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GHL Systems Berhad
(293040-D)
Annual report 2015
7. Human Capital (Cont’d)
b. Code of ethics
A set of code of ethics setting out expected ethical standards and code of conduct has been
established, which is binding on all employees in the Group.
c. Whistleblowing policy
The Group has implemented a whistleblowing policy to provide an avenue for employees; to report
any suspected acts that are in breach of the Group’s code of ethics, internal policy and applicable
laws or regulations in a confidential manner.
The policy also guarantees an employee making a report of improper conduct in good faith shall not
be subject to reprisal action or discrimination of any kind by the Company. The Board Chairman and
ARC Chairman are primarily responsible to ensure that all whistleblowing reports are properly followed
up.
d. Fraud policy
The Group has implemented a policy on acts of Fraud, Misconduct and Dishonesty, which provides
the specific procedures or instructions regarding the appropriate actions needed to be undertaken in
cases of suspected violations.
8. Insurance
Adequate insurance for major assets; building and machinery in all operating divisions and subsidiaries are
in place to ensure the Group’s assets are sufficiently covered against any calamity that will result in material
losses to the Group.
BOARD ASSESSMENT
The Board is of the view that the Group’s overall risk management and internal control system was adequate
and effective in all material aspects during FY 2015. Both the Group CEO and Group CFO have given the
same assurance to the Board. The Board however recognises that risk management is an evolving process in
a changing business environment and is committed to continuously monitor the adequacy and effectiveness
of and, where appropriate, enhancing the Groups’ risk management framework and internal control system.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
As required by paragraph 15.23 of the Listing Requirements, the external auditors have reviewed this Statement
on Risk Management and Internal Control. As set out in their terms of engagement, the said review procedures
were performed in accordance with the Recommended Practice Guide 5 (Revised): Guidance for Auditors On
Engagements To Report On The Statement On Risk Management and Internal Control Included in the Annual
Report (“RPG 5”) issued by the Malaysian Institute of Accountants. RPG 5 does not require the external auditors
to consider whether this Statement covers all risks and controls, or to form an opinion on the adequacy and
effectiveness of the Group’s risk management and internal control system. RPG 5 also does not require the
external auditors to consider whether the processes described to deal with material internal control aspects of
any significant problems disclosed in this Annual Report will, in fact, remedy the problems.
Based on their procedures performed, the external auditors have reported to the Board that nothing has come
to their attention that causes them to believe that this Statement 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 Issuers, nor is factually inaccurate.
This statement is approved by the Board of Directors on 29th March 2016.
Statement on Risk Management and
Internal Control