DESTINI Annual Report 2018

In assessing or determining the suitability and independence of the External Auditors, the Audit Committee has taken into consideration of the following : i) the adequacy of the experience and resources of the External Auditors; ii) the External Auditor’s ability to meet deadlines in providing services and responding to issues in a timely manner as contemplated in the external audit plan; iii) the nature of the non-audit services provided by the External Auditors and fees paid for such services relative to the audit fee; and iv) whether there are safeguards in place to ensure that there is no threat to the objectivity and independence of the audit arising from the provision of non-audit services or tenure of the External Auditors. Annual appointment or re-appointment of the External Auditors is via shareholders’ resolution at the Annual General Meeting on the recommendation of the Board. The External Auditors are being invited to attend the Annual General Meeting of the Company to response and reply to the Shareholders’ enquiries on the conduct of the statutory audit and the preparation and contents of the audited financial statement. Where necessary, the Audit Committee will meet with the External Auditors without the presence of Executive Directors and members of management to ensure that the independence and objectivity of the External Auditors are not compromised and matters of concerns expressed by the Audit Committee are duly recorded by the Company Secretaries. In presenting the Audit Planning Memorandum to the Audit Committee, the External Auditors have highlighted their internal policies and procedures with respect to their audit independence and objectivity which include safeguards and procedures and independent policy adopted by the External Auditors. The External Auditors have also provided the required independence declaration to the Audit Committee and the Board for the financial year ended 31 December 2018. The Audit Committee is satisfied with the competence and independence of the External Auditors for the financial year under review. Having regard to the outcome of the annual assessment of the External Auditors, the Board approved the Audit Committee’s recommendation for the shareholders’ approval to be sought at the Annual General Meeting on the re- appointment of Messrs UHY as the External Auditors of the Company for the financial year ending 31 December 2019. STATEMENT ON DIRECTORS’ RESPONSIBILITY IN RESPECT OF THE AUDITED FINANCIAL STATEMENTS The Directors are responsible for the preparation of financial statements for each financial year to give a true and fair view of the state of affairs the Group and the Company at the end of the financial year and of the results and cash flows of the Group and the Company for the financial year. In preparing these financial statements, the Directors have observed the following criteria: i) Overseeing the overall conduct of the Company’s business and that of the Group; ii) Identifying principal risks and ensuring that an appropriate system of internal control exists to manage these risks; iii) Reviewing the adequacy and integrity of Internal Controls System and Management Information System in the Company and within the Group; iv) Adopting suitable accounting policies and apply them consistently; v) Making judgments and estimates that are reasonable and prudent; and vi) Ensuring compliance with application Approved Accounting Standards in Malaysia. DESTINI BERHAD ANNUAL REPORT 2018 77