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ANNUAL REPORT 2014
33
Control Environment and Activities
In furtherance to the Board’s commitment to maintain a sound system of internal control, the Board continues to maintain
and implement a strong control structure and environment for the proper conduct of the Group’s business operations as
follows:
•
An organization structure with defined reporting lines aligned with business and operational requirements within the
Group.
•
Authority limits are established within the Group for approving capital expenditure and matters on financial, treasury,
operations and personnel, keeping potential exposures in check.
•
Budgeting for the new financial year is undertaken annually, to establish operating targets against which performance
is monitored. The budgets are reviewed half yearly or on a need basis, to reflect operating changes.
•
Quarterly reporting of financial results as well as operational performance of the Group to the Board.
•
The Group Chief Executive Officer acts as a channel of communication between the Board and management. He is
closely involved in the running of the day to day business and operations of the Group by attending meetings both
at management and operational levels to monitor the performance and profitability of the Group’s businesses.
•
Meetings on management accounts results against prior periods are conducted bi-monthly with significant variances
explained and appropriate actions taken or plans put in place.
•
Monthly management meetings are conducted to discuss and report on operational, financial and key management
issues.
•
Documented policies and procedures are in place to guide staff in their day-to-day work. These policies and procedures
are reviewed regularly and updated when necessary.
•
The Group has in place a comprehensive information system that captures, compiles, analyses and reports relevant
data, which enables management to make operating decisions in an accurate and timely manner.
•
Guidelines on employment, performance appraisal and retention of employees are in place to ensure that the Group’s
employees are well equipped with the necessary knowledge, skills and ability to carry out their responsibility.
•
Training and development programs are identified and scheduled for employees to acquire the necessary knowledge
and competency to meet the management’s performance and job expectations.
•
The Group has put in place the necessary safety guidelines among others, the safety and health committees at
operating level to enhance the safety procedures and address all the safety issues which may arise from time to
time.
•
Adequate insurance and physical safeguarding of major assets are in place to ensure the Group’s assets are sufficiently
covered against any mishap that may result in material losses to the Group.
•
The intranet is used as an effective means of communication and knowledge sharing at all levels.
•
Periodic visits to the operating units by members of the Board and management team.
statement on risk management and internal control (cont’d)