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sustainability & governance
Annual Report 2017
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The Board, having considered the recommendation by the Audit Committee, 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.
C.
Internal Audit
1.
Reviewed and approved the Group Internal Audit plan and programme for financial year ended 31 March 2018 as proposed
by GIA, to ensure the adequacy of resources, coverage and inclusion of risk areas in the scope of review.
2.
Reviewed and deliberated the findings of internal audit reports presented by Head of GIA and the adequacy of management’s
response/actions to address control deficiencies.
3.
Reviewed the Enterprise Risk Management Report on key risk profiles and risk management activities.
4.
Assessed the quality of services, effectiveness and competency of GIA.
D.
Recurrent Related Party Transactions (“RRPT”)
1.
Reviewed the RRPT entered into by the Company with related parties in accordance with the shareholders’ mandate
obtained to ensure that they are at arm’s length and within the mandated amount and other RRPT that are outside the
shareholders’ mandate.
2.
Reviewed and recommended to the Board the Circular to Shareholders relating to renewal of shareholders’ mandate for
existing RRPT of a revenue or trading nature.
E.
Share Buy-back
1.
Reviewed and recommended to the Board the Statement to Shareholders in relation to renewal of the authority for share
buy-back.
During the year, the Audit Committee members attended various training programs to keep them abreast of new development
pertaining to legislation, regulations, current commercial issues and risks in order to effectively discharge their duties. Details of
training progams attended by Audit Committee members are set out in the Statement on Corporate Governance section of this
Audit Report.
Internal audit function
The Audit Committee is supported by the Group Internal Audit Department (“GIA”) of the penultimate holding company, Kumpulan
Fima Berhad, which undertakes internal audit functions of the Group and Company based on an annual internal audit plan that is
reviewed and approved by the Audit Committee. The internal audit plan includes review of the adequacy of operational controls, risk
management, compliance with established policies, procedures, laws and regulations, quality of assets and management efficiency,
amongst others.
The Head of GIA reports directly to the Audit Committee to ensure impartiality and independence. GIA communicates to Management
on audit observations noted in the course of their review and performs monitoring on the status of actions taken by the operating units.
The terms of reference of the GIA are clearly spelt out in the Group Internal Audit Charter.
GIA serves as the third line of defense, giving assurance to the Audit Committee that the internal controls and risk management
activities are functioning as intended.
AUDIT COMMITTEE REPORT