Serba Dinamik Annual Report 2021

Integrated Report 2021 241 2 Planning, Monitoring & Reporting Budget Performance Review & Measurement Finance Function Employees’ Competency NO. ELEMENT SEGMENT DELIBERATION monitor compliance with the laws, regulations, procedures and policies. Further to the above, the of Group Legal & Compliance is advising the Board and Management on all legal matters. It also plays a pivotal role in ensuring that interests of the Group are legally preserved and safeguarded. The Board is regularly updated through reports as and when there are introductions of new legislations, new terms of business or changes in existing laws relevant to the Group. The Group has performed comprehensive budgeting and forecasting exercises, which cover all divisions in order to monitor Group’s performance. These were deliberated on and approved by the Board before its implementation. The performance of the Group, inclusive of budget & forecast, were deliberated to the Board on a quarterly basis, and the Management analyses and highlights variances of the budget & the forecast in comparable to the actual performance, for notification to the Board and for further action by the Board on potential revision of the budget & the forecast. In addition, Key Performance Indicators (“KPI”) which are based on the Corporate and Divisional Balanced Scorecards and Individual KPIs and Behavioural Competencies are used to track and measure employees’ performance. KPI provides a focus for strategic and operational improvement, create an analytical basis for decision making for the Group. The Finance Function, through Group Finance Division is required to provide assurance to the ARC that appropriate accounting policies have been adopted and applied consistently, the going concern basis applied in the Annual Financial Statements and Condensed Consolidated Financial Statements of the Group is appropriate, and that prudent judgements and reasonable estimates have been made in accordance with the requirements set out in the established and adopted Financial Reporting Standards. The Group’s objectives and plans have been periodically communicated to provide effective and clear directions to all employees. Training and development programmes are identified and scheduled for the employees to acquire necessary knowledge, skills and core competencies to enhance the followings: • Competency • Integrity • Fairness • Confidentiality • Objectivity • Healthy Environment Segregation of duties is practised whereby conflicting tasks are assigned to different employees to reduce scope for error and fraud. STATEMENT OF RISK MANAGEMENT & INTERNAL CONTROL