Frontken Berhad Annual Report 2016

Frontken Corporation Berhad (651020-T)

ANNUAL REPORT

2016

Audit Committee

Report

COMPOSITION AND ATTENDANCE

The members of the Audit Committee (the “Committee”) are as follows:

Chairman of Committee

Dato’ Haji Johar bin Murat @ Murad

Independent Non-Executive Director

Members of Committee

Aaron Sim Kwee Lein

Senior Independent Non-Executive Director

Dr Jorg Helmut Hohnloser

Non-Independent Non-Executive Director

The Board must appoint the members of the Committee from amongst its Directors which fulfils the following

requirements:-

(a) the Committee must be composed of not fewer than three (3) members;

(b) all the Committee members must be non-executive directors, with a majority of them being independent directors;

and

(i) must be a member of the Malaysian Institute of Accountants;

(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 Bursa Securities.

The Board, through the Nomination Committee, assesses the performance of the Committee in terms of its effectiveness

and contribution of Committee members on an annual basis to determine whether the Committee and its members

have carried out their duties in accordance with their terms of reference.

The meeting attendance of the Committee members is provided in the Corporate Governance Statement in this Annual

Report.

MEETINGS

There were five (5) meetings held during the financial year under review. As at the date of this report, the Committee

has held three (3) private sessions with the External Auditors without the presence of the Executive Directors and

Management. During the private sessions, the Committee enquired into the co-operation extended by Management in

the course of the audit, including the supply of information to facilitate the conduct of the external audit and whether

the External Auditors encountered any difficulty in obtaining such co-operation and information for the purpose of the

External Audit.

The meetings of the Committee are planned ahead so that the members can make the necessary arrangement to attend

the meetings. The notice for the meetings is served at least one (1) week before each meeting and the meeting papers

are sent to each member to provide them time to read, including an opportunity for the members to inquire into the

agenda items as well as to seek more information before the meeting.

At each Board meeting, the Committee Chairman briefs the Board pertaining to matters discussed at the Committee

meeting held earlier. A copy of the minutes of the Committee meeting is circulated to the Board for notation.

ROLES AND RESPONSIBILITIES

In compliance with the Listing Requirements of Bursa Malaysia Securities Berhad, the roles and responsibilities of the

Audit Committee, which remained unchanged during the financial year under review, are uploaded on the Company’s

website at