Datuk Bazlan bin Osman and Encik Rosely bin Kusip, all of whom are Independent Non-Executive Directors. The
experience and qualifications of members of the Committee are disclosed in the Profile of Directors section of this Annual Report. The
Audit and Risk Committee has a written Terms of Reference which is available on the ‘Investors’ section of the Company’s website.
The particulars in relation to the audit and non-audit fees incurred by the Company and its subsidiaries for the FYE2020 are as
follows:
Audit Fees (RM’000)
Non-Audit Fees (RM’000)
2020
2019
2020
2019
Company
93
83
10
10
Subsidiaries
272
270
187
209
TOTAL
365
353
197
219
Information about the Audit and Risk Committee, including its work in FYE2020 are set out in the Audit and Risk Committee Report
contained in this Annual Report.
II.
RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK
The Board recognizes the importance of effective risk oversight, riskmanagement and internal control for good corporate governance
and is committed to embedding risk management practices to support the achievement of business objectives and fulfil corporate
governance obligations. The Board is responsible for reviewing and overseeing the risk management and internal control framework
for the Group and for ensuring the Group has an appropriate risk management and internal control process and procedures. The
Audit and Risk Committee provides advice and assistance to the Board in meeting that responsibility 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 Group has an enterprise riskmanagement framework which is designed to provide a sound framework for managing thematerial
risks of conducting business. The framework sets out the standards and processes for identifying, monitoring and reporting of risks
impacting the success of strategic objectives and operating plans.
The Board however, recognizes that the enterprise risk management framework 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 appropriate action plans to further
enhance the Group’s risk management and internal control framework.
Related Party Transactions
An internal compliance framework exists to ensure its obligation under the Bursa Listing Requirements, including obligation to
related party transactions and recurrent related party transactions. The Board, through the Audit and Risk Committee, reviews and
monitors all related party transactions and conflicts of interest situation, if any, on a quarterly basis. A Director who has an interest in
a transaction must abstain from deliberating and voting on the relevant resolutions, in respect of such a transaction at the meeting
of the Board and AGM.
Details of the proposed renewal of shareholders’ mandate for recurrent related party transaction is set out in the Circular/Statement
to Shareholders dated 28 August 2020.