MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...

Statement on Internal Control
INTRoDUCTIoN
The Board of Directors (“Board”) of Mitrajaya Holdings Berhad is pleased to present its Statement on Internal Control for the
financial year ended 31 December 2011, which has been prepared pursuant to paragraph 15.26 (b) of Bursa Malaysia Securities
Berhad (“Bursa Securities”) Main Market Listing Requirements and as guided by Statement on Internal Control: Guidance for
Directors of Public Listed Companies (“the Guidance”). This statement outlines the nature and state of the internal controls of
the Group, during the financial year.
BoARD’S RESpoNSIBIlITy
The Board acknowledges its responsibility and re-affirms its commitment in maintaining a sound system of internal control to
safeguard shareholders’ investments and the Group’s assets as well as reviewing the adequacy and integrity of the system of
internal control.
Due to the inherent limitations in any system of internal controls, such system put in place by Management can only reduce
rather than eliminate all risks of failure to achieve the Group’s corporate objectives. Consequently, the system can only provide
a reasonable rather than absolute assurance against material misstatement or loss.
RISk MANAGEMENT fRAMEwoRk
Risk Management is regarded by the Board to be an integral part of the business operations. Key management staff and Head
of Departments are delegated with the responsibility to manage identified risks within defined parameters and standards.
Periodic management meetings, attended by the Head of Departments and key management staffs are held, in which key risks
and the appropriate mitigating controls are also discussed. Significant risks affecting the Group’s strategic and business plans
are escalated to the Board at scheduled meetings.
The Risk Management Committee (“RMC”) comprising key management staff and chaired by an Executive Director, convened
meetings during the financial year to review the risks faced by the Group and ensure that the existing mitigation actions are
adequate. Risks identified are prioritized in terms of likelihood of occurrence and impact on the achievement of the Group’s
business objectives.
The abovementioned risk management practices of the Group serves as the on-going process used to identify, evaluate and
manage significant risks.
INTERNAl AUDIT fUNCTIoN
The Group’s internal audit function is outsourced to a professional service firm to assist the Board and Audit Committee in
providing independent assessment on the adequacy, efficiency and effectiveness of the Group’s internal control system. The
scope of review of the outsourced internal audit function is determined by the Audit Committee with feedback from Executive
Management.
During the financial year ended 31 December 2011, audits were carried out in accordance with the internal audit plan approved by
the Audit Committee and also other areas of significance that were recommended by the Management to the Audit Committee.
The results of the internal audit reviews and the recommendations for improvement were presented to the Audit Committee at
their quarterly meetings.
The total costs incurred for the outsourcing of the Internal Audit function for the financial year ended 31 December 2011 was
RM 54,365.00.
14 MITRAJAYA HOLDINGS BERHAD ANNUAL REPORT 2011