Annual Report 2023 99 INTRODUCTION The Board of Directors (“the Board”) of Datasonic Group Berhad (“the Group”) is pleased to present the Statement on Risk Management and Internal Control of the Group which outlines the main features of the Group’s risk management and internal control system for the financial year ended 31 March 2023 pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“MMLR of Bursa Malaysia”), Malaysian Code of Corporate Governance (“MCCG”) and the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers (“Guidelines”). RESPONSIBILITIES The Board and the Management uphold their ongoing commitment to embed and improve the risk management and internal control system into the culture, processes and the Group’s structure. The Group continues its efforts to integrate the risk management processes and internal controls into the management processes and business activities. The efforts continue to evolve on a progressive basis for the financial year ended 31 March 2023 and up to date of approval of this Statement for inclusion into the 2023 Annual Report. Board Responsibilities The Board recognises the importance of sound risk management and internal control system to ensure the reliability and integrity of financial and operational information, effectiveness and efficiency of operations, safeguarding of assets and compliance with laws, regulations, policies, procedures and contracts. Hence, the Board with the assurance from the Executive Directors and the Management affirms its overall responsibilities for the Group’s risk management and internal control system. The oversight of these critical areas is carried out by the Audit Committee (“AC”) and Risk Management Committee (“RMC”) which are empowered by their respective terms of reference to provide oversight and perform regular reviews on the risk management and internal control systems to meet the Group’s objectives and for continuous improvement thereof. The Board acknowledges the limitations that are inherent in any risk management and internal control system. As such the systems designed are meant to manage and minimise the extent and severity of the risks, rather than completely eliminate the risks of failure of achieving the Group’s objectives and strategies. Consequently, the Board recognises that a sound internal control system provides reasonable but not absolute assurance that the Group will not be hindered in achieving its business objectives in the ordinary course of business. Executive Directors and Management Responsibility Executive Directors and Management are accountable to the Board and responsible for implementing the processes of identifying, evaluating, monitoring and reporting of risks and the effectiveness of internal control systems, taking appropriate and timely corrective actions as required. Regular reports on risks identified and actions taken to mitigate and/or minimise such risks and gaps in the internal control systems, if any, are presented to the AC and RMC and ultimately to the Board. The Executive Directors and the Management have assured the Board that the Group’s risk management and internal control systems are operating adequately and effectively in all material aspects, based on the risk management framework and internal control systems adopted by the Group. Risks are managed by ensuring adequate controls and mitigation plans are in place and ensuring improvements are made as and when the needs arise. RISK MANAGEMENT & INTERNAL CONTROL SYSTEMS Generally, the Group’s risk management and internal control systems are guided by the ISO 31000 Risk Management - Principles and Guidelines and the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”) Framework respectively. STATEMENT ON RISK MANAGEMENT And Internal Control
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