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232 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

AUDIT, GOVERNANCE AND

RISK COMMITTEE REPORT

d. Reviewed the assessment of the performance and
Reviewing the External Audit Process effectiveness of PwC in respect to their statutory audit
services as the external auditor for financial year 2020.
The result of evaluation was discussed at the
a. Held two (2) private discussion sessions with the external AGRC meeting held on 12 March 2021. Based on the
auditor, Messrs PricewaterhouseCoopers PLT (PwC) assessment and input from Management, the AGRC
without Management on 17 February 2021 and was satisfied with the services rendered by PwC.
13 August 2021. The AGRC recommended the re-appointment of PwC
as external auditor for the financial year 2021 for the
These sessions provided the external auditor with shareholders’ approval at the Company’s Annual General
the opportunity to openly share concerns about the Meeting.
Group and any related issues requiring attention or
significant matters arising from the external audit with
the Independent Non-Executive Directors.
Related Party Transactions
b. Reviewed and approved the PwC’s Audit Plan and
scope of work for the statutory audit of the a. Divestment of 100% shares in MSM Perlis Sdn Bhd owned
Financial Statements for the financial year ended by MSM Malaysia Holdings Berhad to FGV Holdings
31 December 2021 on 13 August 2021, which covered: Berhad (Proposed Disposal)
• The focus areas planned as follows:
Pursuant to paragraph (3)(a) of the Appendix 10C of
i. Risk of management override of controls (in line the Listing Requirements, the AGRC is required to
with International Standards of Auditing provide a statement in the announcement and circular
requirements). pertaining to the divestment to the shareholders of
ii. Ensuring revenue is recognised in the correct MSM that the AGRC has considered and deliberated all
accounting period and is appropriately supported. aspects of the Proposed Disposal and the AGRC is of
iii. Recoverability of non-current assets (including the opinion that the Proposed Disposal is:
goodwill). • In the best interest of MSM.
iv. Recoverability of inventories and adequacy of • Fair, reasonable and on normal commercial terms.
provisions on onerous contracts.
• Not detrimental to the interest of the minority
v. Rationalisation plan by Management - closure of shareholders.
MSM Perlis factory operations.
vi. Risk of non-compliance to the financial covenants.
• Declaration of PwC’s independence as external auditor.

c. Analysed the external audit fees and non-audit fees
proposed in respect of the scope of work required for
the financial year and recommended the same for
approval by the Board.