SCC Holdings Berhad Annual Report 2019

19 SCC Holdings Berhad | Annual Report 2019 PRINCIPLE B – EFFECTIVE AUDIT AND RISK MANAGEMENT I. Audit Committee The Audit Committee of the Company (“AC”) comprises three (3) INEDs. The Chairman of the AC, Dato’ Dr. Choong Tuck Yew is amember of theMalaysian Institute of Accountants and the rest of themembers are financially literate, possess the appropriate levels of expertise and experience. NC had conducted an annual assessment to ensure the independence, objectivity and effectiveness of the AC. II. Risk Management and Internal Control Framework The Board is responsible for the adequacy and effectiveness of the Group’s Risk Management and Internal Control System. These controls provide reasonable but not absolute assurance against material misstatements, loss or fraud. The Directors are responsible for the Group’s system of internal control. The internal control covers the financial and non-financial aspects including risk assessment. It also emphasises compliance and operational controls, as well as risk management matters. The Group has formalised a set of Standard Operating Procedures and ISOs for its business and supporting units, which takes into consideration the adequacy and integrity of the system of internal control, and is subject to review by Management. A Risk Management and Internal Controls Committee (RMC), chaired by the Managing Director have been set up for this purpose. The members of the RMC include 3 Executive Directors, 2 Heads of Business Divisions (HODs), Human Resources Manager, Finance Manager and Assistant General Manager. The RMC meetings have been incorporated into bi-monthly Management meetings where Executive Directors, the Assistant General Manager, the Finance Manager and 3 (three) Head of four (4) Department. Risk matters are discussed after scheduled bi-monthly management meeting agendas. Respective HODs are to report any foreseeable upcoming/current risk and provide proposed countermeasures and highlight on its impact to the Group. Closed monitoring and follow up are done by the RMC on the identified risks and the matter gets closed when the risks became non-material or low impact to the Group. PRINCIPLEC – INTEGRITY INCORPORATEREPORTINGANDMEANINGFULRELATIONSHIPWITHSTAKEHOLDERS I. Communication with Stakeholders Information on the Group’s activities is provided in the Annual Report and Financial Statements in hard copy, which are despatched to shareholders. Dialogues are also held by the Group with investment analysts and fund managers to keep them abreast of corporate and financial developments within the Group. The Company also encourages the shareholders and investors to participate in online access of the Company’s Annual Report and all up to date announcements from time to time, which are made available instantly at both Bursa Securities and the company’s website at www.sccholdings.com.my. Investors and the general public who wish to contact the Group on any enquiry, comment or proposal can channel them through e-mail at ir@scc.com.my . II. Conduct of General Meetings The Annual General Meeting (“AGM”) is the principal forum for dialogue and interaction with shareholders. The Board is committed to provide shareholders with comprehensive, timely information about the Group’s activities and performance to enable easy investment decisions for the shareholders and investors. Shareholders are notified of the meeting and provided with a copy of the Notice of AGM and Annual Report 28 days before the meeting. At each AGM, the shareholders are encouraged to use the opportunity to ask questions on resolutions being proposed during the meeting and also on the progress, performance and future prospects of the Company. The Chairman and Board members, with the assistance of the External Auditors are available to respond and provide explanations during the question and answer session. In line with the revised AMLR of Bursa Securities, all resolutions put to the general meeting for the 19th AGM was voted by poll. An independent scrutineer was appointed to validate the votes cast at the AGM. The decision for each resolution and the name of the independent scrutineer were announced to Bursa Securities on the same day. corporate governance overview statement (cont’d)