2012 Annual Report - ZTE

ZTE CORPORATIONCorporate Governance Structure3. Work of the Audit Committee during the yearIn 2012, the Audit Committee held 9 meetings mainly to:a) consider the financial report of the Company for the year ended 31 December 2011, and submit the sameto the Board of Directors for consideration and approval;b) receive the report of Ernst & Young on the audit plan relating to the financial report of the Company in 2011;c) consider the report of the Company on the implementation of internal control work plan for 2011;d) consider whether actions taken by the management in litigations in which the Company or any members ofthe Group is a defendant are appropriate;e) receive the report of Ernst & Young on the financial audit of the Company in 2011;f) receive the report of Ernst & Young on the internal control audit of the Company in 2011;g) receive the explanatory statement of Ernst & Young on the 2011 continuing connected transactions of theCompany;h) consider the summary report on the audit of the Company performed by the PRC and Hong Kong auditorsin 2011;i) consider the audit fees payable to the PRC and Hong Kong auditors for the year ended 31 December 2011and submit the same to the Board of Directors for consideration and approval;j) consider resolutions on the appointment of the PRC and Hong Kong auditors of the Company for 2012 andsubmit the same to the Board of Directors and general meeting for consideration and approval;k) consider the resolution on the write-off of bad debts of the Company for the second half of 2011 and submitthe same to the Board of Directors for consideration and approval;l) consider the resolution of the Company on the impairment provision for individual assets for 2011, andsubmit the same to the Board of Directors for consideration and approval;m) consider the report of the Company on derivative investments in 2011;n) consider the resolution on the application for investment limits in derivative products of the Company for2012 and submit the same to the Board of Directors and the general meeting for consideration and approval;o) consider the self-assessment report on internal control of the Company for the year ended 31 December2011;p) consider the internal audit and internal control testing reports of the Company for the year ended 31December 2011;q) consider the resolution on the amendment of the Working Rules of the Audit Committee, and submit thesame to the Board of Directors of the Company for consideration and approval;138