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AUDIT COMMITTEE
REPORT
Following the completion of the internal reorganisation of AirAsia Berhad (“AAB”) and the transfer of its listing status to AirAsia Group Berhad
(“AAGB”) on 16 April 2018, AAB is now a wholly-owned subsidiary of AAGB. This report outlines the activities of the Audit Committee (“the AC”)
of AAB for the financial year ended 31 December 2017 (“the Financial Year”), which will continue to be adopted by the AC of AAGB in the next
financial year. The AC of AAGB comprises the same members as AAB.
This Report has been reviewed by the AC and approved by the Board of Directors (“the Board”) of AAB on 12 April 2018 and AAGB on 7 May 2018,
for inclusion in this Annual Report.
The AC assists the Board in fulfilling its duties with respect to its oversight responsibilities. The AC is committed to its role of ensuring the
integrity of the group of companies of AirAsia (“the Group”) financial reporting process; the management of risks and system of internal
controls, external and internal audit processes, compliance with legal and regulatory matters; the review of related party transactions and
other matters that may be specifically delegated to the AC by our Board. The AC’s responsibility for the internal audit of AAB and the Group is
fulfilled through reviews of the quarterly reports of the Group Internal Audit Department (“GIAD”).
Composition of the Audit Committee
The AC has been established by the Board and comprise of two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-
Executive Director. Members of the AC elect among themselves an Independent Director, who is not the Chairman of AAB, as Chairman of the
AC. The Terms of Reference of the AC are approved by the Board and complies with the Main Market Listing Requirements (“MMLR”) of Bursa
Malaysia Securities Berhad (“Bursa Malaysia”).
The composition of the AC meets the requirements of paragraph 15.09(1)(c) of the MMLR. Members of the AC are subject to annual evaluations,
and its composition is reviewed annually by the Board.
Training
The training attended by the members of the AC during the financial year is set out in AAB’s Corporate Governance Overview Statement on
pages 186 to 192.
Attendance of Meetings
A total of twelve (12) meetings were held for the financial year. Members of the AC, together with details of their attendance at the AC meetings
held during the year, are as follows:
Name
Directorship
No. of Meetings attended
Dato’ Mohamed Khadar Bin Merican
(Chairman of the AC)
Independent Non-Executive Director
12
Dato’ Fam Lee Ee
Senior Independent Non-Executive Director
12
Dato’ Abdel Aziz @ Abdul Aziz Bin Abu Bakar
Non-Independent Non-Executive Director
12
The AC meets on a scheduled basis during the financial year, and as and when required. The AC is assisted by an independent GIAD in carrying
out its functions. The Chief Executive Officer (“CEO”), Deputy Group Chief Executive Officer (“DGCEO”), Group Chief Financial Officer (“GCFO”),
Chief Financial Officer (“CFO”), Group Head of Internal Audit, Group Head of Legal and Group Head of Risk of AAB are invited to attend meetings
to assist the AC in deliberations as and when necessary.
Summary of the work of the Audit Committee
The AC’s duties and responsibilities are set out in its Terms of Reference, which are available at
www.airasia.com.
In discharging its duties and responsibilities, the AC is guided by the AC Charter, which was approved by the Board and is aligned to the
provisions of the MMLR, Malaysian Code on Corporate Governance 2017 (“MCCG”), and Corporate Governance Guide: Executive Summary.
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AirAsia Group Berhad
REPORTS AND FINANCIAL STATEMENTS
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