KUMPULAN FIMA ANNUAL REPORT 2019

The Audit and Risk Committee, through its Chairman,

shall report to the Board at the next Board meeting

after each Audit and Risk Committee meeting. When

presenting any recommendation to the Board, the Audit

and Risk Committee will provide such background and

supporting information as may be necessary for the

Board to make an informed decision.

4. SUMMARY OF ACTIVITIES OF THE AUDIT AND

RISK COMMITTEE DURING THE FINANCIAL YEAR

ENDED 31 MARCH 2019

4.1 During the FYE2019, the Audit and Risk Committee

carried out its duties as set out in its Terms of

Reference. A summary of work performed by the

Audit and Risk Committee are as follows:

(a) Financial Reporting:

• Reviewed 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.

• 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

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 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.

• Assessed the effectiveness, the qualification

and performance of the external auditors,

the quality and the auditors’ communication

with the Audit and Risk Committee

including their independence via a detailed

questionnaires completed by the Audit and

Risk 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 ie; Messrs. Hanafiah

Raslan & Mohamad have provided written

confirmation to the Audit and Risk Committee

on 27 February 2019 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 and Risk Committee

after performing an effectiveness review, is

satisfied with the external auditors’ effectiveness

and independence. However, for financial year

ending 31 March 2020, the Board decided to

appoint Messrs. Ernst & Young in place of retiring

Messrs. Hanafiah Raslan & Mohamad and will be

processing the appointment at the Company’s

Annual General Meeting, which to be held

on 28 August 2019.

(c) Internal Audit:

• Reviewed and approved the annual Internal

Audit Plan for the FYE2019 as proposed by

GIA, to ensure the adequacy of resources,

coverage and inclusion of risk areas in the

scope of review.

• Reviewed and deliberated on audit reports,

follow-up reports, audit recommendations

and Management responses, prepared

by the GIA at Audit and Risk Committee’s

quarterly meetings.

Kumpulan Fima Berhad

(11817-V)

Annual Report 2019