Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 47 AUDIT COMMITTEE REPORT AUDIT COMMITTEE COMPOSITION AND MEETINGS The members of the Audit Committee (“AC”) comprise of:- 1. Kek Chin Wu Chairman / Independent Non-Executive Director 2. Dato’ Paduka (Dr.) Ir. Hj. Keizrul Bin Abdullah Member / Independent Non-Executive Director 3. Chua Kee Yat @ Koo Kee Yat Member / Independent Non-Executive Director The AC, which consists solely of Independent Non-Executive Directors, comprise qualified individuals with the required skills and expertise to discharge the committee’s functions and duties. All members of the AC, including the Chairman, will hold office only so long as they serve as Directors of the Company. The members of the AC are financially literate and have contributed to meaningful discussions in overseeing the integrity of the financial reporting processes and financial statements. Annually, the term of office, independence and performance of the AC and each of its members are assessed by the Nomination Committee. Based on the said assessment, the AC and its members are found to have effectively discharged its duties in accordance with its terms of reference. The Board and the Nomination Committee were of the view that the AC has provided valuable recommendations to assist the Board in making informed decisions. The Board is kept informed of the AC’s deliberations through its minutes and report, which is a standing agenda item in the scheduled meetings of the Board. During the financial year ended 31 December 2017 (“FY2017”), the AC met five (5) times. The AC meetings were appropriately structured through the use of agendas, which were distributed to members prior to the meeting. The meeting attendance of the AC members is as follows: Number of Meetings Held Percentage During Director’s of Name of Directors Tenure in Office Attendance Attendance Kek Chin Wu 5 5 100% Dato’ Paduka (Dr.) Ir. Hj. Keizrul Bin Abdullah 5 4 80% Chua Kee Yat @ Koo Kee Yat 5 5 100% TERMS OF REFERENCE OF THE AUDIT COMMITTEE The information on the terms of reference of the AC is available on the Company’s website at http:// /www.kimlun.com. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE During the financial year, the AC met five times. In line with the terms of reference of the AC, the following activities were carried out by the AC during FY2017 in discharging its functions: (1) External Audit (a) Met with the external auditors three times during FY2017 on 27 February 2017, 30 March 2017 and 29 August 2017 respectively on matters relating to the audit and financial statements without the presence of Management and Executive Directors; (b) Reviewed and discussed with the external auditors’ on their scope of work, engagement team, audit timeline, areas of audit emphasis, focus on key audit matters, accounting standards update affecting financial reporting and the responsibilities of Directors and Management, and auditors for their FY2017 audit planning memorandum; (c) Reviewed and discussed with the external auditors the results of their audit, their comments and conclusions on the significant audit findings, the audit report, management letter and internal control recommendations in respect of internal control weaknesses noted in the course of their audit; (d) Sought clarification from the Management on significant financial reporting issues, judgments made by the Management and matters highlighted by the external auditors. The AC was satisfied with the clarification from the Management and the actions taken by the Management to address the matters highlighted;