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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 231

c. Quarterly Reports

The AGRC reviewed the following reports which are Internal Audit Process
presented at each of its quarterly meeting:
• Group’s Consolidated Cashflow Projections. a. The AGRC reviewed Group Internal Audit reports
summarising the following at quarterly meeting during
• Capital Expenditure (CAPEX).
the financial year 2021:
• Recurring Related Party Transactions.
• The observations from the internal audit reports
• Report on Recoverability of Trade Receivables and Past issued during the quarter. The Committee gave
Due Accounts.
direction to Management on key matters requiring
d. Reviewed MSM Group’s Goodwill and MSM Johor’s Management’s special and immediate attention.
Asset Impairment Assessment. The Committee has reported to the Board on these
key significant matters.
e. Reviewed the position on the financial covenants of the • The progress of implementation of the
MSM Group.
recommendations from internal audit reports issued.
• The progress of implementation of the MSM Group
Annual Internal Audit Plan.
Assessing the Risks and Control Environment
b. Considered the outcome of any special reviews and
investigations, including those arising from Management
a. Evaluated the reports on the assessment of the risks and recommendation raised by the Committee’s
and control environment based on the external auditor’s Chairman and members and Management’s response
quarterly financial statement reviews and statutory and follow-up actions thereto, and reported key matters
financial audits.
to the Board.
b. Reviewed all internal audit reports issued by the Group c. Reviewed and recommended the proposal for Award
Internal Audit, which detailed the observations from all of Out-Source Review of MSM Johor Refinery
the internal audits undertaken.
Construction-Phase 3 to the Board for approval.
c. Received assurances from the Group CEO and CFO d. On 11 November 2021, the AGRC reviewed and
that the risk management and internal control system approved the MSM Group Annual Internal Audit Plan
of the Group for the financial year 2020 have been for the year 2022 including assessing the priority
operating adequately and effectively, in all material ranking of the audit universe to provide sufficient audit
respects.
coverage, the adequacy of resources of the internal
d. Monitored the implementation of corrective actions taken audit function to execute the MSM Group Annual
for improvement by Management based on matters Internal Audit Plan and competencies required.
highlighted by internal and external auditors.
e. Assessed the performance of the Chief Internal Auditor
e. Provided relevant guidance for the improvement of the basing on the delivery of the internal audit function.
risks and internal control of the Group, particularly in the This included assessment whether the internal audit
areas of inventory management which was the key focus function has the required expertise and professionalism
area of the Group during the financial year. This included to discharge its duties.
improvements in the monitoring and systems.
f. Reviewed raw sugar pricing for FY2023 and gas price
hedging with Brent Crude Oil.
g. Reviewed proposal to enter into agreement for two (2)
years refined sugar supply with Coca-Cola.