SARAWAK PLANTATION BERHAD
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Annual Report 2014
Statement on Corporate Governance
VI. Accountability and Audit
(continued)
Internal Control
The Board of Directors assumes the responsibility for the Company to maintain a sound system of
internal control to safeguard shareholders’ investment and the Company’s assets, as well as reviewing
the adequacy and effectiveness of the system of internal control.
The Board of Directors also recognises that due to the limitations inherent in any internal control, such
system of internal control is designed to manage and mitigate risks that may impede the
Company’s achievement of its objectives rather than eliminate these risks. Accordingly, the system of
internal control can only provide reasonable but not absolute assurance against any material
misstatements, loss or fraud. The Directors’ Statement on Risk Management and Internal Control as
set out on pages 48 to 49 of this Annual Report provides an overview of the Company’s approach
in maintaining a sound system of internal control to safeguard shareholders’ interests and the
Company’s assets.
Statement of Compliance with the best practices of MCCG 2012
The Board of Directors is committed to uphold high standards of professionalism and excellent
corporate governance practices in the running of the affairs of the Company. The Board of Directors is
pleased to confirm that it has complied with the best practices of MCCG 2012 during the year in review.
Board Audit Committee
The Company has an internal audit function which reports directly to the Board Audit Committee.
A Report from the Board Audit Committee is tabled to the Board of Directors at their scheduled
meetings for their information and further action where appropriate.
Relationship with the External Auditors
The Board of Directors, via its Board Audit Committee, maintains a formal and transparent relationship
with its external auditors. The Board Audit Committee meets with external auditors at least twice a
year to discuss their audit plan, audit findings and to ensure that financial statements of the Company
comply with approved accounting standards and statutory requirements. These meetings are held
independently of the Executive Director and the Management.
External auditors are also present at the annual general meeting of the Company and are available to
answer shareholders’ queries on the conduct of the statutory audit.
VII. Other Information
Share Buy Back
The SPB shares bought back are held as treasury shares in accordance with Section 67A of the
Companies Act 1965. During the financial year ended 31 December 2014, the Company did not
purchase any of its own shares. In addition, none of the treasury shares held were resold or cancelled.
Total treasury shares held by the Company as at 31 December 2014 was 436,100.
Options, Warrants or Convertible Securities
There were no options, warrants or convertible securities issued by the Company during the year.
