SUMMARY OF THE ACTIVITIES OF AC cont’d (4) Related Party Transactions (a) Reviewed and considered any related party transactions (“RPTs”) and conflict of interest situations that may arise within the Company or the Group, including any transactions, procedure or course of conduct that may raise questions of Management integrity or impartiality. (b) Reviewed the RPTs and RRPTs on a quarterly basis to ensure that the transactions entered into were at arm’s length basis and on normal commercial terms and not detrimental to the interests of the noninterested shareholders of the Company. (c) Reviewed the Circular to Shareholders in respect of the RRPTs prior to recommending for the Board’s approval on 22 April 2022 to seek shareholders’ mandate at annual general meeting of the Company. (5) Corporate Governance and Regulatory Compliance (a) Reported to and updated the Board on significant issues and concerns discussed during the AC meetings and where appropriate, made the necessary recommendation to the Board. (b) Reviewed the Audit Committee Report and Statement on Risk Management and Internal Control (particularly items related to internal controls) prior to recommending for Board’s approval and inclusion in the Company’s Annual Report. (c) Conducted a self-assessment exercise to evaluate their own effectiveness in discharging their duties and responsibilities. (d) Reviewed the TOR of the AC and Tax Policy prior to recommending for Board’s approval. (e) Reviewed the internal controls for hedging and Information Technology with the assistance of the External Auditors. INTERNAL AUDIT FUNCTION The primary role of the internal audit function is to undertake regular and systematic review of the systems of internal control so as to provide sufficient assurance that the Group has a sound system of internal control and that established policies and procedures are adhered to. A risk-based audit approach is implemented to ensure that higher risk activities in each auditable area are audited more frequently. This is designed to evaluate and enhance risk management, control and governance processes to assist the Management in achieving its corporate goals. The audits further help to ensure that appropriate instituted controls are in place and effectively applied, and risk exposures are mitigated to an acceptable level in accordance with the Group’s risk management policy. The Group has an in-house Internal Audit Department (“Group Internal Audit”) which provides the internal audit function to the Group. The Group Internal Audit is additionally supported by a professional firm providing specific outsourced internal audit services, namely Baker Tilly Monteiro Heng Governance Sdn Bhd (“BTMHG”) who conducted the independent internal audit review on the related party transactions (“RPT”). Both Group Internal Audit and BTMHG report directly to the AC. The Company has put in place internal controls, guidelines and procedures to ensure that RPTs and RRPTs are entered into on normal commercial terms and on terms which are not more favourable than those generally available to third parties dealing on arms’ length basis and are not detrimental to the minority shareholders of the Company. AUDIT COMMITTEE REPORT Cont’d PRESS METAL ALUMINIUM HOLDINGS BERHAD 69
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