| The Board is committed to managing risk and maintaining
a proper and effective system of internal control to safeguard the
shareholders' investment and the Group's assets.
Procedures have been designed for safeguarding assets against unauthorized
use or disposition; for maintaining proper accounting records; for
the reliability of financial information used within the business
or for publication; and for ensuring compliance with the relevant
legislation and regulations.
The internal control system is designed to provide reasonable,
but not absolute, assurance of no material misstatement or loss
and to manage rather than eliminate risks of failure in operational
systems and achievement of the Group's objectives.
Control Processes
The key procedures that the Board has established to provide effective
internal controls are as follows:
| (a) |
A comprehensive monthly management reporting system
providing financial and operational performance indicators to
the management and the relevant financial information for reporting
and disclosure purposes, is in place; |
| (b) |
Management structure with defined roles, responsibilities
and reporting lines are established. Delegated authorities are
documented and communicated; |
| (c) |
System and procedures are in place to identify, measure, manage
and control all risks that may have impact on the Group; and |
| (d) |
The internal audit function monitors the effectiveness of
internal control structures across the Group. The work of the
internal audit function is focused on areas of greatest risk
to the Group as determined with a risk-based approach. Independent
reports are submitted to the Audit Committee on a regular basis. |
The Board, through the Audit Committee, conducts quarterly review
of the effectiveness of the Group's internal control system covering
financial, operational and compliance controls and risk management
processes. The Board, through the review by the Audit Committee,
is satisfied that the Group has fully complied with the code provisions
on internal controls during the Year under review as set forth in
the Code.
|
