KUMPULAN FIMA ANNUAL REPORT 2016

page

KUMPULAN FIMA BERHAD

(11817-V) |

Annual Report

2016

INTRODUCTION

The Board acknowledges that the practice of good corporate governance is an on-going process and not just

an annual matter to be covered as compliance in the Annual Report. The Board is committed to practise the

highest standards of corporate governance and observing best practices throughout the Group. The Board’s

Statement on Risk Management and Internal Control is in compliance with Paragraph 15.26(b) of the Bursa

Malaysia Securities Berhad’s Main Market Listing Requirements and the Statement on Risk Management

and Internal Control: Guidelines for Directors of Listed Issuers.

RESPONSIBILITY

The Board recognises their responsibility for the Group’s system of internal control, which is designed to

identify and manage the principal risks facing the business in pursuit of its objectives, to review its adequacy

and integrity and to ensure good corporate governance. The Management is accountable to the Board for

monitoring the Group’s system of internal control and for providing assurance to the Board that it has done

so.

The systemof internal control covers riskmanagement, financial, operational, administration, human resource,

information technology and compliance controls to safeguard shareholders’ investments and the Group’s

assets. This system is designed to manage rather than to eliminate the risk of failure to achieve business

objectives and can only provide reasonable but not absolute assurance against material misstatement or

loss.

The Board has received assurance from the Group Managing Director (“Group MD”) and Chief Financial

Officer that the Group’s risk management and internal control system is operating adequately and effectively,

in all material aspects, based on the Group’s risk management and internal control system.

WHISTLEBLOWING POLICY

To reinforce the culture of good business ethics, the Group has also introduced a whistleblowing framework

and policy to provide an avenue for stakeholders and employees to raise genuine concerns internally or

report any suspected breach or wrongdoing, which includes fraud, misappropriation of assets, breach of any

law or regulation, including the Group’s policies and procedures, to the Group MD and/or Chairman of Audit

Committee without fear of reprisals.

Procedure

Any concerns should be raised with immediate superior. If for any reason, it is believed that this is not

possible or appropriate, then the concern should be reported to the Group MD:

Name

Dato’ Roslan bin Hamir

Via Email

Via Mail

Mark: Strictly Confidential

Kumpulan Fima Berhad

Suite 4.1, Level 4, Block C

Plaza Damansara

No. 45, Jalan Medan Setia 1

Bukit Damansara, 50490 Kuala Lumpur

Attention: Group Managing Director