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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
Board’s comments on the adequacy and effectiveness of the Group’s risk
management and internal control system
The Board, through its Audit Committee, has reviewed the adequacy and effectiveness of the risk management and
internal control system, and that relevant actions have been or were being taken, as the case may be, to remedy
the internal control weaknesses identified from the review.
The Board is of the view that the system of risk management and internal control in place for the financial year under
review and up to the date of approval of this Statement for inclusion in the Annual Report of the Company is sound
and sufficient to safeguard shareholders’ investment and the Group’s assets. Whilst the Board is of the view that
there were no material losses incurred during the financial year as a result of weaknesses in the risk management
and internal control system, the Board believes that this system must continuously evolve to meet the changing
and challenging business environment the Group operates in. Therefore, the Board will put in place action plans,
as deemed appropriate, to strengthen the system of risk management and internal control from time to time.
Assurance by the Chief Executive Officer and Chief Financial Officer on the
adequacy and operating effectiveness of the risk management and internal
control system
The Board has received assurance in writing from the Chief Executive Officer and Chief Financial Officer stating
that the Group’s risk management and internal control system is operating adequately and effectively, in all material
aspects, for the financial year under review and up to the date of this Statement.
Pursuant to Paragraph 15.23 of the Listing Requirements, the external auditors have reviewed this Statement for
inclusion in the Annual Report for the year ended 31 December 2014 and reported to the Board that nothing has
come to their attention that causes them to believe that the Internal Control Statement intended to be included in the
Annual Report is not prepared, in all material respects, in accordance with the disclosures required by paragraphs
41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issues to
be set out, nor is factually inaccurate.
This Statement is made in accordance with the resolution of the Board of Directors dated 23 April 2015.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
(cont’d)
