Bursa Malaysia • Annual Report 2013
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Governance
Corporate Governance Statement
• Palm Oil Industry Leadership Forum, 26 August 2013 (Attended by
Datuk Karownakaran @ Karunakaran Ramasamy)
• Market Integrity Forum, 2 September 2013 (Attended by Dato’
Saiful Bahri Zainuddin)
• World Capital Markets Symposium: Redefining Markets –
Sustaining Growth and Resilience, 22-23 October 2013 (Attended
by Tun Mohamed Dzaiddin Haji Abdullah, Datuk Dr. Md Tap Salleh,
Datuk Dr. Syed Muhamad Syed Abdul Kadir, Dato’ Saiful Bahri
Zainuddin, Tan Sri Ong Leong Huat, Tan Sri Datuk Dr. Abdul Samad
Haji Alias, Mr. Chay Wai Leong, En. Ghazali Haji Darman and Dato’
Tajuddin Atan)
• 53
rd
General Assembly of the World Federation of Exchanges,
27-31 October 2013 (Attended by Dato’ Tajuddin Atan)
• 8
th
China International Oils and Oilseeds Conference,
12-13 November 2013 (Attended by Dato’ Tajuddin Atan)
• Developments in the Takaful and Insurance Industry, 27 November
2013 (Attended by Tan Sri Datuk Dr. Abdul Samad Haji Alias)
An off-site development session was held on 10 October 2013 for
the Listing Committee to deliberate on its enforcement policies,
enforcement impact with regard to key breaches, as well as related
issues and challenges. The Market Participants Committee held its
off-site development session on 24 October 2013 to discuss Bursa
Malaysia’s supervision approach and observations, the common
areas of breach, proposed enforcement actions and policies,
as well as related issues and challenges.
In 2013, induction programmes for the newly appointed Board
Regulatory Committee members were also arranged and attended by
relevant management to brief them on the regulatory role of the Group.
5. Uphold Integrity in financial reporting
5.1 Compliance with Applicable Financial Reporting Standards
The Board ensures that shareholders are provided with a balanced and
meaningful evaluation of the Company’s financial performance, its
position and future prospects, through the issuance of the Annual Audited
Financial Statements and quarterly financial reports, as well as corporate
announcements on significant developments affecting the Company in
accordance with Bursa Securities Main LR.
The Audit Committee (AC) Chairman Tan Sri Datuk Dr. Abdul Samad Haji
Alias
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, who is a member of three professional accounting organisations,
together with all AC members, reviewed the Company’s financial
statements in the presence of both external and internal auditors, prior to
recommending them for the Board’s approval and issuance to stakeholders.
The Director, Corporate Services, who is also the Chief Financial Officer
(CFO), formally presented to the AC and the Board details of revenues
and expenditures in the form of charts, for review of quarter-to-quarter
and year-to-date financial performance against budget. The Chairman’s
Letter to Shareholders, CEO’s Message, and Management Discussion and
Analysis of this Annual Report respectively provide additional analysis and
commentary on the Group’s financial performance.
As part of the governance process in reviewing the quarterly and yearly
financial statements by the AC, the CFO provided assurance to the AC on a
quarterly basis that adequate processes and controls were in place for an
effective and efficient financial statement close process, that appropriate
accounting policies had been adopted and applied consistently and that the
relevant financial statements gave a true and fair view of the state of affairs
of the Group.
In addition to the above, the Head of GIA also undertook an independent
assessment of the system of internal control on a quarterly basis and
assured the AC that no material issue or major deficiency had been noted
which posed a high risk to the overall system of internal control under
review.
5.2 Assessment of Suitability and Independence of External Auditors
The AC undertakes an annual assessment of the suitability and
independence of the external auditors in accordance with the Board’s
Auditor Independence Policy which was adopted in 2006. Having satisfied
itself with their performance and fulfilment of criteria as set out in the policy,
the AC will recommend their re-appointment to the Board, upon which the
shareholders’ approval will be sought at the AGM.
In this regard, the AC had in January 2013, assessed the independence
of Messrs Ernst & Young (EY) as external auditors of the Company as well
as reviewed the level of non-audit services to be rendered by EY to the
Company for FY 2013.TheACwas satisfied with EY’s technical competency
and audit independence.
6. Recognise and manage risks
6.1 Sound Framework to Manage Risks
The RMC oversees the ERM framework of the Group and reviews the
risk management policies formulated by Management and makes
relevant recommendations to the Board for approval.
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.
6.2 Internal Audit Function
The Board has established an internal audit function within the Company,
which is led by the Head of GIA who reports directly to the AC.
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Tan Sri Datuk Dr.Abdul Samad Haji Alias’ profile is set out in the Board of Directors’ Profile of this Annual Report
