KUB Malaysia Berhad Annual Report 2021

Board Audit Committee Report The Board of Directors (‘the Board’) is pleased to present the Board Audit Committee (‘BAC’) Report for the financial period ended 30 June 2021. COMPOSITION The BAC consists of the following members: Mohammad Farish Nizar bin Othman Chairman, Independent Non-Executive Director Megat Joha bin Megat Abdul Rahman Non-Independent Non-Executive Director Kasinathan a/l Tulasi Independent Non-Executive Director (Appointed w.e.f 16 October 2020) Datuk Haji Mohd Haniff bin Haji Koslan Independent Non-Executive Director (Resigned w.e.f 16 October 2020) The BAC is governed by its Terms of Reference as set out in the Governance section at www.kub.com . conforming to the requirements of the Malaysian Code on Corporate Governance dated 26 April 2017 (‘the MCCG 2017’). Majority members of the BAC are Independent Non-Executive Directors and the current BAC chairman is a member of the Malaysian Institute of Accountants (‘MIA’), thereby complying with Paragraph 15.09(1)(c)(i) of the Main Market Listing Requirements (‘Listing Requirements’) of Bursa Malaysia Securities Berhad (‘Bursa Malaysia’). MEETINGS During the financial period effective 1 January 2020 until 30 June 2021, the BAC held a total of eight (8) meetings, with the following record of attendance. Directors Attendance Directors Attendance Mohammad Farish Nizar bin Othman 8/8 Megat Joha bin Megat Abdul Rahman 8/8 Kasinathan a/l Tulasi 4/4^ Datuk Haji Mohd Haniff bin Haji Koslan 4/4* Notes: ^ Appointed effective 16 October 2020 * Resigned effective 16 October 2020 The Company Secretaries were present during all the meetings except for the private sessions with the external auditors. The representative of Group Risk and Audit (‘GRAD’), external auditors, Deloitte PLT, the Group Managing Director and Senior Management personnel also attended the meetings upon invitation. The BAC Chairman updated the Board on matters deliberated after each BAC Meeting. This is to ensure that the Board is updated on the significant matters raised by the internal and external auditors. The BAC in the discharge of its functions and duties had carried out the following works to meet its responsibilities during the financial period ended 30 June 2021: 1. Financial Results and Corporate Governance a) Reviewed the quarterly unaudited financial results, annual financial statements and announcements to Bursa Malaysia before recommending to the Board for approval focusing particularly on; • changes in or implementation of major accounting policies; • matters highlighted including financial reporting issues, significant accounting estimates and judgements made by the Management, significant and unusual events or transactions, and how these matters were addressed; and • compliance with accounting standards and other legal requirements. b) Reviewed the Group’s compliance level, in particular the quarterly and annual financial statements with the Listing Requirements, Malaysian Financial Reporting Standards issued by the Malaysian Accounting Standards Board (‘MASB’) and other legal and regulatory requirements; c) Reviewed the audited financial statements of the Group with external auditors prior to submission to the Board for its consideration and approval. The review is to ensure that the audited financial statements were drawn up in accordance with the provisions of the Companies Act 2016 and the Malaysian Financial Reporting Standards issued by MASB; d) Reviewed the issuance of the Letter of Financial Support in respect of KUB Group of Companies for recommendation to the Board for approval; e) Reviewed the Related Party Transactions (‘RPT’) entered by the Group in compliance with the Listing Requirements before recommending to the Board for its approval; f) Reviewed the Proposed Change of Financial Year End from 31 December to 30 June for KUB Malaysia Berhad and its subsidiaries; g) Reviewed minutes of the BAC meetings; and 40 KUB MALAYSIA BERHAD