MSM Malaysia Holdings Berhad Annual Report 2019

Principle B: Effective Audit and Risk Management Audit Committee The Board has established an Audit Committee (AC) to provide robust oversight on financial reporting, external and internal audit processes and related party transactions. The AC members possess the requisite financial literacy and business knowledge that support the sound understanding of matters under their purview. The AC has unrestricted access to both the internal and external auditors, who report functionally and directly to the AC. The AC has established transparent arrangements to maintain an appropriate relationship with the Company’s external auditors. The external auditor has provided assurance that its personnel are and have been independent throughout the conduct of the audit in accordance to the terms of relevant professional and regulatory requirements. Oversight of Financial Reporting The Board ensures that shareholders are presented with a clear, balanced and comprehensive view of the Group’s financial performance and prospects through the audited financial statements, quarterly announcement of financial results, the Chairman’s Statement and the Management Discussion and Analysis (MD&A) on page 105, page 43, page 4 and page 33 in the Annual Report as well as corporate announcements on significant developments affecting the Company in accordance with the MMLR. The Directors considered the compliance with all applicable financial reporting standards, provision of the Companies Act 2016 and relevant provision of laws and regulations in Malaysia. The AC updates the Board on the matters deliberated in the AC Meetings. Details on the summary of work carried out during the year is set out in page 84 in the AC Report. Risk Management and Internal Controls The Board affirms its overall responsibility for the Group’s Statement of Risk Management and Internal Control (SORMIC). The AC provides an independent assessment of the effectiveness of the MSM’s Enterprise Risk Management (ERM) framework and reports to the Board yearly. Key elements of the Group’s control environment include Organisation Structure, Audit Committee, Group Internal Audit, Code of Business Practice, Business Continuity Management, Legal, Company Secretary, Limits of Authority, Polices and Procedures, Financial and Operational Information and Systems and Information Security. The Group operates within a clearly defined organisational structure with established responsibilities, authorities and reporting lines to the Board. The organisational structure has been designed in order to develop, plan, execute, monitor and control the Group’s objectives effectively and to ensure that internal controls are embedded within the operations. Further information on the Group’s risk management and internal control framework is made available on the SORMIC of the page 98 of Annual Report. Principle C: Integrity in Corporate Reporting and Meaningful Relationshipwith Stakeholders Relations and Communications with Stakeholders The Company has a Corporate Disclosure Policy stipulating the proper framework and guidelines to govern the release of information to ensure that comprehensive, accurate and timely disclosures are provided to shareholders and stakeholders. The Corporate Disclosure Policy also regulates the review and release of information to Bursa Malaysia as well as through the Company’s website, facilitating timely and accurate disclosure of the Company’s affairs. The Company communicates with its shareholders and stakeholders through the following channels of communication: • Annual Report This is MSM’s 9 th Annual Report produced since its listing on Bursa Malaysia on 28 June 2011. The report provides a comprehensive view on the Group’s operational and financial performance. An online version of the complete Annual Report is made available on MSM’s corporate website for download. Our share registrar will ensure that the printed copy reaches shareholders within four days after receiving the request form. • CorporateWebsite The Company’s corporate website has become a key communication channel to reach its shareholders and the general public. Financial results, Annual Reports, Bursa Malaysia announcements, corporate presentations and other information on the Company are published on the Company’s corporate website. The presentation slides for research analyst briefings and press releases are also made available to the public via Company’s corporate website, http://www.msmsugar.com 81 CORPORATE GOVERNANCE 07