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Annual Report 2014
C. ACCOUNTABILITY AND AUDIT
ACCOUNTABILITY
Principle 10
The Board has overall responsibility to shareholders for ensuring that the Group is well managed and guided by its
strategic objectives. In presenting the Group’s annual and quarterly financial results to shareholders, the Board aims
to provide shareholders with a balanced and understandable assessment of the Group’s performance, position and
prospects. Management provides the Board with management accounts and other financial statements on a monthly
basis or as and when required by the Board. The Board takes adequate steps to ensure compliance with legislative
and regulatory requirements, including requirements under the listing rules of the securities exchange.
RISK MANAGEMENT AND INTERNAL CONTROLS
Principle 11
The Group maintains a robust and effective system of internal controls, addressing financial, operational, compliance
and information technology controls, and risk management systems, for all companies within the Group, but recognises
that no internal control system will preclude all errors and irregularities. The system is designed to manage rather than
to eliminate the risk of failure to achieve business objectives. The controls are to provide reasonable, but not absolute,
assurance to safeguard shareholders’ investments and the Group’s assets.
The Board is responsible for the governance of risk. The Board should ensure that Management maintains sound
system of risk management and internal controls to safeguard shareholders’ interests and the Company’s assets, and
should determine the nature and extent of significant risks which the Board is willing to take in achieving its strategic
objectives.
The Group’s key internal controls include:
a)
establishment of risk management policies and systems;
b)
establishment of policies and approval limits for key financial and operational matters, and issues reserved for
the Board;
c)
documentation of key processes and procedures;
d)
segregation of incompatible functions which give rise to a risk of errors or irregularities not being promptly
detected;
e)
maintenance of proper accounting records;
f)
safeguarding of assets;
g)
ensuring compliance with appropriate legislation and regulations; and
h)
engaging qualified and experience persons to take charge of important functions.
Operational risk management measures implemented by the Group include the implementation of safety, security and
internal control measures and taking up appropriate insurance coverage.
Details of the Group’s financial risk management measures are outlined on pages 133 to 140 in the Notes to the
Financial Statements.
Corporate Governance and Transparency
