Introduction

The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of internal control to safeguard shareholders’ investments and the Group’s assets. In addition, the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) have made it mandatory for the Directors of listed companies to include a statement in their annual report on the state of internal control of their group. The Bursa Securities’ Statement on Internal Control: Guidance for Directors of Public Listed Companies (“Guidance”) provides guidance for compliance with these requirements. In pursuance thereof and in accordance with the desire to adhere to good corporate governance, the Board is pleased to set out below its Statement on Internal Control.

The Board of Directors recognises the importance of sound internal controls and risk management practices to good corporate governance. The Board in discharging its stewardship responsibility for the Group affirms its responsibility for identifying the principal risks and ensuring the implementation of appropriate systems to manage these risks, and for reviewing the adequacy and integrity of those systems, including systems for compliance with applicable laws, regulations, rules, directives and guidelines. The system of internal controls covers financial, operational and compliance controls and risk management procedures.

The system of internal controls involves each key business unit in the Group and is designed to meet the Group’s particular needs and to manage the risks to which it is exposed in pursuit of its business objectives. It should however be noted that such systems of internal controls are designed to mitigate and manage rather than totally eliminate risk against material misstatement, loss and fraud.

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