32
LHN Limited Annual Report
Report on
Corporate Governance
For further accountability
,
the announcements containing the quarterly financial statements are signed
by the Chairman and MD
,
Mr Kelvin Lim
,
for and on behalf of the Board
,
to confirm that it is to the best of
the Board
’
s knowledge
,
nothing has come to the attention of the Board which may render the unaudited
interim financial results contained in the announcement to be false or misleading in any material aspects
.
The Board approves the financial results after review and authorises the release of the results on SGXnet
and the public
.
The Company also uploads latest announcement(s) which has been disseminated via SGXnet
on its website http
:
//www
.
lhngroup
.
com
.
sg/
.
Principle 11 – Risk Management and Internal Controls
The Board has the overall responsibility for the Group
’
s risk management and internal controls in
safeguarding shareholders
’
interests and the Group
’
s assets
.
The Group
’
s internal controls and systems
are designed to provide reasonable assurance as to the integrity and reliability of the financial information
,
and to safeguard and maintain accountability of assets
.
Procedures are in place to identify major business
risks and evaluate potential financial implications
,
as well as for the authorisation of capital expenditure
and investments
.
The AC
,
on behalf of the Board
,
reviews the adequacy and effectiveness of the Group
’
s system of internal
controls
,
including financial
,
operational
,
compliance and information technology controls
,
and risk
management policies and systems established by Management on an annual basis
.
They are
:
• Code of Ethics
• Risk Appetite and Risk Tolerance guidance
• Authority and Risk Control Matrix
• Key Control Activities
• Key Reporting and Monitoring Activities
Management also regularly reviews the Group
’
s business and operations to identify areas of significant
business risks and controls to mitigate the risks
.
The Management will highlight all significant matters to
the Board and AC
.
For FY2015
,
the Board had received assurance from the Chairman and MD and the Chief Financial Officer
(the
“
CFO
”
) that
:
• the financial records have been properly maintained and the financial statements give a true and fair
view of the Group
’
s operations and finances
;
and
• the Company
’
s risk management and internal control systems are adequate and effective
.
The design
,
implementation and operation of the accounting and internal control systems are intended
to prevent and detect fraud and errors
.
The Board notes that the system of internal controls provides
reasonable
,
but not absolute
,
assurance that the Group will not be adversely affected by any event that can
be reasonably foreseen as it strives to achieve its business objectives
.
The Board also notes that no system
of internal controls can provide absolute assurance against the occurrence of material misstatement or
loss
,
poor judgment in decision making
,
human error
,
losses
,
fraud or other irregularities
.
Based on the framework of risk management and internal controls established and maintained by the
Management
,
reviews carried out by the AC
,
the report on the enterprise risk management of the Group
,
work
performed by the internal auditors and external auditors
,
and assurance from the Management
,
the Board
,
with the concurrence of the AC
,
is of the opinion that the Group
’
s risk management systems and system
of internal controls is adequate and effective as at 30 September 2015 in addressing financial
,
operational
,
compliance and information technology risks
.
The Company is gradually placing emphasis on sustainability and would implement appropriate policies and
programmes when the opportunities arise
.
