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& Analysis

AUDIT COMMITTEE REPORT

The Board of Directors (Board) of Hengyuan Refining Company Berhad (HRC or the Company)
presents the Audit Committee Report which provides insights into the manner in which the
Board Audit Committee discharged its functions in FY2023.

COMPOSITION AND ATTENDANCE The Board reviews the terms of office of the BAC members and
assesses the performance of the BAC and its members through
HRC’s Board Audit Committee (BAC) comprises three (3) an annual Board Committee effectiveness evaluation. The Board
members with a diverse mix of skills, knowledge, experience indicated, through the Board Effectiveness Assessment FY2023,
and perspectives in the areas of accounting, corporate finance, that it was satisfied that the BAC and its members discharged
banking, oil and gas industry, risk management, strategy and their functions, duties, and responsibilities in accordance with
corporate governance, which enables the BAC to discharge the BAC’s Terms of Reference (TOR), which is accessible for
its duties.
reference on the Company’s website at: www.hrc.com.my.
The BAC consists solely of Independent Non-Executive
Directors (NEDs). All of the Independent NEDs satisfied the MEETINGS
test of independence under Bursa Malaysia Securities Berhad’s
(Bursa Malaysia) Main Market Listing Requirements (MMLR). The BAC held five (5) meetings during the financial year ended
The BAC complies with Paragraph 15.09(1)(a) and (b), 15.09(2), 31 December 2023. The details of the attendance record for
and 15.10 of the MMLR, and adheres to Practice 9.4 under each BAC member are as follows:-
Principle B of the Malaysian Code on Corporate Governance Name Attendance
(MCCG).
Alan Hamzah Sendut 5/5
The BAC Chairman, Alan Hamzah Sendut, is a Chartered Surinderdeep Singh Mohindar Singh 5/5
Accountant of the Institute of Chartered Accountants in England
and Wales (1986) and Malaysian Institute of Accountants (1987). Tai Sook Yee 5/5
He is also a Chartered Audit Committee Director, Institute Fauziah Hisham * 5/5
of Internal Auditors Malaysia (2018). The BAC Member,
Tai Sook Yee, is a Certified Public Accountant of the Malaysian * Puan Fauziah resigned with effect from 8 December 2023.
Institute of Certified Public Accountants (1987) and Malaysian The Chief Executive Officer (CEO) and Chief Financial Officer
Institute of Accountants (1987). Accordingly, HRC complies (CFO) were invited to all BAC meetings to facilitate direct
with Paragraph 15.09(1)(c)(i) of MMLR. communication, as well as to provide clarification on audit
The members of the BAC and their respective designation issues and the Company’s operations. The Chief Internal Auditor
and directorship are as follows:- (CIA) attended all BAC meetings to table the respective Internal
Audit (IA) reports. The relevant responsible Management
Designation Name Directorship members were invited to brief the BAC on specific issues arising
Independent Non-Executive from the audit reports or on any matters of interest.
Chairman Alan Hamzah Sendut
Director
As part of the BAC’s efforts to ensure the reliability of HRC’s
Surinderdeep Singh Independent Non-Executive quarterly financial statements and compliance with applicable
Member
Mohindar Singh Director
Financial Reporting Standards, PricewaterhouseCoopers PLT
Independent Non-Executive (External Auditors or PwC) were engaged to conduct a limited
Member Tai Sook Yee
Director review of selected HRC’s quarterly financial statements before
Independent Non-Executive these were presented to the BAC for review and recommendation
Member Fauziah Hisham *
Director for the Board’s approval for release to Bursa Malaysia.
* Puan Fauziah resigned with effect from 8 December 2023. PwC briefed the BAC on 23 February 2024 the outcome of
the statutory audit for the financial year ended 31 December
HRC has also adopted Practice 9.1 of MCCG where the positions 2023, significant auditing and accounting matters,
of Chairman of the Board and Chairman of the BAC are held internal control recommendations, and developments in relevant
by different persons, as well as adopted Practice 9.2 of MCCG laws and regulations.
where none of the BAC members is a former partner of the
external audit firm of the Company.