Sasbadi Annual Report 2020

SASBADI HOLDINGS BERHAD 40 PRINCIPLE B : EFFECTIVE AUDIT AND RISK MANAGEMENT 1. Audit Committee The Audit Committee comprises the following members: Chairman : Tang Yuen Kin (Independent Non-Executive Director) (appointed on 30 July 2020) Lim Hun Soon @ David Lim (Independent Non-Executive Director) (resigned on 30 July 2020) Members : Dato’ Salleh Bin Mohd Husein (Independent Non-Executive Chairman) Dato’ Noor Rezan Binti Bapoo Hashim (Senior Independent Non-Executive Director) Please refer to the Audit Committee Report contained in the Annual Report for more information. 2. Risk Management and Internal Control Framework The Board recognises the importance of having effective governance, embedding risk management and internal control processes. The Board also acknowledges its overall responsibility for maintaining a sound risk management, internal control system and reviewing their adequacy and effectiveness in order to safeguard stakeholders’ investments and the Group’s assets. Details of 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. The Group has outsourced the internal audit function to a professional services firm, Sterling Business Alignment Consulting Sdn. Bhd., which is independent of the activities and operations of the Group. The outsourced internal auditors report directly to the Audit Committee. Details of 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. 3. Relationship with the 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 the FYE 31 August 2020, the fees incurred by the Group in relation to the non-audit services by the external auditors amounts to RM15,000. The external auditors, KPMG PLT had on 29 July 2020 informed the Audit Committee that they would not be seeking for re-appointment as external auditors of the Company for the financial year ending 31 August 2021. An assessment on the suitability and independence of the proposed external auditors, BDO PLT was carried out on 8 December 2020. The Audit Committee was satisfied with the results of the aforesaid assessment and made recommendation to the Board for the appointment of BDO PLT as the external auditors of the Company, in place of the retiring auditors, KPMG PLT, for the financial year ending 31 August 2021 at the forthcoming 8th AGM. The Board having received the recommendation from the Audit Committee, were in consensus to recommend for the shareholders’ approval at the Company’s forthcoming 8th AGM the appointment of BDO PLT as external auditors of the Company for the financial year ending 31 August 2021, and at a remuneration and terms to be agreed upon with the Company. CORPORATE GOVERNANCE OVERVIEW STATEMENT (continued)