MSM Malaysia Holdings Berhad Annual Report 2020

CORPORATE GOVERNANCE OVERVIEW STATEMENT PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT Audit, Governance and Risk Committee The Board has established an Audit, Governance and Risk Committee (“AGRC”) to provide robust oversight on financial reporting, external and internal audit processes, and related party transactions. The AGRC members possess the requisite financial literacy and business knowledge that the support the sound understanding of matters under their purview. The AGRC has unrestricted access to both the internal and external auditors, who report functionally and directly to the AGRC. The AGRC has established transparent arrangements to maintain an appropriate relationship with the Company’s external auditors. The external auditor has provided assurance that its personnel are and have been independent throughout the conduct of the audit in accordance to the terms of relevant professional and regulatory requirements. Oversight of Financial Reporting The Board ensures that Shareholders are presented with a clear, balanced and comprehensive view of the Group’s financial performance and prospects through the audited financial statements, quarterly announcement of financial results, the Chairman’s Statement and the Management Discussion and Analysis (“MD&A”) on page 122, page 47, page 4 and page 34 in this Annual Report as well as corporate announcements on significant developments affecting the Company in accordance with the MMLR. The Directors considered the compliance with all applicable financial reporting standards, provision of the Companies Act, 2016 and relevant provision of laws and regulations in Malaysia. The AGRC updates the Board on the matters deliberated in its meetings. Details on the summary of work carried out during the year is set out in the AGRC Report on page 93 of this Annual Report. Corporate Governance Matters We are committed to excellence in corporate governance, transparency and accountability. All those are vital in supporting our business in executing its strategy and in generating long-term shareholder value. Below are the initiatives taken in place: • Establishment of MSM Group’s Limit of Authorities. • Revision of Financial Closing and Reporting Requirement Policy, Investment Policy and Property, Plant and Equipment Policy. • Whistleblowing Policy The Board, in promoting healthy corporate culture encourages employees to report genuine concerns in relation to breach of a legal obligation, miscarriage of justice, danger to health and safety, has put in place a Whistleblowing Policy (“Policy”) that provides clarity of oversight and responsibilities of the whistleblowing process, the reporting process and protection to whistleblowing process, the reporting process and protection to whistleblowing and confidentiality afforded to the whistleblowing. The Policy which allows the reporting individual to report on alleged unethical behaviour within the Group was established with the aim to maintain the highest standard of ethics and legal conduct within the Group. Further information on the implementation of the Policy can be found in the CG Report 2020 and published in the Company’s corporate website at http://www.msmsugar.com/our-company/corporate-governance. Governance MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 88 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT