Serba Dinamik Annual Report 2019

201 • Reviewed and recommended to the Board for approval, the Circular to Shareholders in relation to the proposed renewal of shareholders’ mandate for the Group and its subsidiaries to enter into RRPT of the revenue or trading nature with related parties. ANNUAL REPORTING The ARC has reviewed and endorsed the Corporate Governance Overview Statement, ARC Report and Statement on Risk Management and Internal Control for the Board’s approval and inclusion in the Annual Report 2019. ANTI-CORRUPTION COMPLIANCE PROGRAM ARC is responsible for overseeing the implementation and assess the effectiveness of procedures and policies in place are adequate as guided by the Guidelines on Adequate Procedures issued pursuant to Section 17A(5) of the Malaysian Anti-Corruption Commission Act (Amendment) 2018. SOLVENCY ASSESSMENT ARC reviewed the solvency test undertaken by the Management which indicated that the Group is able to satisfy its debts within 12 months from the date of disbursement of dividend to ensure that the Group is solvent pursuant to Section 132(3) of the Companies Act 2016. INTERNAL AUDIT FUNCTION ARC is supported by the Internal Audit Function in discharging its function and responsibilities. In Financial Year 2019, the Group has engaged Salihin ConsultingGroup Sdn. Bhd., as Internal Auditor to undertake a Risk Based Internal Audit Consultancy. InternalAuditFunctionhasaroletocheckforcompliancewith statutory/regulatory requirements, internal policies and procedures and reviews the internal control and governance procedures for adequacy and effectiveness. The general scope and responsibilities of the Internal Audit Function include but not limited to, conducting reviews, examination and evaluation of the adequacy, effectiveness & efficiency of the Group’s risk management processes, internal control system and corporate governance practices. Total cost incurred by the Internal Audit Function in discharging its functions and responsibilities for financial year 2019 amounted to RM265,699.00. 6. 7. 8. A U D I T & R I S K C O M M I T T E E R E P O R T