Datasonic Group Berhad Annual Report 2020

CORPORATE GOVERNANCE The Board is committed to upholding and inculcating good corporate governance practices, with the primary objective of safeguarding stakeholders’ interests and enhancing shareholders’ value. We have continued to enhance our governance towards a greater emphasis on raising the standards of good practice in relation to Board leadership and effectiveness. This is evident in our pursuit to achieve a high performing Board through various initiatives, including the adoption of various policies, procedures and guidelines which include but are not limited to the following:- • Anti-Bribery and Anti-Corruption Policy • Board Charter • Code of Conduct and Ethics for Directors • Corporate Disclosure Policy • Corporate Governance Report • External Auditors Assessment Policy • Gender Diversity Policy • Remuneration Framework • Shareholders Communication Policy • Terms of Reference of Audit Committee • Terms of Reference of Employee Shares Option Scheme (“ESOS”) Committee • Terms of Reference of Nomination and Remuneration Committee • Terms of Reference of Risk Management Committee • Whistleblowing Policy The Group’s various policies, procedures and guidelines have been made available for reference at the Company’s website: www.datasonic.com.my RISKMANAGEMENT AND INTERNAL CONTROLS Datasonic’s significant risks are disclosed in Section 4 of the Group’s Management Discussion & Analysis (“MD&A”) . Our appetite for the risks in these areas is a key consideration in our decision making, as defined risk appetite parameters guide the Group’s risk tolerance when pursuing its strategic objectives. The Group’s Enterprise RiskManagement (“ERM”) Framework and Internal Control System is further described in the Statement on Risk Management and Internal Control. OUR FUTURE The existing phases of theMovement Control Orders implemented inMalaysia since 18March 2020 as a result of the Coronavirus Disease (“COVID-19”) outbreak, particularly on the issue of international travel, is expected to have an impact on the Group’s operations. The uncertainties and challenges arising from the COVID-19 pandemic have also inevitably disrupted the global economic stability and commercial environment and activities. However, the pandemic also offers new business opportunities in the areas of public security, public health and also e-commerce. The Group has taken necessary measures to address the abnormal challenges in the business environment. In these unprecedented business conditions, the Board expects the prospects for the financial year ending 31 March 2021 to be challenging. Chairman’s Statement (Cont’d) DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 18