Page 68 - KPJ_2011

Internal Control
The Board acknowledges its primary responsibility for
the Group’s system of internal controls covering not only
financial 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 64 to 67 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 during the year. The External Auditor has
attended three out of four Audit Committee Meetings which
were held on these dates 18 February 2011, 15 August 2011
and 17 November 2011 and they also attended the 19th
Annual General Meeting held on 16 June 2011.
During the year, the Company has changed its external
auditor from PricewaterhouseCoopers to Ernst & Young.
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 2011 are set out in the notes
to the financial statements on pages 176 to 177 of the
Annual Report.
At the 19th Annual General Meeting held on 16 June 2011,
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 page
191. 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 inrespect 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 23 February 2012.
DATIN PADUKA SITI SA’DIAH SHEIKH BAKIR
MANAGING DIRECTOR
KAMARUZZAMAN ABU KASSIM
CHAIRMAN
63 ANNUAL REPORT 2011