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Risk Management & Internal Compliance And Control

  8. RISK MANAGEMENT AND INTERNAL COMPLIANCE AND CONTROL

Shree Minerals has a number of policies on risk management, as well as a related internal compliance and control system.

Set out below is a summary only of some of the features of the risk management policies and internal compliance and control system.

8.1 Risk Management Policy

There are a range of specific risks that have the potential to have an adverse impact on Shree Mineral& rsquo s business. 

 

Financial risk: The Board has adopted a number of financial risk policies which address market price risk, liquidity risk, credit risk and corporate and bank guarantees.

Business risk: A range of policies and procedures deal with specific business risks, including:

  •   delegation of Authority policy and guiding principles    
  •   capital investment processes    
  •   Guide to Business Conduct and   
  •   litigation reporting. 

Operational risk: Policies for operational risk have been developed, including:

  •   Health, Safety and Environment    
  •   asset protection and operational security and   
  •   insurance. 

Procedures exist to monitor risk, with ultimate reporting to the Board, through either the Audit and Risk Committee for financial and business risk and the Chief Executive Officer for operational risk. 

8.2 Internal Compliance and Control

The Board ultimately has responsibility for internal compliance and control and has responsibility for ensuring that internal control systems are in place to monitor and manage risk.

In addition to the risk management policies noted above, Shree Minerals has an internal compliance and control system based on the following:

  •   a financial reporting control system that aims to ensure that financial reporting is both accurate and timely and   
  • ad hoc internal auditing controls and checks.  

Financial reporting control systems

Shree minerals has a number of financial control processes to ensure that the information that is presented to senior management and the Board is both accurate and timely.   The control processes include, among other things:

  •   annual audit and half year review by the external auditor    
  •   management review of the balance sheet and internal control environment    
  •   monthly review of financial performance compared to budget and forecast    
  •   ongoing monitoring of accounting policy to ensure consistent application and   
  • analysis of financial performance and significant balance sheet items to comparative periods. 

 

Risk Management & Internal Compliance And Control
 Shree Minerals Ltd.