MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 126 CORPORATE GOVERNANCE STATEMENT (CONT’D) B. EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) I. AC (cont’d) Further information on the roles and responsibilities of the AC may be found in the AC Report on page 131 to page 134 of this Annual Report. II. Risk Management and Internal Control Framework The Board assumes ultimate responsibility for the effective management of risk across the Group, determining its risk appetite as well as ensuring that each business area implements appropriate internal controls. In order to achieve such objective, a risk management policy has been adopted by the Group. The Group’s risk management systems are designed to manage, mitigate and eliminate risks (where possible) to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board has delegated its responsibility for reviewing the effectiveness of the Group’s systems of internal control to the RMC. This covers all material controls including financial, operational, compliance and risk management systems. The RMC is further supported by a number of sources of internal assurance within the Group in order to determine the adequacy and effectiveness of the existing risk controls. The Group has outsourced the internal audit function as being the most cost effective means of implementing an internal audit function. The independent third party service provider of the internal audit services for the FY2021 was Vaersa Advisory Sdn. Bhd. (“Vaersa”), which reported directly to the AC as specified in the Terms of Reference of the AC. The internal auditors carry out its function in accordance with the annual Internal Audit Plan which has been approved by the AC. Vaersa has approximately eight (8) audit personnel assisting the person responsible for the internal audit. Details on the person responsible for the internal audit are as set out below:- Name : Ramnath R Sundaram Qualification : Associate of Chartered Certified Accountant Independence : Does not have any family relationship with any director and/or major shareholder of the Company Public Sanction or penalty : Has no convictions for any offences within the past 5 years, other than traffic offences, if any and has not been imposed any public sanction or penalty by the relevant regulatory bodies during the financial year. Further information may be found in the Risk Management and Internal Control Statement on page 136 to page 138 and the Management Discussion and Analysis on page 22 to page 31 of this Annual Report. C. INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS I. Communication with stakeholders The Board believes that stakeholders’ communication is an essential requirement of the Group’s sustainability. In view thereof, stakeholders are informed of all material business events and risks of the Group in a factual, timely and widely available manner. The Board has formalised a Corporate Disclosure Policy and Procedure not only to comply with the discourse requirements as stipulated in the MMLR of Bursa Securities, but also sets out the persons authorised and responsible to approve and disclose material information to all stakeholders. The Board recognises the importance of facilitating effective two-way communication with investors and analysts to provide a greater understanding of the Group’s vision, strategies, developments and financial prospects. A variety of engagement initiatives including direct meetings and dialogues with stakeholders are constantly conducted to enhance mutual understanding.
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