Datasonic Group Berhad Annual Report 2021

2021 ANNUAL REPORT 65 I. AC Composition of AC The AC of the Company comprises of three (3) members, all of whom are Independent Non-Executive Directors in compliance with the requirements of Paragraphs 15.09 (1)(a) and (b) of the MMLR of Bursa Malaysia. To ensure the overall effectiveness and independence of the AC, the positions of the Chairman of the Board and Chairman of the AC are held by different persons. The AC is chaired by an Independent Non-Executive Director, Mr Yee Kim Shing @ Yew Kim Sing. Collectively, the AC members possess a wide range of necessary skills to discharge their duties and responsibilities. The Terms of Reference of the AC is available for reference on the Company’s website at www.datasonic.com.my . The composition and details of the activities carried out by the AC for the financial year under review are set out in AC Report of this Annual Report. PRINCIPLE B EFFECTIVE AUDIT AND RISK MANAGEMENT Financial Reporting Process External Auditors and its Independence The Board takes responsibility to provide a balanced and meaningful assessment of the Group’s financial performance and position primarily through the financial statements of the Company and of the Group, quarterly management report and accounts and quarterly financial results to Bursa Malaysia, Chairman’s Statement and Management Discussion and Analysis in the Annual Report. The Board is assisted by the AC and the Chief Financial Officer in overseeing and governing the Group’s financial reporting processes and the quality and integrity of its financial information. The Directors’ Responsibilities Statement in respect of the preparation of the Annual Audited Financial Statements is set out separately in this Annual Report. As one of its functions, the AC undertakes an annual assessment of the External Auditors to gauge their performance, suitability and independence. Based on the results of this assessment, the AC makes recommendation to the Board for their re-appointment or termination, as applicable. The annual evaluation of the External Auditors provides the AC with a disciplined approach for maintaining effective oversight of the External Auditors’ performance. The objective of this External Auditors Assessment Policy is to outline the guidelines and procedures for the AC to review, assess and monitor the competency of the External Auditors. During the financial year under review, the AC had private meetings with the External Auditors without the presence of the Executive Board members and management. The External Auditors Assessment Policy is available for reference on the Company’s website at www.datasonic.com.my . In this regard, the AC assessed the performance, suitability and independence of Messrs Crowe Malaysia PLT as External Auditors of the Company as well as reviewed the non-audit services provided by them for the financial year under review. This enables the AC to determine that the nature of the non-audit services would not adversely impair the External Auditors’ professional independence and that the related fees levied are fair and realistic.