Audit Committee Report

The Board is pleased to present the AC Report for the FY2008.

COMPOSITION

In line with the CG Code, all five members of the AC are NEDs. Four AC members, including the AC Chairman, are independent NEDs and one of the AC members, who is a PID, also satisfies the test of independence under the LR. The composition of the AC is set out on page 81 of the Annual Report.

Dato' Sri Abdul Wahid bin Omar, the AC Chairman, is a Fellow of the ACCA (UK) and a member of the MIA. In this respect, Bursa Malaysia is in compliance with paragraph 15.10(1)(c)(i) of the LR.

TERMS OF REFERENCE

1. Responsibilities

All the AC members are able to effectively discharge their functions, duties and responsibilities in accordance with the TOR of the AC to support the Board for ensuring CG of Bursa Malaysia Group which include the following:

a. reviewing the Group's quarterly and annual financial statements focusing particularly on:

• changes in or implementation of major accounting policy changes;
• significant and unusual events;
• significant adjustments arising from the audit;
• compliance with accounting standards and other legal requirements; and
• the going concern assumption.

b. reviewing the External Auditors' audit plan, scope of their audits and audit reports and recommending the appointment of the External Auditors and audit fees;

c. reviewing any letters of resignation from the External Auditors or suggestions for their dismissal;

d. determining whether there is reason (supported by grounds) to believe that the External Auditor is not suitable for reappointment;

e. reviewing the adequacy of the scope, functions, competency and resources of the in-house Group IA function, including whether it has the necessary authority to carry out its responsibilities, together with the Group IA's audit plan, audit reports and follow-up on the recommendations contained in such reports;

f. taking cognisance of resignations of IA staff members and provide the resigning IA staff member an opportunity to submit his reasons for resigning upon receipt of such notice of resignation;

g. reviewing the appraisal or assessment of the performance of members of the IA function which is headed by the Head of Group IA who will be responsible for the regular review and/or appraisal of the effectiveness of the risk management, internal control and governance processes within the Group;