Internal Control

The Board of Directors is ultimately responsible for ensuring that an effective internal control system is in place within SmartCraft. The Board has overall responsibility for ensuring that SmartCraft maintains appropriate and adequate internal control systems relative to the scope and nature of its operations. The purpose of internal control is to ensure reliable and accurate financial reporting, protect SmartCraft’s assets and ensure compliance with applicable laws and regulations. By implementing effective internal control and risk management systems, SmartCraft can better protect itself against situations that could adversely affect its reputation or financial position — which is crucial to building trust, achieving its goals and creating value for shareholders and other stakeholders.

Internal control also encompasses risk analysis and monitoring of integrated information and business systems. SmartCraft identifies, assesses and manages risks based on SmartCraft’s vision and objectives. The Board annually reviews SmartCraft’s most important risk areas and the internal controls in place, focusing on any deficiencies or weaknesses and how risks are managed. The Board shall also ensure that SmartCraft’s capital structure remains adequate in relation to the risks associated with the business.

Executive management is responsible for reporting relevant operational and financial risks to the Board on an ongoing basis, ensuring that the Board has sufficient information to make informed decisions and act swiftly in the event of changing circumstances. The Board meets regularly and receives continuous reports on SmartCraft’s development.