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 80 3.4 Regulatory Examinations/ Inspection Report As stipulated in its TOR, the AC also deliberates on reports issued by the regulators arising from their examinations or inspections on entities within KIBB Group. This is to ensure proper implementation of appropriate remedial and corrective measures in respect of the findings arising from examinations/ inspections conducted by the regulators. However, during the year under review, there was no such report tabled to the AC. 3.5 Related Party Transactions During its quarterly meetings, the AC also reviewed the related party transactions and recurrent related party transaction entered into by the Company and/ or its group of companies to ensure compliance with the MMLR of Bursa Malaysia Securities Berhad. However, during the year, except for a recurrent related party transaction the value of which was below the threshold to make announcement to Bursa Malaysia Securities Berhad as required under the MMLR of Bursa Malaysia Securities Berhad, there was no material related party transactions entered into or committed by the Company and/ or its subsidiaries, with related party, as defined under the MMLR of Bursa Malaysia Securities Berhad. 3.6 Enhancement to KIBB Group’s Whistleblowing Framework As part of its responsibility of ensuring the adequacy and effectiveness of internal controls within KIBB Group, the AC at its meeting on 25 July 2019 had deliberated on the effectiveness of the whistleblowing framework of KIBB Group. During its deliberation, the AC had suggested for measures to be put in place to enhance the awareness and education programme relating to KIBB Group’s Whistleblowing Framework amongst its employees. 3.7 Disclosure for Annual Report 2018 Under its TOR, the AC is also tasked to review the accuracy and adequacy of the Chairman’s Statement in the Directors’ Report, corporate governance disclosures and internal control, interim financial reports and preliminary announcements in relation to the preparation of financial statements. In this regard, the AC at its meeting on 25 February 2019 had also reviewed and recommended to the Board of KIBB for approval, the disclosure of the following reports and/or statements in KIBB’s Annual Report 2018: • Audit Committee Report; • Statement on Risk Management and Internal Control; and • Corporate Governance Overview Statement and Corporate Governance Report. The AC’s recommendation was subsequently approved by the Board of KIBB on 28 February 2019. AUDIT COMMITTEE REPORT