TANJUNG OFFSHORE BERHAD

STATEMENT OF CORPORATE GOVERNANCE
RELATIONSHIP WITH SHAREHOLDERS
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TANJUNG OFFSHORE BERHAD (662315-U)
ANNUAL REPORT 2009
The Group recognises the importance of effective communication with its shareholders and investors to keep them
informed of the major development of the Group. Such information is disseminated through the following channels :-
Annual Report;
Circulars to shareholders;
Various disclosures and announcements to Bursa Securities; and
Company’s website at www.tanjungoffshore.com.
The main forum for dialogue with shareholders remains at the Annual General Meeting which encourages the
shareholders to raise questions pertaining to the operations and fi nancials of the Group.
ACCOUNTABILITY AND AUDIT
1. Financial Reporting
The Board is responsible to present a balanced, clear and comprehensive assessment of the Group’s fi nancial
performance and prospects through the quarterly and annual fi nancial statements to shareholders. The Board
and the Audit Committee have to ensure that the fi nancial statements are drawn up in accordance with the
provisions of the Companies Act, 1965 and applicable approved accounting standards in Malaysia. In presenting
the fi nancial statements, the Board has reviewed and ensuring that appropriate accounting policies have been
used, consistently applied and supported by reasonable judgments and estimates.
2. Internal Control
The Board has overall responsibility for maintaining a sound and effective system of internal control of the Group,
covering not only fi nancial controls but also controls relating to operations, compliance and risk management
to safeguard shareholders investments and the Group’s assets. The Board also recognises that the system of
internal control has inherent limitations and is aware that such a system can only provide reasonable and not
absolute assurance against material misstatements, loss or fraud.
The internal control system of the Group is supported by an established organisational structure with well-defi ned
authority and responsibility lines, and which comprises of appropriate fi nancial, operational and compliance
controls.
3. Relationship with Auditors
The Board, via the Audit Committee, has established a formal and transparent arrangement for maintaining an
appropriate relationship with its auditors, both external and internal.
4. Statement of Directors’ Responsibility
The Directors are required by the Companies Act, 1965 to prepare fi nancial statements for each fi nancial year,
which give a true and fair view of the state of affairs of the Group and the Company and of the results and cash
fl ow of the Group and the Company for the fi nancial year then ended.
In preparing the fi nancial statements for the fi nancial year ended 31 December 2009, the Directors have:adopted
the appropriate accounting policies and applied them consistently;
made judgments and estimates that are reasonable and prudent;
ensure applicable approved accounting standards have been followed, and any material departures have
been disclosed and explained in the fi nancial statements; and
ensure the fi nancial statements have been prepared on a going concern basis.
The Directors are responsible for keeping proper accounting records of the Group and Company, which disclose
with reasonable accuracy the fi nancial position of the Group and the Company, and which will enable them to
ensure the fi nancial statements have complied with the provisions of the Companies Act, 1965 and the applicable
approved accounting standards in Malaysia.
The Directors have the general responsibility for taking such steps as are reasonably open to them to safeguard
the assets of the Group and to prevent and detect fraud and other irregularities.
5. Compliance Statement
Throughout 2009, the Group has complied with all the Best Practices of Corporate Governance set out in Part 2
of the Malaysian Code on Corporate Governance.