Internal Controls
The Board acknowledges that it is responsible for the overall internal control framework, but recognises that no cost effective internal control system will preclude all errors and irregularities, as a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. Nonetheless, the Audit & Risk Management Committee will:
- satisfy itself, by such means as it shall consider appropriate, that adequate counter measures (i.e. mechanisms and processes, such as sound internal control systems) are in place to identify and mitigate any material business risks associated with the Group;
- ensure that a review of the effectiveness and adequacy of the Group's internal controls, including fi nancial, operational and compliance controls, and risk management policies and systems, is conducted at least annually. Such review can be carried out by internal and/or external auditors (CCG 2005, Guideline 12.1);
- ensure that the internal control recommendations made by internal and external auditors have been implemented by the Management; and (d) ensure that the Board is in the position to comment on the adequacy of the internal controls of the Group.
Based on the Audit & Risk Management Committee's review, the Board is satisfied that there are adequate internal controls including financial, operational, compliance controls and risk management systems in the Company (CCG 2005, Guideline 12.2).
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