Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 29 Audit Committee Report The principal objective of the Audit Committee is to assist the Board to discharge its statutory duties and responsibilities in relation to financial, accounting and reporting responsibilities and to ensure proper disclosure to the shareholders of the Company. The Audit Committee will ensure that the Management establishes and maintains an effective internal control system including adequacy of resources, qualifications and experience of staff fulfilling the accounting and financial reporting function of the Company. The Board is pleased to present the Audit Committee Report for the financial year ended 31 December 2016. COMPOSITION AND MEETINGS The Audit Committee held four (4) meetings during the year. The members of the Audit Committee and details of their attendance of the meetings during the financial year ended 31 December 2016 are as follows:- Name of Director Designation / Directorship Number of meetings attended Aaron Sim Kwee Lein Chairman of Committee/Independent Non-Executive Director 4/4 Ng Kim Huat Member of Committee/Independent Non-Executive Director 4/4 Lok Choon Hong Member of Committee/Independent Non-Executive Director 4/4 THE AUDIT COMMITTEE IS GOVERNED BY THE FOLLOWING TERMS OF REFERENCE:- 1. Membership The Board from among its members shall appoint the Audit Committee that fulfils the following requirements:- a) The Audit Committee must be composed of no fewer than three (3) members. b) All the Audit Committeemembersmust be Non-Executive Directors, of which amajority of themmust be Independent Directors. c) All members of the Audit Committee should be able to read, analyse and interpret financial statements. At least one (1) of them:- (i) must be a member of the Malaysian Institute of Accountants; or (ii) if he is not a member of the Malaysian Institute of Accountants, he must have at least three (3) years’ working experience; and (aa) he must have passed the examinations specified in Part I of the First Schedule of the Accountants Act, 1967; or (bb) he must be a member of one of the associations of accountants specified in Part II of the First Schedule of the Accountants Act, 1967; or (iii) fulfils such other requirements as prescribed or approved by the Exchange. d) The members of the Audit Committee shall elect a Chairman among their numbers whom shall be an Independent Director. e) No Alternate Director is appointed as a member of the Audit Committee. f) If a member of the Audit Committee resigns, dies or for any other reason ceases to be a member with the result that the number of members is reduced below three (3), the Board shall, within three (3) months of that event, appoint such number of new member as may be required to make up the minimum number of three (3) members.