S&B Industrial Minerals S.A. Annual Financial Report for the year ...

In compliance with article 43 α §3 of C.L. 2190/1920, as it stands in effect, the Company states the
following:
I. The Corporate Governance Principles
1. The Company has put into practice the Corporate Governance Principles since 2001, which
are regularly revised and updated in order to comply with the applicable Greek and E.U.
legal framework.
2. The full text of the 4 th revision of the Corporate Governance Principles, as it stands in effect,
is available as an electronic copy on the website of the Company at www.sandb.com.
3. The Corporate Governance Principles of the Company aim at achieving long-term
development for the business, while take into account the equal and unbiased treatment of
the interests of all shareholders and social responsibility as well.
4. The Company does not apply other corporate governance practices apart from the
Corporate Governance Principles, which constitute the grounds of the Internal Regulation
and the Company’s Policies as well.
II.
The key features of the Internal Control and Risk Management Mechanisms
1. The Company operates in a very demanding and versatile business environment that
requires constant and systematic monitoring of all risks related to its business. Therefore,
the Company has introduced control mechanisms in order to mitigate such risks and ensure
compliance with required financial and operational procedures across the Group. The
overseeing body of the control and risk management mechanisms is the Audit Committee.
2. The Internal Audit Services department consists of one Internal Audit Manager and five
internal auditors which are under exclusive and full-time employment with the Company.
The Internal Audit department performs its duties according to a written charter approved by
the Audit Committee and the C.E.O. Internal audits are carried out following international
professional standards and practices, which are codified in the “Manual of Internal Audit
Process” and extend to all organizational and operational divisions of the Company and the
Group in general. These audits aim to monitor the implementation of, and continuous
compliance with, the Company’s Statute, Regulations, Procedures and Directives, as well
as with legislation related with the business of the Company.
3. The financial statements of the Company and the Group are audited and certified by a
prominent audit firm appointed by the General Assembly of the Shareholders.
4. In addition, the Company has adopted and implemented procedures for controlling and
managing risk in respect of financial reporting and preparation of financial statements both
stand-alone and consolidated. These include:
The introduction of uniform reporting standards (Reporting Manual) for financial
reporting and management reporting purposes. These standards are implemented by
all legal entities of the Group.
The Group Management Policies which is a set of documents regulating the Chart of
Authorities that reflects the different levels of binding authorizations to officers of the
Company for conducting monetary and non-monetary transactions as well as all
critical financial internal controls which have been implemented by the majority of the
Group’s companies.
A dedicated department monitoring the financial reporting process using a common
Group Chart of Accounts and common consolidation processes across the Group
companies, based on multiple validations and written guidelines which are periodically
reviewed and amended as necessary.
A common and uniform IT platform for financial consolidation and reporting.
IT safety and security procedures, such as, the backup of all critical electronic
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