Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 82 KEY ELEMENTS OF THE INTERNAL CONTROL SYSTEMS OF THE GROUP (CONT’D) CONTROL ACTIVITIES 1. Financial Authority Limits The Group has established the Financial Authority Limits (“FAL”) which defines the approving authority with its approving limits delegated to the Executive Directors and Management of the Group to conform to the Group’s strategies and risk appetite without stifling the Management’s decisions that made the Group’s operations successful. From time to time, the FAL will be reviewed in terms of suitability, relevance and applicability. 2. Standard Operating Procedures Standard Operating Procedures (“SOP”) governing the Group’s key businesses and operations are documented and approved by the Executive Directors and Management. Continuous reviews have been carried out on the adequacy, appropriateness and comprehensiveness of SOP developed to govern the business processes and activities of the Group, to ensure compliance with applicable laws and regulations as well as significant changes and development in business and operational environment. 3. ISO Certifications The implementation of the ISO certifications as part of on-going quality improvement initiatives of the Group help to transform the Quality Management Systems and procedures of the applicable processes and departments/ divisions into effective functional units that are of international standards and aligned with the Group’s objectives, besides creating a more conducive operating environment for the Management and employees. The list of ISO certifications accorded to the Group are available in the Sustainability Statement included in this Annual Report. 4. Code of Conduct and Ethics for Directors The Code of Conduct and Ethics for Directors describe the standards of conduct and ethical behaviour for Directors in the performance and exercise of their duties and responsibilities as Directors of the Company or when representing the Company. The Group strongly believes that the appropriate standards of conduct and ethical behaviour are fundamental to the preservation of the Company’s reputation and the success of its operations and to the exercise of their duties and responsibilities as Directors of the Company. 5. Employee Business Conduct Guidelines The Employee Business Conduct Guidelines contains the code of conduct on the expected standards of business conduct for every employee who works for the Group or any of its affiliates in order for the Group to comply with the applicable laws and ethical standards to govern and ensure its long-term growth, development and sustenance of the Group. Statement on Risk Management and Internal Control (Cont’d)