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HENGYUAN REFINING COMPANY BERHAD I 65

4. hRC Assurance Plan 2020 5. Related Party Transactions
The BAC oversaw HRC’s approved internal audit and In the year 2020, the BAC reviewed the Company’s Circular
assurance plan for the year 2020 which consisted of to Shareholders in relation to the proposed renewal
five (5) regulatory and statutory audits and fourteen (14) of shareholders’ mandate for recurrent related party
internal audits to ensure business processes and regulatory transactions (RRPT) for the period from 23 June 2020 to
compliance. These are: the 62 nd Annual General Meeting of the Company.
Name of Audit / Review In addition, the BAC oversaw the Company’s compliance
with the MMLR in respect of related party transactions
Regulatory / Statutory Audits
and RRPT and ensured that the necessary announcements
Financial Audit and Interim Financial Reviews by External Auditor were made to Bursa Malaysia Securities Berhad.
ISO 9001 Surveillance Audit On 1 September 2020, the BAC reviewed and endorsed
ISO 14001 Surveillance Audit the process for governing contracting and procurement
RRPT approved by shareholders, which was subsequently
ISO 45001 Surveillance Audit
approved by the Board. On 30 September 2020, the BAC
ISO 17025 Accreditation and Migration to 2017 Revision endorsed the terms of the contracting and procurement
Internal Audits RRPT with Hengyuan International Sdn Bhd in accordance
with the approved process.
Green House Gas Verification
Information Technology and Cyber Security Management 6. Others
Follow-up on Management Review by MHIL Other matters discussed by the BAC during its meetings
include:
Minor Project Management
(a) The review of 2019 impairment assumptions and tests;
Corporate Card Management
Procure-to-Pay Processes (Run & Maintain) (b) The review of change in functional currency from
United States Dollar (USD) to Ringgit Malaysia (RM);
Procure-to-Pay Processes (Hydrocarbon)
(c) The review of the BAC Report and the Statement on
Related Party Transaction Process Risk Management and Internal Control for the financial
HRC Regulatory Compliance Management year ended 31 December 2019 during the BAC’s meeting
on 17 February 2020 for the purpose of inclusion in
ISO 9001
the Company’s 2019 Annual Report;
ISO 14001
(d) The review of major projects’ progress and any financial
ISO 45001 risk / impact due to COVID-19 threat;
ISO 17025 (e) The review of reports on crude, margin and FX hedging
ISO 27001 activities and outcome;
(f) The Company’s cash forecast, financing planning and
The progress of the Internal Audit and Assurance Plan 2020 liquidity position;
and its audits were reported to the Board on a quarterly
basis. (g) The solvency outlook of the Company in the next
12 months, loan position of the Company and dividend
During the course of the year, the BAC also approved two (2) proposal;
special reviews on significant business processes.
(h) The review of assessment outcome on recoverable
Where appropriate, the BAC directed Management to amount of property, plant and equipment; and
rectify and improve internal control processes based
on the auditors’ recommendations and suggestions for (i) The quarterly updates of whistleblowing disclosures.
improvement based on severity of findings and ratings
of audits.