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