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Statement on Corporate Governance (cont’d)<br />
D. ACCOUNTABILITY AND AUDIT<br />
Financial Reporting<br />
It is the Board’s commitment to present a balanced and meaningful assessment of the Group’s financial performance and<br />
prospects at the end of the financial year, primarily through the annual financial statements and quarterly announcement of<br />
results to Bursa Malaysia as well as the Chairman’s statement and review of operations in the Annual Report.<br />
The Board is assisted by the Audit Committee to oversee the Group’s financial reporting process and the quality of its<br />
financial reporting.<br />
Directors’ responsibility statement in respect of the preparation of the audited financial statements<br />
The Board is responsible for ensuring that the financial statements give a true and fair view of the state of affairs of the Group<br />
and of the Company as at the end of the financial year and of their operation results and cash flows for the year then ended.<br />
In preparing the financial statements, the Directors have ensured that applicable approved Financial Reporting Standards for<br />
entities other than private entities issued by the MASB and the provisions of the Companies Act, 1965 have been applied.<br />
The Directors also have a responsibility under the Companies Act, 1965 to have in place a system of internal control that will<br />
provide reasonable assurance that:<br />
- assets of the Company are safeguarded against loss from unauthorised use or disposition; and<br />
- all transactions are properly authorised and that they are recorded as necessary to enable the preparation of true and fair<br />
financial statements and to give a proper account of the assets.<br />
In preparing the financial statements, the Directors have selected and applied consistently suitable accounting policies and<br />
made reasonable and prudent judgments and estimates.<br />
State of internal controls<br />
The Board acknowledges its responsibilities for the Group’s system of internal control covering not only financial controls but<br />
also operational and compliance controls as well as risk management.<br />
The Statement on Internal Control furnished on pages 65 to 66 of this Annual Report provides an overview about the state<br />
of internal controls within the Group during the financial year ended 31 December 2011.<br />
Relationship with the Auditors<br />
Key features underlying the relationship of the Audit Committee with the Internal and External Auditors are included in the<br />
Audit Committee’s terms of reference as detailed on pages 59 to 61 of this Annual Report.<br />
A summary of activities of the Audit Committee during the financial year ended 31 December 2011, is set out in the Audit<br />
Committee Report on pages 62 to 64 of this Annual Report.<br />
MALAYSIA SMELTING CORPORATION (43072-A) • ANNUAL REPORT 2011 57