ANNUAL REPORT 2014
23
During the financial year, the Chief Financial Officer and External Auditors also briefed the Board members on any
relevant changes to the Malaysian Financial Reporting Standards that would affect the Group’s financial statements.
The Directors continue to undergo relevant training programs to further enhance their skills and knowledge in the
discharge of their stewardship role.
Principle 5 – Uphold integrity in financial reporting by the Company
It is the Board’s commitment to present a balanced and meaningful assessment of the Group’s financial performance
and prospects at the end of each reporting period and financial year, primarily through the quarterly announcement
of Group’s results to Bursa, the annual financial statements of the Group and Company as well as the President’s
Statement and review of the Group’s operations in the Annual Report, where relevant.
The Board is responsible for ensuring that the financial statements give a true and fair view of the state of affairs of the
Group and the Company as at the end of the reporting period and of their results and cash flows for the period then
ended.
In assisting the Board to discharge its duties on financial reporting, the Board has established an Audit Committee,
comprising wholly Independent Non-Executive Directors, with Dato’ N. Sadasivan as the Committee Chairman. The
composition of the Audit Committee, including its roles and responsibilities, are set out in the Audit Committee Report
on pages 30 to 33 of this Annual Report. One of the key responsibilities of the Audit Committee in its specific terms
of reference is to ensure that the financial statements of the Group and Company comply with applicable financial
reporting standards in Malaysia and provisions of the Companies Act 1965, as the case may be. Such financial
statements comprise the quarterly financial report announced to Bursa and the annual statutory financial statements.
The Board understands its role in upholding the integrity of financial reporting by the Company. Accordingly, the Audit
Committee, which assists the Board in overseeing the financial reporting process of the Company, has adopted a
policy for the types of non-audit services permitted to be provided by the external auditors, including the need for
obtaining the Audit Committee’s approval for such services.
In assessing the independence of external auditors, the Audit Committee received a written assurance from the
external auditors, confirming that they are, and have been, independent throughout the conduct of the audit
engagement with the Company in accordance with the independence criteria set out by the International Federation of
Accountants and the Malaysian Institute of Accountants.
Principle 6 – Recognise and manage risks of the Group
The Group has implemented a comprehensive risk management framework and established a process for the
identification, evaluation and reporting of the major risks within the Group. The Group Risk Management Committee is
responsible for creating risk-awareness and monitoring major risks whilst the subsidiaries’ management is responsible
for managing risks, developing, implementing and monitoring the system of internal control. The Group has, however,
established a Group Risk Management Committee (“GRMC”), which functions to create risk awareness and examine
the identified risks. The risk responses and internal controls that Management has taken and/or is taking are
documented in the minutes of the GRMC meetings.
The identified risks are periodically reviewed by the Board through the Audit Committee, which informs the Board on
the progress of the mitigation plans for each key business risks identified.
In line with the MCCG 2012 and the Listing Requirements of Bursa, the Company has in place a Systems & Internal
Audit (“SIA”) function, which reports directly to the Audit Committee on the adequacy and effectiveness of the current
system of internal controls from the perspectives of governance, risks and controls. All internal audits carried out
are guided by internal auditing standards promulgated by the Institute of Internal Auditors Inc, a globally recognised
professional body for internal auditors. The SIA is independent of the activities it audits and the scope of work covered
by the SIA during the financial year under review is set out in the Audit Committee Report set out on pages 30 to 33 of
this Annual Report.
CORPORATE GOVERNANCE
STATEMENT
