Frontken Berhad Annual Report 2018

29 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 Corporate Governance Overview Statement (cont’d) PRINCIPLE B – EFFECTIVE AUDIT AND RISK MANAGEMENT I. Audit Committee 2W J\\R\]RWP ]QN +XJ[M ]X MR\LQJ[PN R]\ M^]RN\ XW ࠰WJWLRJU [NYX[]RWP ]QN +XJ[M QJ\ N\]JKUR\QNM JW *^MR] ,XVVR]]NN comprising three (3) Independent Non-Executive Directors, with Dato’ Haji Johar Bin Murat @ Murad as the Committee Chairman. The composition, including its roles and responsibilities as well as a summary of its activities carried out M^[RWP ]QN ࠰WJWLRJU bNJ[ ^WMN[ [N_RN` J[N \N] X^] RW ]QN *^MR] ,XVVR]]NN ;NYX[] XW YJPN\ ]X " XO ]QR\ *WW^JU ;NYX[] 8WN XO ]QN TNb [N\YXW\RKRUR]RN\ XO ]QN *^MR] ,XVVR]]NN R\ ]X NW\^[N ]QJ] ]QN ࠰WJWLRJU \]J]NVNW]\ XO ]QN 0[X^Y and Company comply with Malaysian Financial Reporting Standards, International Financial Reporting Standards and Y[X_R\RXW\ XO ]QN ,XVYJWRN\ *L] <^LQ ࠰WJWLRJU \]J]NVNW]\ LXVY[R\N ]QN Z^J[]N[Ub ࠰WJWLRJU [NYX[] JWWX^WLNM ]X +^[\J <NL^[R]RN\ JWM ]QN JWW^JU \]J]^]X[b ࠰WJWLRJU \]J]NVNW]\ =QN +XJ[M ^WMN[\]JWM\ R]\ [XUN RW ^YQXUMRWP ]QN RW]NP[R]b XO ࠰WJWLRJU [NYX[]RWP Kb ]QN ,XVYJWb *LLX[MRWPUb ]QN *^MR] ,XVVR]]NN `QRLQ J\\R\]\ ]QN +XJ[M RW X_N[\NNRWP ]QN ࠰WJWLRJU [NYX[]RWP Y[XLN\\ XO ]QN ,XVYJWb QJ\ JMXY]NM J YXURLb OX[ ]QN ]bYN\ XO WXW J^MR] \N[_RLN\ YN[VR]]NM ]X KN Y[X_RMNM Kb ]QN Na]N[WJU J^MR]X[\ JWM X[ ]QNR[ JO࠰URJ]N\ RWLU^MRWP ]QN need for obtaining the Audit Committee’s approval for such services. The Audit Committee has formalised a policy that requires a former key audit partner to observe a cooling-off period of at least two (2) years before being appointed as a member of the Audit Committee. II. Risk Management And Internal Control Framework The Board has overall responsibility for maintaining a sound system of risk management and internal control of the 0[X^Y ]QJ] Y[X_RMN\ [NJ\XWJKUN J\\^[JWLN XW NO࠰LRNW] K^\RWN\\ XYN[J]RXW\ LXVYURJWLN `R]Q UJ`\ JWM [NP^UJ]RXW\ J\ well as internal procedures and guidelines. The Audit Committee assists the Board in reviewing the adequacy and operating effectiveness of the system of risk management and internal control in the Group. The Audit Committee does this by deploying an independent outsourced JWM RW QX^\N RW]N[WJU J^MR] O^WL]RXW ]QJ] LXWM^L]\ RW]N[WJU J^MR] `R]Q ࠰WMRWP\ Y[N\NW]NM ]X ]QN *^MR] ,XVVR]]NN including the remedial measures and action plans agreed by Management to address the matters so highlighted. For more details of the Internal Audit function, refer to the Statement on Risk Management and Internal Control which is included in the Company’s 2018 Annual Report as well as the Corporate Governance Report that is made available on the Company’s website at www.frontken.com . The Audit Committee is responsible for overseeing the risk management framework and policies while Management of the respective business units and subsidiaries is tasked to manage business risks, including developing, implementing and monitoring mitigating measures to manage such risks to acceptable levels. Details of the Group’s Risk Management O[JVN`X[T JL]R_R]RN\ LJ[[RNM X^] OX[ ]QN ࠰WJWLRJU bNJ[ ^WMN[ [N_RN` JWM [NYX[]RWP Y[XLN\\N\ J[N \N] X^] RW ]QN <]J]NVNW] on Risk Management and Internal Control included in this Annual Report. PRINCIPLE C – INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS I. Communication With Stakeholders The Board recognises the importance of being transparent and accountable to the Company’s shareholders and other stakeholders and acknowledges the continuous communication between the Company and stakeholders would facilitate mutual understanding of each other’s objectives and expectations. As such, the Board ensures the supply of clear, comprehensive and timely information to stakeholders by way of various disclosures and announcements, RWLU^MRWP Z^J[]N[Ub JWM JWW^JU ࠰WJWLRJU [N\^U]\ `QRLQ Y[X_RMN RW_N\]X[\ `R]Q ^Y ]X MJ]N ࠰WJWLRJU RWOX[VJ]RXW XO ]QN Group. All these announcements and other information about the Company, which are disseminated according to the Company’s Corporate Disclosure Policy, are available on the Company’s website at www.frontken.com where shareholders, investors and public may access. In addition, the Directors also ensure that engagement with shareholders occurs at least once a year during the AGM to better understand their needs and obtain their feedback.