KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
27
3.
ACCOUNTABILITY AND AUDIT
Accountability
Principle 10: The Board should present a balanced and understandable assessment of the company’s performance,
position and prospects.
In line with the Company’s disclosure obligations under the Listing Manual, the Board’s policy is that shareholders shall
be informed of all major developments relating to the Group. Information is communicated to shareholders on a timely
basis through SGXNET and the press. The Board also provides shareholders with a detailed explanation of the Group’s
performance, position and prospects on a quarterly basis.
Management makes available to all directors the management accounts and other financial statements, together with all
other relevant information of the Group’s performance, position and prospects on a monthly basis and as and when the
directors may require from time to time.
Risk Management and Internal Controls
Principle 11: The Board is responsible for the governance of risk. The Board should ensure that management maintains
a sound system of risk management and internal controls to safeguard shareholders’ interests and the company’s
assets, and should determine the nature and extent of the significant risks which the Board is willing to take in
achieving its strategic objectives.
The AC and management are responsible for overseeing the Group’s risk management framework and policies, including
reviewing the Group’s business and operational activities to identify areas of significant business risks, and recommending
to the Board the appropriate strategy and resources required for managing risks that are consistent with the Group’s risk
appetite.
Material transactions are subject to risk analysis by the AC and management, and safeguard measures against significant
risks are established prior to undertaking new projects. The AC, together with management, will continue to enhance and
improve the existing risk management and internal control systems.
The internal and external auditors also assist in the risk management process by identifying certain areas of concern that are
uncovered through financial/audit checks. The key risks facing the Group have been identified and appropriate measures
are in place to mitigate such risks.
The Board has received assurance from the Executive Chairman, the Group Managing Director and the Financial Controller,
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 regarding the adequacy and effectiveness of the Group’s risk management and internal control
systems.
Based on the internal controls (including financial, operational, compliance and information technology controls) established
and maintained by the Group, work performed by the internal and external auditors, a board risk and assurance framework
developed with the assistance of an external consultant, information provided to the AC and the Board and reviews
performed by the AC and the Board at least annually, the AC and the Board are of the opinion that the Group’s internal
controls, addressing financial, operational, compliance and information technology risks, and risk management systems are
adequate and effective as at the date of this Annual Report.
The system of internal controls and risk management established by the Group 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 and risk management can provide absolute
assurance in this regard, or absolute assurance against the occurrence of material errors, poor judgment in decision-making,
human error, losses, fraud or other irregularities.
Corporate Governance Report
