Chemical Company of Malaysia Berhad Annual Report 2018

Report of the Audit and Compliance Committee The Board is pleased to issue the following report of the Audit and Compliance Committee and its activities during the financial year ended 31 December 2018. Composition of Audit and Compliance Committee and Meetings The Audit and Compliance Committee comprises of four (4) members, all of whom are Non-Executive Directors. During the financial year under review, Dato’ Wan Mohd Fadzmi bin Che Wan Othman Fadzilah, an Independent Non-Executive Director was appointed as an additional member of the Audit and Compliance Committee with effect from 9 March 2018. A total of seven (7) meetings of the Audit and Compliance Committee were held during the year. The status of directorship and attendance record of each of the members during the financial year, were as follows: Name of Directors and Status No. of Meetings Attended Khalid bin Sufat 7/7 Chairman, Senior Independent Non-Executive Director Datin Paduka Kartini binti Hj. Abdul Manaf 7/7 Member, Non-Independent Non-Executive Director Dato’ Seri Ir. Dr. Zaini bin Ujang 6/7 Member, Independent Non-Executive Director Dato‘ Wan Mohd Fadzmi bin Che Wan Othman Fadzilah 6/6 Member, Independent Non-Executive Director (Appointed w.e.f. 9 March 2018) SUMMARY OFWORK DONE DURING THE FINANCIAL YEAR External Audit (i) Reviewed the external auditor’s audit plan and engagement strategy for the financial year ended 31 December 2018, covering the audit focus area, which also included a review on the IT systems, audit materiality and methodology. (ii) Reviewed the external auditor’s report for the financial year ended 31 December 2017, including matters relating to adjustments arising from the external audit review and adequacy of disclosures, prior to making recommendations to the Board for approvals. (iii) Deliberated on the observations highlighted by the external auditors, and the respective management action plans and status updates. (iv) Held private meetings and discussions with the external auditors to allow for discussions on matters of concern. (v) Evaluated the performance and independence of the external auditors and made recommendations to the Board on the re-appointment and audit fees. (vi) Reviewed the quarterly reports in respect of the results to ensure compliance to the Malaysia Financial Reporting Standards and regulatory requirements and recommended to the Board for subsequent release to Bursa Malaysia. (vii) Reviewed the notes to the draft announcements of the audited and unaudited financial statements to Bursa Malaysia, to ensure compliance to the regulatory requirements. 76 ANNUAL REPORT 2018