KENANGA ANNUAL REPORT 2017

DIRECTORS’ RESPONSIBILITY STATEMENT IN RESPECT OF THE AUDITED FINANCIAL STATEMENTS (Pursuant to Paragraph 15.26(a) of the MMLR) The Board is fully accountable for ensuring the Audited Financial Statements are prepared in accordance with the Companies Act, 2016 and the applicable approved accounting standards set out by the Malaysian Accounting Standards Board so as to present a true and fair view of the state of affairs of the Group and of the profit and loss and cash flow as at end of the accounting period. In preparing the Audited Financial Statements, the Directors are satisfied that the applicable approved accounting standards in Malaysia have been complied with and reasonable and prudent judgment and estimates have been made. The Audited Financial Statements are also prepared on a going concern basis, as the Board has a reasonable expectation, after having made enquiries that the Group has adequate resources, to continue its operational existence for the foreseeable future. ADDITIONAL INFORMATION Audit and Non-Audit Fees The details of the audit and non-audit fees payable to the External Auditors, Messrs. Ernst & Young (“ EY ”) and its affiliates, for the financial year ended 31 December 2017 are as tabulated below. Group (RM) KIBB (RM) Statutory Audit 463,700 295,000 Audit/Assurance Related 61,308 61,308 Non-Audit Fees – EY Assurance Team 289,500 255,000 Non-Audit Fees – EY Tax Team 113,800 46,000 Total Non-Audit 403,300 301,000 Grand Total 928,308 657,308 Related Party Transactions (“RPTs”) and Recurrent Related Party Transactions (“RRPTs”) All RPTs and RRPTs are reviewed by GIA on a quarterly basis and a report is submitted to the AC for its review. Details of these transactions are set out under Note 36 of the Financial Statements section appearing on pages 156 to 158 of this Annual Report. Material Contracts Involving Interests of Directors, Chief Executive Officer Who is Not a Director or Major Shareholders There were no material contracts entered into by the Company or its subsidiary companies involving Directors, GMD or major shareholders’ interests, which subsisted at the end of the financial year ended 31 December 2017. Utilisation of Proceeds Raised from Corporate Proposals On 20 April 2017, the Company issued the first issuance of RM5 million Subordinated Notes under the RM250 million in nominal value Tier 2 Subordinated Note Programme which was established on 27 March 2017. The proceeds from the issuance are being utilised by the Company for working capital requirement. Details on the utilisation of proceeds are set out under Note 26 of the Financial Statements section appearing on page 150 of this Annual Report. This Statement on Corporate Governance is made in accordance with a resolution of the Board of Directors dated 27 March 2018. IZLAN IZHAB Chairman of the Board Kenanga Investment Bank Berhad 50 corporate governance overview statement