Annual Report - Bina Puri

Internal Control Statement (Cont’d)ASSURANCE MECHANISMThe Group had established an Audit Committee with the primary objective of assisting the Board to review the adequacyand integrity of the Group’s internal control and management information systems. In discharging its duties, the internal auditfunction of the Group is outsourced to BDO Governance Advisory Sdn. Bhd. (“BDOGA”).BDOGA independently reviews the adequacy and integrity of the system of internal controls and reports to the AuditCommittee on a quarterly basis. The annual audit plan covering the key activities of the Group is tabled to the AuditCommittee for discussion and approval.For year 2007, BDOGA has completed four (4) internal control reviews according to the annual audit plan. The auditsconclude that systems of internal control exist throughout the Group.The weaknesses and their impacts to the businessorganisation, audit’s recommendations, Management’s rectification action plans and follow-up actions taken arising from theaudits were promptly reported to the Audit Committee.GOING FORWARDThe Board is committed to continually strengthen the transparency and efficiency of its operations.This will be supportedby an assessment independent of operations on the adequacy and integrity of the controls by BDOGA, the external partyoutsourced to oversee the internal audit function of the Group. Other initiatives deemed necessary will be considered fromtime to time in order for ensuring that the control environment remains reasonably secure.BINA PURI HOLDINGS BHDAnnual Report 200731