KUMPULAN FIMA ANNUAL REPORT 2016

page

KUMPULAN FIMA BERHAD

(11817-V) |

Annual Report

2016

In the case where reporting to Management is a concern, then the report should be made to the Chairman

of Audit Committee. Channel of reporting to the Chairman of Audit Committee is as follows:

Name

Encik Azizan bin Mohd Noor

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: Chairman of Audit Committee

The above mechanism protects employees and stakeholders who contemplate to “blow the whistle” against

victimisation or harassment. The confidentiality of all matters raised and the identity of the whistleblower are

protected under the policy.

INTERNAL CONTROL

The key processes that the Board has established in reviewing the adequacy and integrity of the system of

internal control and risk management systems include the following:

4.1 Operational and follow-up audits are conducted throughout the financial year based on approved annual

audit plan to provide reasonable assurance that the systems of internal controls and its framework, and

governance processes put in place by Management continue to operate satisfactorily and effectively

and to add value and improve the Group’s business operations.

4.2 The Heads of Divisions meet on a monthly basis to consider Group’s financial performance, internal

audit reports, business development, legal/litigation, operational, and corporate issues.

4.3 There is a budgeting and forecasting system. Each line of business submits a business plan annually

for approval by the Board. The results of the lines of businesses are reported monthly and variances

are analysed against budget and acted on in timely manner. The Group’s strategic directions are also

reviewed annually taking into account changes in market conditions and significant business risks.

4.4 The periodic and streamlining review of limits of authority and other standard operating procedures

within the Group provides a sound framework of authority and accountability within the organisation and

to facilitate quality, well informed and timely corporate decision making at the appropriate level in the

organisation’s hierarchy.

4.5 The compliance function, which includes the Audit Committee and internal audit function, assists the

Board to oversee the management of risks and review the effectiveness of internal controls. The

Committee reviews reports of the Group Internal Audit (“GIA”) and also conducts annual assessment

on the adequacy of the GIA’s scope of work.