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ACCOUNTABILITYANDAUDIT
Principle10: Accountability
The Board, through its announcements of quarterly and full-year results as well as price sensitive issues, aims to provide
shareholderswith a balanced and understandable assessment of theGroup’s financial performance, position andprospects.
TheCompany recognises the importance of providing the Boardwith a continual flow of relevant information on an accurate
and timely basis in order that it may effectively discharge its duties. On a regular basis, Board members are provided with
business and financial reports comparing actual performance with budget, highlights on key business indicators and other
major issues.
Principle11: RiskManagement and Internal Controls
The Board has overall responsibility for the management of the Group’s key risks to safeguard shareholders’ interests and
its assets.
The Audit Committee (“AC”) assists the Board in providing risk management oversight while the ownership of day-to-day
management andmonitoringof existing internal control systems aredelegated toManagementwhich comprise the Executive
Directors and senior executives of theGroup.
TheAC,with the assistanceof the internal auditors, reviews the adequacy and effectiveness of theCompany’s internal control
systems, including financial, operational, compliance and information technology controls and risks management policies
and systems established by theManagement on an annual basis. In addition, the external auditors will highlight anymaterial
control weaknesses within the Group discovered in the course of the statutory audit. Any material findings from both the
internal and external auditors together with the improvement recommendations are reported to the AC. The ACwill review
the internal and external auditors’ comments and findings, ensure that there are adequate internal controlswithin theGroup
and follow-up on actions implemented.
TheCompanyhas inplaceanenterprise-wide riskmanagement framework (“ERMFramework”) toenhance its riskmanagement
capabilities. The key risks have been identified and actionplans are inplace tomitigate these risks.Managementwill regularly
review the key risks, both existing and emerging new risks, and current controls on the key risks and take necessarymeasures
to address andmitigate these risks.
For2013, theBoardand theAChad inaddition receivedassurance from theCEOand theCFOon theadequacyandeffectiveness
of theCompany’s riskmanagement and internal control systems, and that thefinancial records havebeenproperlymaintained
and the financial statements give a true and fair view of theCompany’s operations andfinances.
Based on the ERM Framework established, reviews carried out by the AC, the work performed by the internal and external
auditors and assurance from theManagement, the Board, with the concurrence of theAC, is of the opinion that the internal
controls and systems maintained byManagement during the financial year and up to the date of this report are adequate in
addressing financial, operational, compliance and information technology risks and tomeet the current scope of theGroup’s
business operations. TheAC and theBoardnote that no systemof internal controls is capableof providing absolute assurance
against the occurrence ofmaterial errors, poor judgment indecision-making, human error, losses, fraudor other irregularities.
