c. Quarterly Reports The AGRC reviewed the following reports which are presented at each of its quarterly meeting: • Group’s Consolidated Cashflow Projections. • Capital Expenditure (CAPEX). • Recurring Related Party Transactions. • Report on Recoverability of Trade Receivables and Past Due Accounts. d. Reviewed MSM Group’s Goodwill and MSM Johor’s Asset Impairment Assessment. e. Reviewed the position on the financial covenants of the MSM Group. Assessing the Risks and Control Environment a. Evaluated the reports on the assessment of the risks and control environment based on the external auditor’s quarterly financial statement reviews and statutory financial audits. b. Reviewed all internal audit reports issued by the Group Internal Audit, which detailed the observations from all the internal audits undertaken. c. Received assurances from the Group CEO and CFO that the risk management and internal control system of the Group for the financial year 2020 have been operating adequately and effectively, in all material respects. d. Monitored the implementation of corrective actions taken for improvement by Management based on matters highlighted by internal and external auditors. e. Provided relevant guidance for the improvement of the risks and internal control of the Group, particularly in the areas of inventory management which was the key focus area of the Group during the financial year. This included improvements in the monitoring and systems. f. Reviewed raw sugar pricing for FY2023 and gas price hedging with Brent Crude Oil. g. Reviewed proposal to enter into agreement for two (2) years refined sugar supply with Coca-Cola. Internal Audit Process a. The AGRC reviewed Group Internal Audit reports summarising the following at quarterly meeting during the financial year 2021: • The observations from the internal audit reports issued during the quarter. The Committee gave direction to Management on key matters requiring Management’s special and immediate attention. The Committee has reported to the Board on these key significant matters. • The progress of implementation of the recommendations from internal audit reports issued. • The progress of implementation of the MSM Group Annual Internal Audit Plan. b. Considered the outcome of any special reviews and investigations, including those arising from Management and recommendation raised by the Committee’s Chairman and members and Management’s response and follow-up actions thereto, and reported key matters to the Board. c. Reviewed and recommended the proposal for Award of Out-Source Review of MSM Johor Refinery Construction-Phase 3 to the Board for approval. d. On 11 November 2021, the AGRC reviewed and approved the MSM Group Annual Internal Audit Plan for the year 2022 including assessing the priority ranking of the audit universe to provide sufficient audit coverage, the adequacy of resources of the internal audit function to execute the MSM Group Annual Internal Audit Plan and competencies required. e. Assessed the performance of the Chief Internal Auditor basing on the delivery of the internal audit function. This included assessment whether the internal audit function has the required expertise and professionalism to discharge its duties. SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 231
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