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Datasonic Group Berhad
(Company No. 809759-X)
50
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
(Continued)
KEY ELEMENTS OF THE RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS OF THE GROUP
The Group’s risk management and internal control systems during the financial year ended 31 March 2016
and up to the date of approval of this statement for inclusion in the Annual Report encompassed, inter
alia, the following key elements:-
Control Environment and Control Activities
Board Committees
The Board has delegated certain responsibilities to the Board Committees established in the Group,
namely the Audit Committee, Nomination Committee and Remuneration Committee. These Board
Committees have oversight authorities to examine and/or consider all matters within their scope of
responsibility as defined in their respective formalised terms of references and to report to the Board with
their recommendations appropriately.
Regular Board and Audit Committeemeetings were conducted to provide effective governance practices.
Decisions of the Board are only made after the required information is made available and deliberated
upon by the Board. The Board reviewed and approved the quarterly financial results announced to Bursa
Malaysia based on the recommendations made by the Audit Committee. Additionally, the Board also
approved and implemented the changes in Group policies to improve the efficiency of internal process
of management.
Management Committee
The Management Committee comprises the Managing Director as the Chairman, Deputy Managing
Director, Executive Directors and the key Senior Management of the Group. The Management Committee
meets at least once every quarter and additional meetings will be held as and when considered necessary
by the Chairman.
The Management Committee provides a forum for the Management to discuss on key management
concerns encompassing the strategic, operational, financial and reporting objectives, deliberation of key
operational risk issues and/or challenges encountered in the undertaking of the significant projects as well
as status of key resolutions decided upon by the Group. Appropriate action plans to resolve the issues or
manage the risks are formulated and continuous updates were obtained in subsequent meetings from
the respective parties assigned until satisfactory resolution of the action plans.
Organisational Structures
The Group has a clear organisational structure with well-defined accountabilities and responsibilities, and
lines of reporting for each division and department establishedwithin theGroup. The organisational structure
provides the basic framework to help the Group’s operations to proceed smoothly and functionally as
well as ensuring proper supervision, coordination and a sense of accountability among the employees.
Standard Operating Procedures
Standard Operating Procedures (“SOP”) governing the Group’s key businesses and operations are
documented and approved by the Executive Committee. Continuous reviews are carried out on the
adequacy, appropriateness and comprehensiveness of SOP developed to govern the business processes
and activities of the Group, to ensure compliance with applicable laws and regulations as well as significant
changes and development in business and operational environment.