Board of directors

Bottling AppletiseBrewery scenePilsener beer

In this section, the directors report on their review of the effectiveness of the group’s systems of internal control.

The group’s existing internal controls and risk management processes are subject to regular review and adaptations, to the extent necessary to ensure full compliance with the requirements of the Turnbull Report for the reporting period, and to deliver improved value to the operating businesses.

In response to significant changes such as the acquisition and integration of Miller Brewing Company and the further development of the UK corporate centre, a programme has commenced to enhance the group’s risk management framework, and related systems of internal control, appropriate to the evolving structure and needs of the group.

The directors are responsible for the group’s systems of internal control and for reviewing their effectiveness. The systems of internal control are designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can provide reasonable, but not absolute, assurance against material misstatement or loss. In reviewing these, the board has taken into account the results of all of the work carried out by internal and external auditors to audit and review the activities of the group.

There is an ongoing process for identifying, assessing, managing, monitoring and reporting on the significant risks faced by individual group companies and by the group as a whole. This process has been in place for the year under review up to and including the date of approval of the annual report and accounts.

In accordance with Turnbull guidance, reviews on the effectiveness of internal control were carried out in May and November 2003 and in May 2004 by the board.

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