KENANGA ANNUAL REPORT 2020

80 3 1 2 4 5 6 7 HOW WE ARE GOVERNED 3.5 Related Party Transactions During its quarterly meetings, the AC also reviewed the related party transactions and recurrent related party transactions entered into by the Company and/or its group of companies to ensure compliance with the MMLR. 3.6 Enhancement and Evaluation of Staff’s Understanding of KIBB Group’s Whistleblowing Framework KIBB Group had put in place the Whistleblowing Policy and Guidance Notes ( “Whistleblowing Policy” ) since January 2015. Apart from providing a comprehensive explanation on whistleblowing, the Whistleblowing Policy also detailed out the framework adopted by KIBB Group, outlined the obligations of the employees and set out the various channels to report any illegal or unethical practices. As a means to continuously educate, train and engage the employees of KIBB Group and to enhance their understanding on the Whistleblowing Policy, Group Business Ethics and Integrity of Group Regulatory and Corporate Services, had published a video on the Whistleblowing Policy via KIBB’s Learning Management System. The video was accompanied by a compulsory quiz aimed at evaluating the employees’ understanding of the Whistleblowing Policy as explained in the video. In this regard, the AC had, at its meeting on 29 April 2020, taken note of the results of the quiz and the findings in relation thereof, which would be used to identify gaps in knowledge and areas for improvement. 3.7 Compliance with the Guidelines on the Adequate Procedures Issues Pursuant to Section 17A of the Malaysian Anti-Corruption Commission Act 2009 The AC at its meetings on 29 April 2020 and 5 June 2020 was updated on the status of the assessment on KIBB Group in respect of its compliance with the Guidelines on Adequate Procedures ( “Guidelines” ) issued pursuant to Section 17A of the Malaysian Anti-Corruption Commission Act 2009. At the said meeting, the AC had observed that overall, as at March 2020, KIBB Group’s status of compliance with the aforementioned Guidelines was noted to be satisfactory where, from the total of eighty-six (86) requirements, the Group had complied with seventy (70) requirements (i.e. 81.4%), with the remaining sixteen (16) requirements targeted to be fully complied with by June 2020. Subsequently, at its meeting on 22 July 2020, the AC was updated that as at end of May 2020, KIBB Group had achieved 100% compliance with the requirements as stipulated in the Guidelines. 3.8 Disclosure for Annual Report 2019 Under its TOR, the AC was also tasked to review the accuracy and adequacy of the corporate governance and internal control disclosures, interim financial reports and preliminary announcements in relation to the preparation of financial statements. In this regard, the AC at its meeting on 24 March 2020 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 2019: • Audit Committee Report; • Statement on Risk Management and Internal Control; • Sustainability Statement; and • Corporate Governance ( “CG” ) Overview Statement and CG Report. The AC’s recommendation was subsequently approved by the Board of KIBB on 31 March 2020. At the same meeting, the AC had also granted its concurrence on the Chairman’s Statement and the Group Managing Director’s Management Discussion & Analysis. AUDI T COMMI TTEE REPORT