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