Amtel Holdings Berhad - Company Announcements - Bursa Malaysia

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Amtel Holdings Berhad 2003 annual report
RISK ASSESSMENT
In order to enhance the risk management practices, the Group plans to develop a
formalized risk management framework with the help of a firm of consultants which
involves identifying, evaluating, monitoring and managing significant risks affecting the
achievement of its business objectives.
These initiatives will ensure that the Group has a formalised ongoing process in place to
measure the significant risks affecting the achievement of its business objectives.
KEY ELEMENTS OF INTERNAL CONTROLS
The key elements of the Group’s internal control systems are described below:-
• Clearly defined delegation of responsibilities to committees of the Board and to
management of Head Office and operating units, including authorisation levels for all
aspects of the business;
• Management meetings are carried out by the Group Managing Director together with
Operations Heads and the Finance Department to identify, discuss and resolve
operational, financial and key management issues. Reviews are also conducted to
ensure that actual performance is in compliance with the agreed targets set by the
Group Managing Director and that corrective actions are taken to rectify any
discrepancies in a timely and effective manner;
• Regular and comprehensive information provided to management, covering financial
performance and key business indicators, such as average collection term given to
customers, average inventory holding days and cash flow performance;
• Quarterly monitoring of results by the Board of Directors, with major variances being
followed up and actions taken by the management, where necessary;
• The systems of internal controls are monitored internally by the Group Managing
Director, the Finance Department together with the Internal Audit Department; and
• Regular internal audit visits to monitor compliance with procedures and assess the
integrity of financial information.
CONCLUSION
No significant internal control weaknesses were identified during the financial year that
may have resulted in any material losses or uncertainties that would require disclosure in
the Group’s annual report.