Governance & Controls

Information on the Work of the top Management Body

The basis for the organisation of the tasks of the board of directors and the executive board is amongst others the Company Act, the company’s regulations as well as good practice for companies of the same size and with the same international scope as Wrist Ship Supply A/S. In this respect, the company – being owned by a private equity fund – complies with guidelines for responsible ownership and good corporate management. On this basis a number of internal procedures which will ensure an active, secure and profitable management of the Group are continuously developed and maintained.

The board of directors in Wrist Ship Supply A/S ensures that the executive board observes the approved objectives, strategies and procedures. Every month the executive board submits a written report concerning the company’s financial position, the development in profitability and financial resources.

The board of directors meet according to a fixed schedule approximately 6 times a year. Furthermore, the chairman of the board has a meeting with the executive board every other month, and in addition the board of directors and the executive board conduct an annual strategy day, where the company’s vision, objective and strategy is established. External auditors take part in the board meetings minimum once a year. Extraordinary board meetings are called if circumstances dictate.

The Company’s internal Control and Risk Management Systems in connection with Presentation of Accounts

The board of directors and the executive board have the overall responsibility for the Groups’s/company’s risk management and internal controls in connection with presentation of accounts.

The organisational structure and the internal guidelines make up the control environment together with laws and other rules applicable for the Group. The executive board continuously evaluates the Groups’s organisational structure and staffing as well as establishes and approves the overall policies, procedures and controls in connection with the presentation of accounts process.

In relation to the presentation of accounts the executive board has particular focus on administrative procedures and internal controls within the following areas and items of the accounts, which ensures that the presentation of accounts is carried out with adequate security;

• Management of stock, including depreciation assessments
• Debtor management, including depreciation assessments
• Depreciation assessments of long-term assets

Wrist Ship Supply A/S has established a formal Group reporting process, which, amongst other things, includes a monthly report consisting of budget follow-up, performance evaluation and achievement of set objectives, etc.

The Company’s internal Control and Risk Management Systems regarding Commercial Risks

As part of the annual update and approval of the strategy plan, the board of directors and executive board evaluates commercial risks. In connection with the risk assessment, the executive board will, when necessary, decide on the finance-, hedging- and insurance policies for the Group, which have been approved by the board of directors. The Groups’s primary commercial risks are related to the company’s ability to maintain a leading position as a reliable supplier of provisions and technical goods to ships and offshore installations at competitive prices. In recent years, the Group has been investing heavily in IT systems, organisation and the physical infrastructure to ensure the competitive position.

The risk management of Wrist Ship Supply A/S, including internal controls in connection with the financial reporting process, has been designed with a view to effectively minimise the risk of errors and deficiencies. The executive board is responsible for constantly identifying, evaluating and handling risks in order to reduce the financial consequence and/or the probability of any risks occurring and report findings to the board of directors.