AUDIT COMMITTEE (CONT’D) 3. Directors’ Responsibility Statement The Directors are required by the Companies Act 2016 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the Company as at the end of the financial year and the results of the operations, changes in equity and cash flows of the Group and of the Company for the financial year. Where there are new accounting standards or policies that become effective during the year, the impact of these new treatments would be stated in the notes to the financial statements, accordingly. In preparing those financial statements, the Directors ensure that management have: • adopted appropriate accounting policies and consistently apply them; • made judgements and estimates that are reasonable and prudent; • state whether applicable approved accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepared financial statements on the going concern basis as the Directors have a reasonable expectation, having made enquiries, that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. The Directors have responsibility for ensuring that the Company keeps proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Group and the Company and to enable them to ensure that the financial statements comply with the Companies Act 2016. The Directors have taken such steps as are necessary to safeguard the assets of the Group and the Company to prevent fraud and other irregularities. RISK MANAGEMENT AND INTERNAL CONTROL The Risk Management Committee presently comprised of four (4) members comprising one (1) Group Managing Director and three (3) other members from the Key Senior Management assists to the Audit Committee and the Board in discharging its risk management and control responsibilities. The terms of reference of the Risk Management Committee are available on the Company’s website at www.mkhberhad.com. The members of the Risk Management Committee are as follows: In fulfilling the primary objectives, the Risk Management Committee has been tasked to identify and communicate the existing and potential critical risk areas faced by the Group and the management action plans to mitigate such risks by working with the internal auditors in providing periodic reports and updates to the Audit Committee on a quarterly basis. The Group’s Statement on Risk Management and Internal Control provides an overview of the risk management framework and state of internal control within the Group is set out on pages 142 to 147. PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT Tan Sri Datuk Chen Lok Loi Dato’ Chong Yong Han Kok Siew Yin Tan Wan San Chairman Member Member Member Group Managing Director Property Director Chief Financial Officer Treasury Director / Group Company Secretary Sustaining Lives, Empowering Communities Governance That Inspires Confidence Financial Insights Through Numbers Empowering Ownership PG. 135
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