Corporate Governance Statement (cont’d)
Directors’ Responsibility Statement
The Board has the responsibility to ensure that the financial statements gives a true and fair view of the state of affairs of the Company and the Group at the end of the financial year and the results and cash flows of the Company and Group for the financial year. In preparing the financial statements, the Directors have ensured that all the applicable approved accounting standards in Malaysia and the provision of the Companies Act, 1965 have been applied consistently. In addition, reasonable, prudent judgements and estimates are adopted by the Directors in the financial statements reporting.
The Directors also have a general responsibility for taking such steps as is reasonably open to them to safeguard the assets of the Group, all transactions that the Group entered into are properly authorised and recorded. Apart from that, the Directors are responsible to establish and maintain an internal control system that will provide reasonable assurance in preventing and detecting fraud and other irregularities.
State of Internal Control
The Board recognise the importance of their role in maintaining a sound system of internal control whereby shareholders’ investment and the Company’s assets can be safeguarded.
The Internal Control Statement furnish on pages 20 and 21 of this Annual Report provides an overview of the state of the internal controls within the Group.
Relationship with the Auditors
The Board through the Audit Committee has established a formal and transparent relationship with the external auditors of the Company.
The Audit Committee serves as an independent channel of communication with the external auditors. In compliance with the Malaysian Code on Corporate Governance, the Audit Committee has held a separate meeting with the external auditor, without the presence of the executive board members and management of the company during the year to discuss and respond to the audit findings. It is the practise of the Audit Committee to be responsive to the auditors’ enquiries and their recommendations in order to ensure compliance with the approved accounting standards in preparing the Company’s financial statements.
Corporate social responsibility
It is always the mission of the Company to conduct it business operation without neglects the importance of safety, health and environment as well as community responsibilities.
The Group’s subsidiary while operating in the overseas market has also contributed to their local social welfare program such as contribution to the fund for the disable.
In the year ahead, the Board will continue to participate and encourage its employees to involve themselves in other charitable activities.
The Group has complied with all the Best Practices of Corporate Governance set out in Part 2 of the Code on a continuing basis except for the following:-
for the Board to deliberate on significant matters that concern the overall strategy of the Group such as major investment and divestment decisions, financial and operating performance, acquisition and disposal of fixed assets.
This statement is issued in accordance with a resolution of the Directors dated 20 April 2010.
Annual Report 2009