FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 112 HOW WE ARE GOVERNED audit observations and any related matters towards improving the governance, risk and control processes of FGV Group. 5. Reviewed recurrent related party transactionsmonitoring of the Group a. Reviewed the report on the recurrent related party transactions of the Group and took note that the related party transactions were within the mandate from the Shareholders. 6. Reviewed statements included in the Company's Annual Integrated Report 2015 a. Reviewed the Report on the Audit Committee, the Statement on Risk Management and Internal Control and the Statement on Corporate Governance to be included in the Company's Annual Integrated Report 2015 and recommended the same to the Board for approval. The Statement on Risk Management and Internal Control was reviewed reflecting on the reports of the external and internal auditors on the risks and control environment of the Group and related matters that have been brought to the Audit Committee and the Board during the related financial year. MATTERS CONSIDERED BY THE AUDIT COMMITTEE The Audit Committee Chairman updated the Board on matters deemed to be of major importance deliberated at the Audit Committee Meetings and its recommendations. The copies of confirmed minutes of each of the Audit Committee Meeting were also circulated to the Board for noting at the next practicable Board Meeting. Amongst the significant matters considered by the Audit Committee during the year 2016: c. Performed the following at the meeting on 15 November 2016: • Reviewed and approved the internal audit plan for the financial year ending 31 December 2017 together with the scope, functions, resources, budget and key performance indicator of the Group's internal audit function and reported to the Board accordingly. • Assessed the performance of the Chief Internal Auditor, which included assessment of the effectiveness of theGroup's internal audit function with reference to the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing. • With reference to assessment of the Chief Internal Auditor's performance, proposed her promotion, increment, adjustment and renewal of her contract of employment. The Chairman of the Audit Committee held three (3) private meetings and discussions with the Chief Internal Auditor and her management team to discuss developments which were relevant for the internal audit work, to give direction for a more effective audit plan, to be apprised of or give guidance on any major internal Significant matters How these matters were addressed by the Audit Committee CPO Trading • Requested Management to improve the overall trading activities and establish a more comprehensive reporting and analysis of identifying trade profit and foreign exchange profit Foreign Exchange Management • Chairman of the Audit Committee discussed with Management including the Chief Risk Officer to address the issue on Foreign Exchange Management • Requested Management to review and amend the Foreign Exchange Management Policy to reflect the current requirement Sugar Trading • Requested Management to improve on the monitoring process of the trading activities Impairment and provisions • Reviewed the assessments of impairment and provision exposures of various assets, investments and onerous contracts by the external auditor based on applicable financial reporting standard Reviewed the outcome of investigations by Group Internal Audit • Reviewed and endorsed the findings of the investigations • Requested Management to implement improvements in internal controls in the related areas and where relevant, undertake disciplinary action based on the investigations CORPORATE GOVERNANCE STATEMENT