The Board acknowledges its primary responsibility for the Group’s systems of internal controls covering not only financial controls but also operational, compliance controls and risk management, and for reviewing the adequacy and integrity of those systems. The principal objective of the system of internal controls is to effectively manage business risks to enhance the value of shareholder’s investments and safeguard all assets. The role of the Managing Director and Management is to The Board acknowledges its primary responsibility for the Group’s systems of internal controls covering not only financial controls but also operational, compliance controls and risk management, and for reviewing the adequacy and integrity of those systems. The principal objective of the system of internal controls is to effectively manage business risks to enhance the value of shareholder’s investments and safeguard all assets. The role of the Managing Director and Management is to assist in the design and implementation of the Board’s policies on internal control.

The internal control systems is a process, effected by the Board of Directors, management and other personnel, designed to manage and reduce risks rather than eliminate the risks. As such internal control can provide only reasonable assurance to Management and the Board of Directors regarding the achievement of company objectives in the following categories:

• effectiveness and efficiency of operations
• reliability of financial reporting
• compliance with applicable laws and regulations.

The likelihood of achievement is affected by limitation inherent in all internal control systems. Additionally, the Management needs to consider the cost of implementation against the expected benefits derived from the implementation of the internal control system. The Board still relies on the COSO Internal Control Framework
to ensure an appropriate and sound system of internal control, which encompasses of five interrelated components ie. The Control Environment, Risk Assessment Framework, Control Activities, Information and Communication process and Continuous Monitoring process.