AUDIT COMMITTEE

Indonesian citizen, domiciled in Surabaya, born in 1956, graduated from Electrical Engineering, California Polytechnic Pomona, USA. Prior to joining the Company, he has been working in Trading Co. and Manufacture of Flow Meter Co. He joined the Company in 2007 and was appointed as a Commissioner in 2010. In 2021 he was appointed as a Chairman of Audit Committee based on decision of Board of Commissioners on July 26^th, 2021.

Indonesian citizen, domiciled in Surabaya, born in 1975, graduated from Magister Management Programs of Surabaya University. She started her career by working at a Business Consultant Company in Jakarta. She has worked in several retail industries since 2001 untill now. She has been appointed as a member of Audit Committee since 2009 and based on decision of the Board of Commissioners on December 11^th, 2017, this position was extended until 2022.
 

Indonesian citizen, domiciled in Surabaya, born in 1980, graduated from the Faculty Economics, Narotama University. He started his career in 2001 at several trading companies, transportation and properties, since 2009 he has worked at Public Accountant in Surabaya until now. He has been appointed as a member of Audit Committee since 2017 based on decision of the Board of Commissioners on September 4^th, 2017 and will serve until 2022.

INDEPENDENCE OF THE AUDIT COMMITTEE

All members of Audit Committee are professionals in their respective field and selected based on among others; integrity, competence, experience and knowledge in law, financial, and information technology. Committee members are also required to meet the independency requirement in which a member must be free from any financial, managerial, shareholding and/or familial relationship with the Board of Commissioner, Board of Directors and/or controlling Shareholders and/or with the company.

DUTIES AND RESPONSIBILITIES OF AUDIT COMMITTEE

Our company describes duties and responsibilities of Audit Committee in Annual Activity Plan for 2017 – 2021 as follows:

• To review financial information that is going to be published by our company, such as Annual Financial Statement, Quarterly Financial Statement, Financial Projection and other financial information
• To review independency and objectivity of our company’s Public Accountant
• To review sufficiency of the audit procedures which were conducted our company’s Public Accountant to confirm all important audit risks have been addressed
• To review the effectiveness of company’s internal control
• To review the compliance level against regulations in Capital Market and Corporate Law, also other regulations related to the Company’s activities
• To investigate discrepancy and/or mistake in implementation of decisions as results of Board of Directors Meeting, Board of Commissioners Meeting and Shareholders Meeting
• To hold the Quarterly Audit Committee Meeting to formulate the independent professional opinion to or company’s Board of Commissioners regarding with the reports or other submitted by Board of Directors to Board of Commissioners
• To hold the Annual Audit Committee Meeting to arrange activities report of Company’s Audit Committee that will be attached in Company’s Annual Report

In line with that task and responsibility description, the Company Audit Committee held six times of Audit Committee Meeting in year 2020 which were attended by Chairman of Audit Committee and all its members. 

Activities conducted by Committee Audit during 2020 are as follows:

• Reviewing the financial informations that were published by the Company, such as Financial Statements as of December 31^st, 2019, as of March 31^st, 2020, as of June 30^th, 2020 and as of September 30^th, 2020 and reviewing the Company’s Business Plan year 2020- 2024
• Reviewing the independency, objectivity and sufficiency of audit procedures which were conducted by public accountant Hadori Sugiarto Adi & Partner, on the Company’s Financial Statement as of December 31^st, 2019.
• Reviewing the Company’s 2021 Budget and Business Plan 2021 - 2025 with Projection of Financial Statement 2021 - 2025, then providing feedbacks and professional opinion to Board of Commissioners.
• Reviewing the effectiveness of Company’s internal control and providing the feedbacks to improve its internal control and to increase the performance of audit internal.    
• Evaluating the compliance level against related regulations in connection with the implementation of new regulations in 2020, plan for new investment of Paper Machine number 10 (PM 10), plan to obtain funding alternatives for working capital of PM 10, plan to issue Company’s Medium Term Notes III Year 2021 amounting of USD 10 million AS.
• Audit committee has held meetings following the determined schedule, which are quarterly and annually