Kimlun Corporation Berhad Annual Report 2020

Internal Control The Board acknowledges its overall responsibility for maintaining a sound system of internal controls to safeguard shareholders’ investment and the Group’s assets. However, the Board recognises that such system is structured to manage rather than eliminate the possibility of encountering risk of failure to achieve corporate objectives. The Statement on Risk Management and Internal Control is set out on pages 52 to 55 of the Annual Report providing an overview of the state of internal controls, risk management framework and internal audit function within the Group. Relationship with Auditors The Company has established a formal, transparent and appropriate relationship with the Company’s auditors, both internal and external. The internal auditors and the external auditors have direct access to the AC at all times. From time to time, the auditors will highlight to the AC and the Board matters that require the Board’s attention. The AC meets with the external auditors at least twice a year without the presence of Executive Directors and management to discuss their audit plan and audit findings. The AC reviews with the external auditors the annual audited financial statements before recommending them to the Board for its approval. The AC assesses the effectiveness of both internal and external audit as well as the suitability, independence and objectivity of the external auditors. In its assessment, the AC considered several factors, which included adequacy of experience and resources of the firm and the professional staff assigned to the audit. Written assurance shall be obtained from the external auditors yearly, confirming their independence in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants. #FJOH TBUJTGJFE XJUI UIF FYUFSOBM BVEJUPST &SOTU :PVOH PLT’s (“EY”) performance, technical competency and audit independence, the AC recommended the appointment of EY as external auditors for FY2020. The Board at its meeting held on 29 April 2021 approved the AC’s recommendation for the shareholders’ approval to be sought at the 12th AGM on the appointment of EY as external auditors of the Company for FY2021. C. INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS DISCLOSURE POLICY, INVESTOR RELATIONS AND SHAREHOLDER COMMUNICATION The Board shall place great importance in ensuring the high standards of transparency and accountability in its communication to shareholders, analysts and the public. The shareholders shall be informed of all material matters affecting the Company and Group. The channels of communication, amongst others, are as follows:- (a) timely announcements made to Bursa Securities, which includes quarterly financial results, material contracts awarded, changes in the composition of the Group and any other material information that may affect investors’ decision making; (b) conducts dialogues with financial analysts from time to time as a means of effective communication that enables the Board and Management to convey information relating to the Company’s performance, corporate strategy and other matters affecting shareholders’ interests; and (c) the Company’s website which provides easy access to corporate information pertaining to the Company and its activities and is continuously updated. All announcements made to Bursa Securities are updated on the Company’s website as soon as practical. The AGM is the principal forum for dialogue with shareholders. At each AGM, a presentation is given by the Company to explain the Group’s strategy, performance and major developments to shareholders. The Board also encourages shareholders to participate in the question and answer session at the AGM. Key investor relation activities during FY2020 include the followings: t 4FNJ BOOVBMMZ JOWFTUPST BOE GJOBODJBM BOBMZTUT CSJFGJOHT and t 1SJWBUF NFFUJOHT XJUI GVOE NBOBHFST JOWFTUPST BOE GJOBODJBM analysts. The Board is mindful on the importance of maintaining proper corporate disclosure procedures with the aim to provide shareholders and investors with comprehensive, accurate and quality information on a timely basis. Personnel and working team preparing the disclosure will conduct due diligence and proper verification, as well as coordinate the efficient disclosure of material information to the investing public. The Company also ensures that confidential information is handled properly by Directors, employees and relevant parties to avoid leakage and improper use of such information. CORPORATE GOVERNANCE OVERVIEW STATEMENT Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 045