125 How We Are Governed Financial Statements Shareholders’ Information Additional Information 3. SUMMARY OF THE AC’S ACTIVITIES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 3.1 Financial Reporting a. In discharging its role and responsibility pertaining to the Company’s financial reporting, the AC had at its meeting held on 25 January 2021, reviewed the quarterly financial statements for the quarter ended 31 December 2020, as well as the annual audited financial statements in respect of the Financial Year Ended 31 December 2020. In reviewing the annual audited financial statements, the AC discussed with Management and the External Auditors, the accounting principles and standards that were applied and their judgment of the items that might affect the financial statements. The AC also deliberated on audit issues and key audit matters raised by the External Auditors and the action plans required to address those issues, based on the External Auditors’ recommendations. b. The subsequent quarterly financial statements for the quarters ended 31 March 2021, 30 June 2021 and 30 September 2021 were tabled and reviewed by the AC at its quarterly meetings held on 27 April 2021, 28 July 2021 and 27 October 2021 respectively, upon which the AC had recommended the quarterly financial statements to the Board for approval. c. At its meeting held on 24 February 2021, the AC also reviewed the update on Transfer Pricing (“TP”) including the outcome of the review conducted by Deloitte Tax Services Sdn Bhd, who was engaged to conduct a review on the TP methodologies in 2020, together with the key recommendations identified to strengthen the procedures put in place by KIBB Group in managing the TP in accordance with the Income Tax (Transfer Pricing) Rules 2012 and the requirements of the Inland Revenue Board of Malaysia. d. The AC had, at its meeting held on 27 October 2021, reviewed the adoption of the impairment approach and the assumptions used in the annual assessment for impairment of assets of KIBB Group for the Financial Year Ended 31 December 2021 and recommended the same for the Board’s approval, subject to a final assessment to be updated to the position as at 31 December 2021. e. At each of its quarterly meeting, the AC was also notified of the amount of non-audit fees incurred and paid by KIBB Group to the External Auditors and their affiliate to ensure compliance with the Group’s Policy on Non-Audit Services by External Auditors. 3.2 External Audit a. The report by the External Auditors on the statutory audit of the financial statements of the Company for the Financial Year Ended 31 December 2020 was reviewed and deliberated by the AC at its meeting held on 25 January 2021. During its deliberations, in addition to the relevant disclosures in the Audited Financial Statements, the AC had also considered the recommendations made by the External Auditors towards enhancing internal controls and procedures.
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