28 June 2013

The Chairman of Audit Committee

PREMIER NALFIN BERHAD
Level 25, Wisma Tun Sambanthan
Jalan Sultan Sulaiman
50000 uala Lum!ur
"ear Sir,
ENGAGEMENT LETTER INTERNAL AUDIT
#ollo$in% our a!!ointment as internal auditors of &remier 'alfin (erhad, $e are !lease to
)onfirm our a))e!tan)e and the terms of our en%a%ement for the *uarterl+ finan)ial !eriods
endin% 31st ,ar)h 2013, 31st June 2013 and on$ards-
1. OUR SCOPE AND RESPONSIBILITIES
.ur s)o!e and res!onsibilities of en%a%ement shall )over the follo$in%/0
1-1 The 1st )+)le of internal audit en%a%ement shall )over for the !eriod be%innin% 1 Januar+
2013 to 31 ,ar)h 2013- #ollo$in% this, the en%a%ement shall be )arried out on a
*uarterl+ basis-
1-2 We shall revie$ all e1istin% internal )ontrols relatin% to the safe%uard of the Com!an+2s
assets, mana%ement )ontrol !oli)ies and )or!orate %overnan)e-
1-3 To !lan and desi%n the internal audit !ro%ram a!!li)able to the Com!an+2s needs in
relation to the follo$in%/0
3i4 #i1ed "e!osit ,ana%ement
3ii4 Authorisation and !a+ment !ro)ess
3iii4 Limit of authorit+
3iv4 ,isa!!ro!riation and lea5a%es of funds
3v4 6uarterl+ finan)ial re!ortin%
3vi4 Com!lian)e issues relatin% to ,ain (oard Listin% in (ursa ,ala+sia
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1-7 To )arr+ out internal audit !ro)edures in a))ordan)e $ith the !lan and !ro%rams as stated
above-
1-5 To re!ort and dis)uss $ith senior mana%ement on our findin%s and re)ommend our
su%%estions for im!rovement of internal )ontrol s+stem-
1-8 To !re!are the final internal audit re!ort addressed to the Audit Committee-
1-9 The internal audit in)ludes e1aminin%, on a test basis, eviden)e su!!ortin% the amounts
and dis)losures in the finan)ial statements- An audit also in)ludes evaluatin% the
a!!ro!riateness of a))ountin% !oli)ies used and the reasonableness of a))ountin%
estimates made b+ the dire)tors, as $ell as evaluatin% the overall finan)ial statements
!resentation-
1-8 The nature and e1tent of our !ro)edures $ill var+ a))ordin% to our assessment of $hat is
material in the )onte1t of the Com!an+2s finan)ial statements, our assessment of the
Com!an+2s a))ountin% s+stem and, $here $e $ish to !la)e relian)e on it, the s+stem2s
internal )ontrol, and ma+ )over an+ as!e)t of the business2s o!erations that $e )onsider
a!!ro!riate-
1-: .ur audit is not desi%ned to identif+ all si%nifi)ant defi)ien)ies in the Com!an+2s s+stems
or matters of %overnan)e interest- ;o$ever, $e shall brin% to the attention of the Audit
Committee if su)h matters )ome to our noti)e durin% the )ourse of our audit and shall
re!ort a))ordin%l+- We $ill )ommuni)ate to +ou in $ritin% )on)ernin% an+ si%nifi)ant
defi)ien)ies in a))ountin% and internal )ontrol s+stems or matters of %overnan)e interest
relatin% to the finan)ial re!ortin% !ro)ess that $e have identified durin% the audit-
1-10 (e)ause of the test nature and other inherent limitations of an audit, to%ether $ith the
inherent limitations of an+ a))ountin% and internal )ontrol s+stem, there is an
unavoidable ris5 that some material misstatements, in)ludin% those resultin% from fraud
and error, ma+ not be dete)ted, even thou%h the audit is !ro!erl+ !lanned and !erformed
in a))ordan)e $ith a!!roved standards on internal audits in ,ala+sia- .ur audit should
not be relied to dis)lose fraud and error that ma+ e1ist-
1-11 As !art of our audit !ro)ess, $e $ill re*uest form the mana%ement and dire)tor2s $ritten
)onfirmation )on)ernin% re!resentations made to us in )onne)tion $ith the audit-
1-12 <n order to assist us $ith the e1amination of +our finan)ial statements and internal
)ontrol, $e loo5 for$ard to full )o0o!eration $ith +our staff and $e trust that the+ $ill
ma5e available to us $hatever re)ords, do)umentation and other information re*uested in
)onne)tion $ith our audit-
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2. CONFIDENTIALITY
2-1 All relevant information a)*uired b+ us in the )ourse of our audit is sub=e)t to stri)t
)onfidentialit+ re*uirements-
2-2 'either of us $ill dis)lose to an+ third !art+ $ithout the !rior $ritten )onsent of the other
!art+ an+ )onfidential information $hi)h is %iven, for the !ur!oses of !rovidin% or
re)eivin% the servi)es herein, b+ the other !art+- This information shall not a!!l+ to an+
information $hi)h/0
3i4 is or be)omes %enerall+ available to the !ubli) other that as a result of a brea)h of
an obli%ation under this )lause> or
3ii4 is a)*uired from a third !art+ $ho o$es no obli%ation of )onfiden)e in res!e)t of
the information> or
3iii4 is in !ossession of the re)eivin% !art+ $ithout restri)tion before the date of re)ei!t
from the other !art+> or
3iv4 is or has been inde!endentl+ develo!ed b+ the re)eivin% !art+-
2-3 Sub=e)t to Clause 2-2 above and on)e the servi)es herein and the deliverables herein have
been !rovided, $e ma+ )ite the !erforman)e of our servi)es herein to our )lients and
!ros!e)tive )lients, or in)lude a referen)e on other ele)troni) or !rinted mar5etin%
materials or !ubli)ations as an indi)ation of our e1!erien)e-
3. OTHER MATTERS
3-1 The $or5in% !a!ers and files for this en%a%ement )reated b+ us durin% the )ourse of the
audit, in)ludin% ele)troni) do)uments and files, are the sole !ro!ert+ of our firm-
3-2 We shall not be liable in an+ $a+ for failure or dela+ in !erformin% our obli%ations under
this en%a%ement-
4. GOVERNING LAW AND JURISDICTION
7-1 These terms of business shall be %overned b+ and )onstrued in a))ordan)e $it the la$s of
,ala+sia and an+ dis!ute arisin% out of this en%a%ement or these terms shall be sub=e)t to
the e1)lusive =urisdi)tion of the ,ala+sian )ourts-
5. FEES
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5-1 .ur fees are based u!on the de%ree of res!onsibilit+ and s5ill involved and the time
s!end b+ the !artners and our staff ne)essaril+ o))u!ied on the $or5, and shall be
revie$ed from time to time- The fees $ill be billed as u!on )om!letion of our $or5 and
shall in)lude all disbursements and other out0of0!o)5et e1!enses- The invoi)e $ill be due
on !resentation to%ether $ith our re!ort-
6. AGREEMENT OF TERMS
8-1 .n)e it has been a%reed, this letter $ill remain effe)tive for subse*uent rea!!ointment
unless it is terminated, amended or su!erseded- We shall be %rateful if +ou $ould )onfirm
+our a%reement to the terms of this letter b+ si%nin% and returnin% the du!li)ate )o!+-
Than5 +ou-
?ours faithfull+,
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M. J!"#$%&
&artner
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A)5no$led%ed and in a%reement $ith the terms of en%a%ement as set out above/
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E&. A'(#) A*+* '+& M,-$.( H#//+&
Chairman of Audit Committee
"ate/
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