FGV Annual Report 2015

114 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Statement on Corporate Governance Summary of activities of the Audit Committee The Chairman of the Audit Committee reported every quarterly to the Board on the activities carried out and principal matters deliberated by the Audit Committee in the discharge of its duties and responsibilities as set out in the Audit Committee’s Terms of Reference. The minutes of each meeting were circulated to the Board at the most practicable next Board Meeting. In the discharge of its responsibilities and duties, the Audit Committee undertook the following principal activities during the financial year: 1) Assessing the Risks and Control Environment • Evaluated the adequacy and effectiveness of the system on internal controls by reviewing the outcomes of work performed by internal and external auditors and discussions with the key Management. • Reviewed the progress reports of the Management Audit Committee, which is a platform to monitor the resolution of issues from the external auditors’ report and internal audit reports. 2) Overseeing Financial Reporting • Reviewed the financial performance of the Group on a quarterly basis from a presentation by the FGV Chief Financial Officer. This included information on performance by clusters. • Reviewed the following matters and subsequently recommended their approval to the Board: - The announcements of the Quarterly Unaudited Financial results for the financial year. - The Audited Financial Statements of the Group for the financial year 2014 to ensure that the financial reports presented a true and fair view of the Company’s financial performance and complied with regulatory requirements. - The dividend proposals by the Company which are aligned to the Dividend Policy. - The revision of assumptions for calculation of Land Lease Liability and its impact to the financial statements. - The Foreign Exchange Hedging Policy. - The Report on the Audit Committee to be included in the Annual Integrated Report for the financial year 2014. 3) Reviewing the External Audit Process • Approved the external auditor’s terms of engagement, audit plan and coordination with other audit firms involved in auditing the Group’s operations for the financial year. • Reviewed the external audit fees proposed in respect of the scope of work required for the financial year and recommended the same for approval by the Board. • Reviewed the results and issues arising from the external audit for financial year 2014 and from quarterly reviews of the 2015 financial statements including resolution of the issues highlighted in their report to the Audit Committee and the Management’s responses. The external auditors were present at five (5) Audit Committee Meetings during the financial year for this purpose. • Reviewed the assessment of the external auditors for financial year 2014 for the subsequent year reappointment based on input from management and recommended the same for approval by the Board. • Met with the external auditors in private meetings without the presence of Management twice (2) during the year to confirm that there were no restrictions on the scope of their audit and to discuss any related matter. • Reviewed the External Auditor Policy covering the appointment, assessment, independence maintenance, partner rotation every 5 years and non-audit services and recommended the same for approval by the Board. The details of the External Auditor Policy are further explained at page 116 of this Annual Integrated Report. • Approved the non-audit services by the External Auditor which exceeded 25% of the annual fee for audit of the statutory financial statements of the Group per the External Auditor Policy. • Reviewed the non-audit services provided by the external auditor for financial year 2014.