EXCEL FORCE MSC BERHAD Annual Report 2018

27 EXCEL FORCE MSC BERHAD (570777-X) ANNUAL REPORT 2018 Corporate Governance Overview Statement (cont’d) PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (cont’d) iii Remuneration (cont’d) 7.0 Stakeholders are able to assess whether the remuneration of directors and senior management commensurate with their individual performance, taking into consideration the Company’s performance. (cont’d) 7.2 Directors’ remuneration are broadly categorized into the following bands: - Company Number of Directors Group Number of Directors Range of remuneration RM Executive Non-Executive Executive Non-Executive 50,000 and below- - 2 - 2 50,001 to 150,000 1 1 1 1 150,001 to 350,000 2 - 2 - 350,001 to 450,000 2 - 2 - PRINCIPLE B- EFFECTIVE AUDIT AND RISK MANAGEMENT I Audit Committee 8.0 There is an effective and independent audit committee. The Board is able to objectively review the audit committee’s findings and recommendations. The Company’s financial statement is a reliable source of information. 8.1 The Audit Committee’s (“AC”) principal duties include the supervision of the truthfulness and reliability of the Company’s financial statements, the effectiveness and adequacy of the Company’s internal control as well as risk management system. The AC comprises exclusively Independent Non-Executive Directors and to ensure the Board is able to review the AC’s finding and recommendation independently, the chairman of AC is not the chairman of the Board. The appointment of the auditors is subject to approval at the general meeting. In making its recommendations to the shareholders on the appointment and re-appointment of auditors, the Board relies on the review and recommendation of the AC. The Board has established a formal and transparent arrangement with its external auditors to meet their professional requirements. The Audit Committee meets with the external auditors to review the rationale of significant judgement, accounting principles and the operating effectiveness of internal controls and business risk management. The auditors have continued to highlight to the Audit Committee and the Board matters that require the Board’s attention. 8.2 The Board is responsible to prepare financial statements which reflect a true and fair view of the state of affairs of the Company and the Group and the financial results of the Company and the Group for each financial year. The financial statements are prepared in accordance with the Malaysian Financial Reporting Standards, the International Financial Reporting Standards and the requirements of the Malaysian Companies Act. In preparing the financial statements, the Board is required to:- • Adopt suitable accounting policies consistently; • Make judgments and estimates that are prudent and reasonable; • Comply with applicable accounting standards; • Prepare financial statements on a going concern basis unless otherwise stated; and • Ensure proper keeping of accounting records with reasonable accuracy.