AL-SALAM REIT ANNUAL REPORT 2017

104 AL-SALĀM REIT ANNUAL REPORT 2017 Recognizing that an audit committee plays an important role in corporate governance, the Board of the Manager had established an Audit Committee to ensure that the interests of the Unitholders of Al-Salām REIT are protected and prioritised. The Audit Committee holds an important function, which is to assist the Board of the Manager to review, assess and to recommend proposals relating to internal controls, financial and accounting records and policies as well as financial reporting practices of Al-SalāmREIT. COMPOSITION For the financial year ended 31 December 2017, the Audit Committee comprised 3 Directors, all of whom are also members of the Board of the Manager. The composition of the Audit Committee is as follows: 1. Zainah binti Mustafa Chairman/Independent Non-Executive Director 2. Lukman bin Hj. Abu Bakar Member/Non-Independent Non-Executive Director 3. Dr. Mohd Hafetz bin Ahmad Member/Independent Non-Executive Director MEETINGS AND ATTENDANCE The Audit Committee held 4 meetings during the financial year and the details of attendance of the Committee Members are as follows:- AUDIT COMMITTEE REPORT DISCHARGING OF FUNCTIONS & DUTIES During the financial year ended 31 December 2017, the Audit Committee has met its responsibilities in discharging its functions and duties in accordance with its terms of reference as follows :- 1. Overseeing Financial Reporting (a) Reviewed and discussedwithManagement the quarterly management accounts, taking into consideration that the necessary processes and controls are in place in the preparation of the financial reports. (b) Reviewed and discussed the quarterly results with Management. The Committee also reviewed and discussed the annual financial statements and the External Auditors’ audit report with the External Auditors, Internal Auditors as well as Management. Having satisfied itself that the financial results and reports complied with relevant accounting standards & legal requirement, the Audit Committee duly recommended the same for the Board’s approval. (c) Minutes of previous Committee meetings were tabled at the subsequent Board meetings by the Audit Committee Chairman. Significant issues were highlighted together with followed up actions to rectify them were reported to the Board. (d) The Committee took note of significant changes and amendments to the regulations, accounting standards and other regulatory requirements that could affect the financial reporting of Al-Salām REIT. 2. Assessing Risks and Control Environment (a) The Committee reviewed the adequacy and effectiveness of the risk management framework and the appropriateness of Management’s responses to No. of meetings Name of Committee Member attended Zainah binti Mustafa 4 out of 4 Chairman/Independent Non-Executive Director Lukman bin Hj. Abu Bakar 4 out of 4 Member/Non-Independent Non-Executive Director Dr. Mohd Hafetz bin Ahmad 4 out of 4 Member/Independent Non-Executive Director 6 th BOD Special BOD 7 th BOD 8 th BOD 9 th BOD 14.02.2017 25.04.2017 22.05.2017 24.08.2017 20.11.2017 Dato’ Kamaruzzaman bin Abu Kassim / / X / / Wan Azman bin Ismail (i) X / / / / Dato’ Mani a/l Usilappan (ii) / / / / X Zainah binti Mustafa / / / / / Dr. Mohd Hafetz bin Ahmad / / / / / Dato’ Dr. Rahah binti Ismail (iii) X X X X / Lukman bin Hj. Abu Bakar / / / / / Yusaini bin Hj. Sidek / / / / / Dato’ Amiruddin bin Abdul Satar / / / / / Mohd Yusof bin Ahmad / / / / / (i) Appointed w.e.f. 15 February 2017 (ii) Resigned w.e.f. 5 October 2017 (iii) Appointed w.e.f. 5 October 2017