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GOVERNANCE
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Bursa Malaysia •
Annual Report 2015
e. A Corporate Fraud Policy is established to aid in the detection
and prevention of fraud and to promote consistent organisational
behaviour and practices.
f. A Confidentiality Policy is established to manage, control and
protect confidential information used by the Group to avoid
leakage and its improper use.
g. Management and employees at Grade E6 and above are required
to declare annually and provide an update on assets acquired or
disposed of during the year.
h. Segregation of duties is practised whereby conflicting tasks are
assigned to different members of employees to reduce the scope
for error and fraud.
10. Insurance
Sufficient insurance coverage and physical safeguards on major
assets are in place to ensure the Group’s assets are adequately
covered against any mishap that could result in material loss. A yearly
policy renewal exercise is undertaken by Management to review the
coverage based on the current fixed asset register and the respective
net book values and “replacement values”, i.e. the prevailing market
price for the same or similar item, where applicable. There is also a
yearly exercise to ensure the adequacy and renewal of the Group’s
professional indemnity insurance coverage.
REVIEW OF THIS STATEMENT
Pursuant to paragraph 15.23 of Bursa Malaysia Securities Berhad MMLR,
the External Auditors have reviewed this Statement for inclusion in the
2015 Annual Report, and have reported to the Board that nothing has
come to their attention that causes them to believe that the Statement is
not prepared, in all material aspects, in accordance with the disclosures
required by paragraphs 41 and 42 of the Statement on Risk Management
and Internal Control Guidelines for Directors of Listed Issuers, nor is the
Statement factually inaccurate. This Statement was approved by the Board
on 2 February 2016. GIA has reviewed this Statement and reported to the
AC that, while it has addressed certain individual lapses in internal control
during the course of its internal audit assignments for the year, it has not
identified any circumstances which suggest any fundamental deficiencies
in the Group’s internal control and risk management system.
CONCLUSION
The Board is of the view that the system of internal control and risk
management in place for the year under review, and up to the date of
approval of this Statement, is sound and sufficient to safeguard the Group’s
assets, as well as the shareholders’ investments, and the interests of
customers, regulators, employees and other stakeholders.
The Board has received assurance from the CEO and CFO that the
Company’s internal control and risk management system is operating
adequately and effectively, in all material aspects, based on the framework
adopted by the Group.
STATEMENT ON INTERNAL CONTROL
AND RISK MANAGEMENT