3
ACCOUNTABILITY AND AUDIT
Accountability
Principle 10: The Board should present a balanced and understandable assessment of the
Company’s performance, position and prospects.
In presenting the annual financial statements and quarterly announcements to shareholders as
well as any price sensitive reports to the public, the Board aims to provide the shareholders with a
balanced and understandable assessment of the Company’s and the Group’s performance, position
and prospects.
The Board is provided with an analysis of the management accounts at the quarterly Board meetings
which presents a balanced and understandable assessment of the Company’s performance, position
and prospects.
The Board reviews compliance issues, if any, with Management on a quarterly basis and as and when
required.
3.1
Risk Management and Internal Controls
Principle 11: The Board is responsible for the governance of risk. The Board should ensure
that Management maintains a 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 the significant risks which the Board is willing to take in achieving its
strategic objectives.
The Board recognises that it is responsible for the overall internal control framework, but accepts
that no cost effective internal control system will preclude all errors and irregularities, as the system
is designed to manage rather than eliminate the risk of failure to achieve business objectives, and
can only provide reasonable and not absolute assurance against material misstatement or loss. The
ARC will annually:
•
satisfy itself that adequate measures are being made to identify and mitigate any material
business risks associated with the Group;
•
ensure that a review of the effectiveness of the Group’s material internal controls, including
financial, operating and compliance controls and risk management, is conducted at least
annually. Such review can be carried out by internal auditors;
•
ensure that the internal control recommendations made by internal auditors and the
management letter recommendations by external auditors (noted during the course of the
statutory audit) have been implemented; and
•
ensure the Board is in a position to comment on the adequacy of the internal controls of the
Group.
30
CORPORATE
GOVERNANCE
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
