On August 27, the 13th Meeting of the First Term BAC was held in Xiamen. BAC Chairman Abdulaziz Al-Judaimi and BAC members Mr. Chen Xiaobo and Mr.Paul A. Theys attended the meeting.

Chief Auditor Ms. Liu Cuixia gave a report on the “Audit of Turnaround Expenses in 2011” and “Audit of Product Marketing Business Process” conducted by the internal audit and mainly reported on the closure condition of high-risk gaps; KPMG reported on the work of the first half of 2012 and the work plan for the second half of 2012; Ms. Wong Lock Leng and Mr. Nouraddin A. Yousuf gave an report on the closure condition of audit gaps respectively on behalf of FREP management.

The Meeting recognized the work of the internal audit and the efforts that the management had made to close audit gaps and required that the management should sum up the experiences accumulated from the turnaround project of 2011 as well as the deficiencies found during the audit to make sure the turnaround work and expenses of 2013 can be controlled effectively and avoid similar problems; meanwhile, the Meeting also recognized the efforts that had been made in product sales, price and logistics control in product sales business.

The Meeting approved the adjustment suggestions on the “Internal Audit Shareholder Support Plan of Ethylene DBNK Project” “Three-year Rolling Plan of Internal Audit (2012-2014)” and “Internal Audit Work Plan of 2012” submitted by the internal audit. According to the aforesaid plan, the internal audit will add the “internal audit plan of ethylene DBNK project” in the three-year rolling plan, lay stress on the audit of project bidding, construction quality, purchase and contract and so on and invite two auditors from FPCL to participate in the whole journey.