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38 TRANS FORMATION
FINANCE COMMITTEE
The Finance Committee comprises the following Directors:
Ms Chew Gek Khim (Chairman)
Mr David Goh Kay Yong
Mr Yap Chee Keong
Mr Tham Kui Seng
Established on 23 February 2010, the Finance Committee’s responsibilities include reviewing and recommending to the
Board for approval the annual business plans and budgets for business divisions and entities within the Group. It also reviews
and approves certain transactions of the Group within its delegated authority limits, such as financing plans and borrowings,
acquisitions and disposals and capital expenditure.
INTERNAL CONTROLS AND RISK MANAGEMENT (Principle 12)
The Board recognises its role in ensuring that the Management maintains a sound system of internal controls to safeguard
shareholders’ investments and the Group’s assets. The Group has adopted a group-wide risk assessment process, which
identifies the key risks facing each major business division, the potential impact and likelihood of those risks occurring, the
control effectiveness and action plans being taken to mitigate those risks.
The Board appreciates that risk management is an on-going process in which the senior management and the operational
managers continuously participate to evaluate and monitor the significant risks. The internal audit department regularly
reviews all significant control policies and procedures and highlights all significant matters to the senior management and
the Audit Committee. The Audit Committee has reviewed the Group’s risk assessment process and is satisfied that there
are adequate internal controls in place to manage the significant risks identified.
The Group’s subsidiary, Malaysia Smelting Corporation Berhad, has established a risk management structure, which depicts
the lines of reporting and responsibility at its Board, Audit Committee and Management levels.
During FY2011, the Audit Committee reviewed the effectiveness of the Group’s material internal controls, including financial,
operational and compliance controls, and risk management. The processes used by the Audit Committee to review the
effectiveness of the system of internal control and risk management included discussions with the Management, external
and internal auditors on the risks identified and the review of significant issues arising from internal and external audits.
The Directors understand that they have responsibility for the Group’s system of internal controls that covers all aspects of the
business. In recognition of this responsibility, the Directors set policies and seek regular assurance that the system of internal
controls is operating effectively. However, the Directors are also aware that such a system can only provide reasonable, but
not absolute, assurance that the Company will not be adversely affected by any event that could be reasonably foreseen
as it strives to achieve its business objectives. However, the Board also notes that no system of internal controls and risk
management can provide a comprehensive assurance against human error, poor judgement in decision making, losses, fraud
or other irregularities.
The Directors are of the opinion that, based on the results of the internal and external audits, the system of internal controls
is operating satisfactorily. The Directors are also satisfied that problems are identified on a timely basis and there is in place
REPORT ON
CORPORATE GOVERNANCE