Wah Seong Corporation Berhad Annual Report 2020

44 WAH SEONG CORPORATION BERHAD b. The AC at its meeting held on 8 April 2020 reviewed the following proposals of the Group for inclusion in the Circular to Shareholders pursuant to Bursa Malaysia Securities Berhad’s Main Market Listing Requirements for the Board’s approval:- • The proposed renewal of shareholders’ mandate for the existing recurrent related party transactions of a revenue or trading nature and provision of financial assistance between the Company and/or its subsidiaries; and • The proposed new shareholders’ mandate for additional recurrent related party transactions of a revenue or trading nature and provision of financial assistance between the Company and/or its subsidiaries. 3.5 Risk Management a. On 18 February 2020, 20 May 2020, 27 August 2020 and 24 November 2020 respectively, the AC reviewed and deliberated on the key and significant risks presented and discussed at the respective Risk Management Committee meetings held quarterly taking into consideration of the Group risks profile and risk appetite. b. On 18 February 2020 and 20 May 2020 respectively, the AC deliberated on the impact of the COVID-19 virus outbreak on the Group’s operations and discussed on the necessary measures to be taken by the Group to mitigate the health risks including monitoring of employees’ health condition and creating awareness on preventive measures, restriction of non-essential travel overseas and implementation of working from home in addition to complying with the Standard Operating Procedures and other regulations and directives as issued and enforced by the respective governmental and regulatory bodies. c. The AC had on 8 April 2020 and 20 May 2020 deliberated on the impact of the COVID-19 pandemic on the Group’s business and financial performance which was further affected by the sharp decline in oil prices. As part of the Group’s cost cutting initiatives, certain subsidiaries within the Group had undertaken rightsizing exercises and a salary cut of up to 20% across the Group’s Management up to the level of Chief Executive Officer was implemented. d. On 18 February 2020, 8 April 2020 and 20 May 2020, the AC had deliberated on the establishment of adequate procedures on anti-bribery and anti-corruption in compliance with Section 17A of the Malaysian Anti-Corruption Commission (“MACC”) Act 2009 including the establishment of the Anti-Bribery and Corruption Policy by the Group in line with Paragraph 15.29 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the implementation of training programs on anti-bribery and anti- corruption, the embedment of the bribery and corruption risk in the risk register and in the annual risk assessment of the Group, and the development and implementation of the ISO 37001 Anti-Bribery Management Systems (“ABMS”) by the Group’s Oil and Gas Division as prerequisite for ISO 37001:2016 Certification by SIRIM. 3.6 Internal Audit a. On 18 February 2020, 20 May 2020, 27 August 2020 and 24 November 2020 respectively, the AC reviewed the major findings in the Internal Audit Reports prepared by the Group Internal Audit together with the recommendations and the Management’s response to the findings. b. On 24 November 2020, the AC reviewed the Group Internal Audit Plan for year 2021 encompassing the proposed financial year 2021 (“FY 2021”) audit activities, risk assessment, key processes, COSO Framework, Quality Assurance Review (“QAR”), manpower planning, proposed entities and processes with scope of audit for FY 2021, proposed FY 2021 Key Performance Indicators and the proposed budget for FY 2021, as well as the performance review for the financial year 2020. 3.7 Capital Expenditure On 18 February 2020, 20 May 2020, 27 August 2020 and 24 November 2020 respectively, the AC reviewed the capital expenditures on a quarterly basis to monitor and ensure that the expenditures were within the approved budget for 2019 and the budget being approved for the first, second and third quarters of 2020 respectively. AUDIT COMMITTEE