Page 142 - Full Book_24.4.2021

CORPORATE GOVERNANCE
OVERVIEW STATEMENT

(PURSUANT TO PARAGRAPH 15.25 (1) OF THE MMLR OF BURSA SECURITIES)

tHe baeC autHOrIty MeetInGS
The BAEC was established on 21 July 1998 by the Board to During the financial year under review, seven (7) BAEC meetings
ensure high corporate governance practices are always were held. This satisfies the BAEC Terms of Reference, which
maintained. requires the BAEC to meet at least four (4) times a year.
The Board has established a transparent relationship and The Chief Executive Officer, Group Chief Financial Officer and
communication channel between BAEC and its external auditors, Group Company Secretary, who is also the Secretary to the BAEC,
INTEGRATED ANNUAL REPORT 2020 matter within its Terms of Reference. It has full access to and were invited to the meetings to deliberate on matters within their
internal auditors, Management and key operating subsidiaries
attend BAEC meetings. The Chief Internal Auditor, the External
with the BAEC. The BAEC has clear authority to investigate any
Auditor and other Officers from the key operating subsidiaries
purview.
co-operation from Management and full discretion to invite
any BHB’s Nominee Director or Directors of the respective key
The Group Company Secretary circulated action items from the
operating subsidiaries to attend its meetings. The external
deliberations and decisions made during the BAEC meetings to
auditors of the key operating subsidiaries will also be invited
to the BAEC meetings when necessary. The BAEC shall have
(7) days after the meetings for their further action.
the necessary resources from the Group and has access to the
information needed to discharge its function effectively. The BAEC the Management and the respective stakeholders within seven
is also able to obtain, at the Company’s expense, any professional After the meeting, the BAEC Chairman updates the Board on the
136 advice including the advice of independent professional and to matters deliberated. Matters reserved for the Board’s approval
secure the attendance of the external adviser at its meeting if it are tabled at the Board meetings.
considers necessary to fulfill its obligations.
BIMB HOLDINGS BERHAD 199701008362 (423858-X) The summary of the activities performed by the BAEC for the financial year ended 31 December 2020 are as follows:
tHe baeC aCtIvItIeS In 2020

MatterS COnSIDereD
areaS OF FOCuS
•
Reviewed and approved the 2020 Internal Audit Plan for BHB and its wholly-owned subsidiaries,
Internal audit
namely Syarikat Al-Ijarah Sdn. Bhd. and BIMB Securities (Holdings) Sdn. Bhd. on 24 August 2020.
Ensure the internal audit plan includes the scope, procedures and frequency as well as adequacy
and competency of internal audit resources.
Reviewed the Internal Audit methodology in assessing the risk levels of various auditable areas
•
based on the impact and likelihood of the inherent risk, the controls in place and the existence of
effective risk transfer in minimising potential losses from negligence or fraud.
The approved Internal Audit Plan was established based on the staff strength of five (5) auditors
with an estimated requirement of 53 man-days and a projected audit fee of RM16,000.00.

• Deliberated on the Internal Audit Report for BHB and its wholly owned subsidiaries as issued
by the Internal Auditor on 26 March 2021, which amongst others focused on the effectiveness
and adequacy of governance, risk management and internal control, audit rating and
recommendation. The Internal Audit Report also included the Information Technology Audit
which assessed the adequacy of the IT information system and the necessary back-up systems
to cover for contingencies or disaster. The Shariah Audit Report covers compliance to Shariah
requirements on relevant documentation and zakat computation and payment.
• Ensured that appropriate corrective actions were taken by Management in a timely manner to
address control weaknesses, policies and other areas identified by the Internal Auditors and other
control functions.