34
GDS Global Limited Annual Report 2015
CORPORATE
GOVERNANCE
For the financial year under review, the CEO and the CFO have provided assurance to the Board on the
integrity of the financial statements of the Company and the Group.
Principle 11: Risk Management and Internal Controls
The Board, with the assistance from the AC, is responsible for the governance of risk by ensuring
that management maintains a sound system of risk management and internal controls to safeguard
shareholders’ interests and the Group’s assets and determines the nature and extent of the significant
risks which the Board is willing to take in achieving its strategic objectives.
The AC is responsible for making the necessary recommendations to the Board such that an opinion
regarding the adequacy and effectiveness of the risk management and internal control systems of the
Group can be made by the Board in the annual report of the Company according to the requirements in
the Listing Manual and the Code.
The Company has engaged an independent accounting firm, KPMG Services Pte. Ltd. (“KPMG”), as its
internal auditors who have presented their Enterprise Risk Management (“ERM”) proposal to the AC and
the Board to assist the AC and the Board in their review of the Group’s risk management and internal
control systems focusing on financial, operational, compliance and information technology controls.
Management regularly reviews the Group’s business and operational activities in respect of the key
risk control areas including financial, operational, compliance and information technology controls and
continues to apply appropriate measures to control and mitigate these risks. All significant matters are
highlighted to the AC and the Board for further discussion. The AC and the Board also work with the
internal auditors, external auditors and management on their recommendations to institute and execute
relevant controls with a view to managing such risks.
With assistance from the internal auditors, key risk areas which have been identified are analysed,
monitored and reported. In this connection, the Group has conducted the enterprise risk assessment
and has established the risk reporting dashboard with a view to develop a detailed risk register and to
develop a structured ERM to ensure that the Group’s risk management and internal control systems are
adequate and effective.
Assurance from the CEO and the CFO
The Board has received written assurance from the CEO and the CFO that:
a)
The financial records of the Group have been properly maintained and the financial statements for
the financial year ended 30 September 2015 give a true and fair view of the Group’s operations
and finances; and
b)
The system of risk management and internal controls in place within the Group is adequate and
effective in addressing the material risks in the Group in its current business environment including
material financial, operational, compliance and information technology risks.
The CEO and the CFO has obtained similar assurance from the business and corporate executive heads
in the Group.
Opinion on the adequacy and effectiveness of the risk management and internal control systems
The AC sought the views of the external auditors in making assessment of the internal controls over
financial reporting matters. In addition, based on the internal controls established and maintained by the
Group, the work performed by the internal auditors as well as the assurance received from the CEO and
the CFO, the Board with the concurrence of the AC, is of the opinion that the Group’s risk management
and internal control systems, addressing financial, operational, compliance and information technology
risks were adequate and effective as at 30 September 2015.
