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STATEMENT ON INTERNAL CONTROL
AND RISK MANAGEMENT
RESPONSIBILITY OF THE BOARD
The Board of the Directors (“Board”) is responsible for Gunung Capital Berhad (“GCB”) and its subsidiary companies (“Gunung
Group”) system of internal control to safeguard stakeholders’ interests and Gunung Group’s assets as prescribed by the
Malaysian Code on Corporate Governance.
The Board acknowledges that the system of internal controls is designed to help manage rather than eliminate the risk
of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material
misstatement, loss and fraud.
INTERNAL CONTROL ENVIRONMENT ELEMENTS
The Board recognizes the importance of key internal control environment elements that set the tone of Gunung Group. It is
the foundation of all other components of internal control, providing the discipline and structure. It influences the control
consciousness of the employees in Gunung Group. In recognising the importance of control environment in the overall
governance process, the Board of GCB has instituted the following:
Board and Board Committees
• Appointment of 3 Independent Non-Executive Directors who are to ensure that strategies proposed are fully discussed
and evaluated.
• Appointment of Board Committees, including Audit Committee to assist the Board in overseeing the overall management
of principal areas of risk and evaluate the adequacy and effectiveness of the Risk Management and internal control
systems. Whilst the Nomination and Remuneration Committee have been delegated with specific responsibilities with
terms of reference, these Committees have the authority to examine all matters within their scope of responsibility
and report back to the Board with their recommendations for the Board’s decision.
Organisational Structure
• The organisational structure of Gunung Group is clear and detailed, defining the roles and responsibilities of the various
Committees of the Board, Management of the Corporate Office and subsidiary companies.
• Appointment of Chief Executive Officer (“CEO”) on the Board of the operating subsidiary companies within Gunung
Group. The MD/CEO’s appointment, roles and responsibilities, and authority limits are set by the respective Boards.
Risk Management
Risk Management is regarded as an integral part of the management process and the process of continual improvement.
The key objectives of Gunung Group’s risk management are as follows:
• Optimise return to shareholders and protect the interests of other stakeholders.
• Safeguard Gunung Group’s assets .
• Improve Gunung Group’s operating performance.
• Fulfill Gunung Group’s strategic objectives.
• Ensure appropriate and timely responses to changes in the environment that affect Gunung Group’s ability to achieve
its objectives.
• Reduce risks of material misstatement in official announcements and financial statements.
• Comply with the Malaysian Code of Corporate Governance , the relevant laws and requirements.
Gunung Capital Berhad (330171-P)
29
annual report | 2012