Sasbadi Annual Report 2017

48 SASBADI HOLDINGS BERHAD (1022660-T) I BER AD (10 2 60-T) PRINCIPLE 5 – UPHOLD INTEGRITY IN FINANCIAL REPORTING Recommendation 5.1 – Compliance with Applicable Financial Reporting Standards The Directors are required by the Companies Act, 2016 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the Company at the end of the financial year under review and their results and cash flows for the financial year then ended. In addition, the financial statements are to be prepared in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016. The Board has delegated the task to the Audit Committee while maintaining overall responsibility for the financial statements. Information on the activities undertaken by the Audit Committee is set out in the Audit Committee Report of this Annual Report. Recommendation 5.2 – Suitability and Independence of External Auditors The Audit Committee reviews and monitors the suitability and independence of the external auditors on an annual basis. In addition, the Audit Committee has obtained confirmation from the external auditors that they are and have been independent throughout the conduct of the audit engagement. For FYE 31 August 2017, the fees incurred by the Group in relation to the non-audit services by the external auditors amounted to RM23,000. PRINCIPLE 6 – RECOGNISE AND MANAGE RISKS Recommendation 6.1 – Establishment of a Sound Framework to Manage Risks The Board recognises the importance of having effective governance embedding risk management and internal control processes, and acknowledges its overall responsibility for maintaining a sound risk management and internal control system and for reviewing their adequacy and effectiveness in order to safeguard stakeholders’ investments and the Group’s assets. Details on the risk management and internal control system of the Group are set out in the Statement on Risk Management and Internal Control of this Annual Report. Recommendation 6.2 – Establishment of an Internal Audit Function The Group has outsourced the internal audit function to a professional service firm which is independent of the activities and operations of the Group. The outsourced internal auditors report directly to the Audit Committee. Details on the internal audit function are set out in the Audit Committee Report and the Statement on Risk Management and Internal Control of this Annual Report. PRINCIPLE 7 – ENSURE TIMELY AND HIGH QUALITY DISCLOSURE Recommendation 7.1 – Appropriate Corporate Disclosure Policies and Procedures The Board takes cognisance of the need for the Group to comply with the applicable laws and regulations pertaining to corporate disclosures, handling of material information as well as maintenance of confidentiality. In this regard, the Group has been making the necessary announcements and issuing the necessary circulars and reports to shareholders in compliance with the disclosure requirements as set out in the MMLR of Bursa Securities on a timely and accurate manner. Recommendation 7.2 – Leverage on Information Technology for Effective Dissemination of Information Shareholders, investors and the general public are able to obtain information on the Group at the Company’s website, www.sasbadiholdings.com . In addition, the Investor Relations section within the Company’s website provides information such as the latest media coverage, announcements to Bursa Securities and press releases on the Group, to the shareholders, investors and general public. There is also a section on corporate governance within the Company’s website where shareholders, investors and the general public are able to access the Group’s Board Charter, Code of Conduct, Whistle-Blowing Policy and the respective Terms of Reference of the Board Committees. CORPORATE GOVERNANCE STATEMENT