Bursa Malaysia Annual Report 2015

GOVERNANCE

Bursa Malaysia •

Annual Report 2015

AUDIT COMMITTEE

REPORT

COMPOSITION AND ATTENDANCE

The Audit Committee (“AC”) comprises four members, all of whom are Non-

Executive Directors (“NEDs”): three are Independent NEDs and one is a

Public Interest Director who also satisfies the test of independence under

Bursa Malaysia Securities Berhad’s Main Market Listing Requirements

(“MMLR”). This meets the requirements of paragraph 15.09(1)(a) and (b) of

the MMLR. The AC members and their attendance records are outlined in

the Corporate Governance (“CG”) Statement.

The AC Chairman, Mr. Pushpanathan a/l S.A. Kanagarayar, is a member of

the Institute of Chartered Accountants of Scotland, the Malaysian Institute

of Accountants and the Malaysian Institute of Certified Public Accountants.

Accordingly, Bursa Malaysia complies with paragraph 15.09(1)(c)(i) of the

MMLR.

The Board reviews the terms of office of the AC members and assesses

the performance of the AC and its members through an annual Board

Committee effectiveness evaluation. The Board is satisfied that the AC

and its members discharged their functions, duties and responsibilities in

accordance with the AC’s Terms of Reference, and supported the Board in

ensuring the Group upholds appropriate CG standards.

MEETINGS

The AC held five meetings in 2015 without the presence of other Directors

and employees, except when the AC requested their attendance. The Chief

Executive Officer (“CEO”) was invited to all AC meetings to facilitate direct

communications as well as to provide clarification on audit issues and the

Group’s operations. The Senior Executive Vice President, Group Internal

Audit (“GIA”), who is also the Head of GIA, and departmental heads of the

respective GIA functions attended all AC meetings to table the respective

Internal Audit (“IA”) reports. The relevant responsible Management member

of the respective auditees was invited to brief the AC on specific issues

arising from the audit reports.

As part of the AC’s efforts to ensure the reliability of Bursa Malaysia’s

quarterly financial statements and compliance with applicable Financial

Reporting Standards, the External Auditors were engaged to conduct a limited

review of Bursa Malaysia’s quarterly financial statements before these were

presented to the AC for review and recommendation for the Board’s approval

and adoption.

The Board presents the Audit Committee Report which provides insights into the

manner in which the Audit Committee discharged its functions for the Group in 2015.

Minutes of each AC meeting were recorded and tabled for confirmation at

the next following AC meeting and subsequently presented to the Board

for notation. In 2015, the AC Chairman presented to the Board the AC’s

recommendations to approve the annual and quarterly financial statements

as well as declaration of dividends. The AC Chairman also conveyed to the

Board matters of significant concern as and when raised by the External

Auditors or Internal Auditors.

SUMMARY OF ACTIVITIES

The AC’s activities in 2015 comprised the following:

1. Financial Reporting

a. In overseeing Bursa Malaysia’s financial reporting, the AC

reviewed the quarterly financial statements for the fourth quarter

of 2014 and the annual audited financial statements of 2014 at

its meeting on 26 January 2015.

The quarterly financial statements for the first, second and

third quarters of 2015, which were prepared in compliance

with the Malaysian Financial Reporting Standard (“MFRS”) 134

Interim Financial Reporting

, International Accounting Standards

Interim Financial Reporting

and paragraph 9.22, including

Appendix 9B of the MMLR, were reviewed at the AC meetings on

16 April 2015, 14 July 2015 and 20 October 2015, respectively.

On 28 January 2016, the AC reviewed the quarterly financial

statements for the fourth quarter of 2015 and the annual audited

financial statements for 2015.

The AC’s recommendations were presented for approval at the

subsequent Board meeting.

b. To safeguard the integrity of information, the Director of Corporate

Services, who is also the Chief Financial Officer (“CFO”) had, on

10 April 2015, 10 July 2015, 12 October 2015 and 20 January

2016, given assurance to the AC that:

Appropriate accounting policies had been adopted and

applied consistently;