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4. FINANCIAL REPORTING
In presenting the annual financial statements and quarterly announcement to shareholders, the
Directors aim to present a balanced and understandable assessment of the Group’s position
and prospects. This also applies to other price-sensitive public reports and reports to
regulators.
5. DIRECTORS’ RESPONSIBILITY STATEMENT FOR PREPARING THE FINANCIAL
STATEMENTS
The Board is responsible for the preparation of the financial statements of the Company. The
Board has ensured that the financial statements have been prepared based on accounting
policies which have been consistently and properly applied, supported by reasonable and
prudent judgements and estimates, in adherence to all applicable accounting standards.
It is also the Board’s responsibility to ensure that accounting records are accurate, within
margins of reasonableness, which discloses the financial position of the Group in a true and
fair manner.
The statements by directors pursuant to Section 169(15) of the Companies Act, 1965 in
relation to the preparation of the financial statements is set out on page 87 of this Annual
Report under Statement by Directors.
6. RELATIONSHIP WITH THE AUDITORS
The Company has established transparent and appropriate relationships with the Company’s
auditors through the Audit Committee.
The role of the Audit Committee in relation to the external auditors is described on page 46
to 55 of the Annual Report.
7. INTERNAL CONTROL
Introduction
The Code requires listed companies to maintain a sound system of internal control to
safeguard shareholders’ investments and the Group’s assets. The Kuala Lumpur Stock
Exchange’s (`KLSE’) Revamped Listing Requirements require directors of listed companies to
include a statement in annual reports on the state of their internal controls. The KLSE’s
Statement on Internal Control: Guidance for Directors of Public Listed Companies (`Guidance’)
provides guidance for compliance with these requirements. Set out below is the Board’s
Internal Control Statement, which has been prepared in accordance with the Guidance.
Responsibility
The Board recognizes the importance of sound controls and risk management practices to
good corporate governance. The Board affirms its overall responsibility for the Group’s system
of internal controls and risk management, and for reviewing the adequacy and integrity of the
system. Such a system, however, can only be designed to manage rather than eliminate the
risk of failure to achieve business objectives. This system, by its nature, can only provide
reasonable but not absolute assurance against material misstatement or loss.
Laporan Tahunan 2002 Annual Report
STATEMENT OF CORPORATE GOVERNANCE (CONTINUED)
37