NON-AUDIT SERVICE POLICY  

INTRODUCTION

The Audit Committee’s objective is to ensure that the provision of non-audit services across Seremban Engineering Berhad (SEB) does not impair the external auditor’s independence or objectivity. The policy provides guideline to the Audit Committee to access and monitor the provision of non-audit services by the auditors. 

NON-AUDIT SERVICE

The Auditor is permitted to provide non-audit services that are closely associated with the Auditor’s role. The following services are permitted being closely associated with the Auditors role:

1. 1. Quarter and Half Year Reviews
   2. Reviews of Regulatory Returns
   3. Agreed upon services closely associated with the Auditors responsibility
   4. Reporting on government grants
   5. Other reports, certifications or examinations required from the Auditor by regulators
   6. Comfort letters (for example over audited numbers in capital raising prospectuses)
   7. Consent letters
   8. Reporting on working capital statements
   9. Prospectus or Capital markets reporting
   10. Advising on accounting standards, regulatory rules, other changes in legislation and associated reporting requirements
   11. Tax compliance, where much of the information derives from the audited financial statements
   12. Review on Annual Report, where much of the information derives from the audited financial statements

Other than above non-audit services, review and approval would be required by the Audit Committee. 

APPROVAL OF NON-AUDIT SERVICE FEE

The Auditor is permitted to provide non-audit services that are capped by value of 25% of the preceding annual audit fee. Within the pre-approval fee limits, the engagement of the Auditors shall be proposed and reviewed by the Head of Finance before approved by the Chief Executive Officer.

All engagement of the external auditors to provide non-audit service above 25% of the preceding annual audit fee are subject to the approval of the Audit Committee.

Approved by the Board on 24 February 2022