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Annual Report 2017
101
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
The Group’s risk management context and accountability framework are expressed as follows:
Strategic risks
Operational risks
Financial risks
Framework
Strategic risks are primarily
risks caused by events that
are external to the Group,
but have a significant impact
on its strategic decisions or
activities.
Operational
risks
are
inherent in the continuing
activities within the different
business units or subsidiaries
of the Group.
Financial risk is an umbrella
term for multiple types
of risk associated with
financing, including financial
transactions that include the
uncertainty of a return and
the potential for financial loss.
Exposure
Compliance of regulatory
requirements from local
and abroad which affected
the Group policies and
procedures.
Pricing, sourcing of raw
material, dependence on
single customers and stiff
competition are the risks
facing by the Group.
The Group is exposed to
various financial risks relating
to bad debts, liquidity, interest
rates, foreign exchange and
commodity prices.
Accountabilities
Board and Group MD.
Heads
of
Divisions,
Department and business
units.
Group MD, Chief Financial
Officer cascading to all
Heads of Business Units.
Amidst delivering growth for its stakeholders, the Group will continue its focus on sound risk assessment practices and internal
control to ensure that the Group is well equipped to manage the various challenges arising from the dynamic business and
competitive environment.
7.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
Pursuant to paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, the external auditors
have reviewed this Statement for inclusion in the Annual Report for the year ended 31 March 2017 and reported to the Board
that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding
of the process adopted by the Board in reviewing the adequacy and integrity of the system of internal control.
This statement has been reviewed and approved by the Board of Directors on 30 May 2017.
AZIZAN BIN MOHD NOOR
Chairman of Audit Committee