FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
30
ACCOUNTABILITY AND AUDIT
Principle 10 The Board should present a balanced and understandable assessment of the company’s performance,
position and prospects.
The Board is accountable to the shareholders and is mindful of its obligations to furnish timely information that present
a balanced and understandable assessment of the company’s performance, position and prospects and to ensure full
disclosure of material information to shareholders in compliance with statutory requirements and the Listing Manual.
Price sensitive information will be publicly released either before the Company meets with any group of investors or analysts
or simultaneously with such meetings. Financial results and annual reports will be announced or issued within the legal
prescribed periods.
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 Company regularly reviews and improves its business and operational activities to identify areas of significant business
risks as well as take appropriate measures to control and mitigate these risks. The Company reviews all significant control
policies and procedures and highlights all significant matters to the Audit Committee and Board.
The Board has received assurance from the President and Chief Financial Officer as well as the internal auditors that:
(a) The financial records of the Group have been properly maintained and the financial statements for the year ended 31
December 2015 give true and fair view of the Group’s operations and finances; and
(b) The Group’s system of internal controls, including financial, operational, compliance and information technology
controls, and risk management systems are adequate and effective.
The Audit Committee and Board are in the opinion that the Group’s internal controls, maintained by the Company’s
management that was in place throughout the financial year and up to the date of this report provides reasonable, but
not absolute, assurance against material financial misstatements or losses, and includes the safeguarding of assets, the
maintenance of proper accounting records, the reliability of financial information, compliance with appropriate legislation,
regulations and best practices, and the identification and containment of financial, operational and compliance risks.
The Board notes that all internal control systems contain inherent limitations and no system of internal controls could
provide absolute assurance against the occurrence of material errors, poor judgment in decision making, human error
losses, fraud or other irregularities.
Based on the internal controls established and maintained by the Group, work performed by the internal and external
auditors, and reviews performed by Management and the Audit Committee, pursuant to Listing Rule 1207 (10), the
Board, with concurrence of the Audit Committee, is of the opinion that the Group’s internal controls addressing financial,
operational and compliance risks were adequate as at 31 December 2015.
In line with Listing Rule 1207 (19) on Dealings in Securities, the Group issues a quarterly letter to its Directors, officers and
employees prohibiting dealings in listed securities of the Company from two (2) weeks or one (1) month, as the case may
be, before the announcement of the Company’s first three (3) quarters and annual financial results, and at any time they
are in possession of unpublished material price sensitive information. Directors and officers are also directed to refrain from
dealing in securities on short-term considerations.
Directors and officers are expected to observe the insider trading laws at all times even when dealing in securities within
permitted trading period.
CORPORATE GOVERNANCE STATEMENT
(CONT’D)
