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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
Audit Committee Report
4.
SUMMARY OF ACTIVITIES OF THE AUDIT
COMMITTEE DURING THE FINANCIAL YEAR
ENDED 31 MARCH 2018
4.1 During the FYE2018, the Audit Committee carried
out its duties as set out in its Terms of Reference.
A summary of work performed by the Audit Committee
are as follows:
(a) Financial Reporting:
⊲
Reviewed the Group’s quarterly unaudited
financial results and audited financial
statements to ensure compliance with the
MMLR, applicable approved accounting
standards and other statutory and regulatory
requirements prior to recommending to the
Board for approval.
⊲
Reviewed 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.
⊲
Obtained assurance from the Group MD and
CFO 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
Financial Reporting Standards and MMLR;
and
- the relevant financial statements for
FYE2018 gave a true and fair view of the
state of affairs of the Group.
⊲
Reviewed the recognition of impairment of
property, plant and equipment and biological
assets by PT Nunukan Jaya Lestari following
the dismissal of the State Administrative
Court’s decision to dismiss the Ministerial
Order.
⊲
Reviewed the revenue recognition by
Manufacturing Division and provision of
warranty by the Division.
⊲
Selection of a new Head for GIA.
(b) External Audit:
⊲
Reviewed the external auditors’ audit plan,
strategy and scope of the statutory audits of
the Group accounts for the FYE2018 together
with the external auditors. 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;
and
⊲
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.
The external auditors have provided written
confirmation to the Audit Committee on 22
February 2018 that they are and have been
independent throughout the conduct of the audit
engagement in accordance with the terms of all
relevant professional and regulatory requirements.
The Audit Committee after performing an
effectiveness review, is satisfied with the auditors’
effectiveness and independence and has
recommended to the Board that Messrs Hanafiah
Raslan & Mohamad be re-appointed as the
Company’s external auditor for the financial year
ending 31 March 2019. Messrs Hanafiah Raslan
& Mohamad rotates partners every five (5) years
and the current audit Engagement Partner who
has been appointed since 2014 will be rotated in
2019.