BUILDING LANDMARKS, CHARTING GROWTH
153
Annual Report 2015
Guideline
Questions
How has the Company complied?
Guideline 11.3
a) In relation to the major risks faced by the
Company, including financial, operational,
compliance, information technology and
sustainability, please state the bases for
the Board’s view on the adequacy and
effectiveness of the Company’s internal
controls and risk management systems.
b) In respect of the past 12 months, has
the Board received assurance from the
CEO and the CFO as well as the internal
auditor that: (i) the financial records have
been properly maintained and the
financial statements give true and fair
view of the Company's operations and
finances; and (ii) the Company's risk
management and internal control
systems are effective? If not, how does
the Board assure itself of points (i) and
(ii) above?
The Board oversees Perennial’s system of
internal controls and risk management
with the support from the ARC.
The ARC’s view on the adequacy and
effectiveness of Perennial’s internal controls
is based on the group-wide governance
and internal control policies, procedures
and guidelines dictating the segregation of
duties, approval authorities and limits,
checks and balances embedded in
business processes and the regular audits,
monitoring and reviews performed by the
internal and external auditors. The Board
concurred with this view.
The ARC is also satisfied that the risk
management systems implemented by
Perennial are adequate and effective.
Perennial has implemented the ERM
framework and policies whereby the
group has identified the key risks and
regularly monitored and reviewed such
key risks and risk exposures and kept the
Management and the Board informed of
the assessment of the risk exposures and
actions taken. The Board concurred with
this view.
Yes.
