SUMMARY OF ACTIVITIES UNDERTAKEN BY THE AC (CONT’D) Conflict of Interest (Cont’d) As of the date of this report, the AC presented its inaugural conflict of interest report during the third quarter meeting held on 20 November 2023 for the period ended 30 September 2023 and subsequent conflict of interest report on the fourth quarter meeting held on 28 February 2024 for the period ended 31 December 2023. Others The AC reviewed its Terms of Reference to ensure that the Company has implemented most of the good practices recommended in the MCCG. This comprehensive review process aimed to align the AC’s functions and responsibilities with best practices in corporate governance, enhancing transparency, accountability, and effectiveness within the Company’s governance framework. The AC revised its Terms of Reference by incorporating the scope of conflicts of interest arising from the amended Main Market Listing Requirements of Bursa Securities on 28 February 2024. The AC addressed complaints or cases reported under Whistle Blowing policy, ensuring that appropriate measures were taken to investigate and resolve any issues raised. By providing a channel for reporting concerns confidentially and without fear of retaliation, the AC promotes a culture of integrity and accountability within the Company, safeguarding against unethical conduct and misconduct. There were no complaints or cases reported under Whistle Blowing policy in FY2023. The AC completed the annual evaluation process for AC members through self-assessment and peer evaluation. This structured evaluation framework allows AC members to assess their individual performance and contribution to the AC’s effectiveness. By fostering continuous improvement and accountability, the evaluation process enhances the AC’s ability to fulfill its oversight responsibilities and uphold the highest standards of governance. TRAINING AND EDUCATION During the financial year, the AC members attended individually or collectively seminar(s), conference(s) and/ or training(s) to continuously upgrade their skills and to keep abreast of current developments to enhance their knowledge and enable them to discharge their duties more effectively. INTERNAL AUDIT FUNCTION The internal audit function serves as a cornerstone in evaluating and enhancing the Group’s risk management, controls, and governance processes, employing a risk-based approach to support Senior Management in attaining corporate objectives. For FY2023, the Group entrusted the internal audit function to Vaersa, an independent internal audit professional firm. Vaersa operates under the direct oversight of the AC and aids the Board in monitoring and managing risks and internal controls. The AC has ensured the maintenance of Vaersa’s independence and provided the necessary resources and access to information to enable them to perform their duties effectively. Vaersa executed internal audit reviews in alignment with the approved internal audit plan, encompassing assessments of operational controls; adequacy and effectiveness in risk mitigation, compliance with established policies and procedures, adherence to authority limits, and compliance with applicable laws. Formal reports of the review findings were presented to the AC, and Senior Management acknowledged the findings and acted upon recommendations made by Vaersa. Notably, the internal audit reviews did not unveil any significant weaknesses, providing reasonable assurance of the effectiveness of the Group’s internal control systems and their ability to mitigate business risk and safeguard assets and resources. The total cost incurred for the internal audit function during the financial year under review was amounted to approximately RM30,000.00. Further details regarding the internal audit function are elaborated in the Risk Management and Internal Control Statement on page 154. AUDIT COMMITTEE REPORT (cont’d) ANNUAL REPORT 2023 153 GOVERNANCE
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