ACTIVITIES DURING THE FINANCIAL YEAR (continued) During the financial year ended 31 December 2021, the activities carried out by the ARMC in the discharge of its duties included, amongst others, the following: - (continued) (iv) Risk Management • Reviewed the key risks identified by the Risk Management Team on quarterly basis and relevant measures and efforts undertaken to mitigate the risks as well as follow-up on the action plans. • Reviewed and recommended the Risk Management Framework of the Group for the Board’s approval. • Reviewed the assessment report on the effectiveness of the risk and internal control processes of the Company and Group and was satisfied that the Group has in place the relevant risk management processes and internal control systems, amongst others, to manage the risks associated with the business and operations of the Group. (v) Anti-Bribery and Corruption Policy and Whistleblowing Policy and Guidelines • Overseen the implementation of the Anti-Bribery and Corruption Policy. • Overseen the implementation of the Whistleblowing Policy and Guidelines and noted that during the year, there were no wrongful activities and wrongdoings reported through the whistleblowing channel provided either via the hotline number or email. (vi) Others • Reviewed the Statement on Risk Management and Internal Control and the Report of the ARMC for inclusion in the Annual Report. • Reviewed and updated the Terms of Reference of the ARMC to ensure its adequacy for current circumstances, the Company’s policies and/or compliance with applicable rules and regulations. INTERNAL AUDIT FUNCTION The internal audit function for the Manufacturing Division is performed in-house and for the Corporate, Property Development & Construction and Agriculture Divisions, is outsourced to an independent consulting firm, GRC Consulting Services Sdn Bhd to provide assurance on the effectiveness as well as the adequacy and integrity of the system of internal control of the Group. Furniweb Holdings Limited (“FHL”), a 54.19%-owned subsidiary of the Company, is the holding company of the subsidiaries operating in the Manufacturing Division. FHL is listed on the GEM of The Stock Exchange of Hong Kong Limited and is subject to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited (the “GEM Listing Rules”). FHL and its subsidiaries in the Manufacturing Division (“FHL Group”) has an in-house internal audit department that carries out regular reviews of the operations and system of internal control by examining and evaluating business processes to determine the adequacy and efficiency of financial and operating controls, and highlighting significant risks and noncompliance impacting the FHL Group to its audit committee. The internal audit report tabled to the audit committee of FHL would be subsequently presented to the ARMC of the Company for notation. For the financial year under review, internal audit reviews were performed to evaluate and identify any weaknesses of the internal controls affecting the Group, the adequacy of the existing system of internal control and recommend measures to Management to improve and rectify any weaknesses. The internal audit reviews have been carried out based on compliance and risk-based audit approaches and the findings were presented to the ARMC on quarterly basis. P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 58 Report of The Audit and Risk Management Committee (cont’d)
RkJQdWJsaXNoZXIy NDgzMzc=