Serba Dinamik Annual Report 2021

Integrated Report 2021 235 1. Audit & Risk Committee (“ARC”) The terms of reference of the ARC are set out under the Audit Committee Report in this Annual Report. ARC comprises three (3) Independent Non-Executive Directors and one (1) Non-Independent Non- Executive Director. ARC is chaired by a Senior Independent Non-Executive Director, Encik Hasman Yusri bin Yusoff and he is not the Chairman of the Board. However, on 21 June 2021 onwards Encik Johan bin Mohamed Ishak has chaired the ARC and he is not the Chairman of the Board. The Chairman of ARC complies with paragraph 15.09(1)(c)(i) of MMLR, and the Chairman is a member of the Malaysian Institute of Accountants. ARC took note of the Practice 8.2 of the MCCG 2021 and the Board has approved the adoption of the policy that requires a former key audit partner to observe a cooling-off period of at least two (2) years before being appointed as a member of the ARC. This is to safeguard the independence of the ARC by avoiding the potential threats which may arise when a former key audit partner is able to exert significant influence over the audit and preparation of the Group’s financial statement. ARC evaluated the performance of the external auditors for the financial year ended 30 June 2021 covering areas such as calibre of external audit firm, independence and objectivity, performance of external audit firm, audit team, audit scope and planning and audit fees. After due consideration by the ARC of the suitability, objectivity, independence and performance of the external audit firm, NEXIA SSY PLT, as prescribed under Paragraph 15.21 of the MMLR, the ARC had recommended to the Board for approval, the re-appointment of NEXIA SSY PLT as external auditors for the financial year ending 30 June 2021. ARC had also obtained written assurance from the external auditors, NEXIA SSY PLT that they are independent of the Group, and NEXIA SSY PLT has fulfilled other ethical responsibilities in accordance with the By-Laws of the Malaysian Institute of Accountants and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants. ARC meets at least four (4) times a year. Information on the ARC is presented Audit Committee Report in this Annual Report. 2. Risk Management & Internal Control The Board acknowledges their responsibility for the Group’s system of risk management and internal control, which is designed to identify andmanage the risks of the businesses of the Group, in pursuing of its objectives. The systemof risk management and internal control spans over financial, operational and compliance aspects, particularly to safeguard the Group’s assets and hence shareholders’ investments. In this case, the ARC is responsible to assist the Board in ensuring the adequacy and effectiveness of risk management & internal control. CORPORATE GOVERNANCE OVERVIEW STATEMENT