Content2011 - PETRONAS Gas Berhad

terMS Of referenCe
The BAC is governed by the Terms of Reference as stipulated on pages
129 to 130 of the Annual Report. All the requirements under the Terms
of Reference were fully complied with.
MeetInGS
During the year, the BAC met four times. Meeting attendance record of
the members is as follows:
Name of Directors Attendance
Dato’ Sadasivan s/o N. N. Pillay 3/4
Dato’ Chew Kong Seng 4/4
Datuk Mohd Zain bin Haji Abdul Majid* 3/4
Dato’ Mohammed Azhar bin Osman Khairuddin** 2/2
Rosli bin Boni*** 1/2
* Resigned as BAC member on 29th March 2011.
** Resigned as BAC member on 1st November 2010
*** Appointed as BAC Audit Committee member on 1st November 2010
By invitation, the Managing Director/Chief Executive Officer (MD/CEO),
Company Secretary, General Manager of Finance Division, Head of Risk
Management Department, external and internal auditors were also
present during deliberations which required their inputs and advice.
The Head of PETRONAS Group Internal Audit Division (GIAD) was
present at all BAC meetings to present the internal audit reports to
the BAC. Relevant members of the Management were at times invited
to brief the BAC on specific issues arising from the audit findings. The
partner of the external audit firm also attends the BAC meetings to
present the external audit plan for the year as well as the outcome of
the external audit conducted on the Company.
Deliberations during the BAC meetings included performance review
of the Company, the proposed annual and interim financial reporting
to Bursa Malaysia Securities Berhad, the status of open audit findings
together with the agreed corrective actions and risk management
activities.
127 annual report 2011
It is common practice that the draft BAC minutes are circulated to
the BAC members prior to the next Board meeting. This assists the
BAC Chairman to effectively convey to the Board matters deliberated
during the BAC meeting. Minutes of the BAC meetings are tabled for
confirmation during the next BAC meeting, after which it is distributed
to the Board for notation. In addition to communicating to the Board
on matters deliberated during the BAC meeting, the BAC Chairman
also recommends to the Board the approval of annual and interim
financial statements.
SuMMAry Of ACtIvItIeS Of the bAC
The following activities were carried out by the BAC during the financial
year ended 31 March 2011:-
1. Reviewed the annual internal audit plan for the year including its
scope, basis of assessments and risk ratings of the proposed areas
of audit.
2. Reviewed and deliberated on reports of audits conducted by GIAD.
3. Monitored all corrective actions on audit findings identified by
GIAD until all issues are resolved.
4. Reviewed the quarterly financial results including quarterly
financial announcements to Bursa Malaysia Securities Berhad
before recommending the same for approval by the Board upon
being satisfied that, it complies with applicable approved Financial
Reporting Standards (FRS) issued by the Malaysian Accounting
Standards Board, Listing Requirements of Bursa Malaysia Securities
Berhad and other relevant regulatory requirements.
5. Reviewed potential impact of implementation of new FRSs to the
Company’s financial statements, which includes FRS 8 ‘Operating
Segments’, FRS 101 ‘Presentation of Financial Statements (revised)’,
and Amendment to FRS 117 ‘Leases’.
6. Reviewed the Company’s annual and quarterly management
accounts.
7. Reviewed the appointment of external auditors and their
remuneration thereof.
8. Reviewed the external auditor’s audit strategy and scope for the
statutory audit of the Company’s financial statements for the
financial year ended 31 March 2011.