Tropicana Corporation Berhad Annual Report 2019

• Documented policies, procedures and standard operating procedures are in place to guide employees in their day to day work. These policies and procedures are reviewed and revised regularly to meet changing business and operational needs and regulatory requirements. • Regular management and operation meetings are conducted by senior management which comprises the Group Chief Executive Officer, Deputy Group Chief Executive Officer, Managing Directors, Executive Directors and divisional heads. • Board meetings are held quarterly with a formal agenda on matters for discussion. The Board monitors the Group’s performance by reviewing the quarterly results and examines the announcement to be made to Bursa Malaysia Securities Berhad. • An Integrated Management System consisting of ISO 9001:2015 has been established and implemented to continuously provide high quality products. • Established guidelines for recruitment, human resource development and performance appraisal to enhance employees competency levels have been disseminated to all employees. A performance management system is in place to monitor, appraise and reward employees’. • Established training and development programme’s are identified and scheduled for employees to acquire the necessary knowledge and competency to meet their performance and job expectations as well as to inculcate the Group’s culture of continuous learning. • The Audit Committee is tasked with the duty of reviewing and monitoring the effectiveness of the Group’s internal control systems. In carrying out this responsibility, the Audit Committee relies on the support of Group Internal Audit Department (“ GIAD ”) which carries out internal audits on various operating units within the Group based on a risk-based audit plan approved annually by the Audit Committee. Based on these audits, GIAD provides the Audit Committee with periodic reports highlighting observations, recommendations and management action plans to improve the internal control systems. In addition, the Audit Committee reviews and deliberates on any matters relating to internal controls highlighted by the External Auditors in the course of their statutory audit of the financial statements of the Group. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS The External Auditors have performed limited assurance procedures on this Statement on Risk Management and Internal Control pursuant to the scope set out in Audit and Assurance Practice Guide (“ AAPG ”) 3, Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Annual Report issued by the Malaysia Institute of Accountants (“ MIA ”) for inclusion in the Annual Report of the Group for the year ended 31 st December 2019, and reported to the Board that nothing has come to their attention that causes them to believe the statement intended to be included in the Annual Report is not prepared, in all material respects, in accordance with the disclosures required by paragraph 41 and 42 of the Guidelines, nor is the Statement factually inaccurate. AAPG 3 does not require the External Auditors to consider whether the Directors’ Statement on Risk Management and Internal Control 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 including the assessment and opinion by the Directors and management thereon. The report from the External Auditors was made solely for, and directed solely to the Board of Directors in connection with their compliance with the listing requirements of Bursa Securities and for no other purposes or parties. The External Auditors do not assume responsibility to any person other than the board of directors in respect of any aspect of this report. CONCLUSION The Board is satisfied with the adequacy and effectiveness of the risk management and internal control system to safeguard shareholders’ investments and the Group’s assets. In addition, the Board has received assurance from the Group Chief Executive Officer and Chief Financial Officer that the Group’s risk management and internal control system are operating effectively, in all material aspects to meet the Group’s objectives during the financial year under review. There were no material control failures or adverse compliance events that have directly resulted in any material loss to the Group. The Board will continue to monitor all major risks affecting the Group and take necessary measures to mitigate them and continue to enhance the adequacy and effectiveness of the risk management and internal control systems of the Group. This Statement on Risk Management and Internal Control is made in accordance with the resolution of the Board of Directors dated 10 June 2020. Statement on Risk Management and Internal Control Tropicana Corporation Berhad Annual Report 2019 pg 98 About Tropicana Our Strategic Performance Our Leadership