ENRA Group Berhad | Annual Report 2022 60 AUDIT AND RISK MANAGEMENT COMMITTEE REPORT Composition and Meeting (CONT’D) During the financial year, the Board had reviewed and revised the Terms of Reference (“TOR”) of the ARMC by incorporating the new amendments to the MCCG 2021 and MMLR into the TOR. The Board through its Board Nomination and Remuneration Committee, assessed the performance of the ARMC and its members through an annual Board Committee effectiveness evaluation. The Board is satisfied that the ARMC and its members discharged their functions, duties and responsibilities in accordance with the TOR of the ARMC, supporting the Board in ensuring the Group upholds appropriate corporate governance standards. The TOR of the ARMC is available on the Company’s website at www.enra.my. SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR During the financial year, the key activities undertaken by the ARMC are set out below: Financial Reporting a. Reviewed the unaudited quarterly financial results of the Company and the Group and the accompanying announcements prior to recommending the same for Board’s approval, focusing on particularly : • The overall performance and prospect of the ENRA Group; • The changes and implementation of major accounting policies and practices and the auditor’s report highlighting the key audit matters and the implication on the Group; • Compliance with accounting standards and other legal requirements; • Significant accounting and audit matters raised by BDO in financial statements and the corresponding judgement made by the Management. b. Reviewed the audited financial statements and discussed with BDO on the accounting treatment and disclosure of the investments of the Group prior to submission to the Board for approval. The External Auditors was of the opinion that the Company’s audited financial statements reflected a true and fair view of the financial position of the Company and its Group in accordance with the relevant accounting standards and legal requirements. External Audit a. Reviewed BDO’s scope of work and audit plans for the financial year to ensure sufficient coverage in terms of scope. Prior to the audit, representatives from BDO presented their audit strategy and plan. The ARMC also met with BDO twice on 27 May 2021 and 23 February 2022 without the presence of the Executive Directors and Management. BDO were given the opportunity to raise any matters of concern arising from their audit work. No major concerns were highlighted and BDO had also confirmed that they had received full cooperation from Management and unrestricted access to the Group’s records. b. Reviewed with BDO the results of the audit, the audit report and the management letter, including Management’s responses to the audit findings. c. Considered the audit fees payable to the external auditors against the size and complexity of the Group before recommending for Board’s approval. d. Reviewed the independence, objectivity and suitability of the external auditors and services provided, including nonaudit services. Details on the non-audit fees incurred for services rendered by the external auditors and its affiliates for the financial year ended 31 March 2022 are disclosed in the Additional Compliance Statement on page 70. e. Recommended to the Board for the re-appointment of the external auditors to be proposed for shareholders’ approval at the Annual General Meeting. f. Engaged with the external auditors on matters related to BDO’s Transparency Report 31 December 2020 and took note of the same.
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