KUMPULAN FIMA ANNUAL REPORT 2017

Annual Report 2017

statement on

corporate governance

•

External Auditors

The Group’s independent external auditors fill an essential role for the shareholders by enhancing the reliability

of the Group’s financial statements and giving assurance of that reliability to users of these financial statements.

The external auditors have an obligation to bring any significant defects in the Group’s system of control and

compliance to the attention of Management, the Audit Committee and the Board. This includes the communication

of fraud.

During the financial year under review, the Audit Committee held 2 meetings with the external auditors without

any executive members of the Board or senior management being present on financial and other matters. This

facilitated a greater exchange of independent, open views and opinions/dialogue between both parties. The

external auditors are also invited to attend the Company’s AGM.

Each year, the Audit Committee assesses the effectiveness of the external auditors. For FYE2017, the Audit

Committee also obtained feedback via assessment questionnaires from the Group’s internal auditors and

personnel who have had substantial contact with the external audit team. The review procedures covers the

independence and service level of the external auditors, which amongst others, include reviewing the external

auditors’ performance and quality of work, ability to meet deadlines, timeliness of service deliverables, non-audit

services provided and compliance with the independence requirements of the external auditors.

Based on the information, the Audit Committee is satisfied that the independence of the external auditors has not

been compromised by the provisions of the Bye-Laws on Professional Independence of the Malaysian Institute of

Accountants. The external auditors has also presented its written assurance on independence through their Audit

Plan and Report to the Audit Committee for the audit of the statutory financial statements for the financial year

ended 31 March 2017. Accordingly, the Audit Committee has recommended to the Board that Messrs Hanafiah

Raslan & Mohamad be nominated for re-appointment as the Company’s external auditors at the 45

AGM.

The particulars in relation to the audit and non-audit fees incurred by the Company and its subsidiaries for the

financial year under review, are as follows:

Audit Fees

(RM'000)

Non Audit Fees

(RM’000)

2017

2016

2017

2016

Company

114

148

Subsidiaries

625

575

TOTAL

739

723

Statement of Compliance

The Board considers that the Company has complied with the relevant Principles and Recommendations as set out in the MCCG

2012 other than those disclosed within this Statement of Corporate Governance.

This statement is made in accordance with the resolution of the Board of Directors dated 30 May 2017.

TAN SRI DATO’ IR. MUHAMMAD RADZI BIN HAJI MANSOR

Chairman