24
Techno
Dex
Berhad
(627634-A)
ANNUAL REPORT 2016
INTRODUCTION
The Malaysian Code on Corporate Governance 2012 requires listed companies to maintain a sound system risk
management and internal control to safeguard shareholders’ investments and the Company’s assets. Rule 15.26(b)
of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad requires the Board of Directors (“the
Board”) to include a statement on the state of internal control as a group in its annual report.
The Board recognises the importance of good corporate governance practices and is committed to maintaining a
sound system risk management and internal control to safeguard shareholders’ investments and the Company and its
subsidiaries (“the Group”)’s assets. The Board is pleased to provide the following statement, which outlines the nature
and scope of internal control of the Group for the financial year ended 30 April 2016.
RESPONSIBILITY FOR RISK MANAGEMENT AND INTERNAL CONTROL
The Board recognises the importance of risk management and risk-based internal audit to establish and maintain
a sound system risk management and internal control. The Board affirms its overall responsibility for the Group’s
systems of internal control and for reviewing the adequacy and integrity of those systems. Because of the limitations
that are inherent in any systems of internal control, those systems are designed to manage rather than eliminate the
risk of failure to achieve business objectives, and can only provide reasonable and not absolute assurance against
material misstatement, fraud or loss.
The regular reviews and evaluations of internal control systems, are ongoing processes for identifying, evaluating and
managing significant risks faced or potentially exposed to, by the Group in pursuing its business objectives. These
processes have been in place throughout the financial year under review and up to the date of approval of the annual
report.
The Board has received assurance from the Managing Director that the Group’s risk management and internal control
is operating adequately and effectively in all material aspects, based on the risk management and internal control
system of the Group.
RISK MANAGEMENT FRAMEWORK
The Board resolves that the management of core risks is an integral and critical part of the day-to-day operations
of the Group. The experience, knowledge and expertise to identify and manage such risks throughout the financial
year under review enables the Group to make cautious, mindful and well-informed decisions through formulation and
implementation of requisite action plans and monitoring regime which are imperative in ensuring the accomplishment
of the Group’s objectives.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
