Chemical Company of Malaysia Berhad Annual Report 2019

The remuneration of the five (5) highest paid Senior Management for the financial year ended 31 December 2019 in the corresponding bands of RM100,000 are as follows: Range of remuneration Number of Senior Management* personnel (RM) Company # Group 900,001 - 1,000,000 - 1 800,001 - 900,000 - 1 700,001 - 800,000 - 1 600,001 - 700,000 1 2 500,001 - 600,000 2 - Note: * Remuneration of the Group Managing Director is disclosed in the board remuneration table as per the application of Practice 7.1 of the MCCG and pursuant to paragraph 11, Appendix 9C of MMLR of Bursa Malaysia Securities Berhad. #   There are only three (3) Senior Management personnel at Company level. Audit & Compliance Committee The Board has established an Audit & Compliance Committee (“ACC”) to provide a robust and comprehensive oversight on the financial reporting, external and internal audit processes as well as compliance and integrity matters of the Company. The ACC is chaired by an Independent Director, who is different from the Chairman of the Board. The composition of the ACC requires it to possess the financial literacy and business knowledge that are required to have a sound understanding of the financial matters of the Company. Following the changes on the Board, the composition of the ACC was reviewed by the NRC and recommended to the Board for approval. The composition of the ACC currently comprises of wholly independent directors and is chaired by Hasman Yusri bin Yusoff. Hasman was a former key audit partner auditing the CCM Group in 2005 until 2009, and 2011 until 2015. The ACC has unrestricted access to both the internal and external auditors, who, in turn report to the Board through the ACC. The Board has established a formal and transparent arrangements to maintain an appropriate relationship with the external auditor. This includes adopting policies and procedures to assess the suitability and independence of the external auditor on an annual basis. At the same time, private sessions were held with the external auditor in the absence of Management to ensure open communication and transparency between the ACC and the external auditor. During the year under review, 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. Risk management and internal controls In order to address risks in an increasingly complex and disruptive global environment, the Board has instituted a stand-alone Risk Management Committee at the Board level to assist in the oversight of existing and emerging risks that are surrounding the Group. A robust risk management and internal control framework that has been established allows the Group to identify, monitor and mitigate key business risks and is thus important in supporting the delivery of long-term value to the Group’s stakeholders. The Group’s risk management and internal control framework is firmly rooted on the Group’s Management and Manual Guidelines, which in turn is aligned to the globally recognised International Organisation for Standardisation (ISO) 31000. BUSINESS OVERVIEW FINANCIAL STATEMENTS OTHER INFORMATION GOVERNANCE 77 ANNUAL REPORT 2019