2020 UEM Edgenta Annual Report

The Board is pleased to present the Audit Committee (“AC”) Report which provides insights on how the AC discharge its function and duties for the financial year ended 31 December 2020. The AC assists the Board in its oversight of the Company’s financial reporting, and in fulfilling its fiduciary responsibilities relating to internal controls. This includes maintenance of financial and accounting records and setting policies as well as financial reporting practices of the Group. It also reviews related party transactions and conflict of interest situations that may arise within the Group. COMPOSITION The composition of the AC and meeting attendance for financial year 31 December 2020 are available in pages 122 to 123 of the Corporate Governance Overview Statement. SUMMARY OF WORK OF THE AC During the year, the Chairman of AC met the Internal Audit team regularly and had pre-meeting discussions of their activities and reports. In line with the terms of reference of the AC, the following works were carried out by the AC during the financial year ended 31 December 2020:- A. FINANCIAL STATEMENTS AND CORPORATE GOVERNANCE 1. Reviewed the quarterly and annual financial statements of the Company and of the Group; and recommended them for Board’s approval, focusing particularly on: a. appropriateness and relevance of accounting policies and practices adopted and their application; b. any significant non-recurrent or unusual year-end transactions made or events occurred during the year; c. any significant changes to the basis of preparation of the financial statements or new accounting standards adopted during the year which impacted the result or financial position of the Group; d. the going concern assumption used in the preparation of the financial statement; e. significant accounting matters highlighted which included financial reporting issues, estimates or judgements made by Management, unusual events or transactions, and how these matters are addressed; and f. compliance with financial reporting standards and other regulatory requirements. 2. Reviewed recurrent related party transactions of a revenue or trading nature which are necessary for the day-to-day operations in the ordinary course of business of the Company and its subsidiaries to ascertain as to whether they are undertaken on an arm’s length basis on normal commercial terms not more favourable to the related parties than those generally available to the public or those extended to unrelated parties and are not detrimental to the minority shareholders. UEM EDGENTA BERHAD 134 Governance AUDIT COMMITTEE REPORT