Al-`Aqar Healthcare REIT Annual Report 2019

Directors’ Training All Directors have attended and completed the Mandatory Accreditation Programme prescribed by Bursa Securities, and the Board will continue to evaluate and determine the training needs of its Directors on an ongoing basis. Throughout the financial year under review, the Directors attended various conferences, seminars and training programmes covering areas that included corporate governance, leadership, updates on REIT industry and global business developments. 1.3 Remuneration The remuneration of the Directors are set out on page 81 of this Annual Report. 2. EFFECTIVE AUDIT AND RISKMANAGEMENT 2.1 Audit Committee An effective Audit Committee will bring transparency, focus and independent judgment needed to oversee the financial reporting process. The Audit Committee is chaired by Zainah binti Mustafa and comprises of 2 other members, Lukman bin Hj. Abu Bakar and Dr. Hafetz bin Ahmad. The Committee meets on a scheduled basis at least 4 times a year. The composition of the Audit Committee, its terms of reference, attendance of meetings and duties and responsibilities are set out on page 90 of the Annual Report. The minutes of the Audit Committee meetings are tabled to the Board for notification and further action by the Board, where necessary. Compliance with Applicable Financial ReportingStandards In presenting the annual financial statements, annual report and quarterly announcements to unitholders, the Board aims to present a balanced and understandable assessment of Al-`Aqar’s financial position, performance and prospects. The Board has taken the necessary steps to ensure that Al-`Aqar had complied with all applicable Financial Reporting Standards and relevant provision of laws and regulations in Malaysia and the respective countries in which the subsidiaries operate, consistently and that the policies are supported by reasonable and prudent judgement and assumptions. The Audit Committee assists the Board in ensuring both annual financial statements and quarterly announcements are accurate and the preparation is consistent with the accounting policies adopted by Al- `Aqar. Relationship with the External Auditors The Board through the Audit Committee has maintained a formal procedure of carrying out an independent review of quarterly reports, annual audited financial statements, External Auditor’s audit plan, report, internal control issues and procedures. The External Auditors are invited to attend Al-`Aqar’s general meeting and are available to answer any questions from unitholders on the conduct of the statutory audit and the contents of the Annual Audited Financial Statements. 2.2 Risk Management and Internal Control Framework The Manager is led and overseen by experienced Board of Directors with a wide and varied range of expertise. This broad spectrum of skills and experience gives added strength to the leadership, thus ensuring the Manager is under the guidance of an accountable and competent Board. There is a clear segregation of roles and responsibilities between the Chairman and the Executive Director to ensure a balance of power and authority. This also provides a healthy professional relationship between the Board and management with clarity of roles and robust deliberation on the business activities of Al-`Aqar. 05 ESSENCE OF CORPORATE GOVERNANCE 88