FGV Annual Report 2014

4. Policies and Procedures • Operational Policies and Procedures The Group operates based on existing policies and procedures. Operational Policies and Procedures (‘the Policy’) are reviewed periodically to remain effective and relevant to support the Group’s business activities at all times as it continues to grow and transform locally and across borders. The Policy also facilitates compliance to regulations, listing and governance requirements. • Budgetary Process Business Planning, which is coordinated and aligned to specific objectives, is essential to direct the activities and initiatives of each Clusters and Corporate Head Office towards meeting the Group’s short term and long term objectives. With this view, the Group emphasises on a comprehensive annual budgeting process to ensure that the Group’s business plans are in line with the approved Felda Global Ventures Holdings Berhad (FGV) Global Strategic Blueprint (GSB). The GSB covers a longer period and is an approved document that shall guide Management in the investment and capital allocation decision in the execution the Group’s strategy. 5. Monitoring The Group’s performance against its business plan and annual budget is measured and monitored through the following mechanisms: • Executive Information System (EIS) EIS is an online performance dashboard that provides the Management information to monitor the performance the Group and its six (6) business Clusters. The system measures performance against targets and identifies performance gap to facilitate the Management in making business decisions with the view to achieve the Group’s organisational goals. • Financial and Operational review Financial and Operational Review is a mechanism adopted to measure the Group’s actual performance against its business plan, previous year and the annual budget. The Financial and Operational review is undertaken on a regular basis by Executive Committee comprising of top management of the Group. The Group President and Group Chief Financial Officer present the Group Quarterly Financial Statements and the Operational Performance analysis to the AC prior to the Board for approval and subsequent release to Bursa Malaysia. Review of Statement by External Auditors and Group Internal Audit (GIA) Pursuant to Paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, the External Auditors have reviewed this Statement for inclusion in the 2014 Annual Report. Their review was performed in accordance with Recommended Practice Guide (“RPG”) 5 (Revised) issued by the Malaysian Institute of Accountants. The External Auditor had reported to the Board that nothing has come to their attention that causes them to believe that the Statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy of the risk management and system of internal control. Conclusion Based on the processes and measures undertaken by the Board and its Committees during the financial year and assurance provided by the Group President/Chief Executive Officer and Chief Financial Officer, the Board is of the view that the risk management framework and internal control system as described in this Statement is sound and effective to safeguard the shareholders’ investment and the FGV Group’s assets. This Statement is made in accordance to the resolution of the Board dated 28 April 2015. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 155