EVERSENDAI CORPORATION BERHAD FOLLOW-UP ON PROJECT MANAGEMENT, QUALITY ASSURANCE & CONTROL AND PROCUREMENT & PAYMENT

Corrective Actions That Have Been Implemented by Management

Reference No. 1 Target Date will be 29 February Discretionary 2012 9 December 2012 29 February 2012 Immediate 29 February 2012 Date Implemented

Audit Findings Approval of tender submissions y The

Corrective Actions procedure manual

amended to reflect the approval limit of the Regional Director. y 3 Enhancement to bank mandate and limits 4 Formalisation Authority document 6 Documentation of monthly bank reconciliation review y of Limits Financial (FAL) y y Implementation of Authority Limits (DAL). The Management will revise the limits for authorised signatories for all bank accounts. The DAL has been drafted in October 2011. The DAL will be submitted to the BOD of ECB for approval. The monthly bank reconciliation statements will be signed off by the preparer and Finance Manager

14 November 2012 29 February 2012 January 2012

Corrective Actions that is Outstanding/On-going

Reference No. 2 Target Date 29 February 2012 incorporate the

Audit Findings Enhancements project monitoring to cost y

Corrective Actions The project revenue and costs reports will be enhanced to variances between actual and budget and this will be documented.

Remarks The process of enhancing white cards by including the reasons for the variances has yet to be documented formalised. The process will be and

completed subsequent to January engineer 2012 with the project designated recruitment

specifically to monitor the progress of each project and 4 Formalisation Financial Limits document of (FAL) y The DAL has been drafted in October 2011. The DAL will be submitted to the BOD of ECB for approval. 29 February 2012 The the DAL variances has by be been the monitored. Authority prepared

Management of ECB and is to be tabled at the board meeting on 28 February 2012 for the BOD approval.

Lapses classification transactions accounts in

in of the

y y

The adjustments have been made to rectify the error. Due care and diligence is exercised in validating all transactions

October 2011

Based on the review, it was noted that there were still transactions that do not conform to Companies expenses.

Enhancements to the supplier prequalification process

A new form called Pre-qualification Assessment Form will replace the Vendor Weightage Form

1 January 2012

The new form has been prepared awaiting clearance. and currently The Management

The

procedures

manual

will

be

amended accordingly 8 Objectivity contractors performance evaluation of y y A standard form will be provided to the End User for the assessment NCRs will be issued for nonconforming subcontractors/suppliers 1 January 2012

procedures manual will be amended subsequently. The new form has been prepared awaiting clearance. and currently The Management

suppliers and sub-

procedures manual will be amended subsequently.