50
ASIAMEDIAGROUPBERHAD
(813137-V)
KeyElementsof Internal Controls
The key elements of theGroup’s internal control system aredescribed below:
i.
Clearydefined limitsof authority, responsibilityandaccountabilityhavebeenestablished through
the relevant terms of reference and organizational structures to enhance the Group’s ability to
achieve its strategies and operational objectives;
ii.
Internalpoliciesandproceduresassetout in theGroup’sPoliciesandProcedurescoveringvarious
operational andmanagement aspects are regularly updated to address operational deficiencies
and changes of risks;
iii.
AllDepartmentsare required toprepare theannual strategicplan,capitalandoperatingexpenditure
budgets to bealignedwith the strategic planning and budgeting process of theGroup;
iv.
Major capital expenditureandassetsdisposalsareappraisedandapprovedby theBoardaswell
as the board of directors of the subsidiaries, wherever applicable;
v.
TheAudit Committee reviews the Group’s financial performance and statements which is then
reported to theBoard;
vi.
Management meetings are held regularly to identify, discuss and resolve strategic, operational,
financial and keymanagement issues; and
vii. Sufficient physical safeguards overmajor assets are in place to protect the assets of theGroup
against calamities and / or theft that may result inmaterial losses to theGroup.
Conclusion
The Board is of the view that there is no significant breakdown or weaknesses in the current system
of internal controls of the Group that have resulted in material losses incurred by the Group for the
financial yearended31December2013.TheBoardand theManagementwill continue to takenecessary
measures and ongoing commitment to strengthen and improve its internal control environment and
processes.
TheaboveStatementonRiskManagement& InternalControl ismade inaccordancewith the resolution
of theBoarddated29April 2014.
Reviewof theStatement byExternalAuditors
The External Auditors have, in accordance with the Recommended Practice Guide 5 issued by the
Malaysian InstituteofAccountants, reviewed theStatementas requiredbyparagraph15.23of theMain
Market ListingRequirementsof BursaSecurities, for inclusion in theCompany’sAnnual Report for the
financial year ended 31December 2013.
Basedon their review, theauditorshave reported to theBoard that nothinghas come to their attention
that causes them to believe that theStatement is inconsistent with their understanding of the process
adopted by the Board in reviewing and assessing the integrity and adequacy of the internal controls
of theGroup.
StatementsonRiskManagement
and Internal Control
(Cont’d)
