ACCOUNTABILITY AND AUDIT
The Board is responsible in ensuring that proper maintenance of accounting records for AmanahRaya REIT and appropriate accounting policies had been consistently applied. The Board is assisted by the Audit Committee in overseeing AmanahRaya REIT’s financial reporting processes and the quality thereof.
The Board has an overall responsibility of maintaining a system of internal control that covers financial and operational controls and risk management. The system provides reasonable but not absolute assurance against material misstatement of management and financial information or against financial losses and fraud.
Relationship with External Auditors
An external auditor, independent of the Manager and the Trustee has been appointed for AmanahRaya REIT. The appointment has been nominated by the Manager and approved by the Trustee. The remuneration of the external auditor is approved by the Trustee. Via the Audit Committee, the Board maintains an active, transparent and professional relationship with the external auditor.
The Manager has a dedicated compliance officer working towards ensuring compliance with all legislation, rules and guidelines issued by the Securities Commission and Bursa Malaysia Securities Berhad as well as AmanahRaya REIT’s Deed.
RELATED PARTY TRANSACTIONS AND CONFLICTS OF INTEREST
The Manager has established procedures that will ensure related party transactions and conflicts of interests are undertaken in full compliance with the Securities Commission’s REIT Guidelines, AmanahRaya REIT’s Deed and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. Among the policies adopted by the Manager to deal with potential conflicts of interest issues include:
- Transactions on arm’s length basis and on normal commercial terms which are not more favourable than those extended to third parties or public and are not to the detriment of the minority Unitholders;
- AmanahRaya REIT’s cash or other liquid assets should be placed in a current or deposit account of institutions licensed or approved to accept deposits;
- The Manager may not act as principal in the sale and purchase of real estate, securities and any other assets to and from AmanahRaya REIT; and
- All real estate investment and divestment transactions must be approved by the Trustee, consistent with the investment objective and strategy of AmanahRaya REIT and transacted at a price which is in accordance to the relevant guidelines.