BIMB Integrated Annual Report 2017

• Evaluated the performance, independence and suitability of the External Auditors and made recommendations to the Board of Directors on their re-appointment and remuneration. In reviewing the performance, independence and suitability of the External Auditors, the AEC reviewed the qualifications and the experiences of the audit team as well as conducted an assessment on the effectiveness and the performance of the External Auditors and other areas such as the scope of the audit, their independence and objectivity, audit fees and audit experience; and • Reviewed the nature, scope and fees for non-audit services provided by the External Auditors and ensured they were fair and reasonable and in line with the laid down practices on non-audit services in order to safeguard the independence and objectivity of the External Auditors and reduce potential conflict of interest. Details of the statutory audit, audit-related and non-audit fees paid/payable in the year under reviews to the auditors are set out below: FEES PAID/PAYABLE TO AUDITOR FY2017 GROUP RM’000 COMPANY RM’000 Fees paid/payable to KPMG Desa Megat PLT (KPMG) Statutory Audit Regulatory-related 1,553 287 135 32 – Validation of Perbadanan Insurans Deposit Malaysia Returns – Verification of adoption of MFRS 9 – Statement of Risk Management and Internal Control – Review of Statement of Realised and Unrealised Profit & Losses – Verification of motor contribution income 163 80 28 14 2 – – 18 14 – Non-audit – Limited review & other non-audit expenses 647 24 2,487 191 Fees paid/payable to overseas affiliates of KPMG Statutory audit 345 – 2,832 191 Related Party Transactions • Reviewed, with the assistance of the GCFO, related party transactions entered into by the Company and the Group to ensure that the transactions entered into were in compliance with Paragraphs 10.08 and 10.09 of the Listing Requirements (Chapter 10 Part E – Related Party Transactions); • Reviewed the adequacy of the Company’s and the Group’s procedures to ensure that recurrent related party transactions are not more favorable to the related party than those generally available to the public and are not to the detriment of the minority shareholders. The review done by the AEC is to ensure that the related party transactions were conducted in the best interest of the Company and the Group; • Reviewed and reported to the Board all related party transactions entered into by the Company and the Group; and • Monitored any potential conflict of interest situations involving Directors and ensured that such situations of conflict were avoided and that the requirements under the Directors’ Code of Ethics were adhered to. 121 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis