Annual Report 2022

65 China Merchants China Direct Investments Limited Annual Report 2022 CORPORATE GOVERNANCE REPORT (CONTINUED) FINANCIAL REPORTING The Directors acknowledge their responsibility to prepare financial statements in accordance with generally accepted accounting principles in Hong Kong for each financial year which gives a true and fair view of the financial position of the Company and its subsidiaries and in presenting the interim results, annual financial statements, and related announcements to shareholders. All Directors are provided with monthly updates on the Company’s major business activities and year-to-date financials, which give the Directors a balanced and understandable assessment of the Company’s performance, position and prospects, enabling the Board as a whole and each Director to discharge their responsibility. The Directors are not aware of any material uncertainties relating to events or conditions that may cast significant doubt upon the Company’s ability to continue as a going concern. The statement of the independent auditor of the Company about their reporting responsibilities on the financial statements is set out in the Independent Auditor’s Report on pages 94 to 96. RISK MANAGEMENT AND INTERNAL CONTROL To manage and monitor the various risk factors which the Company may be exposed, the Board is responsible for establishing and overseeing the Company’s risk management and internal control systems on an ongoing basis, and ensuring the review of the effectiveness of the risk management and internal control systems has been properly conducted. The main features of this system, which continue to operate, are described below. As required by the Listing Rules, the Company has reviewed its risk management framework and processes and has implemented relevant measures resulting from this exercise that aim to enhance its framework and processes. In particular, the Company has developed, approved and implemented a risk management system, which is defined and supported by its risk management policy. The terms of reference of the Audit Committee has included its responsibility for effective systems of risk management and internal control.