Datasonic Group Berhad Annual Report 2016

Datasonic Group Berhad

(Company No. 809759-X)

AUDIT COMMITTEE REPORT

(Continued)

THE PROCESSES OF THE AUDIT COMMITTEE

The Audit Committeemeets at least four (4) times a year scheduled every quarter andwill have no hesitation

to convene additional meetings if deemed required. The Audit Committeemay invite any employee of the

Group to attend its meetings if appropriate, has access to any relevant form of advice from independent

professionals, information and the views and services of the Company Secretary, as and when warranted,

in carrying out its duties and functions.

The Audit Committee Chairman reports to the Board on a quarterly basis on all significant matters discussed,

deliberated upon and dealt with at the Audit Committee Meetings. Amongst others, it covers the Audit

Committee’s recommendations to approve the quarterly Management Report and Accounts, the quarterly

consolidated financial results released to Bursa Malaysia, the annual financial statements of account, key

disclosure statements in the Annual Report as well as significant audit issues raised by the External Auditors

and the Internal Auditors.

The Audit Committee continuously reviews and updates its Terms of Reference to reflect the updated

internal processes of the Management and current requirements as promulgated by the authorities. In

November 2015 and May 2016, the Audit Committee had reviewed and revised its Terms of Reference to

reflect the latest internal processes and requirements.

The Terms of Reference of the Audit Committee is available for reference on the Company’s website at

A. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE FOR THE FINANCIAL YEAR ENDED 31

MARCH 2016

The Audit Committee carried out the following activities during the financial year in discharging of

its primary duties and functions:-

Financial Reporting

Reviewed the audited financial statements of the Group and of the Company for

inclusion in the Annual Report as well as the related statutory auditors’ report prior to the

submission to the Board of Directors (“Board”) for their consideration and approval, upon

being satisfied that:

The audited financial statements were drawn up in accordance with the applicable

Malaysian Financial Reporting Standards and the International Financial Reporting

Standards issued by the Malaysian Accounting Standards Board and the Malaysian

Companies Act, 1965.

ii.

Key audit matters are properly presented in the financial statements based on prudent

judgements and estimates in accordancewith the application of accounting policies

and accounting standards which have been consistently adhered to (e.g. revenue

recognition, trade receivables, accrued income, projects-in-progress, development

expenditures, property, plant and equipment, etc.).

iii.

The audited annual financial statements do not contain any misstatement of

transactions and the auditors are in a position to issue an unqualified opinion on the

matter of truth and fairness of the financial performance and the financial position

of the Company and of the Group.