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JAYA TIASA HOLDINGS BERHAD
Control Environment and Activities
The Board is committed to ensure that a conducive control environment is maintained to facilitate the proper conduct
of the Group’s businesses. The following are significant elements of the Group’s risk management and internal control
system that the Board has established.
• Organization structure is in place to define the accountability and reporting lines to build an appropriate system of
checks and balances, corresponding to the business and operations activities’ needs.
• Authority limits are established within the Group for approving capital expenditure and matters on financial, treasury,
operations and personnel, keeping potential exposures in check.
• Annual budgets are prepared by the Group’s operations. Actual performances are reviewed against the budgets
with explanation of major variances on a monthly basis, allowing for timely responses and corrective actions to be
taken to mitigate risks.
• Quarterly and annual financial statements containing key financial results as well as operational performance results
of the Group are prepared and reported to the Board.
• Periodic company briefings with analysts are conducted to apprise the shareholders, stakeholders and general public
of the Group’s performance whilst promoting transparency and open discussion.
• The Group Chief Executive Officer is closely involved in the running of the day to day business and operations of the
Group by chairing 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 at the Group level are conducted to review operational and financial performance
as well as issues including the progress of ongoing initiatives.
• 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 a comprehensive information system that enables the production of timely, reliable and relevant data
and/or management reports to enhance management in decision making.
• The Group considers the integrity of staff at all levels to be of utmost importance and this is pursued through
recruitment, performance appraisal and retention of employees. The Group’s culture and values, and the standard
of conduct and discipline it expects from its employees are communicated to them via the letter of appointment and
orientation programs.
• Emphasis is being placed on enhancing the quality and ability of employees through training and development.
• The Group has established the safety & health committees at the operating level to address and ensure compliance
with occupational safety and health policies and procedures on a continuous basis.
• Adequate insurance and physical safeguarding of major assets are in place to ensure these 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.
• Regular site visits to the operations of the Group by members of the Board and management team.
Statement on Risk Management and Internal Control (cont’d)
