REPORT ON CORPORATE GOVERNANCE
Annual Report 2015
Karin Technology Holdings Limited
31
PRINCIPLE 10 – ACCOUNTABILITY
The Board provides shareholders with half yearly and annual financial results. In presenting the financial results, the
Board aims to provide shareholders with a balanced and understandable assessment of the Company’s performance,
position and prospects on a half-yearly basis. Such responsibility is extended to the other price-sensitive public reports
and reports to regulators (if required).
The Board takes adequate steps to ensure compliance with legislative and regulatory requirements.
The Board accepts that it is accountable to the shareholders while the management is accountable to the Board.
Management provides all members of the Board with a balanced and understandable key financial data with such
information and explanation on a quarterly basis. Furthermore, the Management has been providing all the Executive
Directors with monthly consolidated financial reports.
PRINCIPLE 11 – INTERNAL CONTROLS
The Board believes in the importance of maintaining a sound system of internal controls to safeguard the interests of the
shareholders and the Group’s assets. The system of internal controls provides reasonable, but not absolute, assurance
that the Group will not be adversely affected by any event that could be reasonably foreseen as it strives to achieve its
business objectives.
The Board oversees Management in the area of risk management and internal control system. The Board regularly
reviews and improves the Company’s business and operational activities to identify areas of significant risks as well as
take appropriate measures to control and mitigate these risks.
The Board, with the assistance of the Audit and Risk Management Committee (“
ARMC
”), assesses the effectiveness
of the system of internal controls established and maintained by the Group, addressing financial, operational and
compliance risks, by considering reviews performed by the management and the internal assessment report performed
by internal audit staff from the Internal Audit Department. The internal audit staff reviews the effectiveness of the
system of internal controls established and maintained by the Group and assessment reports are being presented to
the ARMC regularly. The key executives hold monthly management meeting to discuss issues on business risks and its
assessments. The Board reviews the adequacy and effectiveness of the Company’s risk management and internal control
systems, including financial, operational, compliance and information technology risks as well as risk management
systems. Based on the reports presented, the Board, with the concurrence of the ARMC, is of the opinion that the
system of internal controls established and maintained by the Group addressing financial, operational, compliance and
information technology risks as well as risk management systems, were adequate to meet the needs of the Group in its
current business environment. The controls relating to information technology was reviewed by the internal audit staff
and reviewed by the ARMC during FY2015.
The Board collectively oversees risk management and does not have a separate risk committee.
The Board received assurance in writing from the CEO and Group Financial Controller, namely, Mr. Ng Kin Wing, Raymond
and Mr Wong Chi Cheung, Clarence, that financial records have been properly maintained and financial statements
of the Company give a true and fair view of the Company’s operations and finance. The assurance from Mr. Ng Kin
Wing, Raymond and Mr Wong Chi Cheung, Clarence also includes effectiveness of the Company’s risk management
and internal control systems.
