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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
Internal control is embedded in the Group’s operations as follows:
•
Clear organization structure with defined reporting lines. There is a defined organizational structure within
the Group with each division having clearly defined roles and responsibilities, levels of authority and lines of
accountability.
•
Each line of business is responsible for the conduct and performance of its operating units, including the
identification and evaluation of significant risks applicable to their respective business areas, the design and
operation of suitable internal control and in ensuring that an effective system of internal control is in place.
•
Defined level of authorities and lines of responsibilities for the Board and operating units to ensure
accountabilities in risk management and control activities.
•
Documented standard operating procedures are regularly reviewed to ensure that the procedures and
policies are current, relevant and aligned with evolving business and operational needs.
•
Quarterly management reports on key business performance, operating statistics and regular matters are
provided to the members of the Board for review and to monitor the achievements of the Group’s performance.
•
Each line of business submits an annual budget for approval by the Board. The results of the lines of
business are monitored monthly and variances are analyzed against the budget and acted on accordingly.
•
The Board is supported by qualified and competent Company Secretaries. The Company Secretaries play
an advisory role to the Board, particularly on issues relating to compliance with the MMLR, the Companies
Act 1965 and other relevant laws and regulations.
•
Ongoing reviews on the system of the internal controls are carried out by the Group Internal Audit Department
established by the penultimate holding company, Kumpulan Fima Berhad. Results of such reviews are
reported to the Audit Committee. The work of the internal auditors is focused on areas of priority as identified
by the Group’s risk management process.
•
The Audit Committee convenes regular meetings to deliberate on findings and recommendations for
improvement by both the internal and external auditors on the state of the system internal controls. The
minutes of the Audit Committee meetings are tabled to the Board.
•
The RMC converse annually to review and recommend the risk management policies, strategies, major risks
review and risk mitigation actions for the Group and reports to the Audit Committee.
•
Active participation and involvement by the Managing Director in the day-to-day running of the major
businesses and regular discussions with the Senior Management.
•
A meeting of the Heads of Divisions chaired by the Managing Director is held monthly to deliberate on
operational, financial and key management issues. The Managing Director will update the Board of any
significant matters that require the Board’s immediate attention.
•
Adequate insurance and physical security of major assets.
•
Staff’s competency is enhanced through rigorous recruitment process and development programmes. A
performance appraisal system of staff is in place, with established targets and accountability and is reviewed
on an annual basis.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
(contd.)