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Annual Report 2013
KPJ HEALTHCARE BERHAD
77
5. UPHOLD INTEGRITY IN FINANCIAL REPORTING
Compliance with Applicable Financial Reporting Standards
In presenting the annual nancial statements and quarterly
announcements to shareholders, the Board aims to present a
balanced and understandable assessment of the Group’s position and
prospects. This also applies to other price-sensitive public reports and
reports to regulators. Timely release of announcements re ects the
Board’s commitment to provide transparent information on the Group’s
performances and activities.
In preparation of the nancial statements, the Directors have taken
the necessary steps to ensure that the Group had complied with all
applicable Financial Reporting Standards, provisions of the Companies
Act 1965 and relevant provision of laws and regulations in Malaysia
and the respective countries in which the subsidiaries operate,
consistently and that the policies are supported by reasonable and
prudent judgment and estimates.
The Audit Committee assists the Board in ensuring both annual
nancial statements and quarterly announcements are accurate and
the preparation is consistent with the accounting policies adopted
by the Group. The quarterly reports, prior to tabling to the Board for
approval, will be reviewed and approved by the Audit Committee.
The Directors are required by the Companies Act 1965 to prepare
nancial statements for each nancial year which have been made
in accordance with the Malaysian Financial Reporting Standards,
International Financial Reporting Standards and so as to give a true
and fair view of the nancial position of the Group and the Company
at the end of the nancial year and of the results and cash ows of the
Group and Company for the nancial year.
In preparing the nancial statements, the Directors have adopted
suitable accounting policies and applied them consistently, made
judgment and estimates that are reasonable and prudent and prepared
nancial 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(15) of the
Companies Act 1965 is set out in the nancial statements.
Assessment of Suitability and Independence of External Auditors
TheBoard through theAudit Committee hasmaintained 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.
TheCommitteemeetswith theExternal Auditorwithout thepresenceof
the Executive Board Members and Senior Management twice during
the year. The External Auditor has attended three out of five Audit
Committee Meetings which were held on these dates 14 February
2013, 20 August 2013 and 14 November 2013 and they also attended the
20th Annual General Meeting held on 11 June 2013. Separate sessions
were also conducted on 14 February 2013, 14 November 2013 and 17
February 2014.
The External Auditor is independent and re-appointed annually at the
Annual General Meeting.
6. RECOGNISE ANDMANAGE RISKS
Framework toManage Risk
The Board as part of its leadership role coordinates and delegates
speci c responsibilities to several Committees to facilitate the
operations of the Group at Board and Management level. Each
Committee has written terms of reference de ning their scope,
powers and responsibilities. These Committees have the authority
to examine particular issues and report back to the Board with their
recommendations.
Theultimate responsibility for the nal decisionsand recommendations
on all matters emanating from these Committees, however, lies with
the entire Board.
The Committees are divided into Board andManagement Committees.
The Board Committees comprises of 4 main Committees:
•
Audit Committee
•
Building Committee
•
Medical Advisory Committee
•
Nomination and Remuneration Committee
•
Tender Board Committee
TheManagement Committees comprises of one main Committee:
•
Executive Committee
•
Tender Evaluation Committee
Board Committees
Audit Committee (AC)
The Audit Committee is chaired by Zainah Mustafa and comprises of
2 other members, Datuk Azzat Kamaludin and Tan Sri Dato’ Dr. Yahya
Awang of whom all are Independent Non-Executive Directors. The
Committee meets on a scheduled basis at least 4 times a year. The
pro les, inclusive of calibre, credibility, skill and experience, of each
BoardMember are disclosed on pages 42 to 52 of this Annual Report.
Pursuant to paragraph 15.15 of the Listing Requirements of Bursa
Securities, the Audit Committee Report for the nancial year, which
sets out the composition, terms of reference and a summary of
activities of the Audit Committee, is contained on pages 86 to 90 of this
Annual Report.
Statement on
Corporate Governance
(Pursuant to Section 15.26 of the Bursa Malaysia Listing Requirements)