Page 81 - ar2010

Statement of Directors Responsibility for Preparing the Financial Statements

The Directors are required by Companies Act 1965 to prepare financial statements for each financial year which have been made out in accordance with the applicable approved accounting standards and give a true and fair view of the state of affairs of the Group and the Company at the end of the fnancial year and of the results and cash fows of the Group and Company for the fnancial year.

In preparing the fnancial statements, the Directors have adopted suitable accounting policies and applied them consistently, made judgement and estimates that are reasonable and prudent and prepared fnancial statements on the going concern basis as the Directors have a reasonable expectation, having made enquiries that the Group and Company have resources to continue in operational existence for the foreseeable future.

The Directors have overall responsibilities for taking such steps necessary to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

The Statement by Directors pursuant to Section 169 of the Companies Act 1965 is set out in the fnancial statements.

Internal Control

The Board acknowledges its primary responsibility for the Group’s system of internal controls covering not only fnancial controls but also operational, compliance controls and risk management, and for reviewing the adequacy and integrity of those systems. The effectiveness of the system of internal controls of the Group is reviewed by the Audit Committee during its quarterly meetings.

An overview of the state of internal control is set out in the Statement on Internal Control on pages 82 to 83 of this Annual Report.

Relationship with the External Auditors

The Board through the Audit Committee has maintained an appropriate relationship with the External Auditors and there is a formal and transparent arrangement in the review of the External Auditor’s audit plan, report, internal control issues and procedures.

The Committee meets with the External Auditor without the presence of the Executive Board Members and Senior Management twice a year. The meetings were held on 17 February 2010 and 19 November 2010. The External Auditor has attended 3 Audit Committee Meetings in 2010 (17 February 2010, 20 August 2010 and 19 November 2010) and the 17th Annual General Meeting held on 31 May 2010.

The External Auditor is independent and re-appointed annually at the Annual General Meeting.

Related Party Transactions

The significant related party transactions for the financial year ended 31 December 2010 are set out in the notes to the fnancial statements on pages 167 to 169 of the Annual Report.

At the 17th Annual General Meeting held on 31 May 2010, the Company obtained a shareholders’ mandate to allow the Group to enter into recurrent related party transactions as set out in the Notes of the Compliance Information on pages 182 to 183. As set out in the Bursa Malaysia Listing Requirements and Company’s Articles of Association, a Director who has an interest in a transaction shall abstain from deliberation and voting on the relevant resolution in respect of such transaction at the Board and general meeting convened to consider the matter.

Signed on behalf of the Board of Directors in accordance with its resolution dated 31 March 2011.