The Board of Directors (“the Board”) of Handal Energy Berhad recognise the importance of good corporate governance and is committed to the establishment and implementation of a proper framework and controls that are in line with the principles and best practices as recommended by the Malaysian Code of Corporate Governance 2012 (“MCCG 2012” or “the Code”) which was issued by Securities Commission and took effect on 31 December 2012.

The Board is committed to ensuring that the Principles and Recommendations of MCCG 2012 are observed and practised in the discharge of its responsibilities in protecting and enhancing shareholders’ value and financial performance of the Group.

The Board has embarked on the relevant Corporate Governance Principles and Recommendations as set out in MCCG 2012 and accordingly revised its Board Charter which establishes the role and responsibilities of the Board and those functions delegated to Management that was adopted on 5 November 2012 to incorporate the relevant principles and recommendations.

The Board is pleased to report herein the manner in which the Company has applied the Principles and Recommendations of the MCCG 2012 for the current financial year pursuant to Paragraph 15.25 of the Listing Requirements of Bursa Malaysia Securities Berhad.