governance

Our governance framework is designed to ensure that the company lives up to its core values and principles, institutionalizing Engro’s commitment to enabling excellence in everything we do.

Through concrete processes and mechanisms, we fulfill our responsibilities with everyone we interact with whether it be our customers, suppliers, communities or the government.

board of directors’ advisory bodies

At Engro, we have always remained mindful of the fact that as leaders in our domain, we must continue to innovate and drive focus on the adjacencies, which can fuel our next growth momentum so that together we can tap the great opportunities which lie ahead.

The Board People Committee meets multiple times through the year to review and recommend policies and all elements of compensation relating to the senior executives’ remuneration and of all members of the executive committee.

The Board Investment Committee assists the Board in reviewing the Company’s investment transactions and performances, and in overseeing the Company’s financial and capital resources.

The Board Audit Committee meets at least every quarter and assists the Board in fulfilling its oversight responsibilities, primarily in reviewing and reporting financial and non-financial information to shareholders, systems of internal control and risk management through the audit process. It has the power to call for information from the management and to consult directly with the external auditors or their advisors as considered appropriate.

 

internal control framework

Responsibility

The Board is ultimately responsible for Engro’s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.The Board, whilst maintaining its overall responsibility for managing risk within the Company, has delegated the detailed design and operation of the system of internal controls to the Chief Executive.

Framework

The Company maintains an established risk based control framework comprising of clear structures, authority limits, and accountabilities, well understood policies and procedures and budgeting for review processes. All policies and control procedures are documented. The Board establishes corporate strategy and the Company’s business objectives. Divisional management integrates these objectives into divisional business strategies with supporting financial objectives.

 

internal control framework

Review

The Board meets quarterly to consider Engro’s financial performance, financial and operating budgets and forecasts, business growth and development plans, capital expenditure proposals and other key performance indicators. The Board Audit Committee receives reports on the system of internal financial controls from the external and internal auditors and reviews the process for monitoring the effectiveness of internal controls.

Audit

Engro has an Internal Audit function. The Board Audit Committee annually reviews the appropriateness of resources and authority of this function. The Head of Internal Audit functionally reports to the Audit Committee. The Board Audit Committee approves the audit program, based on an annual risk assessment of the operating areas. The Internal Audit function carries out reviews on the financial, operational and compliance controls, and reports on findings to the Board Audit Committee, The Chief Executive and the divisional management.