Serba Dinamik Annual Report 2021

Section 7 | Corporate Governance 240 1 Authority & Responsibility Terms of Reference Organisational Structure & Limit of Authority Level of Authority Compliance Environment NO. ELEMENT SEGMENT DELIBERATION The Board has delegated certain responsibilities to Board Committees, as follows, through clearly defined and approved Terms of Reference which shall be reviewed when necessary: 1. Audit & Risk Committee 2. Nomination & Remuneration Committee 3. Investment Committee In addition, the Management Executive Committee (“MANCO”) is established, in existence of Terms of Reference, to ensure that day-to- day business operations are consistent with the corporate objectives, strategies and business plans and budgets approved by the respective Boards including addressing issues emanating from both the external business environment and internal operating conditions. The above TOR is accessible in the website of the Group. The Group has an organisational structure with formal lines of delegation of authority and accountability which defined clear segregation of functions, roles and responsibilities to guarantee effective control at various levels of the Group. The Management is responsible for the implementation of the Group’s strategies and day-to-day businesses based on the established structure. The organisational structure is reviewed from time-to-time to address changes in business environment as well as to keep abreast of current and future trending of new technologies, products and services. In addition, the Group also has in place the Limit of Authority, which supports good corporate governance and prudent control of risks and investment management, which the Board has specifically reserved matters such as establishment of new businesses, annual strategic plan, approval of major capital expenditure, major acquisition and disposal of businesses or equity, borrowings and any corporate restructuring, for its decision. The Group has instituted Level of Authority which was approved by the Board and is subject for review from time to time to reflect authority and authorization level of Management in all aspects of the Group’s major business, operations and functions. Level of Authority of the Group clearly identify which individuals have authority to initiate, submit, reconcile, view or approve different types of transaction. Each divisions and business units within the Group have established adequate compliance environment by instituting specific & dedicated personnel to oversee compliance matters in respect to its business and operations. In addition, Internal audit reviews are conducted at regular intervals to 4. Key Elements of Internal Control System The Group’s internal control system comprise the following elements: STATEMENT OF RISK MANAGEMENT & INTERNAL CONTROL