KENANGA ANNUAL REPORT 2017

1.4 The effectiveness of the AC as a whole, as well as its members individually, is assessed annually in accordance with the Board Evaluation Framework based on set criteria covering the areas of composition, processes and procedures, interaction with Management, as well as roles and responsibilities. Based on the assessment conducted in 2017, the Board is satisfied with the performance of the AC and with the manner in which the AC has discharged its roles and responsibilities as stipulated in its Terms of Reference (“ TOR ”), which is available at the Company’s corporate website at www.kenanga.com.my . 2. AC MEETINGS HELD DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 2.1 During the financial year ended 31 December 2017, the AC had convened seven (7) meetings. The meetings were appropriately structured where members were given the agenda and sufficient notification. The AC meetings were of adequate length to allow the AC to accomplish its agenda with sufficient time to discuss the emerging issues. The AC conducted its meeting in an open and constructive communication mode and encouraged focused discussion, questioning and expressions of differing opinions. 2.2 The Group Chief Internal Auditor (“ GCIA ”) attended all meetings of the AC to present the respective internal audit reports. As and when necessary, the AC would request the attendance of relevant personnel at its meetings to brief the AC on specific issues arising from the internal audit reports. The Group Chief Financial and Operations Officer (“ GCFOO ”) on the other hand, attended the AC meetings to present the unaudited quarterly financial statements, as well as other financial reporting related matters for the AC’s deliberation and recommendation to the Board for approval. 2.3 In addition, separate private discussions were also held between the Chairman of the AC and/or the AC with the GCIA and between the AC and the External Auditors, without the presence of Management. During the financial year under review, the AC met with the External Auditors without Management’s presence twice, i.e. on 25 January 2017 and 25 October 2017 after tabling of the Audit Results in respect of the financial year ended 31 December 2016 and the External Auditors’ 2017 Audit Plan respectively. During these meetings, the AC sought the feedback from the External Auditors with regard to the support provided by Management in terms of providing timely and accurate information, as well as the adequacy of resources in the financial reporting functions. Based on the External Auditors’ feedback, Management was noted to have provided full cooperation to the External Auditors in the course of the External Auditors’ audit assignments. The External Auditors had also indicated that Management had been very pro-active in approaching them for any issues arising during the year, which contributed to an effective audit planning by the External Auditors. 2.4 In fulfilling its reporting responsibility to the Board, after each meeting, the Chairman of the AC reported the AC’s deliberations and recommendations to the Board. Minutes of each AC meeting were recorded and tabled for confirmation at the following AC meeting and subsequently presented to the Board for notation. Kenanga Investment Bank Berhad 60 audit committee report