Datasonic Group Berhad Annual Report 2021

DATASONIC GROUP BERHAD 82 KEY ELEMENTS OF THE INTERNAL CONTROL SYSTEMS OF THE GROUP The Group’s internal control systems during the financial year ended 31 March 2021 is embedded within the operating activities and up to the date of approval of this statement for inclusion in the Annual Report encompassed, inter alia, the following key elements:- CONTROL ENVIRONMENT 1. Board Committees The Board has delegated certain responsibilities to the Board Committees established in the Group, namely:- • the Audit Committee, • the Nomination and Remuneration Committee, • the Risk Management Committee; and • the ESOS Committee. These Board Committees have oversight authorities to examine and / or consider all matters within their scope of responsibilities as defined in their respective formalised terms of references and to report to the Board with their recommendations appropriately. The terms of references of all theBoardCommittees are published on the Company’s website at www.datasonic.com.my 2. Regular Board and Board Committees Meeting Regular Board and Board Committee meetings were conducted to provide effective governance practices. Decisions of the Board are only made after the required information is made available and deliberated upon by the respective Board Committees and the Board. The Board reviewed and approved the quarterly and full year financial results announced to Bursa Malaysia and shareholders, as applicable, based on the recommendations made by the AC. Additionally, the Board also approved and implemented the Group policies based on the recommendations made by the Board Committees to continuously improve on the effectiveness and efficiency of risk management and internal control system. The minutes of the Board Committee meetings which recorded these deliberations and decisions were subsequently presented to the Board for notation. 3. Management Committees i. Group Management Committee, led by the EXCO The Group Management Committee comprises of the Managing Director as the Chairman, Deputy Managing Director, Executive Director of the Group, senior individuals within the organisation with administrative or managerial authority, or have the ability to facilitate or the power to implement plans, actions, rules and procedures or otherwise direct various personnel within the organisation to achieve the overall objectives. The Group Management Committee meeting will be held on a monthly basis or as and when considered necessary by the Chairman. The Group Management Committee meeting provides a forum for the Management to discuss on key management concerns and matters encompassing strategic, operational, financial, deliberation of key operational progress, risks, issues and challenges encountered in the undertaking of the significant projects as well as status of key resolutions decided upon by the Group. Appropriate action plans to resolve the issues or manage the risks are formulated and continuous updates were obtained in subsequent meetings from the respective parties assigned until satisfactory resolution of the action plans. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL