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84 KPJ Healthcare Berhad

(Company No. 247079 M)

Annual Report 2010

Audit

Committee

1. COMPOSITION AND TERMS OF REREFENCE

Purpose

The primary objective of the Audit Committee (Committee) is to assist the Board of Directors (the Board) in the effective discharge of its fiduciary responsibi l ities for corporate governance, fnancial reporting and internal control.

Composition

a) The Committee members shall be appointed by the Board

amongst their numbers, with the following requirements: i) the Committee should comprise no fewer than 3

members;

ii) all members must be Non-Executive Directors; and

iii) all members should be fnancially literate and at least

one must be a member of the Malaysian Institute of Accountants (MIA) or having the relevant qualifcations and experience as specifed in the Listing Requirements of Bursa Malaysia.

b) The Chairman of the Committee, elected from amongst the

Audit Committee members, shall be approved by the Board and shall be an Independent Director.

c) The term of office and performance of the Committee

members are reviewed by the Board yearly and may be re-nominated and appointed by the Board.

Reporting Responsibilities

The Committee will report to the Board on the nature and extent of the functions performed by it and may take such recommendations to the Board on any audit and financial reporting matters as it may think ft.

Attendance at Meetings

a) The Managing Director, Chief Operating Officer, Chief

Financial Officer, senior management team, Executive Directors of the hospitals as well as the Head of Internal Audit and representatives of the External Auditors shall normally attend the meetings.