Ni Hsin Berhad Annual Report 2017

Annual Report 2017 Ni Hsin Resources Berhad (653353-W) 25 1. MEMBERS The Audit Committee was established on 21 March 2005 and subsequently renamed to Audit and Risk Management Committee (“ARMC”) on 22 February 2018. Its Terms of Reference is consistent with the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) and the Malaysian Code on Corporate Governance (“the Code”). A detailed Terms of Reference of the ARMC has been drawn up and approved by the Board and is available online in the Investor Relations section of the Company’s website at www.ni-hsin.com . The Terms of Reference of the ARMC is reviewed annually by the ARMC. Any revision or amendment shall first be presented to the Board for its approval. Upon the Board’s approval, the said revision or amendment shall form part of the Terms of Reference and the Terms of Reference shall be considered duly revised or amended. The Terms of Reference of the ARMC was updated on 29 March 2017 and on 22 February 2018. During the financial year ended 31 December 2017, the ARMC held a total of five (5) meetings. The members of the ARMC together with their attendance are set out below:- Name Position Attendance Leow Chan Khiang Chairman (Independent Non-Executive Director) 5/5 Rizvi Bin Abdul Halim + Member (Independent Non-Executive Director) 5/5 Rithauddin Hussein Jamalatiff Bin Jamaluddin* Member (Independent Non-Executive Director) 4/4 Md Nazir Bin Md Kassim^ Member (Independent Non-Executive Director) 0/1 Sofiyan Bin Yahya # Member (Independent Non-Executive Director) N/A + Resigned on 22 November 2017 following his re-designation as Executive Director * Appointed on 1 March 2017 ^ Resigned on 1 March 2017 # Appointed on 22 November 2017 Mr Leow Chan Khiang is a Fellow Member of the Association of Chartered Certified Accounts and a Chartered Accountant with the Malaysian Institute of Accountants. The ARMC, therefore, meets the requirements of Paragraph 15.09(1) of the MMLR of Bursa Securities. 2. SUMMARY OF WORK OF THE AUDIT AND RISK MANAGEMENT COMMITTEE During the financial year ended 31 December 2017 in line with the Terms of Reference, the ARMC carried out the following work in discharging its function and duties:- 2.1 Financial Reporting a) reviewed the unaudited quarterly reports and the annual audited financial statements of the Group and the Company including the announcements pertaining thereto prior to submission to the Board for consideration and approval; and b) monitored the compliance requirements in line with the new updates of Bursa Securities, Securities Commission Malaysia, MASB and other legal and regulatory bodies. 2.2 Related Party Transactions and Conflict of Interest a) reviewed the related party transactions or conflict of interest situation whenever it arises on a quarterly basis to ascertain that the review procedures established to monitor the related party transactions or conflict of interest situation have been complied with. 2.3 External Audit a) met with the external auditors during the year to review the external auditors’ independence, scope of work and the audit plan, their audit fees, the results of their examination in the external audit reports and management’s responses, as well as weaknesses in the internal control; b) reviewed the audit recommendations and representations made and corrective actions taken by Management in addressing and resolving issues as well as ensuring that all issues were adequately addressed on a timely basis; Audit and Risk Management Committee Report