Eng - IOI Group

Statement on Internal Control cont’dBOARD’S CONCLUSIONThe Board is pleased to disclose that the state of the Group’s Internal Control System is generally adequate, effective, and in line withglobal best practices. The Board is also of the opinion that the adopted ERM Framework provides an adequate systemic mechanism forcontinuous principal risks identification, assessment, monitoring, and control. For the financial year under review, there were no materialcontrol failures or weaknesses that have resulted in any material loss to the Group that requires disclosure herein. The Board’s conclusionis reached based on its review as mentioned above, and also on the following:• Periodic internal audit reports and discussion with the Audit Committee• Periodic management report on the state of the company’s affairs which also covers the state of internal controls• Operating Units’ CEO/CFO’s Internal Control Certification & Assessment Disclosure• Review of work done by the respective Risk Management Committees and work groups• Our assessment on the general state of affairs and performance of the Group81ANNUAL REPORT 2007IOI Corporation Berhad