AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 88 2.2 Risk Management and Internal Control Framework The Manager is led and oversaw by experienced Board of Directors with a wide and varied range of expertise. This broad spectrum of skills and experience gives added strength to the leadership, thus ensuring the Manager is under the guidance of an accountable and competent Board. There is a clear segregation of roles and responsibilities between the Chairman and the Executive Director to ensure a balance of power and authority. This also provides a healthy professional relationship between the Board and Management with clarity of roles and robust deliberation on the business activities of Al-Salām REIT. The Chairman ensures that members of the Board work together with the Management in a constructive manner to address strategies, business operations, inancial performance and riskmanagement issues. The Executive Director has full executive responsibilities over the execution of the agreed business policies and directions set by the Board and of all operational decisions in managing Al-Salām REIT. 3. Integrity In Corporate Reporting And Meaningful Relationship With Stakeholders 3.1 Communication with Stakeholders The Board recognises the importance of timely dissemination of information to the Unitholders and accordingly ensures that they are well informed of any major developments of Al-Salām REIT. Such information is communicated through the annual report, the Fund’s various disclosures and announcements to Bursa Securities, including quarterly and annual results, and the corporate website. As part of Al-Salām REIT’s active investor relations programme, discussions and dialogues are held with fund managers, inancial analysts, Unitholders and the media to convey information about Al-Salām REIT’s performance, corporate strategy and other matters afecting Unitholders’ interests. Details of the investor and public relations programs undertaken by theManager are set out on page 46 of this Annual Report. 3.2 Conduct of General Meeting The Annual General Meeting is a vital platform for dialogue and interaction between the Board and the Unitholders. The Manager had on 19 April 2018 convened its 3 rd Annual General Meeting to seek the Unitholders’ approval for amongst others:- • Proposed to allot and issue new units • Proposed increase in the existing approved fund size At the Annual General Meeting, the Chairman presented the progress and performance of the business and encouraged Unitholders to participate in the question-and-answer session. Directors’ Responsibility Statement On Audited Financial Statements The Board is responsible in the preparation of the Audited Financial Statements to give a true and fair view of the state of afairs, results and cash lows of the Manager and Al-Salām REIT at the end of each inancial year. In preparing the inancial statements, the Board will ensure that suitable accounting policies have been applied consistently, and that reasonable and prudent judgements and estimates have been made. All applicable approved accounting standards and relevant provisions of laws and regulations have been complied with. The Board is also responsible for ensuring that proper accounting and other records are kept which disclose with reasonable accuracy, the inancial position of the Manager and Al-Salām REIT and to ensure that the inancial statements comply with the relevant statutory requirements. The Board has the overall responsibility for taking such steps that are reasonably open to them to safeguard the assets of Al-Salām REIT to prevent and detect fraud and other irregularities.