KENANGA ANNUAL REPORT 2023

118 WE ARE KENANGA LEADERSHIP MESSAGE VALUE CREATION MODEL KENANGA INVESTMENT BANK BERHAD ANNUAL REPORT 2023 AUDIT COMMITTEE REPORT 3. SUMMARY OF THE AC’S ACTIVITIES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 Financial Reporting In discharging its role and responsibility pertaining to the Company’s financial reporting, the AC had at its meeting held on 30 January 2023, reviewed the quarterly financial statements for the quarter ended 31 December 2022, as well as the Audited Financial Statements in respect of the Financial Year Ended 31 December 2022. In reviewing the Audited Financial Statements, the AC discussed with Management and the External Auditors, the accounting principles and standards that were applied and their judgment of the items that might affect the financial statements. The AC also deliberated on audit issues and key audit matters raised by the External Auditors and the action plans required to address those issues, based on the External Auditors’ recommendations. The subsequent quarterly financial statements for the quarters ended 31 March 2023, 30 June 2023 and 30 September 2023 were tabled and reviewed by the AC at its quarterly meetings held on 27 April 2023, 26 July 2023 and 24 October 2023 respectively, upon which the AC had recommended the quarterly financial statements to the Board for approval. The AC had at its meeting held on 24 October 2023, reviewed the adoption of the impairment approach and the assumptions used in the annual assessment for impairment of assets of KIBB and Its Subsidiaries (“KIBB Group”) for the Financial Year Ended 31 December 2023 and recommended the same for the Board’s approval. At the same meeting, the AC had also deliberated and recommended to the Board for approval, the revised Policy of Non-Audit/ Assurance Services by the External Auditors, incorporating the changes on Non-Audit Services that might be performed by the External Auditors and the fee-related provisions of the International Code of Ethics for Professional Accountants released by the International Ethics Standards Board for Accountants in April 2021 and its impact to a public interest entity such as KIBB. In addition, the AC was also apprised on the impact of the 2024 Budget announced on 13 October 2023 to KIBB Group in respect of the following measures: At each of its quarterly meeting, the AC was also notified of the amount of non-audit fees incurred and paid by KIBB Group to the External Auditors and their affiliate to ensure compliance with the Group’s Policy on Non-Audit Services by External Auditors. Pursuant to a letter from BNM dated 1 November 2022 and addressed to the External Auditors on the requirement for the External Auditors to conduct an audit on KIBB’s Liquidity Coverage Ratio (“LCR”) pursuant to Section 69(1)(e) of the Financial Services Act 2013 and Section 78(1)(e) of the Islamic Financial Services Act 2013, the AC had at its meeting held on 27 April 2023, recommended the proposed appointment of EY to perform a review on the LCR of KIBB as of 31 December 2022, for the Board’s approval. 3.1 a b c d e Capital Gains Tax on Disposal of Shares of Unlisted Companies; Increase of Service Tax Rate from 6% to 8% and Expansion in Scope of Services; E-Invoicing Implementation; Accelerated Allowance for Information and Communication Technologies Equipment and Computer Software; and Incentives on Environmental, Social and Governance Related Expenditure.

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