Corporate Governance Statement

ACCOUNTABILITY AND AUDIT

1. Financial Reporting

The Board ensures that shareholders are provided with a balanced and meaningful evaluation of the Company's financial performance, its position and its future prospects, through the issuance of Annual Audited Financial Statements and quarterly financial reports and corporate announcements on significant developments affecting the Company in accordance with the LR. In this respect, the financial statements are reviewed by AC at its meetings, in the presence of external auditors and IA, before being presented to the Board for approval. The Chairman's Message and CEO's Message on pages 14 to 17 and pages 32 to 45 of the Annual Report provide additional analysis and commentary. The Directors' Responsibility Statement for the Annual Audited Financial Statements of the Company and Group is set out on page 85 of the Annual Report.

2. Internal Control

The Company continues to maintain and review its internal control procedures to ensure, as far as possible, the protection of its assets and its shareholders' investments. Details of the Company's internal control system and the framework are set out in the Internal Control Statement together with Risk Management Statement and AC Report on pages 67 to 68, pages 69 to 71 and pages 72 to 75 of the Annual Report respectively.

3. Relationship with Auditors

Bursa Malaysia's relationship with its external auditors is primarily maintained through the AC and the Board. The AC has explicit authority to communicate directly with external and internal auditors. The Head of Group IA reports directly to the AC and he is present at all AC meetings together with the relevant members of his staff. The CEO and Management only attend the AC meetings upon invitation. The external auditors did not call for any other meeting with the AC apart from the review of financial statements. The AC holds in camera meetings with the external auditors on Management's cooperation in the audit process, financial reporting, the state of affairs of the IA function and audit issues in relation to appropriate accounting treatment. Three such meetings were held in 2008. Further details on the AC in relation to the external auditors are set out in the AC Report on pages 72 to 75 of the Annual Report.