TYRATECH • ANNUAL REPORT 2014 • PAGE 16
C o rp o rat e G o v e r n a n c e ( c o n t ' d )
The Company's operating procedures include a comprehensive
system for reporting financial and non-financial information to
the Directors.
Annually, the Directors discuss and review the upcoming year's
business objectives and initiatives, which are accompanied by
an annual budget, phased monthly. The objectives, initiatives
and budget are approved by the Board and forecast updates
are prepared periodically. The budget and forecast updates
include an income statement, a balance sheet and a statement
of cash flows.
The Board reviews the actual financial results versus budget and
forecast together with other management reports containing
non-financial information.
Schedules of financial authority limits detailing management
authority limits for commitments in respect of sales orders, capital
and operating expenditure are circulated to relevant employees
and updated at least annually.
The Board considers that there have been no weaknesses in
internal financial controls that have resulted in any material
losses, contingencies or uncertainties requiring disclosure in the
financial statements.
The Non-Executive Chairman ensures that Directors may take
independent professional advice as required at the Company's
expense in appropriate circumstances and all members of the
Board have access to the advice of the Company Secretary.
GOING CONCERN
The Company has produced monthly forecasts to the end of 2016,
which indicate the Company will have sufficient cash to meet
its working capital needs through the next twelve months based
upon the following forecast assumptions: existing cash and cash
equivalents, its current operating plans, anticipated revenues
from product sales and other collaborative arrangements, and
the ability to control costs as a result of the Company's cost
minimisation program. For these reasons the Company continues
to adopt the going concern basis.
However, the Company cannot provide absolute assurance that
its forecasted level of revenue will materialise. In this event the
Company may need to initiate further cost reduction programs,
and may need to finance its cash needs through public or
private equity offerings, debt financings, corporate collaboration
and licensing arrangements, or other financing alternatives.
Currently, the Company has no committed external sources
of funds, and additional equity or debt financing, or corporate
collaboration and licensing arrangements, may not be available
on acceptable terms, if at all.
INTERNAL AUDIT
The Company does not have an internal audit function. However,
the Audit Committee reviews annually the need for such a
function and has done so during the year. The current conclusion
of the Board is that it is not necessary given the modest scale and
lack of complexity of the Company's activities.
SHAREHOLDER COMMUNICATION
It is the Company's policy to involve its shareholders in the
affairs of the Company and to give them the opportunity at the
Annual General Meeting to ask questions about the Company's
activities. This process enables the views of shareholders to be
communicated to the Board. In addition, any direct enquiries
are dealt with by the Company Secretary and communicated
as appropriate to the Board. Other than in exceptional
circumstances, all Directors, including those newly appointed,
participate in the Annual General Meeting of the Company,
and make themselves available for introductions and answering
shareholders' questions. Established procedures ensure the
timely release of price sensitive information and the publication
of financial results and regulatory financial statements. The
Company also maintains a website, www.tyratech.com, which
incorporates corporate, financial, product information and news.
This report sets out the Company's policy on the remuneration
of Executive and Non Executive Directors and details Executive
Directors remuneration packages and service contracts.
REMUNERATION COMMITTEE
The Remuneration Committee has the responsibility for
