Ni Hsin Berhad Annual Report 2017

Annual Report 2017 Ni Hsin Resources Berhad (653353-W) 33 Corporate Governance & Ethical Behaviour We strongly believe that good corporate governance and ethical practices is essential to building and maintaining a sustainable business, earning the trust and confidence of our customers, suppliers, business partners, employees and shareholders. Our business practices are governed by: • Code of Conduct and Ethics, which is applicable to directors, officers and employees of NI HSIN in their dealings with each other and all stakeholders of the Group; and • Whistle Blowing Policies and Procedures. Code of Conduct and Ethics This Corporate Code of Conduct and Ethics (“Code”) sets out the standards which the directors, officers and employees (together “Personnel”) of NHR and its subsidiaries are expected to comply in relation to the affairs of NHR’s businesses when dealing with each other, shareholders and the broader community. This Code is intended to focus on the Board and management on areas of ethical risk, provide guidance to personnel to help them to recognise and deal with ethical issues, provide mechanisms to report unethical conduct, and help to foster a culture of honesty and accountability. The Code also sets out the prohibited activities or misconduct involving gifts, gratuities, bribes and corruption, insider trading and money laundering. Whistle Blowing Policies and Procedures The Company’s Whistle Blowing Policies and Procedures (“WPP”) promotes an environment of integrity and ethical behaviour within the Group. The WPP provides an avenue for employees or any external party to report any breach or suspected breach of any law or regulation, including business principles and the Group’s policies and guidelines, in a safe and confidential manner. An Independent Non-Executive Director (“INED”) is identified by the Board as one to whom all whistle blowing reports may be conveyed. The INED may delegate the responsibility for implementing the Whistle Blowing procedures to a guardian/custodian of the Whistle Blowing procedure within the Company. The guardian’s role is to appoint fair and independent (internal or external) investigative officers of the Company to be identified who will initiate an investigation into the complaint and report to the INED to decide on the appropriate course of action. If the INED deems the complaint material or otherwise appropriate for the attention of the Board, it shall be so brought up at the following Board meeting. The Policy also includes provisions of confidentiality to safeguard the identity of the Whistle Blower. Our policies, which can be viewed on our website www.ni-hsin.com , are reviewed regularly to ensure they reflect any changes in legislative requirements and the business environment. No cases of breaches in ethics and integrity practices were reported during the Financial Year 2017 (“FY2017”). Occupational Health and Safety (“OHS”) Our ideal state is zero work-related illnesses and injuries and improved health and well-being for all employees. We uphold strong health, safety and security standards within NI HSIN’s areas of operations, whether it is within NI HSIN’s premises or offsite to reduce opportunities for health or safety hazards and prevent workplace fatalities. To accomplish this, NI HSIN will: • operate facilities safely and ensure that processes are safe and healthy for our employees. We will accomplish this by following uniform corporate safety standards. Safe operations have been a long-standing part of NI HSIN culture, re ecting the belief that our employees are our most important asset; • construct our facilities so as not to compromise on the safety and health features designed into them; • monitor progress toward our objective of preventing injuries, illnesses, and incidents. We will continually assess and improve our safety and health technologies and programs; • have every employee understand and be responsible for incorporating safe behaviour in daily business activities. Every employee is trained to work in a safe and healthy manner; • have operating standards, practices, systems and resources in place to implement this policy. Corporate Sustainability Statement (continued)