Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 85 KEY ELEMENTS OF THE INTERNAL CONTROL SYSTEMS OF THE GROUP (CONT’D) MONITORING (CONT’D) 2. Independent Reviews by Internal Audit Department (Cont’d) During the financial year ended 31 March 2020, the adequacy and effectiveness of internal controls were reviewed by the Audit Committee based on reports from audits conducted by the IAD according to the approved audit plan. Audit issues and actions taken by theManagement to address the shortcomings raised by the IADwere deliberated and accepted at the Audit Committee meetings. There were 15 Internal Audit Reports issued and reviewed by the Audit Committee throughout the financial year in which the IAD has provided its recommendations to the Management to improve on the design and/or effectiveness of controls where applicable. Additionally, the Audit Committee also reviewed the implementation progress of the corrective action plans committed by the Management for all key findings and recommendations highlighted in previous Internal Audit Reports to ensure that all the corrective actions were implemented appropriately. From the Internal Audit Reports issued, there were weaknesses and gaps in internal controls identified which subsequently the remedial actions and corrective measures including monitoring have been and are being taken to address such weaknesses. A description of IAD’s activities for the financial year ended 31March 2020 are available in the Audit Committee Report included in this Annual Report. 3. Group Strategic Management Office As part of the key strategic initiatives of the Group, the Group Strategic Management Office (“Group SMO”) was established in July 2019 to support and perform required oversight activities for EXCO, SMC and MC. The roles and responsibilities of Group SMO amongst others include:- a. To support SMC in providing preliminary review and assessment of any proposal related new business opportunities, strategic investment, new technologies/solutions/products, new research & development activities/projects and new project related joint-venture and partnership arrangement; b. To jointly prepare the post-mortem report for unsuccessful project prospects/proposals/bids together with the business portfolio owners; c. To support MC in monitoring existing projects, manufacturing and business operations. The Group SMO will perform independent reviewand assessment on the status updates and issues reported by the business portfolio owner and subsequently make recommendations to MC to facilitate informed decision-making; and d. To suggest improvements from time to time of policies and procedures/guidelines to govern the implementation of comprehensive company-wide relevant project governance system in each applicable industry sector or category as well as efficient internal mobilization exercise. The Group SMO has been working closely with the respective Project Directors and Project Managers as well as the Management to support and monitor the execution of the necessary activities, processes and procedures as well as to help the achievement of short, medium, and long-term objectives set by the Group. Periodic meetings chaired by the Head of SMO is held with all Project Directors and Project Managers to openly discuss the actual progress and performance of projects, proposals/prospects and portfolios registered with the Group SMO. Statement on Risk Management and Internal Control (Cont’d)