KENANGA ANNUAL REPORT 2018

66 KENANGA INVESTMENT BANK BERHAD AUDIT COMMITTEE REPORT 1. COMPOSITION 1.1 The Audit Committee (“ AC ”) presently comprises five (5) members of the Board, four (4) of whom are Independent Non-Executive Directors and one (1) is a Non-Independent Non-Executive Director as follows: a. Jeremy Nasrulhaq Chairman, Independent Non-Executive Director b. Izlan Izhab Member, Independent Non-Executive Director c. Luk Wai Hong, William Member, Independent Non-Executive Director d. Kanagaraj Lorenz Member, Independent Non-Executive Director e. Ismail Harith Merican Member, Non-Independent Non-Executive Director 1.2 The composition of the AC is in line with Paragraphs 15.09(1)(a) and 15.09(1)(b) of Bursa Malaysia Securities Berhad (“ Bursa Securities ”)’s Main Market Listing Requirements (“ MMLR ”) which requires the AC to compose of no fewer than three (3) members, all of whom must be Non-Executive Directors, with a majority of them being Independent Directors. Two (2) of the AC members, namely Jeremy Nasrulhaq and Kanagaraj Lorenz are members of the Malaysian Institute of Accountants (“ MIA ”) and Malaysian Institute of Certified Public Accountants (formerly known as Malaysian Association of Certified Public Accountants) respectively, also in line with the requirements of the MMLR of Bursa Securities. 1.3 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 2018, 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 https://www.kenanga.com.my/AC_TOR.pdf. 2. AC MEETINGS HELD DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 2.1 During the Financial Year Ended 31 December 2018, the AC had convened seven (7) meetings. The meetings were appropriately structured where members were given the agenda and suf cient noti cation. The AC meetings were of adequate length to allow the AC to accomplish its agenda with suf cient 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 speci c issues arising from the internal audit reports. The Group Chief Financial and Operations Officer (“ GCFOO ”) on the other hand, attended the AC meeting to present the unaudited quarterly financial statements, audited 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 2018 and 26 October 2018 after tabling of the Audit Results in respect of the Financial Year Ended 31 December 2017 and the External Auditors’ 2018 Audit Plan respectively.