ENRA Group Berhad Annual Report 2018

36 E N R A G R O U P B E R H A D ( 2 3 6 8 0 0 - T ) AUDIT AND RISK MANAGEMENT COMMITTEE REPORT cont’d SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR (Cont’d) Compliance and Others a) Reviewed and recommended for Board’s approval the revisions to the Whistleblowing Policy. The revisions made were mainly to clarify the reporting channels and guidance for employees of the Group and members of the public, where relevant, to disclose any wrongdoing or improper conduct as well as to streamline procedures and provisions with the other policies and codes of conduct of the Group. b) Reviewed the related party transaction and recurrent related party transactions of revenue or trading nature entered into by the Group. c) Reviewed the half-yearly report on the status of compliance of the Group’s Code of Business Conduct to ensure any non-compliance is properly investigated. d) Received quarterly reports on whistleblowing issues to ensure actions were taken on any cases reported. No whistleblowing case was reported during the financial year under review. e) Reviewed the Corporate Governance Statement, ARMC Report and Statement on Risk Management and Internal Control before recommending the same to the Board for approval and publication in the 2017 Annual Report. INTERNAL AUDIT FUNCTION At present, there is an in-house Internal Audit function. The Internal Audit function operates within the framework of the International Professional Practices Framework by the Institute of Internal auditors as stated in its Internal Audit Charter, which is approved by the ARMC. The Internal Audit function provides the ARMC with independent opinions of processes, risk exposure and systems of internal control using the Committee of Sponsoring Organization of the Treadway Commission Internal Control – Integrated Framework as a guide. The Internal Audit function assess the Group’s Internal Control system according to the following five interrelated control elements: • Control Environment • Risk assessment • Control Activity • Information & Communication • Monitoring The Internal Audit team which is headed by Mr. Melvinder Singh, Vice President Group Internal Audit who is a Chartered Member of the Institute of Internal Auditors Malaysia with more than 20 years of experience in internal auditing with the assistance of a team, independently reviews the key business processes and reports to the ARMC on a quarterly basis. The ARMC reviews and evaluates the key audit issues raised by the Internal Audit function and ensures that appropriate and prompt remedial action is taken by Management. During the financial year, the Internal Audit team prepared and presented an annual audit review schedule to the ARMC within the limit set by the ARMC for the financial year. This annual schedule outlines the governance, risk and controls of the key business processes of the Group’s head office departments, property development subsidiaries as well as oil & gas services activities. The ARMC reviewed and approved the schedule providing the Internal Audit team with the mandate in assessing the adequacy and effectiveness of the Group’s internal control system. In line with the approved annual review schedule, the Internal Audit team completed five audit reviews, two follow-up audits and two process reviews. The area of coverage is aligned with the Group’s Risk Management assessment covering Finance, Human Recourse, Operations, Procurement, Inventory, General IT, Sales, Marketing and Project Management. The costs incurred for the Internal Audit function in respect of the financial year ended 31 March 2018 amounted to RM363,782 (FYE 2017: RM266,338). This ARMC report is made in accordance with the resolution of the Board of Directors of ENRA duly passed on 27 June 2018.