Internal Control

In accordance with the Code, the Board acknowledges its responsibility to ensure that an adequate system of internal controls is in place which is essential for reliable financial reporting and also for the effective management of the Group.

The Audit Committee assesses the quality of the control environment when monitoring and reviewing the integrity of the Group’s financial statements and any significant judgements that were made in their preparation.

Essentra's internal controls are designed to safeguard the Company’s assets and to ensure the integrity and reliability of information used both within the businesses and for public announcements. The Board has overall responsibility for the Company’s system of internal control and risk management and for reviewing the effectiveness of this system. Such a system can only be designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can therefore only provide reasonable, and not absolute, assurance against material misstatement or loss.

The following procedures are in place which enable the Board to review the effectiveness of the system of internal control:

  • The Audit Committee meets regularly and reports to the Board, no less frequently than at every Board meeting following an Audit Committee meeting
  • The terms of reference provide a framework for the Audit Committee to review and oversee the quality, integrity, appropriateness and effectiveness of the Group’s internal control framework
  • The Board has the opportunity to review the internal control environment at local sites when Board meetings are held away from the Company's head office
  • Every month each division submits detailed operating and financial reports covering all aspects of performance. These are reviewed within the Group's central finance function and summary reports are communicated to the Group Management Committee and the Board
  • Certificates are required from the businesses to confirm compliance with the Group's policies (including financial) and procedures both at the half year and year end