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Corporate Governance Report

DIRECTORS’ AND AUDITOR’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The directors acknowledge their responsibility for the preparation of the financial statements of the Group.
In preparing the financial statements, the Hong Kong Financial Reporting Standards have been adopted,
appropriate accounting policies have been used and applied consistently, and reasonable and prudent
judgements and estimates have been made. The Board is not aware of any material uncertainties relating
to events or conditions which may cast significant doubt over the Group’s ability to continue as a going
concern. Accordingly, the Board has continued to adopt the going concern basis in preparing the financial
statements.

The auditor’s responsibilities are set out in the Independent Auditor’s Report.

AUDITOR’S REMUNERATION

For the year ended 31st March 2018, the remuneration paid to the Company’s auditor,
PricewaterhouseCoopers, is set out as follows:

Services rendered Fees paid/payable
HK$’000
Audit-related services 2,280
Non audit-related services
Tax compliance services 191

RISK MANAGEMENT AND INTERNAL CONTROL

The Board has the ultimate responsibility for the risk management and internal control systems of the
Company, and reviewing their effectiveness. Such systems are designed to manage rather than eliminate the
risk of failure to achieve business objectives, and can only provide reasonable and not absolute assurance
against material misstatement or loss.

The audit committee is responsible for overseeing the Company’s risk management and internal control
systems and procedures, and to report to the Board on any material issues and make recommendations to
the Board.

The audit committee and management are responsible for identifying the risks of the Group and discussing
those risks with management board. Management board shall evaluate whether the risks are significant and
shall manage them according to a level that is acceptable to the Group when achieving its strategic objective.

The internal audit department is responsible for assisting the Board in evaluating the various components of
the internal control system under the framework of control environment, risk assessment, control activities,
information and communication, and monitoring, co-ordinating the implementation of the Group’s risk
management and internal control systems and reviewing the effectiveness of the systems regularly.

16 ALCO HOLDINGS LIMITED ANNUAL REPORT 2018