MKH Annual Report 2017

PRINCIPLE 5: UPHOLD INTEGRITY IN FINANCIAL REPORTING The Board should ensure financial statements are a reliable source of information. Financial Reporting The Board aims to provide and present a balanced, clear and meaningful assessment of the Group’s state of affairs in its financial performance and prospects at the end of the financial year, primarily through the annual financial statements, the Management Discussion and Analysis in the Annual Report. The timely quarterly results announcements also reflect the Board’s commitment to give regular updated assessment on the Group’s performances. Directors’ Responsibilities Statement The Board of Directors is required under Paragraph 15.26(a) of the Main Market Listing Requirements to issue a statement explaining their responsibility in the preparation of the annual audited financial statements. The Directors are required by the Companies Act, 2016 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the Company as at the end of the financial year and the results of the operations, changes in equity and cash flows of the Group and of the Company for the financial year. Where there are new accounting standards or policies that become effective during the year, the impact of these new treatments would be stated in the notes to the financial statements, accordingly. In preparing those financial statements, the Directors ensure that management have: • adopted appropriate accounting policies and consistently apply them; • made judgements and estimates that are reasonable and prudent; • state whether applicable approved accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepared financial statements on the going concern basis as the Directors have a reasonable expectation, having made enquiries, that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. The Directors have responsibility for ensuring that the Company keeps proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Group and the Company and to enable them to ensure that the financial statements comply with the Companies Act, 2016. The Directors have taken such steps as are necessary to safeguard the assets of the Group and the Company to prevent fraud and other irregularities. This statement has been approved by the Board on 28 December 2017. 57 MKH Berhad • Annual Report 2017 Statement on Corporate Governance