KENANGA ANNUAL REPORT 2019

K E N A N G A I N V E S T M E N T B A N K B E R H A D A n n u a l R e p o r t 2 0 1 9 74 AUDIT COMMITTEE REPORT 1. COMPOSITION 1.1 The Audit Committee (“ AC ”) presently comprises four (4) Independent Non-Executive Directors and one (1) 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 the Main Market Listing Requirements (“ MMLR ”) of Bursa Malaysia Securities Berhad 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. 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 of Directors (“ 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://kenanga.com.my/investor-relations. 2. AC MEETINGS HELD DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 2.1 During the Financial Year Ended 31 December 2019, the AC had convened six (6) 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 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.