Eng - IOI Group

More documents

Recommendations

Info

Statement on Internal ControlINTRODUCTIONThis statement is in line with the Listing Requirements of Bursa Malaysia Securities Berhad on the Group’s compliance with the Principlesand Best Practices provisions relating to internal controls as stipulated in the Malaysian Code on Corporate Governance.The Board is pleased to present hereinafter the annual update on the Group’s state of internal controls plus work done for the periodunder review.ACKNOWLEDGEMENT OF RESPONSIBILITIESThe Board of Directors affirms that it is ultimately responsible for the Group’s systems on internal controls - including the assuranceof its adequacy and integrity, and its alignment with our business objectives. However, it should be noted that these control systemsare designed to manage rather than to totally eliminate associated risks; and as such, can only provide reasonable but not absoluteassurance against material loss or failure.INTERNAL CONTROLS & RISK MANAGEMENT BEST PRACTICESWe have in the past statements provided detailed description of our integrated systems of internal controls, and how these are continuouslyshaped through our Enterprise Risk Management (“ERM”) Framework that interweaves the Group’s Vision and business objectives of ourglobal operation. We have explained the Group’s oversight structure that ensures the integrity of adopted frameworks in engaging everybusiness unit and hierarchical level to proactively embrace uncertainties and manage associated risks. We have also highlighted theGroup’s expanded view on “uncertainties” – that it gives rise to not only risks and controls but also opportunities and strategic response.Hence, the Group’s top-down risk management program drives a continuous cycle of control activities plus timely strategic respond toopportunities and threats.As a Group with global operations and markets, our internal controls and ERM Framework are benchmarked against global standardsand best practices that seek to enhance not only the achievement of business objectives and goals but also to ensure compliance withlaws and regulations in the respective countries of operation. Our widely spread operations’ ability to leverage on each other’s globalexperiences ensures our adopted standards and best practices continue to evolve to meet dynamic global challenges and risks. Thisfinancial period also marks the implementation of standardised “Internal Control Certification and Assessment Disclosure” by all divisionscertified by the respective heads of business units and their respective heads of finance to the Group’s Audit Committee and the Board.79ANNUAL REPORT 2007IOI Corporation Berhad
Statement on Internal Control cont’dWORK DONE UNDER PERIOD REVIEWED & SUCCESS STORYFor the period under review, each business unit - via its risk management committee and workgroups comprising of personnel at all levelscarried out the following areas of work:• Conducted review and update of risk profile including emerging risks, and re-rated principal risks• Evaluated the adequacy of key processes, systems, and internal controls related to the rated principal risks, and established actionableprograms and tasks to manage the aforementioned and/or eliminate performance gap• Ensured internal audit programs covered identified principal risks. Audit findings throughout the financial period served as keyfeedback mechanism to validate effectiveness of risk management activities and embedded internal controls• Reviewed implementation progress of previously outlined actionable programs, and evaluated post-implementation effectiveness• Reviewed the adequacy of all business resumption and contingency plans, and their readiness for rapid deploymentWe view risk management as a component of our commitment towards excellence in Enterprise Governance, and its success or failureshould be measured in terms of its contribution towards the overall achievement of the Group’s business objectives. In that regard, weare pleased to report that our Risk Management Program has contributed significantly towards the aforementioned. We highlight belowmajor cases of managed risks at enterprise level during the period under review:• Neutralised volatile commodity price risks, foreign exchange risks, and interest rate risks with our extensive hedge operations– which itself is closely controlled• Tightened liquidity and credit control management on group-wide basis• Addressed feedstock procurement and logistic support in tandem with growth in demand by our downstream resource basedmanufacturing beyond internal upstream’s ability to supply• Tightened quality and physical controls of commodity feedstock and value-added downstream produces moved through our globalsupply chain - in the face of enlarged volume throughput and all time high pricesAt operational level, existing internal controls have served well against functional and transactional risks in all major business unitswithout any significant hitches.IOI Corporation BerhadANNUAL REPORT 2007 80
Page 3 and 4:
Our Vision... is to be a leading co
Page 5:
Chairman’s StatementDear Valued S
Page 12:
Responsibility“ Today, more than
Page 15:
Group Performance Highlights2007 20
Page 20 and 21:
Efficiency“The future belongs to
Page 22 and 23:
Management’s Discussion and Analy
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
PALM OIL BUSINESS STREAMManagement
Page 32 and 33: Management’s Discussion and Analy
Page 40 and 41: CORPORATE SOCIAL RESPONSIBILITY (CS
Page 58 and 59: KepongKLCCKL SentralPetaling JayaKu
Page 61 and 62: Corporate InformationBOARD OF DIREC
Page 63 and 64: Profile of Directors cont’dDATO
Page 65 and 66: Profile of Directors cont’dDATUK
Page 68 and 69: Excellence in ExecutionOur commitme
Page 70 and 71: Audit Committee Report cont’dTERM
Page 72 and 73: Audit Committee Report cont’dTERM
Page 74 and 75: Corporate GovernanceINTRODUCTIONThe
Page 76 and 77: Corporate Governance cont’dTHE BO
Page 78 and 79: Corporate Governance cont’dTHE BO
Page 80 and 81: Corporate Governance cont’dSHAREH
Page 84 and 85: Statement on Internal Control cont
Page 86 and 87: Other InformationCOMPOSITION OF SHA
Page 88 and 89: RECURRENT RELATED PARTY TRANSACTION
Page 90 and 91: Other Information cont’dPENALTIES
Page 93 and 94: Senior Management TeamGroup Chief E
Page 95 and 96: Global PresenceNORTH AMERICA• USA
Page 97 and 98: Location of Operations in MalaysiaP
Page 99 and 100: Corporate CalendarNov 2006• IOI P
Page 101 and 102: Corporate Calendar cont’dMarch200
Page 103 and 104: Social ContributionSep 2006• Yaya
Page 105 and 106: Social Contributions cont’dMay 20
Page 107 and 108: Directors’ ReportThe Directors of
Page 109 and 110: Directors’ Report cont’dUSD310
Page 111 and 112: Directors’ Report cont’dExecuti
Page 113 and 114: Directors’ Report cont’dReserve
Page 115 and 116: Directors’ Report cont’dDirecto
Page 117 and 118: Directors’ Report cont’dStatuto
Page 119 and 120: Directors’ Report cont’dSignifi
Page 121 and 122: Directors’ Report cont’dSignifi
Page 123 and 124: Income Statementsfor the financial
Page 125 and 126: Balance Sheets cont’das at 30 Jun
Page 127 and 128: Statements Of Changes In Equity con
Page 129 and 130: Statements Of Changes In Equity con
Page 131 and 132: Cash Flow Statements cont’dfor th
Page 133 and 134:
Cash Flow Statements cont’dfor th
Page 135 and 136:
Notes To The Financial Statements c
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Statement By DirectorsIn the opinio
Page 261 and 262:
Group PropertiesA. PLANTATION ESTAT
Page 263 and 264:
Group Properties cont’dA. PLANTAT
Page 265 and 266:
Group Properties cont’dB. DEVELOP
Page 267 and 268:
Group Properties cont’dC. INVESTM
Page 269 and 270:
Group Properties cont’dD. INDUSTR
Page 271 and 272:
Group Properties cont’dE. OTHER P
Page 273 and 274:
Notice of Annual General MeetingNOT
Page 275 and 276:
Notice of Annual General Meeting co
Page 277 and 278:
Statement Accompanying Noticeof Ann
Page 279 and 280:
Shareholders Information cont’das
Page 281 and 282:
This page has been intentionally le
Page 283 and 284:
fold herestampThe Company Secretary
show all

Eng - IOI Group

Create successful ePaper yourself

Delete template?

Save as template?