Quality - UAC Berhad

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Statement on Internal ControlENTERPRISE RISK MANAGEMENT FRAMEWORKThe Group has established an Enterprise Risk Management (‘ERM') framework to formalise the identification ofprincipal risks affecting the achievement of the Group's business objectives. The Board believes that such a frameworkprovides a structured and focused approach in managing the Group's significant business risks and enables the Groupto effectively adopt a risk-based internal control system that is embedded within the Group.The ERM framework encompasses the following key elements:• Adoption of a Risk Management Policy (‘RMP'), endorsed by the Board. The RMP incorporates, amongst others, astructured process for identifying, evaluating and prioritising risks as well as clearly defining the riskresponsibilities and the escalation process.• Maintenance of a consolidated risk profile populated into the specialist risk management software. Changes in therisk profile and the corresponding action plans are reported to the Board.• A Risk Management Committee (‘RMC'), chaired by the CEO/MD, with an oversight function to ensure thecontinued efficiency and effectiveness of the ERM framework. A non-executive member of the Board undertakesthe role of advisor, ensuring that the views of the entire Board are also represented on the RMC.• Services of a dedicated Risk Coordinator, tasked with ensuring the smooth operation of the ERM framework.• Periodic audit of the ERM framework by the internal auditor.ASSURANCE MECHANISMThe Audit Committee (‘AC') is tasked by the Board with the duty of reviewing and monitoring the effectiveness of theGroup's system of internal control. The AC periodically receives reports from the independent assurance functions ofthe Group. The Internal Audit function provides the AC with an assessment on the adequacy and integrity of theGroup's system of internal control via reports from visits conducted at various operating units. The external auditorsconduct an annual statutory audit on the financial statements. Areas for improvement, if any, identified during thecourse of the statutory audit by the external auditors are brought to the attention of the AC through managementletters, or at AC meetings.The Board reviews the minutes of the AC's meetings. The Report of the AC is set out on pages 32 to 35 of the Annual Report.Additionally, as part of the requirements of the MS ISO 9001:2000 certification, scheduled audits are conductedinternally as well as by SIRIM QAS auditors. Results of audits are reported to the Quality Management Committeewhich is chaired by the CEO/MD. Any pertinent or unresolved issues arising out of these audits are escalated to theBoard for its attention.The Board of UAC remains committed towards keeping abreast with the ever-changing business environment in orderto support the Group's businesses and size of operations. Cognisant of this fact, the Board of UAC in striving forcontinuous improvement will put in place appropriate measures, when necessary, to further enhance the Group'ssystem of internal control.This statement is made in accordance with a resolution by the Board dated 15 February 2006.38
Statement on Internal ControlFEATURES OF UAC'S INTERNAL CONTROL SYSTEM• Formal Enterprise Risk Management Framework• Mission Statement and Quality Policy clearly outlining the Group's direction• Clear organisation structure with delineated reporting lines• Defined levels of authority• Scheduled operations and management meetings• Board approved annual financial budgets• MS ISO 9001:2000 certification• Monthly management reports to the Board• Board papers which include both financial and non-financial information• Position descriptions for non-unionised employees• Staff handbooks for both unionised and non-unionised employees• Formal employee appraisal system• Structured training for employees based on an annual training plan• Frequent dialogues with union representatives• Quarterly newsletters i.e. Berita UAC• Annual statutory audit• Annual field visits by the Board to the plant in Ipoh, Perak• Regular internal audit visits39
Page 2 and 3: ContentsNotice of Annual General Me
Page 4 and 5: Notice of Annual General MeetingPro
Page 6 and 7: Corporate DataDIRECTORSJen (B) Tan
Page 10 and 11: Profile of DirectorsJen (B) Tan Sri
Page 12 and 13: Profile of DirectorsDatuk Alladin H
Page 14 and 15: Profile of DirectorsTan Leh KiahAge
Page 16 and 17: Chairman’s StatementTHE BUSINESS
Page 18 and 19: Chairman’s StatementIn line with
Page 20 and 21: Chairman’s StatementY. Bhg. Dato'
Page 22 and 23: Penyata PengerusiPERSEKITARAN PERNI
Page 24 and 25: Penyata PengerusiSelaras dengan kel
Page 26 and 27: Penyata PengerusiY. Bhg. Dato' Siew
Page 28 and 29: Corporate Governance StatementThe C
Page 30 and 31: Corporate Governance StatementThe a
Page 32 and 33: Report of The Audit CommitteeThe Bo
Page 34 and 35: Report of The Audit CommitteeMEETIN
Page 36 and 37: Statement on Internal ControlINTROD
Page 41 and 42: Financial StatementsDirectors’ Re
Page 43 and 44: Directors’ ReportFor The Financia
Page 45 and 46: Directors’ ReportFor The Financia
Page 47 and 48: Report of The AuditorsTo The Member
Page 49 and 50: Balance SheetsAs At 31 December 200
Page 51 and 52: Company Statement of Changes in Equ
Page 53 and 54: Company Cash Flow StatementFor The
Page 55 and 56: Notes to The Financial StatementsFo
Page 67: Notes to The Financial StatementsFo
Page 82 and 83: Statements of ShareholdingsAs At 27
Page 84 and 85: Notes84
Page 86: fold hereAffixStampHereUAC BERHAD3r

Quality - UAC Berhad

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