Page 65 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 63

AUDIT COmmITTEE REPORT

The Board of Directors (Board) of hengyuan Refining Company Berhad (Company or hRC)
presents the Audit Committee Report which provides insights into the manner in which the
Board Audit Committee discharged its functions in 2020.

COmPOSITION AND ATTENDANCE mEETINgS

HRC’s Board Audit Committee (BAC) comprises four (4) The BAC held five (5) meetings during the financial year ended
members with a diverse mix of skills, knowledge, experience 31 December 2020. The attendance of the BAC members in its
and perspectives in the areas of accounting, corporate meetings are set out on page 139 of this Annual Report.
finance, banking, oil and gas industry, strategy and corporate The Chief Executive Officer (CEO) and Chief Financial Officer
governance, which enables the BAC to discharge its duties.
(CFO) were invited to all BAC meetings to facilitate direct
The BAC consists solely of Independent Non-Executive Directors. communication as well as to provide clarification on audit issues
All of the Independent Non-Executive Directors satisfied the and the Company’s operations. The Chief Internal Auditor (CIA)
test of independence under Bursa Malaysia Securities Berhad’s attended all BAC meetings to table the respective Internal Audit
Main Market Listing Requirements (MMLR). The BAC meets (IA) reports. The relevant responsible Management members
the requirements of paragraph 15.09(1)(a) and (b) of the were invited to brief the BAC on specific issues arising from the
MMLR and Practice 8.4 under Principle B of the Malaysian audit reports or on any matters of interest.
Code on Corporate Governance (MCCG). The BAC members’ As part of the BAC’s efforts to ensure the reliability of HRC’s
attendance records are outlined on page 139 of this quarterly financial statements and compliance with applicable
Annual Report.
Financial Reporting Standards, PricewaterhouseCoopers PLT
The BAC Chairman, Alan Hamzah Sendut, is a Chartered (External Auditors or PwC) were engaged to conduct a
Accountant of the Institute of Chartered Accountants in England limited review of selected HRC quarterly financial statements
and Wales (1986) and Malaysian Institute of Accountants before these were presented to the BAC for review and
(1987). He is also a Chartered Audit Committee Director, recommendation for the Board’s approval and adoption.
Institute of Internal Auditors Malaysia (2018). Accordingly, PwC briefed the BAC on the outcome of the statutory audit for
HRC complies with paragraph 15.09(1)(c)(i) of the MMLR.
the financial year ended 31 December 2020, significant auditing
The Board reviews the terms of office of the BAC members and accounting matters, internal control recommendations
and assesses the performance of the BAC and its members and developments in relevant laws and regulations.
through an annual Board Committee effectiveness evaluation. The BAC held its independent meetings with PwC on 20 March
The Board indicated through the Board Effectiveness 2020 and 8 March 2021 without the presence of Management
Assessment FY2020 that it was satisfied that the BAC and its to discuss and provide feedback on the Company’s audit for
members discharged their functions, duties and responsibilities the financial years ended 31 December 2019 and 2020
in accordance with the BAC’s Terms of Reference (TOR), respectively, the level of cooperation received from Management,
which is accessible for reference on the Company’s website at: any specific audit concerns and the quality of financial reporting.
www.hrc.com.my.
Minutes of each BAC meeting were recorded and tabled
The TOR of the BAC was reviewed and amended on for confirmation at the next following BAC meeting and
18 August 2020 to exclude the Committee’s overview of subsequently presented to the Board for notation. In 2020,
whistleblowing governance, which is now overseen by the the BAC Chair presented to the Board the BAC’s
Board Whistleblowing Committee, and on 26 November 2020 recommendations to approve the annual and quarterly financial
to include the review and endorsement of terms of statements.
transactions with related parties.
The BAC Chair also conveyed to the Board, matters of
significant concern as and when raised by the external auditors
or internal auditors in the respective quarterly presentations.