KUALA LUMPUR (July 29): Integrated logistics services provider Xin Hwa Holdings Bhd has pledged to improve its internal control and corporate governance practices within the group, following the independent investigation done by KPMG Management & Risk Consulting Sdn Bhd in June.
In a filing with Bursa Malaysia today, Xin Hwa said this came after it obtained legal opinion from an appointed solicitor tasked to review KPMG’s report.
Xin Hwa said the KPMG report and legal opinion revealed that there are weaknesses in internal control procedures and processes.
The group said these professional opinions pointed out that there is lack of proper and in-depth knowledge of good corporate governance practices.
“Decisions have been made to improve those areas that could be remedied immediately. The internal auditors will be requested to assess and formulate plans to address those weaknesses and standard operating procedures, in order to improve and enhance the processes and practices.
“Attention and efforts will also be focused on the implementation and follow-up on the status of implementation, with the objective of reducing and mitigating lapses in weaknesses,” it said.
Xin Hwa also said it will strengthen its finance and accounting department.
“The current ongoing recruitment process for finance and accounting department will be intensified. Steps will also be taken to reemphasise the importance of corporate governance practices. Relevant training session will be conducted,” it said.
Xin Hwa said its board also deliberated and agreed that appropriate disciplinary action would be taken against relevant personnel of the group.
Xin Hwa’s share price gained two sen or 5.26% to close at 40 sen today, giving it a market capitalisation of RM86.4 million.