23
Techno
Dex
Berhad
(627634-A)
ANNUAL REPORT 2016
As guided by the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed
Issuers, the Board performs reviews on an annual basis covering not only financial, but operational and
compliance controls and risk management systems, in all material aspects. Management is responsible for
implementing the processes for identifying, evaluating, monitoring and reporting of risks and internal control,
taking appropriate and timely corrective actions as needed, and for providing assurance to the Board that the
processes have been carried out.
The Audit Committee has been entrusted by the Board to ensure effectiveness of the Group’s internal control
systems. The Board is provided with reasonable assurance from the various reports submitted by Management
and the Audit Committee on risk management and internal control system. Details on the Statement on Risk
Management and Internal Control are furnished in this Annual Report.
The Board recognises that identification, evaluation and management of significant risks faced by the Company
are an on-going process. The improvement of the system of internal controls is also an on-going process and
the Board maintains continuing commitment to strengthen the Company’s internal control environment and
processes.
iii. Relationship with Auditors
The Group has established a transparent and appropriate relationship with the Internal Auditors and External
Auditors. Such relationship allows the Group to seek professional advice on matters relating to compliance
and corporate governance. The internal audit function of the Group is outsourced to a third party who reports
direct and regularly to the Audit Committee of the Company. Similar to the External Auditors, Internal Auditors
too have direct reporting access to the Audit Committee to ensure that issues highlighted are addressed
independently, objectively and impartially without any undue influence of the Management.
The Audit Committee undertakes an annual review of the suitability and independence of the External Auditors.
Having assessed their performance, the Audit Committee will make its recommendation to the Board for
reappointment, upon which the shareholders’ approval will be sought at the AGM of the Company.
E. STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE
The Company is committed to achieving high standards of corporate governance throughout the Company and
the Group and highest level of integrity and ethical standards in all of its business dealings.
The Board will continue to strive for the full compliance with the Code in the coming financial year.
This statement is made in accordance with a resolution of the Board dated 11 August 2016.
CORPORATE
GOVERNANCE STATEMENT
(continued)
