AUDIT COMMITTEE The AC’s role, amongst others, is to provide advice in the areas of financial reporting, external audit, internal control environment and internal audit process, review of related party transactions as well as conflict of interest situations. The AC is chaired by an INED who is not the Chairman of the Board. All members of the AC are financially literate. The Chairman of the AC is a qualified accountant and a member of the Malaysian Institute of Accountants. The AC has full access to both the internal and external auditors who, in turn, have access at all times to the Chairman of the AC. The role of the AC and the number of meetings held during the year under review as well as the attendance record of each member are set out in the AC Report in this Integrated Report. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK The Board is cognisant that a robust risk management and internal control framework helps the Group to achieve its corporate objective. This is done by providing risk-related information which facilitate the formulation of the Group’s strategies and decision making. The Group has established policies and framework related to management of its business risks by adopting a Risk Management Policy. The Group Risk Management Department reviews and maintains detailed risk registers which are updated quarterly. Key focus areas of risks are reported and deliberated at the RC meetings. The RC was established by the Board on 16 July 2019 in line with the MCCG Step Up Practice 10.3. The RC comprises a majority of INEDs. The RC reviews all major investments and business proposals including new business and expansion of existing business in accordance with the Company’s Limit of Authority and Investment Risk Appetite. The Board through the RC reviews the effectiveness, adequacy and integrity of the risk management framework and internal control system of the Group to ensure that significant risks faced by the Group are being managed appropriately to respond to the changes in the business environment. The Board confirms that it has monitored the Group’s risk management and internal control system and that there is a process in place to identify, evaluate and manage the significant risks faced by the Group. The Group’s system of internal financial control is primarily aimed at safeguarding the Group’s assets, ensuring proper accounting records are kept, identifying and managing business risk and maintaining compliance with appropriate legislations and regulations. The internal audit function is carried out by the Group Internal Audit (GIA) of Boustead Holdings Berhad. The GIA function reports directly to the AC and is independent of the activities which it audits. GIA’s authority, scope and responsibilities are governed by an Internal Audit Charter which is approved by the AC. Further information on the Group’s Risk Management and Internal Control framework is made available in the Statement on Risk Management and Internal Control of this Integrated Report. COMMUNICATION WITH STAKEHOLDERS Regular communication and engagement between stakeholders and the Group are critical for the sustainable growth of our business as this gives stakeholders a much better insight in to the Group and facilitates mutual understanding of each other’s expectations. As such we have consistently maintained an open dialogue with relevant stakeholder groups such as regulatory agencies, employees, shareholders, investors, consumers and general public, non-governmental associations, industry and trade associations and suppliers. Their views and concerns on the Company’s business, its policies on governance, the environment and social responsibility are given due consideration in our decision-making process. The protection of shareholders’ and stakeholders’ interests both in the short and long term is central to the way the Board operates. This has been the primary governing principle behind the Board’s response to the pandemic. Its impact on all key stakeholders was always considered in Management’s decisions. Effective engagement has been crucial in understanding the views of our stakeholders in order to make informed choices. The Group upholds its commitment in ensuring transparent, accurate and timely communication with the shareholders and stakeholders to enable them to make informed decisions to their benefit. The Group also places strong emphasis on timely and equitable dissemination of information to shareholders and stakeholders. The main modes of communication include the Integrated Report, quarterly results, announcements to Bursa Malaysia, Sustainability Report and its corporate website at www.bousteadplantations.com.my. Enquiries with regard to investor relation matters can be made to: corporate.office@bplant.com.my. Integrated Report 2023 109
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