Annual Report - Bina Puri

Audit Committee Report (Cont’d)REPORTING PROCEDUREThe Secretary shall circulate the minutes of the meetings of the Committee to all members of the Board.SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)Reviewed the Audit Committee Report and its recommendations to the Board for inclusion in the Annual Report;Reviewed the Statement on Internal Control and Statement on Corporate Governance and its recommendations tothe Board for inclusion in the Annual Report;Reviewed the external auditor’s audit plan and report for the year;Reviewed the external auditor’s evaluation of the system of internal controls;Reviewed the internal audit reports, recommendations, programmes and plans for the year under review andmanagement’s response;Reviewed the results of follow-up audits conducted by the Internal Auditors on the Management’s implementation ofaudit recommendations;Reviewed the annual report and audited financial statements of the Company and the Group prior to the submissionto the Board for consideration and approval.The review was to ensure that the audited financial statements were drawnup in accordance with the applicable accounting standards approved by FRS and other legal requirements;Reviewed the quarterly unaudited financial results announcements before recommending them for Board approval;Reviewed related party transactions that may arise within the Company or the Group;Considered and recommended to the Board for approval of the audit fees payable.STATEMENT BY AUDIT COMMITTEE ON THE COMPANY’S EMPLOYEES’ SHARE OPTION SCHEME(“ESOS”)Appendix 9C, Part A (26) of the Listing Requirements of Bursa Securities Malaysia Berhad requires a Statement by the AuditCommittee in relation to the allocation of share options pursuant to any share scheme for employees as stated in paragraph8.21A.The Audit Committee is satisfied that the allocation of options pursuant to the Company’s ESOS during the financialyear ended 31 December 2007 is in accordance with the criteria set out in the ESOS bye-laws.INTERNAL AUDIT FUNCTIONThe Company has outsourced the internal audit function to a professional firm to develop a strategic Internal Audit Plancovering years 2006 to 2008, subject to review annually.The role of the internal auditor is to review the adequacy and theintegrity of the Company’s internal control system and recommend controls to manage identified risks.REVIEW OF THE AUDIT COMMITTEEThe Board of Directors of a listed issuer must review the term of office and performance of an Audit Committee and eachof its members at least once every three (3) years to determine whether such audit committee and members have carriedout their duties in accordance with their terms of reference.24 BINA PURI HOLDINGS BHDAnnual Report 2007