Page 82 - HRC_Annual_Report_2023

80 About HRC Value Creation Management Discussion Leadership
& Analysis

AUDIT COMMITTEE REPORT

IAD activities are reported to the BAC on a quarterly basis, The progress of the Internal Audit and Assurance Plan 2023
while SIA overall activities are presented to BAC annually, and its audits were reported to the Board on a quarterly
at the end of each financial year. IAD also followed-up basis.
on the implementation status of Management’s agreed During the course of the year, the BAC also approved four
action plans and thereafter reported the status to the BAC.
(4) special reviews on significant business processes.
Urgent issues arising from the internal audit processes are Where appropriate, the BAC directed Management to
highlighted to the Management promptly.
rectify and improve internal control processes based
The total costs incurred by the internal audit function of on the auditors’ recommendations and suggestions for
the Company for the financial year 2023 was RM454,468. improvement based on severity of findings and ratings of
audits.
4. HRC ASSURANCE PLAN 2023
5. RELATED PARTY TRANSACTIONS
The BAC oversaw HRC’s approved internal audit and
assurance plan for the year 2023 which consisted of In the year 2023, the BAC reviewed the Company’s Circular
seven (7) regulatory and statutory audits, fourteen (14) to Shareholders in relation to the proposed renewal
internal audits and four (4) process effectiveness reviews of shareholders’ mandate for recurrent related party
to ensure business processes and regulatory compliance. transactions (RRPT) for the period from 24 May 2023 to the
These are: 65 Annual General Meeting of the Company.
th
Name of Audit/Review In addition, the BAC oversaw the Company’s compliance
with MMLR in respect of related party transactions and
Regulatory/Statutory Audits
RRPT and ensured that the necessary announcements were
Financial Audit and Interim Financial Reviews by External Auditor
made to Bursa Malaysia.
ISO 9001 Surveillance Audit
ISO 14001 Surveillance Audit 6. CONFLICT OF INTEREST (COI)
ISO 45001 Surveillance Audit Directors are required to avoid situations that may directly
ISO 17025 Surveillance Audit or indirectly conflict with the interests of the Company,
ISO 27001 Surveillance Audit whether perceived or real, and must not allow their personal
ISO 37001 Surveillance Audit or business interests to interfere with their duties. To meet
the MMLR requirement, the Company has established
Internal Audits
a clear and transparent COI policy that restricts a Director
Procurement to Pay (P2P)
from deliberating and participating in any transaction
Marine & Jetty when a potential conflict of interest exists. The Directors
IT Business Continuity Planning (BCP) and key senior management had disclosed the nature and
Refinery Asset Management extent of any actual, potential and perceived COI including
their family members or related parties who have the
Project Management for Turnaround 2023
affiliations, interests or relationships, and/or have taken
Refinery Hydrocarbon Hedging (Crude) Compliance Review
part in the transactions related to HRC.
HRC Regulatory Compliance Review
The BAC has reviewed and monitored all COI situation in
Related Party Transaction Review
the Company and there was no potential COI reported
ISO 9001
in FY2023.
ISO 14001
ISO 45001
ISO 17025
ISO 27001
ISO 37001
Process Effectiveness Reviews
Hazard and Effect Management Process
Business Continuity Plan
Emergency Response
Mitigate Threats to Availability