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CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

CORPORATE GOVERNANCE OVERVIEW STATEMENT

PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT

Audit, Governance and Risk Committee

The Board has established an Audit, Governance and Risk Committee (“AGRC”) to provide robust oversight on financial
reporting, external and internal audit processes, and related party transactions. The AGRC members possess the requisite
financial literacy and business knowledge that the support the sound understanding of matters under their purview.
The AGRC has unrestricted access to both the internal and external auditors, who report functionally and directly to the
AGRC. The AGRC has established transparent arrangements to maintain an appropriate relationship with the Company’s
external auditors. The external auditor has provided assurance that its personnel are and have been independent throughout
88 the conduct of the audit in accordance to the terms of relevant professional and regulatory requirements.

Oversight of Financial Reporting
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
The Board ensures that Shareholders are presented with a clear, balanced and comprehensive view of the Group’s financial
performance and prospects through the audited financial statements, quarterly announcement of financial results,
the Chairman’s Statement and the Management Discussion and Analysis (“MD&A”) on page 122, page 47, page 4 and page 34
in this Annual Report as well as corporate announcements on significant developments affecting the Company in accordance
with the MMLR. The Directors considered the compliance with all applicable financial reporting standards, provision of the
Companies Act, 2016 and relevant provision of laws and regulations in Malaysia.

The AGRC updates the Board on the matters deliberated in its meetings. Details on the summary of work carried out during the
year is set out in the AGRC Report on page 93 of this Annual Report.
Corporate Governance Matters

We are committed to excellence in corporate governance, transparency and accountability. All those are vital in supporting our
business in executing its strategy and in generating long-term shareholder value. Below are the initiatives taken in place:

Governance

• Establishment of MSM Group’s Limit of Authorities.

• Revision of Financial Closing and Reporting Requirement Policy, Investment Policy and Property, Plant and Equipment Policy.
• Whistleblowing Policy

The Board, in promoting healthy corporate culture encourages employees to report genuine concerns in relation to
breach of a legal obligation, miscarriage of justice, danger to health and safety, has put in place a Whistleblowing Policy
(“Policy”) that provides clarity of oversight and responsibilities of the whistleblowing process, the reporting process
and protection to whistleblowing process, the reporting process and protection to whistleblowing and confidentiality
afforded to the whistleblowing.
The Policy which allows the reporting individual to report on alleged unethical behaviour within the Group was
established with the aim to maintain the highest standard of ethics and legal conduct within the Group.
Further information on the implementation of the Policy can be found in the CG Report 2020 and published in the
Company’s corporate website at http://www.msmsugar.com/our-company/corporate-governance.