Annual Report 2020

PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. Audit Committee (“AC”) The AC comprised six Independent Non-Executive Directors. The AC is chaired by an Independent Non- Executive Director. In the annual assessment on the suitability, objectivity and independence of the external auditors, the AC is guided by the factors as prescribed under Paragraph 15.21 of the Main Market Listing Requirements as well as obtaining declaration of independence from the external auditors. II. Risk Management and Internal Control The Board fulfils its responsibilities in the risk governance and oversight functions through its Risk Management Committee (“RMC”) in order to manage the overall risk exposure of the Group. The RMC assessed and monitored the efficacy of the risk management controls and measures taken, whilst the adequacy and effectiveness of the internal controls were reviewed by the AC in relation to internal audit function for the Group. In November 2017, RMC was set up comprising of a majority of Independent Non-Executive Directors supported by Risk Management Unit which comprise of Executive Committee members, Head of Financial Reporting & Investor Relations and Risk Management Manager. In February 2020, the RMC reviewed the Anti-Bribery Framework. The revised Whistleblowing Policy and Anti Bribery Policy were subsequently approved by the Board and are available on QL’s website. The Board is of the view that the risk management and internal control systems that are in place is adequate and effective to safeguard shareholders’ investment and the Group’s assets, and the interest of customers, employees and other stakeholders. The details of the Risk Management and Internal Control framework are set out in the Statement on Risk Management and Internal Control of this Annual Report. PRINCIPLE C: INTEGRITY INCORPORATE REPORTING ANDMEANINGFUL RELATIONSHIPWITH STAKEHOLDERS I. Communication with Stakeholders The Company recognises the importance of communicating with its shareholders and does this through the Annual Report, Annual General Meeting (“AGM”), press conferences and announcements via Bursa Malaysia Securities Berhad to enable comprehensive, timely and accurate disclosures on the Group to the regulators, shareholders and other stakeholders. The Company has set up a website to facilitate dialogue with its investors and shareholders with the intention of giving investors and shareholders a clear and complete picture of the Company’s performance and position, its policies on governance, the environment and social responsibilities. Furthermore, QL’s investor relations activities serve as an important communication channel with shareholders, investors and the investment community, both in Malaysia and internationally. The Board aims to present a balanced and understandable assessment of the Company’s and the Group’s position and prospects in the various financial and non-financial information to shareholders, investors and regulatory authorities. As such, the Board will consider various approaches to develop a strategic corporate reporting standard. Annual Report | 2020 QL Resources Berhad 80 Corporate Governance Overview Statement