KOSMO-AnnuaReport2006 (1.9MB).pdf - Bursa Malaysia

usinesses of the Group as well as resolutions being
proposed. The Chairman as well as the Group Managing
Director and / or the external auditor, if so required, will
respond to Shareholders’queries and questions at the AGM.
D. ACCOUNTABILITY AND AUDIT
i) Financial Reporting
The Directors have the responsibility to present a true and
balanced assessment of the Group’s performance and
prospect in the annual report to shareholders and
quarterly reports to Bursa Malaysia Securities Berhad. The
Board is also responsible for ensuring that the Financial
Statements prepared are drawn up in accordance with
the provisions of the Companies Act, 1965 and the
applicable approved accounting standards in Malaysia.
The Board is assisted by the Audit Committee in
scrutinising information for disclosure to ensure accuracy,
adequacy and completeness.
The quarterly financial results and Audited Financial
Statements were reviewed by the Audit Committee and
approved by the Board before being released to Bursa
Malaysia Securities Berhad. The details of the Company
and the Group’s financial statements for financial year
ended 31 December 2006 are set out from pages 42 to 80.
ii) Internal Control and Risk Management
The Board has overall responsibility for maintaining a
sound system of internal controls, to safeguard
shareholders’ investments and the Company’s assets. The
Board acknowledges that the internal control system is
devised to cater for the particular needs of the Group as
well as risk management; such controls by their nature
can only provide reasonable assurance but not absolute
assurance against material misstatements, loss or fraud.
The Group’s Statement on Internal Control which provides
an overview of the Group’s state of internal control is set
out in page 28 of this Annual Report.
KOSMO TECHNOLOGY INDUSTRIAL BERHAD 23
STATEMENT ON CORPORATE GOVERNANCE
(CONT’D)
iii) Relationship with External Auditors
The Board of Directors and the Management maintain a
formal and transparent relationship with the Group’s
Auditors in seeking their professional advice and opinion
with regard to the Group’s compliance with the relevant
approved accounting standard. The Auditors will be
invited for the meetings of the Audit Committee or Board
as and when the need arises.
The role of the Audit Committee in relation to the External
Auditors is set out in the report of the Audit Committee in
pages 24 to 27 of this Annual Report.
Statement of Compliance
The Company has complied throughout the financial year with all
the Best Practices of Corporate Governance set out in Part 2 of the
Code. Given the current composition of the Board that reflects a
strong independent element and the separation of roles among the
Executive Directors, the Board does not consider it necessary at this
juncture to nominate a Senior Independent Non-Executive Director.