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SUSTAINABILITY EFFECTIVE CORPORATE FINANCIAL ADDITIONAL DETAILS OF THE ANNUAL
REPORT LEADERSHIP GOVERNANCE STATEMENTS INFORMATION GENERAL MEETING

(iii) Performance of the Johor refinery and the impact of 2) Recent developments in laws and regulations
the loan covenants. covering the following:
(iv) Sales of plantation land in Perlis. i. New Accounting and Auditing Standards.

(v) CIMB Islamic loan modification impact. ii. Recent Tax Developments.
• Held four (4) meetings with PwC in February, May, iii. Section 17A of the Malaysian Anti-Corruption
August and November 2020 to review the financial Commission Act 2009.
results and areas of concern identified from review of
the financial results prior to the approval by the Board. 3) Declaration of PwC’s independence as external
During the year, amongst matters discussed are the auditor. 95
following:
• Analysed the external audit fees proposed in respect
(i) Assessment of onerous contracts provision in of the scope of work required for the financial year and
respect of forward sales export contracts. recommended the same for approval by the Board.
(ii) Impairment assessment on goodwill from Sugar • Reviewed the assessment of PwC as the external
Cluster. auditor for financial year 2019 for reappointment based
on input from Management and recommended the
(iii) Status and performance of the Johor Refinery. same for approval by the Board.
(iv) Assessment of the Group’s plantation operations Related Party Transactions
in accordance with MFRS 5. MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
• Analysed the quarterly report on Recurrent Related
(v) Recoverability of trade receivables above credit Party Transactions for monitoring of the transactions
th
terms and credit limit assessment. against the shareholders’ mandate from the 9 AGM held
on 17 June 2020.
(vi) Inventory management.
• Reviewed the Circular to the shareholders to seek
• Reviewed and approved the External Auditor’s Audit Plan mandate on the existing and new Recurrent Related
and scope of work on 11 August 2020, which covered: Party Transactions of the Group and recommended the
same for approval of the Board.
1) The focus areas planned for the 2020 financial audit
by PwC as follows: • Reviewed the internal audit report on review of the
Recurrent Related Party Transactions procedures.
i. Risk of Management override of controls
(in line with International Standard of Auditing Integrity, Governance & Risk Management
requirement).
• Reviewed the quarterly Progress Report on Corporate
ii. Recoverability of non-current assets (including Governance Activities, Group Risk Register Report and
Goodwill). Business Continuity Management (“BCM”).

iii. Recoverability of inventories and adequacy • Reviewed the Limit of Authority (“LOA”) for MSM Group
provision of onerous contracts. of Companies.

iv. Ensuring revenue is recognised in the correct • Reviewed the Anti-Bribery Policy Statement and
accounting period and that transaction price Whistleblowing Policy for MSM Group pursuant to
is appropriately supported. the Paragraph 15.29 of MMLR and Section 17A of the
Malaysian Anti-Corruption Commission (“MACC”)
v. Rationalisation plan by Management – closure
of MSM Perlis Sdn Bhd’s factory operations. Act 2009 (Amended 2018) which came into force on
1 June 2020.
vi. Risk on non-compliance of financial covenants
attached to the construction of new sugar
refinery.