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STATEMENT ON
RISK MANAGEMENT
AND INTERNAL
CONTROL
5. OTHER KEY ELEMENTS OF INTERNAL CONTROL (CONT’D)
Other key elements of the system of internal control of the Group are as follows: (Cont’d)
• Limit of authority and approval facilitating delegation of authority;
• Budgeting process and variances performance reporting for contract jobs are monitored by the Executive
Directors;
• Written policies and procedures on key processes of the Group; and
• Monthly management reporting procedures for monitoring and tracking of performance of the Group.
6. MANAGEMENT RESPONSIBILITIES AND ASSURANCE
In accordance to the Bursa’s Guidelines, management is responsible to the Board for:
• identifying risks relevant to the business of the Group’s objectives and strategies implementation;
• designing, implementing and monitoring the risk management framework in accordance with the Group’s strategic
vision and overall risk appetite; and
• identifying changes to risk or emerging risks, taking action as appropriate and promptly bringing these to the
attention of the Board.
Before producing this Statement, the Board has received assurance from Managing Director and Chief Financial Officer
that, to the best of his knowledge that the Group’s risk management and internal control systems are operating
adequately and effectively, in all material aspects.
7. BOARD ASSURANCE AND LIMITATION
In making this statement, the Board had considered the Bursa Securities’ Guidelines on Statement on Risk Management
and Internal Control.
For the financial year under review, the Board confirms that there is an ongoing process for identifying, evaluating and
managing significant risks faced by the Group and the Board is satisfied that the existing level of systems of internal
control and risk management are effective to enable the Group to achieve its business objectives and there were no
material losses resulted from significant control weaknesses.
Nonetheless, the Board wishes to reiterate that risk management and internal control should be continuously improved
in line with the evolving business development. It should also be noted that risk management systems and systems of
internal control are only designed to manage rather than eliminate risks of failure to achieve business objectives.
Therefore, these systems can only provide reasonable but not absolute assurance against material misstatements,
frauds and losses. During the current financial year, there were no major internal control weaknesses which led to
material losses, contingencies or uncertainties that would require disclosure in this Annual Report.
8. REVIEW OF STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL BY EXTERNAL AUDITORS
The External Auditors had reviewed this Statement on Risk Management and Internal Control for inclusion in this annual
report for the year ended 30 June 2014 and have reported to your Board that nothing has come to their attention that
causes them to believe that this Statement is inconsistent with their understanding of the process that the Board has
adopted in the review of the adequacy and integrity of the systems of internal control of the Group.
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